Answer and Explanation:
1> Let's solve the standard economic model first based on rational expectation.
Since the medium willingness to pay is $5, we can assume half the people have more willingness to pay than $5 and half the people have less. (Since it's a large class, we can assume this)
So, half of them who got the mug will sell, according to standard theory.
2> Now behavioral economist will disagree. People who got the mug, get an emotional and nostalgic attachment with it, thus they would not like to sell it because they get utility after having something, so by behavioral theory, less than half of pupils who got the mug will sell.
The implication of sharing confidential material information is about having to keep a certain thing private in a way that it should be remained secret and hidden unless it has been given consent by the person who holds the privacy to be told to another party. It is not release carelessly and should be handled with care as it should be kept by the person withholding the information.
Answer:
US specialisation in TV can be stated on the basis of Absolute Advantage, not comparative advantage.
Explanation:
Absolute Advantage is when a country can produce more output per input of a commodity, than other country.
Comparative Advantage is when a country can produce a good at lower opportunity cost (in terms of other sacrifised)
China can produce more (ie 5 units television) per hour employed, compared to US able to produce lesser (3 units) in the same time. So, on the basis of Absolute Advantage, it can be stated that US should specialise in TV production.
However, since other good's details have not been given. So, we cannot attain the relative opportunity costs. Hence, specialisation on the basis of comparative advantage can't be stated.
Answer:
A. She needs to acquire funding for her business.
Explanation:
Took the test
Answer:
The importer accepts this price, so his bank will <u>debit</u> the importer's account in the amount of <u>$500000</u>
Explanation:
Debiting an account removes money from the account. Crediting an account adds money to the account.
The bank will therefore <em>debit</em> his account because the money will be taken out and paid to the exporter.
The amount that the importer pays in dollars can easily be calculate as:
€512,100 / €1.0242 = $500000
