Answer:
a.Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
A country has a comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
A person has an absolute advantage in production if it produces more quantities of the good when compared with other countries.
Georgeland produces more quantities of both food and clothes when compared to Alland, so it has absolute advantage in both activities .
The opportunity cost of georgeland in producing clothes = 36 / 18=2
The opportunity cost of georgeland producing food = 18 / 36 = 0.5
For Alland,
the opportunity cost of producing clothes = 32 / 16= 2
the opportunity cost of producing food = 16 / 32 = 0.5
Neither countries don't have a comparative advantage in the production of either clothes of food bedside they have the same opportunity costs in both activities.
I hope my answer helps you
Answer:
Explanation:
Dividends through year 1 to 5:
D1 = 2.15*(1+0.30)^1 = 2.80
D2 = 2.15*(1+0.30)^2 = 3.63
D3 = 2.15*(1+0.30)^2 * (1+0.18)^1 = 4.29
D4 = 2.15*(1+0.30)^2 * (1+0.18)^2 = 8.58
D5 = 2.15*(1+0.30)^2 * (1+0.18)^3 = 12.86
PV (D1) = 2.80
PV (D2) = 3.63 *PVIF = 3.63 * 0.87719 = 3.19
PV (D3) = 4.29 * 0.76947 = 3.30
PV (D4) = 8.58 * 0.67497 = 5.79
PV (D5) = 12.86 * 0.59208 = 7.62
Total of all PV's = 22.69
Answer:
8.28 times
Explanation:
The number of times that Franklin Aerospace sell and replaces its inventory shall be determined through following mentioned formula:
Inventory turnover=sales/inventory balance
First we have to calculate the inventory balance which shall be determined as follows:
Quick ratio=current assets-inventory/current liabilities
2= $80,500-inventory/ $28,175
$56,350=$80,500-inventory
Inventory=$80,500-$56,350=$24,150
Now we will the number of times that Franklin Aerospace sell and replaces its inventory:
Inventory turnover=$200,000/$24,150=8.28 times
Answer:
Therefore government purchases is $300 million
Explanation:
In this case, GDP is the sum of consumption, investment, and government purchases. To calculate the value of consumption we use the formula:
CC + II + GG = Y
GG = Y - CC - II
Where:
government purchases = GG
taxes minus transfer payments (TT) = $260 million
consumption (CC) = $300 million
investment (II) = $300 million
Y = country GDP = $800 million
GG = Y - CC - II
Substituting:
GG = $800 million - $300 milllion - $300 million
GG = $200 million
Therefore government purchases is $300 million
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