Answer: a.5.98%
Explanation:
Using the RATE function in Excel, the annual rate of return required can be found with relative ease.
Number of periods = 30 * 12 months = 360 months
Payment = $1,000
Present Value = 0
Future value = -$1,000,000
The rate given is a monthly rate of 0.4958789%
This is a year rate of = 0.4958789 * 12 = 5.9505468%
Which is closest to 5.98%
Answer:
B) two or more countries agree to liberalize trade in a selected group of categories
Explanation:
A partial trade agreement occurs when trade liberalisation occurs in respect of some of the restrictions placed on some commodities or categories.
Trade liberalisation occurs when countries that are trading with one another decide to reduce or remove restrictions that will affect free exchange between the nation.
Such restrictions include tariff, licencing and quotas.
Brainstorming and also the infinity diagram can be used in group decision making.
Answer: for one more unit of good x traded-off , an additional unit of good y can be produced.
Explanation: The production possibilities frontier is graphed as a curve with one of the commodities is shown on the x-axis, while the other is shown on the y-axis. The curve is made up of points at which the two commodities are being produced in different amounts, most efficiently using the limited resources that they require with keeping the production factor and technology the same for both commodities. A production possibility curve or frontier represents different values of two good that an economy can produce ,keeping the production factor and the technology constant .
The slope of production possibility curve shows the opportunity cost I.e how much of good y has to be given up in order to produce an extra unit of good x . If the production possibility curve is a straight line , it means that the slope is constant I.e to produce an extra unit of good x , there’s constant opportunity cost of good y to be given up .