Answer:
the general welfare will be the sum of consumer surplus and producer surplus.
Explanation:
The consumer and producer surplus assessment serves to measure the overall efficiency of the market, which in turn is associated with overall well-being. An efficient market is one in which both consumers and producers have the incentive to negotiate and effect trade.
Consumer surplus is the difference between the amount he or she is willing to pay and how much he or she actually pays for the product. This surplus is positive when the amount paid is less than the amount for which the consumer would be willing to pay.
Similarly, the producer's surplus is the difference between the market price and the price at which the seller is willing to produce and sell. When the producer's surplus is positive, it means that he sells the product for a price higher than the minimum value that would stimulate him to produce.
Thus, the general welfare will be the sum of consumer surplus and producer surplus.
They dont see the end benefit
Not 100% on this one
Answer: (E) none of the other choices
Explanation:
None of the options are correct in the above question.
The USA extends Most Favoured Nation Status to most countries in the world including Germany so that would not be a reason for the car's not to pass through customs.
The cars could indeed be a threat to national security. Just because they come from a safe country does not mean that they were not tampered with. They need to be properly inspected.
They are indeed a source of competition for US automakers but that would be no reason to stop them. Perhaps tariffs could be applied on them but they will not be stopped.
There is no provision in US Customs practices that prohibits the importation of used cars solely because they are used cars therefore it will not be a reason to halt the car's going through customs.
None of the options are therefore correct.
Answer:
Market Price $985.01
Explanation:
We have to convert the US semiannually rate to annually.
Now this is the annual rate spected for a similar US Bonds
So we are going to calculate the present value using this rate.
Present value of an annuity of 78 for 20 years at 7.9521%
PV = 768.55
And we need to add the present value ofthe 1,000 euros at this rate
Present Value = 216.4602211
Adding those two values together
$985.01
The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.
