Answer:
Casey's opportunity cost of producing 1 kg of potatoes is 5 kg of steak.
Casey's opportunity cost of producing 1 kg of steak is 0.2 kg of potatoes.
Rick's opportunity cost of producing 1 kg of potatoes is 3 kg of steak.
Rick's opportunity cost of producing 1 kg of steak is 0.33 kg of potatoes.
Casey should produce steak while Rick should produce potatoes, since Rick has a comparative advantage in producing potatoes (lower opportunity cost) and Casey has a comparative advantage in producing steak.
As long as the price of steak per kilogram of potatoes is less than 5 kg of steak and more than 3 kg of steak, then both would win. In order for both of them to win is a similarly proportional way, the exchange price should be 4 kg of steak per kg of potatoes.
Answer:
C
Explanation:
more labor expense bringing in extras workers. Drives down the profits.
Answer:
$21,796.14
Explanation:
Use the Time Value of Money techniques to calculate the amount of each installment (PMT)
PV = $250,000
i = 6 %
n = 20
P/yr = 1
FV = $0
PMT = ?
Using a Financial calculator to input the values as above, each annual instalment/payment will be $21,796.14.
Answer:
A. One that decrease taxes and increase spending
Explanation:
No income and more outgoing would create the biggest deficit.
