Each one is a opportunity cost because you can only pick one and you cant get the other because one is more scarce than the rest. Nothing is free you gave up the rest of the choices to pick one choice which suited your self interest best
Answer:
the country is above the steady state
Explanation:
An economy has the per-worker production function <em>y = 
</em>
Here,
<em>y </em>is the output per worker and <em>k </em>is the capital-labor ratio
depreciation rate <em>d = 0.5.</em>
Population growth rate is <em>n = 0%</em>
a. At steady state
<em>Δk = 0</em>
<em>sy-k(d+n) = 0 </em>
<em>sy = k(d+n)</em>
<em>0.5 ( ) = k (0.05 + 0)</em>
<em>0.5 
= 0.05k</em>
then resolve for <em>k</em>, and obtain <em>k=100. </em>The capital in steady state.
If the k=400, then the output
<em>y = </em>
<em> =
</em>
<em> =20</em>
Thus, the country is above the steady state
First let us identify if the asset is a gain
or loss. An asset is a gain if it contributes to the banks overall finance while
it is a loss if it is a cost directly or indirectly.
Deposits of $300 million = Gain (+)
Reserves of $20 million = Gain (+)
<span>Purchased government bonds worth $300 million
= Loss (-) ---> This entails
cost</span>
Selling bank’s loans at current market value
of $600 million = Gain (+)
Therefore adding up everything to get the banks net worth:
Stealth banks net worth = $300 M + $20 M - $300 M + $600 M
<span>Stealth banks net
worth = $620 million</span>
When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect. A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. T<span>he change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.</span>
