Answer:
a. harmony will produce chicken and singsong will catch fish.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
In singsong: 1f = 2c
The opportunity cost of producing 1 fish = 2c / 1 = 2c
The opportunity cost of producing 1 chicken = 1f / 2 = 0.5f
In harmony: 1f = 4c
The opportunity cost of producing 1 fish = 4c / 1 = 4c
The opportunity cost of producing 1 chicken = 1f / 4 = 0.25f
It can be seen that singsong has a lower opportunity cost in producing fish, so it should specialise in fish.
Harmony has a comparative advantage in producing chicken, so it should specialise in chicken.
I hope my answer helps you
Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
Answer:
In my opinion the most suitable answer is E. increase his sources of income to show a rise in his income after taxes
Explanation:
The reason is he could lower his expenses too, but for how long? Inflation is going to eat his salary away anyway possibly in 5 to 10 years so what Daventry ustock do is to create another source of income so that he is safe. Possibly through investing in income generating assets, real estate and possibly a side hustle! (A small time business)
Answer:
c. increasing; $62.5
Explanation:
The computation is shown below;
As we know that
Multiplier = 1 ÷ 1 - MPC
= 1 ÷ 1 - 0.75
= 1 ÷ 0.25
= 4
Now if the equilibrium GDP is $250 billion less than the expected level of GDP
So, the government spending would be increased by
= $250 billion ÷ 4
= $62.5
Hence, the correct option is c.