Answer:
a) Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan.
1 Car 1 Ton of Grain
United States 1/5 1/9
Japan 1/3 1/9
b) Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan.
1 Car 1 Ton of Grain
(tons of grain given up) (cars given up)
United States 9/5 5/9
Japan 3 1/3
c) Complete the following table with the quantities of cars produced and consumed in each country if there is no trade.
Cars Produced Tons of Grain Produced
and Consumed and Consumed
United States 250 million 450 million
Japan 150 million 450 million
d) Both countries would be better off if they produced the good in which they have a comparative advantage and then traded 400 million tons of grain for 200 million cars.
a. True
IF each country specialized in the production of only one good:
- US would produce 500 million cars
- Japan would produce 900 million tons of grain
If they traded, the US would end up with 300 million cars and 400 million tons of grains, while Japan would have 200 million cars and 500 million tons of grains. So they both win.
Answer: $98.36
Explanation:
Based on the information that has already been given in the question, the following can be analysed:
For Loan 1:
Interest Rate = 7%
Nper = 30
Present value = $100000
With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:
= pmt(rate, nper, pv,fv)
= pmt(7%/12,30×12,-100000,0)
= pmt(0.07/12,360,-100000,0)
= $665.30
For Loan 2:
Interest Rate = 7%
Nper = 30
Present value = $100000
Future value = $120000
With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:
= pmt(rate, nper, pv,fv)
= pmt(7%/12,30×12,-100000,120000)
= pmt(0.07/12,360,-100000,120000)
= $566.94
The difference in the monthly payments will be:
= $665.3 - $566.94
= $98.36
Answer:
Assuming that Samuel's retiring age is exactly 65 years old, and he starts collecting benefits 24 months before his full retirement age (exactly on his birthday number 63), then he will receive $867 per month (or 86.7% of his full benefits).
This calculation varies depending on the number of months, e.g.
months before full retirement age % of full retirement benefit
24 86.7%
23 87.2%
22 87.8%
21 88.3%
20 88.9%
19 89.4%
18 90.0%
17 90.6%
16 91.1%
15 91.7%
14 92.2%
13 92.8%
Answer and Explanation:
The computation of the variable cost per unit and the total fixed cost is shown below;
a. The variable cost per unit is
= (Highest total cost - lowest total cost) ÷ (Highest units produced - lowest units produced)
= ($440,000 - $300,000) ÷ (5,500 - 2,700)
= $140,000 ÷ 2,800
= $50
b. The total fixed cost is
= $440,000 - 5,500 × $50
= $440,000 - $275,000
= $165,000
