Answer:
The criticism is true to a certain degree, and unjustified to another degree.
Explanation:
It is true in the sense that the U.S. has indeed lost a lot of manufacturing to Mexico, simply because Mexico has far lower labor costs, and U.S. manufacturers have decided to take advantage of that by taking their plants to Mexican states.
It is also true that Mexico has been running a trade surplus with the United States in recent years, mainly because of the large manufacturing sector that Mexico has been developing.
On the other hand, the criticism is unjustified because neither a trade deficit nor the moving of manufacturing to Mexico mean that the United States as a whole is in worst condition than before NAFTA. In fact, most economists agree that free trade is a good thing for the economy as a whole, and that most people benefit from the lower costs and specialization that trade brings about.
The problem lies then, in the people who lose their jobs: formerly unionized manufacturing workers from the Rust Belt, for example. These people need to be helped with government assitance, both in terms of welfare, and training, so that they can find new jobs and make ends meet in the meanwhile.
Answer:
The maximum interest rate which the bank needs to offer the loan is 3%
Explanation:
The maximum interest rate which the bank needs to offer the loan is computed as:
Maximum interest rate = Amount received in one year - Amount invested today / Amount invested today
where
Amount received in one year is $6,180
Amount invested today is $6,000
Putting the values above:
Maximum interest rate = ($6,180 - $6,000) / $6,000
= $180 / $6,000
= 3%
So, the maximum interest rate is 3% which is needed to offer by banks
Answer:
the total factory overhead cost is $11,900
Explanation:
The computation of the total factory overhead cost is shown below:
= Indirect materials cost + Indirect labor cost + Maintenance of factory equipment
= $2,700 + $5,700 + $3,500
= $11,900
Hence the total factory overhead cost is $11,900
The same should be considered and relevant
Answer:
The answer is "increase; LRAS curve to the right".
Explanation:
The curve LRAS represents the flow between all the level of wages and economic GDP supplied because all prices are fully flexible, also with nominal salaries; its cost may change all along LRAS, however, the output cannot, as it represents the complete output of workers, that's why the several economists say that lower marginal rate consistently increases the motivation to work, shifting the LRAS curve to the left.
