A model used to illustrate the trade-offs related to splitting resources between the production of two items is called the Production Possibilities Curve (PPC).
<h3>How do economic actors calculate costs to specialize products?</h3>
The PPC is a useful tool for demonstrating the ideas of scarcity, opportunity cost, efficiency, and economic development and contraction.
Exchange possibilities that lead to consumption opportunities outside of the PPC are the consequence of production specialization based on comparative advantage rather than an absolute advantage.
In contrast to what would have been achievable domestically, trade between two agents or countries enables the countries to enjoy a higher overall output and level of consumption.
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PPCs can be used to decide who should specialize in a certain good as well as opportunity costs and comparative advantages.
A nation or individual will be able to consume at a point beyond its PPC through specialization and commerce, assuming the terms of trade are advantageous (for example, offering each agent a cheaper opportunity cost than could be accomplished without trade).
Check out the link below to learn more about opportunity costs;
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Answer:
cutting taxes by $125 billion
Explanation:
given data
economy = 0.8
expenditure gap = $100 billion
to find out
cutting taxes
solution
we get here cutting or reduce taxes that is express as
cutting taxes = 
......................... 1
cutting taxes = 
solve we get cutting taxes
cutting taxes = $125 billion
so cutting taxes by $125 billion
Answer:
$4,238.05
Explanation:
The computation of the present value is shown below:
Years Cash flows Discount factor @7% Present value
1 $850.00 0.9345794393 $794.39
2 $1,190.00 0.8734387283 $1,039.39
3 $1,450.00 0.8162978769 $1,183.63
4 $1,600.00 0.762895212 $1,220.63
Total present value $4,238.05
You need conversion in this problem to solve it. Since you are already given of all the data, you just need to utilize the data to come up with the answer. You simply have to divide the equivalent units of a barrel with the U.S. barrels and further divide it with the equivalent gallons of U.S. barrel. You can get $2.24 ($94 / 31.5 / 1.33).<span> </span>
Answer: 3 Variable Rate Loan.
The variable rate loan best describes the loan agreement because the rate can vary and become a different percent over the course of the loan agreement. When you agree to loan terms with variable interest rates it is important to remember when they will change and check the interest rate amounts at any given time over the course of the loan, sometimes the loan terms jump drastically if not paid by the initial given rate.
