Through free trade, countries specialize in the goods for which they have a comparative advantage and trade for those in which they do not. Specialization allows a country to divide labor among the various production segments, which results in higher productivity and greater economic growth for the involved countries.
What Are the Economic Impacts of Specialization?
Specialization, along with the complementary concept of the division of labor, occurs when the innate inequalities of human productive output are intensified along different skills. An individual becomes economically specialized when he focuses his productive efforts on an increasingly narrow range of tasks. The most obvious economic impact of specialization can be seen in the tendency for individuals to choose different vocations that are more in line with their interests, skills, opportunities, and education.
Division of labor:
The division of labor is the separation of the tasks in any economic system or organisation so that participants may specialize (specialization). Individuals, organizations, and nations are endowed with or acquire specialized capabilities and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialized capabilities may include equipment or natural resources as well as skills and training and combinations of such assets acting together are often important. For example, an individual may specialize by acquiring tools and the skills to use them effectively just as an organization may specialize by acquiring specialized equipment and hiring or training skilled operators. The division of labor is the motive for trade and the source of economic interdependence.
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Answer:
Q1. Answer is B
Explanation: FV= PV(1+r)n
FV= 10,000(1+0.08)26
FV= 73,963.53
FV= 73,963.53(1+0.05)12
FV=132,827.88
Q2. Answer is D
Explanation: The lenght of time she has to wait to reach her goal is directly related to the interest rate she earns
Q3. Answer is A
Explanation: Interest as the interest rate decreases
Q4. Answer is D
Explanation: A = P(1 + rt)
A= 15,000(1+0.05*12)
A= 15,000(1.6)
A= 24,000
Q5. Answer is C
Explanation: FV= PV(1+r)n
FV= 5000(1+0.06)15
FV=5000(2.396558193)
FV=11,982.79
FV=11,982.79(1+0.1)30
FV=11,982.79(17.44940226888)
FV=209,092.54
Explanation: FV= PV(1+r)n
FV= 5000(1+0.1)15
FV=5000(4.1772481694)
FV=20,886.24
FV=20,886.24(1+0.06)30
FV=20,886.24(5.7434911729)
FV=119,959.94
Q6. Answer is A
Explanation: Interest on interest $2,481.25
Q7. Answer is A
Explanation: FV= PV(1+r)n
25,000=PV(1+0.065)6
25,000=PV(1.4591422165))
PV=25,000/1.4591422165
PV=17,133.35
The compound interest on the given information is 204 Rs.
<h3>What is compound interest?</h3>
Interest received on both the principal amount of your savings and any prior amount is known as compound interest.
The calculation for compound interest-
A = P [ 1 + r/100]^n
Principal amount=2500
Time = 2 years
Rate of interest =4%
A stand for Total Amount = Principal amount + Interest
Total amount = 2500 × (1 + 4/100)²
= 2500 × ( 1 + 1/25)²
= 2500 × (26/25)²
= 2500 × (676/625)
= 2704
Interest = Total amount - Principal amount
= 2704-2500
= Rs. 204
Therefore, the compound interest will be Rs. 204.
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The question is about the description of different cabins of cruise liner. Following is the description of each cabin,
Interior cabin : An interior cabin is the area of a cruise which has no window. On this cabin visitors can rest and enjoy the peace. There are luxury and relaxing sofas to relax and comfortable bed to have sound sleep.
Ocean view cabin : An Ocean view cabin is outside cabin which has window to look at the sea. It has luxury couch to sit and enjoy the pleasant view of the ocean.
Balcony Cabin : It is room of a cruise which has separate balcony attached to the room. However the balcony is small in size and there is space of only two chairs but the experience of viewing the ocean from it is unforgettable.
Guest can sit and enjoy their drinks while having beautiful view of ocean waves along with sea breeze.
Suite : This is largest room of the cruise and guests can experience special luxury perks in this room. The suite is a large room of the cruise which has separate lounge and sometimes separate swimming pool too.
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Answer:
Explanation:
a. Market rate of interest 4 %
Present value of the bonds = Semiannual coupon x PVIFA 2%,n=30 + Par Value x PVIF 2%, n=30 = $ 508,000 x 6% x 1/2 x 22.3965 + $ 508,000 x 0.5521 = $ 341,322.66 + $ 280,466.80 = $ 621789.46
Issue Price $ 621,790
b. Market Interest Rate : 6%
Present value of the bonds = $ 508,000 x 6% x 1/2 x 19.6004 + $ 508,000 x 0.4120 = $ 298,710 + $ 209,296 = $ 508,000
Issue Price $ 508,000
c. Market interest rate : 8.5 %
Present value of the bonds = Semiannual coupon x PVIFA 4.25%, n=30 + Par Value x PVIF 4.25%, n=30 = $ 508,000 x 6% x 1/2 x 16.7790 + $ 508,000 x 0.2869 = $ 255,711.96 + $ 145,745.20 = $ 401,457.16
Issue Price $ 401,460
