Answer:
C. Country A would focus on growing carrots to trade with country country B.
Explanation:
Country A can produce twice as many carrots as country B. this indicates that country A seems to have a comparative advantage over Country B in carrot production. Both countries have equal capacity in the production of apples.
Country A should focus on producing carrots for sales to country B. It can produce double what country B can, meaning its production costs are lower. Country A can sell carrots to country B at a lower price than it would cost country B to produce its carrots. Therefore, country A would be prudent to focus on producing carrots and trade them to country B.
Answer and Explanation:
The Journal entry is shown below:-
1. Cash Dr, $27,300
(1,300 × $21)
To Common Stock $1,300
To Paid in capital in excess of par-Common Stock $26,000
(Being issue of common stock is recorded)
2.Treasury stock Dr, $5,000
(250 × $20)
To Cash $5,000
(Being repurchase of treasury stock is recorded)
3. Cash Dr, $6,750
(250 × $27)
To Treasury stock $5,000
(250 × $20)
To Paid in capital-Treasury stock $1,750
(Being reissue of treasury stock is recorded)
Answer:
(B) Dow Jones Economic Sentiment Indicator
Explanation:
Dow Jones Economic Sentiment Indicator measures the economic health of the Texas economy; furthermore, it is commonly approved by economists throughout the US, as an economic measurement tool used for forecasting.
Answer:
c) Catastrophe Bonds
Explanation:
These type of bonds are also known as the CAT bonds, and they are issued at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.
Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.
Hope this helps.
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