Answer:
Option (c) is correct.
Explanation:
Andy can produce 24 loaves of bread or 8 pounds of butter:
Opportunity cost of producing 1 pound of butter = (24 ÷ 8)
= 3 loaves of bread
John can produce 8 loaves of bread or 8 pounds of butter:
Opportunity cost of producing 1 pound of butter = (8 ÷ 8)
= 1 loaves of bread
Therefore,
John has a comparative advantage in producing butter because of lower opportunity cost.
Hence, the opportunity cost of producing 1 pound of butter is 3 loaves of bread for Andy and 1 loaves of bread for John.
Answer: Option D
Explanation: In simple words, weighted average cost of capital refers to the amount of return that the investors of a company are expecting. It includes all the security holders of the company and calculates the rate as per the weights that are applicable in the target capital structure.
Weighted average cost of capital is of high importance as it helps an organisation to clearly evaluate and analyze its current financial situation and if they need to change their existing capital structure.
A high WACC calls for higher profits as company has to make sure that security holders gets their returns and vice versa.
Answer:
$1
Explanation:
Data provided in the question:
Purchasing price of stock = $53
exercise price of the stock = $50
Price of the stock = $56
Premium per share = $4
Now,
The gain is calculated as :
Gain = exercise price + Premium per share - Purchased stock
or
Gain = $50 + $4 - $53
or
Gain = $1
Hence,
The gain per share to the pension fund is $1
Answer:
d. Shifts the aggregate demand curve to the right
Explanation:
A cut in tax on household's income increase the aggregate demand and therefore shifts the aggregate demand curve to the right. When taxes are decreased, income available for making purchases increases, thus, increasing the consumption in the economy.
Answer: The answer is GDP per capita.
GDP per capita is Gross Domestic Product divided by a country's population.
Explanation: Gross Domestic Product (GDP) per capita refers to dividing the country’s Gross Domestic Product by its population. It measures the country’s economic output that account for the country’s total population. Gross Domestic Product (GDP) per capita is the best measurement of a country’s standard of living.
Gross Domestic Product means the total number of goods and services produced in the country within a year.
