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mrs_skeptik [129]
3 years ago
7

Suppose that a simple society has an economy with only one resource, labor. Labor can be used to produce only two commodities ax

isX, a necessity good (food), and Y, a luxury good (music and merriment). Suppose that the labor force consists of 100 workers. One laborer can produce either 5 units of necessity per month (by hunting and gathering) or 10 units of luxury per month (by writing songs, playing the guitar, dancing, and so on).a. On a graph, draw the economy axis ppf. Where does the ppf intersect the Y-axis? Where does it intersect the X-axis? What meaning do those points have?b. Suppose the economy produced at a point inside the ppf. Give at least two reasons why this could occur. What could be done to move the economy to a point on the ppf?c. Suppose you succeeded in lifting your economy to a point on its ppf. What point would you choose? How might your small society decide the point at which it wanted to be?d. Once you have chosen a point on the ppf, you still need to decide how your society axis's production will be divided. If you were a dictator, how would you decide? What would happen if you left product distribution to the free market?
Business
1 answer:
max2010maxim [7]3 years ago
4 0

Answer:

a, The PPF intersect the Y-axis at 1000 units of luxury goods

   The PPF intersect the X-axis at 500 units of necessity good

    It means that when the society produces zero units of necessity, it can          produce 1000 units of luxury goods and if they use all resources to produce necessity, they can produce 500 units only

b. The economy can produce at a point inside the curve IF (1) There is underutilized of the available resources. (2) There is inefficiency in the use of resources  

c. I will want to produce more necessity than luxury. The decision on which point the society will want to be depend on the type of economic system being practiced by my society, if it is free market, the price system will determine it and for a socialist system, the government decides.

d. If I am a dictator, I will make decrees as to the economic direction I want for the society and where the product distribution is left to the free market, the price system decides.

Explanation:

The production possibility frontier is a graph that shows the trade-off between two commodities which a country can be assumed to produce. An economy can operate on the PPF in which case it is using its resources to the fullest. It can operate inside the curve which means under-utilization of resources or inefficiency in resources utilization. A country cannot operate outside the curve except there is technological progress or economic growth.

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After its success in Japan, Starbucks worked with local operators, collecting initial fees and then royalties on store revenues
kotykmax [81]

Answer:

Franchising.

Explanation:

Franchise is a license consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.

One of the main advantages of a franchise is that, franchisers such as Starbucks do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee. For instance, Starbucks could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.

Hence, this type of relationship best describes franchising because Starbucks worked with local operators while collecting initial setup fees and then royalties on store revenues generated by the franchisees as it entered other Asian countries.

7 0
2 years ago
Changes in the prices of key commodities can have a significant impact on a company's bottom line. Energy is an input into virtu
andrew11 [14]

Answer:

B)The cost of energy for a company can be both a fixed cost and a variable cost.

Explanation:

Energy is a fixed cost because it is an utility that companies have to pay regardless of the level of production; they need energy to function.

Energy is a variable cost because energy is an input to production, and the amount of energy used (and hence its cost) can vary a lot depending on how much output is produced. In the question, ethanol is referenced, which is also a type of variable cost, because it is an energy source that depends on another input (corn), and its used as a substitue for gasoline.

8 0
3 years ago
James is currently unemployed. He is disappointed every Sunday when none of the job advertisements in the newspaper are for work
balandron [24]

Answer:

Structural unemployment

Explanation:

James is going throughout a non voluntary unemployment because there is a "gap" between his skills and the market demanded skills. To minimize this gap, James should improve his skills sets, or take a job with less requirements

5 0
3 years ago
The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant deprecia
musickatia [10]

Answer:

double declining balance method

Explanation:

Depreciation is an accounting tool to allocate the cost of a long-term asset over time. The reasoning behind is the matching principle. If we associate the entire purchase value at the very first moment, then, one accounting period is taking a hit for an asset that will be use over several accounting periods.

         

The double declining method applies a rate twice as the straight-line method.

This is applied at the carrying value of the assets (book value) every year for each year of useful life.

5 0
3 years ago
Assume the following exchange rates: $1 = NZ$3, NZ$1 = MXP2, and $1 = MXP7. Given this information, as you and others perform tr
Vika [28.1K]

Answer:

c. Appreciate; Appreciate

Explanation:

Triangular arbitrage is the act of taking an opportunity resulting from a pricing discrepancy among three different currencies when the currency's exchange rates do not exactly match up

This cases are very rare and for a quite short period of time so there are very few traders who takes the advantange of them.

Lets study th given cases here:

A) NZ dollar Versus Mexican Peso

The exchage rate is 1NZ$= 2 Mexican Pesos (MXP)

But if we apply the triangular arbitrage:

1 NZ dollar = 0.3333 US$

and we know tha 1 US$= 7 Mexican Pesos (MXP

Then 1 NZ dollar = 0.3333* 7 MXP= 2.333 MXP

So the NZ dollar appreciates

B) MXP Versus U$S

The exchage rate is 1 MXP= (1/7) U$S

But if we apply the triangular arbitrage:

1 MXP = 0.5 NZ

and we know tha 1 NZ= 0.333 US$

Then 1 MXP = 0.5* 0.333 U$S= 0.166 U$S

So the MXP appreciates

7 0
3 years ago
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