Answer:
Option E
Explanation:
Absolute advantage means that with the same input one country is able to produce more goods and services as compared to the other.
As we can see, Germany is able to produce 40 tons of steel with the same inputs as that of South Korea.
In the same way, Germany is able to produce 10 personal computers with the same inputs as that of South Korea.
Hence, Germany has an absolute advantage in the production of both steel and PCs
Option E is correct
Answer:
1. The Fed uses open market operations to increase the money supply, thus lowering interest rates and stimulating investment.
Expansionary monetary policy is done to stimulate economy by increasing money supply. It lowers interest rates and leaves more money for consumption and investment.
2. Increased aggregate demand leads to some higher prices and more total output.
Increased AG will lead to prices being higher in response. This would spur producers to produce more thereby increasing output.
3. Sticky input prices adjust to inflation.
Input prices will rise overtime to match the increase in prices.
4. Producers lay off some workers in response to higher input prices, causing a decrease in aggregate supply.
When the inputs rise, production becomes more expensive so producers will have to lay off workers to maintain profitability. They will also supply less goods as a result.
5. In the long run, equilibrium returns to the same initial production level.
In the long run therefore, the reduction in AS leads to production returning to pre-monetary policy figures.
Answer:
<u>Different assessment and goals.</u>
Explanation:
In this issue there is resistance to change related to evaluation and different objectives, as the production manager has made a decision to change production processes in order to increase efficiency, and one of his employees does not believe the idea. This is because there are different perspectives among employees in an organization, resistance to change affects each individual differently and leads them not to support significant changes that will change the process that already exists in the organization. It is usually related to individual beliefs and insecurity to novelties. To break barriers to resistance to change, it is essential that the manager adopt clear and direct communication and present the benefits linked to change.
Answer:
C. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
Explanation:
Free Cash Flow is the cash generated by an organisationafter it has accounted for the outflows to capital assets maintenance costs and operating activities. Free Cash flow is a measure of a company's profitability after non-cash expenses in the account statement have been deducted. It is the cash flow an organisation has when it has limited or no debt obligations in its portfolio
The Hypothesis of free cash flow states that an organisation with a large amount of free cash will display less financial or spending discipline compared with an organisation that has debts obligations to spend cash on.
Based on the hypothesis, it becomes essential for such organisations to issue debts so that as the legal obligations (debts, principal and interest) increases, the potential to waste money as a result of fre cash flow reduces.
Answer:
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