Answer:
(c) MUa/Pa = MUb/Pb
Explanation:
The Utility Maximization Rule is
MUa/Pa = MUb/Pb, where MUa represents the marginal utility derived from good a, Pa represents the price of good a, MUb represents the marginal utility of good b and Pb represents the price of good b.
Answer: West Mudville should specialize in, and export, baseball bats.
Explanation:
Each country should specialize in the good that it has a lower opportunity cost in producing.
West Mudville
Opportunity cost of producing baseball bats = 9/9 = 1 baseball
Opportunity cost of producing baseball = 9/9 = 1 baseball bat
East Mudville
Opportunity cost of producing baseball bats = 8/4 = 2 baseballs
Opportunity cost of producing baseball = 4/8 = 0.5 baseball bats
From the above, West Mudville has a lower opportunity cost than East Mudville in the production of baseball bats and so it should specialize in and export that.
Answer:
Target Market
Explanation:
The target market is the people that a business has identified as potential buyers of its products and services. It is the group of customers that a business targets with its advertising messages. Therefore, the target market is that group of customers that a business expects to buy its products. A target market consists of existing and potential customers.
Answer:
b. Those who have a reasonable understanding of business and economic activities
Explanation:
Financial statements by an entity should be prepared in such a way so as to enhance their understandability aspect and help in better comprehension and interpretation of financial information by the users.
The above objective can be met by providing detailed disclosures and appropriate notes to accounts as required by laws and statues i.e financial reporting framework.
Understandability refers to the fact that those individuals who have limited financial knowledge should be able to comprehend the presented information as intended and should be able to draw out reasonable conclusions from their understanding of the same.
Answer: Macroeconomics
Explanation: Macroeconomics is the study of the economy as a whole. Macroeconomics is that branch of economics that studies the behavior and operation of the economy for a certain period of time.
The matters to which it is focused are growth, unemployment and gross domestic product etc.
Hence, from the above explanation we can conclude that Macroeconomics is the right answer.
