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2 years ago

If country a allocates more resources to producing capital goods than does country b, _________.

Business

1 answer:

Sunny_sXe [5.5K]2 years ago

7 0

c. Country A will incur a larger opportunity cost of growth, but it will grow more quickly than country B.

The more a country invests in one method of production, the higher the opportunity costs will be because the money could be spent on bigger and bigger amounts of alternate goods.

While the opportunity cost is higher, fully investing in producing capital goods will lead to faster growth.

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True or False: With the export subsidy, domestic producers will sell steel to domestic consumers and sell the rest abroad.

Bess [88]

The answer to the question of whether the export subsidy would make domestic producers sell steel to domestic consumers and sell the rest abroad is:

False because the domestic producers would not want to sell at a lesser price than what they would have sold abroad.

<h3>What is Export Subsidy?</h3>

This refers to the government policy which is meant to discourage export of goods with the aim of regulating the economy which usually leads to the increase in the amount of customer surplus in the market.

With this in mind, we can see that the export subsidy has to do with the increase in domestic price whereby there is a higher cost for exports for producers.

Read more about export subsidy here:
brainly.com/question/7193712

4 0

2 years ago

How do fixed costs per unit behave?

ipn [44]

83974875687168756574150674564736%

7 0

3 years ago

The marginal propensity to consume is the: ratio of consumption to income. amount consumed out of an additional dollar of income

cluponka [151]

Answer:

The correct answer is: amount consumed out of an additional dollar of income.

Explanation:

The marginal propensity to consume is a measure to show the increase in consumption of goods and services due to an increase in the disposable income of the consumer.

It is measured by the ratio of change in consumption and change in income. It can also be calculated as 1 - MPS, where MPS is the marginal propensity to save. In other words, MPS is the ratio of change in savings and change in income.

6 0

2 years ago

Adam borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. the actual end-of

Kazeer [188]

Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r)^(-n))÷r]
Pv present value 4500
PMTthe actual end-of-year payment?
R interest rate 0.12
N 4 equal annual installments
Solve the formula for PMT
PMT=pv÷[(1-(1+r)^(-n))÷r]
PMT=4,500÷((1−(1+0.12)^(−4))÷(0.12))
PMT=1,481.55

8 0

2 years ago

A U.S. treasury bond (selling at a par value of $1,000) that matures at the end of five years is said to have a coupon rate of 6

pav-90 [236]

Answer:

$1,042.04

Explanation:

to calculate the present value using a continuously compounded interest rate, we can use the following 2 formulas:

1) present value = cash flow / eⁿˣ

e = 2.71828
x = 5% / 2 = 2.5%
n = 10
cash flow = $1,030

present value = $1,030 / 2.71828¹⁰ˣ⁰°⁰²⁵ = $1,030 / 1.284 = $802.16

2) present value of an annuity = payment [(1 - e⁻ⁿˣ) / (eˣ - 1)]

payment = $30
x = 2.5%
n = 9
e = 2.71828

present value = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30(0.2015 / 0.0252) = $239.88

present value of the stream of cash flows = $802.16 + $239.88 = $1,042.04

7 0

2 years ago

If country a allocates more resources to producing capital goods than does country​ b, _________.

If country a allocates more resources to producing capital goods than does country b, _________.