Answer:
y
beta
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
Opportunity cost of country X in producing alpha = 300 / 100 = 3 units of beta
Opportunity cost of country Y in producing alpha = 200 /100 = 2 units of beta
Y has a comparative advantage in the production of alpha
Opportunity cost of country X in producing beta = 100/ 300 = 0.3
Opportunity cost of country Y in producing beta = 100/200 = 0.5
X has a comparative advantage in the production of BETA
alpha 3 2
Answer: 1. a. The existence of a no-fault law.
2. d. $17,000
Explanation:
1. For Jane to prove that Famous was indeed negligent, she definitely does not need the No - Fault law. This is a law that is mostly applicable to motor vehicle accidents and means that the individual parties are responsible for whatever injuries they sustain and the person who actually caused the accident is irrelevant. The main aim of this is to reduce the damages claims that one can be put on Insurance which increase insurance premiums.
<em>If this law was to be applied here, Jane would</em> <em>be responsible for her own injuries and her suit would fail. </em>
2. Jane missed 2 weeks of work and in each week she earns $5,000.
She also had medical expenses of $4,000 and estimated pain and suffering of $3,000.
The general damages therefore are the two weeks she missed plus the medical expenses and the pain and suffering.
= 5,000 ( 2) + 4,000 + 3,000
= 10,000 + 7,000
= $17,000
Answer: a. $1,000.0m
Explanation:
Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.
The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.
Answer:
E. All the statements are correct
Explanation:
i. Corporations rarely pay tax on the interest income.
This statement is correct. Some companies do not even pay any income taxes.
ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.
Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.
iii. Short term capital gain and long-term capital gain are treated differently for individuals.
Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.
Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.
iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.
This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.
When the organization faces an emergency situation.
Autocratic leadership (or authoritarian leadership) is characterized by a single person taking control of decision making. In an emergency, having a clear leader is sometimes the best option.
