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slavikrds [6]
3 years ago
6

Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week

that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.
Country Rye Jeans
(Bushels per hour of labor) (Pairs per hour of labor)
Felicidad 4 16
Arcadia 5 10

Initially, suppose Arcadia uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans while Felicidad uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Felicidad produces 12 million bushels of rye and 16 million pairs of jeans, and Arcadia produces 5 million bushels of rye and 30 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.

Felicidad's opportunity cost of producing 1 bushel of rye is ________ of jeans, and Arcadia's opportunity cost of producing 1 bushel of rye is ________ of jeans. Therefore, ________ has a comparative advantage in the production of rye, and ________ has a comparative advantage in the production of jeans.

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce ________ million bushels per MONTH, and the country that produces jeans will produce ________ million pairs per MONTH.
Business
1 answer:
Rufina [12.5K]3 years ago
8 0

Answer:

<u>Felicidad: </u>each bushel of rye cost 4 pairs of jeans

<u>Arcadia: </u>each bushel of rye cost 2 pair of jeans

As in comparison it takes less pair of the jean to produce a bushel of rye Arcadia has a comparative advantage in the production of rye

while Felicidad has it in the production of jeans.

<em>Specialized economy:</em>

Felicidad 16,000,000 pairs of jean

Arcadia 20,000,000 bushels of rye

Explanation:

The opportunity cost is the number of goods not produced as a result of the production choice.

For the bushel of rye, it will be the pairs of jeans.

<em><u>For  Felicidad Island will be:</u></em>

16 jeans / 4 bushel of rye = 4 jeans

each bushel of rye cost 4 pairs of jeans

<em><u>For Arcadia Island will be:</u></em>

10 pair of jeans / 5 bushels of rye = 2 jeans

each bushel of rye cost 2 pair of jeans

<em><u>If they specialize </u></em>

Felicidad 4 millions labor hours x 4 pairs per hour = 16,000,000 jeans

Arcadia 4 millions labor hours x 5 bushel per hour = 20,000,000 bushel

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Explanation:

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Squirrel Tree Services reports the following amounts on December 31.
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Answer and Explanation:

The Preparation of balance sheet is prepared below:-

                                    Squirrel Tree Services

                                        Balance Sheet

                              For the year ended 31st December

Assets                        Amount              Liabilities                 Amount

Cash                             $8,300            Accounts payable    $11,500

Supplies                       $2,400            Salary payable         $4,100

Prepaid insurance       $4,100            Notes payable          $26,000

Building                        $78,000

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                                                            Retained earning    $11,200

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                                                                 equity                  $51,200

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<u>Total assets              $92,800          stockholder equity   $92,800</u>

B. The preparation of cash flows is shown below:-

                                    Squirrel Tree Services

                                        Cash flow

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Particulars                                                                         Amount

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Cash inflow from customers                   $96,000

Cash outflow for salaries                         ($40,000)

Cash outflow for supplies                        ($22,000)

Net cash flow from operating activities                         $34,000

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Working note

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On their birthdays employees at a large company are permitted to take a 60-minute answer
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Answer:

Full question: <em>On their birthdays, employees at a large company are permitted to take a 60-minute lunch break instead of the usual 30 minutes. Data were obtained from 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday. The company wishes to investigate whether these data provide convincing evidence that the mean time is greater than 60 minutes. Of the following, which information would NOT be expected to be a part of the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance?</em>

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Explanation:

<em>From the given question let us recall the following statements:</em>

<em>Employees at a large company are permitted to take a 60-minute Lunch break instead of the  30 minutes.</em>

<em>Data was gotten from = 10 randomly selected company employees on the amount of time that each actually took for lunch on his or her birthday</em>

<em>Given that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes.</em>

<em>The company tries to investigate the data to know that the mean is greater than 60 minutes</em>

<em>the next step is to find the process of correctly conducting a hypothesis test to investigate the question, at the 0.05 level of significance</em>

<em>Therefore,</em>

<em>Since that the p-value is greater than 0.05, rejecting the null hypothesis and concluding that the mean time was not greater than 60 minutes. </em>

<em>Or</em>

<em>The P-value> 0.05</em>

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