Explanation:
Italy's opportunity cost of producing a pound of cheese is
= 5 barrels of beer
Germany's opportunity cost of producing a pound of cheese is
= 10 barrels of beer
Italy's opportunity cost of producing a barrel of beer is
=
= 0.2 pounds of cheese
Germany's opportunity cost of producing a barrel of beer is
=
= 0.1 pounds of cheese
Italy has a comparative advantage in producing cheese, while Germany has a comparative advantage in producing beer.
A country is said to be enjoying a comparative advantage if it can produce a good at a lower opportunity cost.
Italy can gain from trade if it is getting more than 5 barrels of beer for each pound of cheese. Similarly, Germany can gain from trade if it is getting more than 0.1 pounds of cheese.
Both the countries will gain from the trade if the price of trade is 8 barrels of beer per pound of cheese and 9 barrels of beer per pound of cheese.
Italy will not accept 3 barrels of beer per pound of cheese and 1 barrel of beer per pound of cheese because it is not covering the opportunity cost.
There are no statements here.
Answer:
Denominator
Lower
Numerator
Explanation:
The reason is that the statement is talking about the low per capita GDP which we can see in the picture attached with this answer.
We can see that if the denominator is lower which means that either population decreases or remains constant when the GDP has increased then the the growth in the per capita GDP will be higher because minute increases in the GDP will increase the answer with significant percentages.
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Answer: d. 10.5%
Explanation:
Formula for future value is;
Future value = Amount invested * ( 1 + r) ^ n
Making r the subject, the formula becomes;
= (Future value/ Amount invested)^ (1/n) - 1
= (500,000 / 120,000)^ (1/28) - 1
= 0.052289
= 5.23%
This is on twice-a-year basis so annual rate is;
= 5.23 * 2
= 10.46
= 10.5%
<em>Note; Period of 28 was used because investment was compounded twice a year so the 14 years should double. </em>