Answer: Nether Australia or Europe
Explanation:
Purchasing power parity is a notion that states that prices of the same or similar goods should have the same price across the world after adjusting for exchange rate differences.
If the price of a tall latte in the U.S. is $4,00, it should be the same price in Europe and Australia after exchange rate adjustments.
$4.00 in Euro is: $4.00 in Australian dollars is:
= 4 * 0.8 = 4 * 1.4
= €3.20 = $5.60
Purchasing power parity does not hold in wither countries because the prices of the lattes are not equal to the $4.00 in the U.S. after adjustments for exchange rates.
Answer: Capital should be increased in the production process.
Explanation:
We should note that based on rule of cost minimization, the quantity of capital and labor that's employee by a firm should be one where the MRTS i.e marginal rate of technical substitution between the capital and labor is equal to the wage rental ratio. Therefore,
MRTS = w/r
MPl/MPk = w/r
MPl/w = MPk/r
45/9 < 60/10
5 < 6
Since the ratio isn't equal, it simply means that the firm isn't using optimum mix of inputs. Based on the above, capital should be increased.
Answer:
The answer is option "iii) The relative price of yogurt increased"
Explanation:
The budget line is a function of a consumer's budget constraint. With the quantity of one good on the y axis and the quantity of the other good on the x axis, the budget line shows how much of each good the consumer can buy from a defined, limited budget.
In our example, the customer's budget is $20 which mean the customer can buy any combination of goods between the two extreme. One extreme is 10 of Yogurt ($20 budget/$2 Price) while the other extreme is 5 of cereal ($20 budget/$4 price). So the budget line is a downward sloping line from point 10 on the y axis to point 5 on the axis.
Option i) is incorrect since the increase in the price of yogurt would mean that the consumer can buy ONLY less of yogurt. It does not impact the quantity of cereal that he can buy. So the line will rotate downward along the <em><u>y axis</u></em>. The x axis will remain unchanged since the maximum amount of cereal Billy can buy remains unchanged. An outward rotation would occur only if the price of <em><u>cereal decreased</u></em>. This does not happen in this case therefore the line would not rotate outward.
Option ii) is incorrect because the marginal utility. The law of marginal utility states that the utility, or the pleasure, one gets from consuming a good decreases as more and more of the same good is being consumed. This does not happen in this case.
Option iii) is correct. This is called the<em> slope effect</em>. Since the Billy can consume less yogurt (since the price of yogurt increased), the relative price of yogurt increases while the relative price of cereal decreases. Think of relative price of yogurt as the number of units of cereal that Billy would have to forgo to consumer 1 unit of yogurt. Since yogurt has gotten expensive, Billy would have to give up more units of cereal to consumer 1 unit of yogurt.
Answer:
325, 266, 77%, 94%,
Explanation:
Design capacity = Number of enrollment can be done
Design capacity = 325 student
Effective capacity = Number of enrollment done
Effective capacity = 266
Capacity utilization = [250/325]100
Capacity utilization = 77 % (Approx)
Efficiency rate = [250/266]100
Efficiency rate = 94 % (Approx)
Answer:
d. interviewer’s clothing
Explanation:
A prepared talk where one person asks questions and other people answers is called An interview. In other words, an interview is a situation where someone serves as the interviewer and the other as the interviewee.
A chat that occurs between someone who applied for a job and the spokesperson of a business that is being done to determine whether the candidate is capable of working is called Job interview.
