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Katarina [22]
3 years ago
13

Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible? a. Kelly

has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals. b. Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals. c. Kelly has a comparative advantage in repairing cars and in cooking meals. d. David has an absolute advantage in repairing cars and in cooking meals.
Business
1 answer:
Free_Kalibri [48]3 years ago
3 0

Answer:

c.

Explanation:

Based on the scenario being described within the question it can be said that the statement that is not possible would be Kelly having a comparative advantage in repairing cars and in cooking meals. This is because a when having a comparative advantage you are better at something but at the same time you are giving up other opportunity costs. Therefore in this scenario Kelly can only have a comparative advantage at either repairing cars or cooking meals but not both.

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Answer:

Emily has a basis of $60,000 in the shares of Red Corporation.

Explanation:

Emily's basis for Red Corporation's stock = real estate ($40,000)  + service ($20,000) = $60,000

Sarah's basis for Red Corporation's stock = computers ($80,000) = $80,000

Even though both Emily and Sarah received 600 shares each, the basis for her tax calculations are different.

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3 years ago
Because risk is associated with the potential for higher profits, businesspersons are motivated to choose organizational forms t
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Answer:

The correct answer is A. True.

Explanation:

Risk management models are a great tool to anticipate and prevent possible losses that could occur when investing a certain capital, implementing appropriate precautionary measures; Therefore, organizations and investors that have a culture of risk, create a competitive advantage over others, by assuming assessed risks, gain experience in risk management, anticipate adverse changes, protect or cover their investments in advance and obtain higher profits by taking greater risks.

3 0
4 years ago
Cedar Designs​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main mat
Snowcat [4.5K]

Answer:

Standard direct labour cost = $20.00   per hour

Explanation:

The direct labour costs represent expenditures incurred in respect of direct worker which can be traced to the product been produced. For example, the labour cost of machine operator saddled with production task.

The payroll cost is not a direct labour cost because payroll employed are not direct workers, also benefits are overheads related to direct workers

Standard direct labour cost = $20.00

5 0
3 years ago
Assuming an upward-sloping as curve, if an economy is at full employment and consumption spending decreases while all other leve
Yuliya22 [10]

Assuming an upward-sloping as curve, if consumption spending falls while all other levels of expenditure stay the same in an economy that is at full employment, a GDP gap will be visible.

Retail store managers will take activities that result in greater Unemployment when undesirable inventories build up.

<h3>What is GDP?</h3>
  • Gross domestic product (GDP) is a monetary indicator of the total market worth of all the finished products that nations create over a certain time period.
  • This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is.
  • Consumption, investment, government spending, exports, and imports make up the components of the GDP when it is calculated using the expenditures method.
  • Gross fixed capital formation, changes in inventories, changes in consumption expenditure (by households, NPISHs, and general government),
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8 0
2 years ago
Calculate the price of a two-year bond with a face value of $100, a coupon rate of 5%, and a yield-to-maturity of 5%.
aalyn [17]

The price of the bond is $100.

The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.

The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.

Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)

                      = 5×1.85941+ 100×0.90703

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Therefore, the price of the bond is $100.

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6 0
2 years ago
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