g Jack and Jill borrow $21,000 at 7.2% amortized over 6 years to drill a well and renovate their kitchen and bathrooms. Assuming
1 answer:
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Answer:
b. cups and Juba has a comparative advantage in the production of bowls.
Explanation:
A company or country could said to have a comparative advantage if t produces a good or service with the lowest possible opportunity costs.
Bintu's opportunity cost of 1 unit of Bowls.
Bintu can produce 2 Bowls or 8 cups.
Therefore; 2 Bowls = 8 cups
We need to make it 1 Bowl, so we divide both sides by 2.
2 Bowls / 2 = 1 Bowl
8 cups / 2 = 4 cups
Hence, 1 bowl = 4 cups
Juba's opportunity cost of 1 unit of Bowls.
Juba can produce 4 Bowls or 6 cups.
Therefore; 4 Bowls = 6 cups
We need to make it 1 Bowl, so we divide both sides by 4.
4 Bowls / 4 = 1 Bowl
6 cups / 4 = 1.5 cups
Hence, 1 bowl = 1.5 cups
We now need to calculate the opportunity cost of 1 unit of cups from Bintu and Juba. This is just the same process as before, but with 1 unit of cup instead.
Bintus's opportunity cost of 1 unit of cups
Bintu can produce 8cups or 2 bowl.
Therefore, 8 cups = 2 bowls.
We need to make it 1 cup, so we divide both sides by 8.
8 cups / 8 = 1 cup
2 bowls /8 = 0.25 bowls.
Hence, 1 cup - 0.25 bowls
Juba's opportunity cost of 1 unit of cups.
Juba can produce 6 cups or 4 bowls.
Therefore, 6 cups = 4 bowls.
We need to make it 1 cup, so we divide both sides by 6.
6 cups /6 = 1 cup
4 bowls / 6 =0.67 bowl
Hence, 1 cup = 0.67 bowl
Now comparative advantage is when either of these two can produce a good with the lowest possible opportunity cost.
From the calculation above, the opportunity cost for bowl is 4 in Bintu and 1.5 in Juba. So since Juba has the lowest opportunity cost for bowls, it, therefore, Juba has a comparative advantage in the production of bowls. In the same way, since cost for Cups in Bintu is 0.25 and that of Juba is 0.67, then Bintu has a comparative advantage in the production of cups
Answer:
discount of 6.3%
Explanation:
Since the same amount, in dollars, would buy you more yen at the 90-day forward rate then at the current date, the yen is selling forward at a discount. The discount per annum is given by:
The yen is selling forward at a per annum discount of 6.3%
Answer: d. supply decreased
Explanation:
Airlines are the suppliers while people who book flights create demand. If several airlines leave the industry, supply would fall and there would be excess demand over supply which would cause the price of flights to rise.
I hope my answer helps you.
