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3 years ago

Comparative advantage is based on the economic concept of:

Business

1 answer:

vodomira [7]3 years ago

6 0

Answer:

B. Opportunity Cost

Explanation:

Comparative Advantage is when an economy can produce certain goods & services at a lower opportunity cost than other trading economies.

Opportunity cost is the cost of next best option forgone while choosing a particular option.

Comparative advantage (production ability at lower opportunity cost) implies: Economy can produce a good/ service by sacrifising lesser amount of other good, than the other economy.

Example : Production Possibilities of 2 countries, 2 goods :-

Good X Good Y Opportunity Cost (Goods Ratio)

Country A 10 30 1:3 (10/30)

Country B 5 10 1:2 (5/10)

Country A can produce Good Y by sacrifising 3 units of Good X, Country B can produce Good Y by sacrifising 2 units of Good X. So, B can produce good Y at lesser opportunity cost than A. Hence, country B has comparative advantage in good Y.

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Oakland Corporation reported a net operating loss of $500,000 in 20X3 and elected to carry the loss forward to 20X4. Not include

Daniel [21]

Answer:

The correct answer is

D. ($260,000)

good luck ❤

8 0

4 years ago

A company planned to sell 100 canoes for the month of April at an average sales price of $600. Midway through the month, the com

andreyandreev [35.5K]

Answer:

flexible budget amount for canoe sales revenue for April is $72000

Explanation:

given data

sell = 100 canoes

average sales price = $600

sold = 65

total sales = 130

canoes at an average price = $595

actual sales = 120 canoes

to find out

flexible budget amount for canoe sales revenue for April

solution

we know here for flexible budget april sale unit are = 120

and selling price is $600

so that April sales will be here = 120 × 600

April sales = 72000

so flexible budget amount for canoe sales revenue for April is $72000

3 0

3 years ago

Joe's Jalopies sold one of its warehouses for $300,000 cash plus a tractor with a fair market value of $25,000. The building had

spayn [35]

Answer:

$355,000

Explanation:

Joe's jalopies sold one of its warehouse for $300,000 and a tractor that has a fair market value of $25,000

The warehouse had a mortgage of $50,000 against it.

The adjusted basis was $130,000

Joe had to make a payment of $20,000 in sales commission to the realtor

Therefore, the amount realized by Joe's jalopies can be calculated as follows

=$300,000+$25,000+$50,000-$20,000

= $375,000-$20,000

= $355,000

Hence the amount that was realized by Joe's jalopies is $355,000

7 0

4 years ago

For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP

Vadim26 [7]

Answer:

a. Imports (M), b. Government Expenditure (G), c. Exports (X), d. Investment 'I'

Explanation:

a) 'Kevin buys a bottle of Italian wine' is a part of US Imports (M)

b) 'The state of Pennsylvania repaves highway PA 320' is a part of US Government Expenditure (G)

c) 'Maria's father in Sweden orders a bottle of Vermont maple syrup from the producer's website' is a part of US Exports (X)

d) 'Kevin's employer upgrades all of its computer systems using U.S.-made parts' is a part of US Investment 'I'

4 0

3 years ago

Eleanor spends all of her money on magazines and donuts. In 2014, she earned $14.00 per hour, the price of a magazine was $7.00,

Alexandra [31]

Answer;

1. A. Eleanor's wage is $14.00 per hour in 2014.

B. The price of a donut is $1.00 in 2014.

When a variable is stated in nominal terms, it is usually given as a fixed monetary value because it is not adjusted for inflation. It therefore mentions just the price as is.

2. A. Eleanor's wage is 14 donuts per hour in 2014.

B. The price of a magazine is 7 donuts in 2014.

When goods are described in real terms, they are related to another good in order to adjust them for inflation.

3. The price of a magazine is $14.00 and the price of a donut is $2.00.

In 2019, the relative price of a magazine is 7 donuts.

The relative price = Price of Magazine/ Price of donuts

= 14/2

= 7 donuts.

4. Between 2014 and 2019, the nominal value of Eleanor's wage increases, and the real value of her wage remains the same.

As a result of the increase in money supply, Eleanor's wages increased nominally from $14 to $28.

However, in real terms her wages did not increase at all because the price level in the economy increased by the same rate that her wages increased meaning that she is still only able to buy the same quantity of things.

5. Monetary neutrality is the proposition that a change in the money supply affects nominal variables and does not affect real variables.

From Eleanor's example above, the concept of Money Neutrality is shown in that while a change in money supply will affect nominal variables, it will not affect real variables due to a general rise in prices.

6 0

3 years ago