Answer:
The amounted contributed to U.S.GDP is $2 million
Explanation:
First and foremost, the question reiterated that $1 m is due to U.S-owned equipment company and U.S.managers working in Mexico,this is where the key to unlocking the question lies.
On the basis that the money is shared equally between the equipment company and the U.S managers working in Mexico,each group gets $500,000 which is an input for the car manufacturer. However, $2.5m worth of cars are sold to U.S-an output ,deducting the $500000 due to the managers from the output value gives $2m
Answer: continuous production process
Explanation: In simple words, it refers to a production process in which the organisation has to keep doing the production due to the potential loss of of degradation of the raw materials or any other such factors.
In the given case, the company is able to produce efficiently only if they produce in large quantities.
Hence they should indulge in continuous production process.
Answer:
17%
Explanation:
To calculate this, we use the weighted average cost of capital (WACC) as follows:
Total capital = 15 + 5 = 20
Weight of equity = 15/20 = 0.75, or 75%
Weight of debt = 5/20 = 0.25, or 25%
WACC = (20% × 75%) + (8% × 25%) = 17%
Therefore, the company's cost of capital is 17%.
Answer: Option A
Explanation: In a free market structure, the majority of resources in the economy are owned and controlled by the private owners. The prices of commodities produced in such a market structure are determined by the market forces of demand and supply.
The rules and restrictions imposed by the govt. in such a market structure exists but at a very small extent. The govt. in such a market structure controls only those industries which are important for national security and development.
Answer:
The correct answers are: greater; below
Explanation:
Education is a public good and a human right from which no one should be excluded. To conceive it as a right and not as a service, requires the State to ensure a compulsory and free education to all citizens, because the rights are not bought or traded, UNESCO establishes and defends.
However, the general benefit of education is greater than the sum of benefits that it provides to each individual. In this sense, four positive externalities are identified: (a) Individuals with more education, charge more and pay more taxes. (b) Kangaroo effect: the State from a young age takes care of the children and therefore, the woman can go to work and produce more income. (c) Production externality: an individual with more education will produce more production and therefore more income. (d) Cultural externality: a community with a strong cultural base can contribute to fostering values such as tolerance and increasing social cohesion, contributing to the reduction of social conflict.
