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3 years ago

The trading principle formulated by adam smith maintained that:

1 answer:

6 0

The correct answer is D. Absolute cost differences regulate the immediate basis for trade
Absolute gain is the ability of a country, separate, company or region to make a good or service at a lower cost per unit than the cost at which any other individual produces that same good or service.

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Jessica spends all her income on two goods, A and B. The price of A is $5, and the price of B is $7. At the current consumption

masha68 [24]

Answer:

Jessica should consume more of good A.

Explanation:

Jessica spends all her income on two goods, A and B.

The price of A is $5, and the price of B is $7.

At the current consumption bundle, the marginal utility of A is 10, and the marginal utility of B is 21.

The total utility is maximized when the ratio of marginal utility and price of the goods consumed is equal for all the goods in the bundle.

The ratio for Good A

= $\frac{10}{5}$

= 2

The ratio for good B

= $\frac{21}{7}$

= 3

Since the ratio is higher for good B, the consumer should shift from consumption of good B to good A until the ratio is equal for both the goods.

5 0

3 years ago

Ratio of 10% and assuming that banks keep no excess reserves, imagine that $300 is deposited into a checking account. by how muc

ludmilkaskok [199]

<span>If the ratio of 10% and assuming that banks keep no excess reserves, imagine that $300 is deposited into a checking account, then $ 1,287 is the amount for the money supply to increase if the fed lowers the required reserve ratio to 7%.</span>

4 0

3 years ago

Which of the following business document contains preprinted blanks to be filled in?

stira [4]

The answer to the question is a form

4 0

3 years ago

Read 2 more answers

Powder room mess. for $300,000, willis agrees to build a new home for robert, who is very picky. willis builds the home to rober

irga5000 [103]

These types of damages are called “Compensatory damages”.

<span>Willis breached the contract but the breach was not material. So as a way to compensate for the damages Willis have made, he offered instead to pay $300 to put the correct faucets and linoleum in the powder room.</span>

5 0

3 years ago

Read 2 more answers

14. Lassiter Industries has annual sales of $220,000 with 10,000 shares of stock outstanding. The firm has a profit margin of 7.

kakasveta [241]

Answer:

Price earning ratio is 16

Explanation:

Profit Margin = (Net profit / Net Sales) x 100

7.5% = Net profit / $220,000

Net Profit = $220,000 x 7.5%

Net Profit = $16,500

Earning Per share = $16,500/ 10,000 = $1.65 per share

Price-sales ratio = Market value / Sales value

1.20 = Market value / 220,000

1.20 x 220,000 = Share price

Share price = 264,000 / 10,000 =

Share price = 26.40

Price Earning Ratio = 26.40 / 1.65 = 16

8 0

3 years ago