Answer:
US specialisation in TV can be stated on the basis of Absolute Advantage, not comparative advantage.
Explanation:
Absolute Advantage is when a country can produce more output per input of a commodity, than other country.
Comparative Advantage is when a country can produce a good at lower opportunity cost (in terms of other sacrifised)
China can produce more (ie 5 units television) per hour employed, compared to US able to produce lesser (3 units) in the same time. So, on the basis of Absolute Advantage, it can be stated that US should specialise in TV production.
However, since other good's details have not been given. So, we cannot attain the relative opportunity costs. Hence, specialisation on the basis of comparative advantage can't be stated.
Answer: The Demand should be in elastic
Explanation:
Peacock hotel rooms are a normal good and they have a negative price elasticity of demand, meaning a decrease in price of hotel rooms per night will increase quantity of hotels rooms demanded for Peacock.
Peacock is considering decreasing Prices to $ 175 per unit, for this decrease in Prices to lead to a decrease in total revenue, The demand for Peacock hotel rooms should be inelastic. When the demand for Peacock hotel rooms is inelastic a decrease in price to $ 175 will lead to a small change in the quantity of hotel rooms demanded for Peacock which will then lead to a decrease in Total Revenue.
Answer:
Option (E) is correct.
Explanation:
For utility maximization,
Bob's consumption of Housing and food should be such that:
Here,
= 50
=20
Bob is not maximizing utility, as these two terms are not equal(50 > 20).
Since the marginal utility per rupee spent on housing is greater than that on food.
Hence, Bob can increase his utility just by consuming more of housing and less of food.
Answer:
$306.67
Explanation:
The accrued interest is of 23 days which must be accounted for in the books of accounts.
The interest for 120 days = $80,000 * 6% * 120 / 360 = $1600
Now we will find interest for 23 days (July 31 MINUS 8 July).
Interest for 23 days = $1600 * 23 / 120 = $306.67
So the interest that has accrued at the end of the year is of 23 days and is $306.67.
