Considering the situation described above, if country A has a comparative advantage in producing good X over country B, then: <u>the domestic opportunity cost of producing X in country A is lower than in country B.</u>
<h3>What is Opportunity Cost?</h3>
Opportunity cost is often used in economics to describe the profit lost when one choice or option is taken over another.
<h3>What is Comparative Advantage?</h3>
Comparative Advantage is the term used to describe the economy's capacity to produce a specific good or service at a lower opportunity cost than its trading competitors.
Therefore, given that country A has a comparative advantage in producing good X over country B, this equates to country A having a lower opportunity cost than country B.
Hence, in this case, it is concluded that the correct answer is option C.
Learn more about Opportunity Cost here: brainly.com/question/3611557
Answer:
b. the princpal paid for the one-year loan will be higher than the princpal paid for the four-year loan
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
Explanation:
Sam is comparing the costs of two loans.
The principal amount of each loan is $5,000.
One is due in one year and the other is due in four years.
Both have the same stated rate of annual interest.
Two of the following are true:
<u>b. the principal paid for the one-year loan will be higher than the principal paid for the four-year loan.</u>
Considering the time value of money, $5000 principal repayment in one year time discounted at 5% will be 5000/1.05^1 = $4,761 but if repaid in 4 years = 5000/ 1.05^4 = $4,113.5
d. the interest charges for the one-year loan will be lower than the interest charges for the four-year loan
5% on 5,000 for 1 year = $250 but if paid for 4 years will be 250 x 4 = $1000
Answer:
A cooperative can be understood as a business model where there is a partnership between people with the same interests in an economic activity, not for profit, and who provide associated services.
In this voluntary society, there are its own rules and autonomy, being the voluntary and independent association, where there is the cooperation of each member and sharing of the management, of the positive and negative risks to the business. All members have economic participation and access to information and training. Interest on capital is limited and the surplus is distributed among all members.
Answer:
The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
Explanation:
Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.
Answer:
Providing a subsidy to correct for an underallocation of resources.
Explanation:
In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.
If the production of a product or service involves external benefits, then the government can improve efficiency in the market by providing a subsidy to correct for an underallocation of resources such as capital, land and labor used for production of these products.
