Answer:
Both goods are originally labor intensive, so we can conclude that the country has a lot of labor resources, while their capital resources should be rather limited. Since the world price of good X increases compared to the price of good Y, then the country will export larger amounts of good X since its price is relatively higher.
Answer:
Consider the following explanation
Explanation:
a) J. Crew is issuing its catalogs monthly in response to inflation. This will incur cost and it is known as 'Menu Cost'.
b) Grandpa has bought annuity which has promised $10,000 a year for the rest of his life. However, higher than expected inflation means grandpa has lesser purchasing power. This is loss of purchasing power and also 'redistribution cost'. In higher inflation borrower tends to get benefit. Here insurance company is at the gain.
c) Maria is witnessing loss of purchasing power because of hyper inflation. In such scenario, cost keeps rising and product's price could be higher a few hours later. This was witnessed in Germany as well as in Zimbabwe. People run to the stores as soon as they get cash or salary. It is known as 'shoe leather cost'. People make frequent trips to banks or stores but do not keep cash in fear of losing value.
d) Gita actually earned only 5% on her portfolio but as her income is in taxable bracket so she has to pay 20% tax. Her income from portfolio not even compensated inflation. This is a redistribution cost and also known as fiscal drag. More people fall into bracket because higher nominal income but real income is neglected which makes people worse off.
e) Father thinks that son is earning far more than him but inflation over the period of time erodes purchasing power and it could be possible that current income might be lower, same or higher comparing to inflation data. However, if it is lower then it is obviously loss of purchasing power.
<u><em>You should spend a large amount of time thinking about a big decision before you make it because it could have a huge impact in your life. You need to be able to decide if it is the right or wrong choice or if there is any consequences.</em></u>
A company's liquidity refers to its <span>ability to pay currently maturing debts.
Liquidity refers to the companies availability of assets that they can turn into cash or cash readily on hand. Maturity refers to a debt that needs to be paid by a certain, fixed date.
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Answer: See explanation column for answer
Explanation:
Caroline
left Right
Anthonio left 6,6 6,3
Right 4,3 5,5
The first digits in both left and right is Anthonio's best response payoff given what Caroline chooses. Also, the second digit on both left and right is Caroline's best response payoff based on what Anthonio chooses.
When Antonio chooses left, Caroline should choose left so as to get a payoff of 6, also when Antonio chooses right, Caroline chooses right to get a payoff of 5. therefore, there is no dominant strategy for Caroline.
The dominant strategy for Antonio occurs
When Caroline chooses left, Antonio will have to choose left to get a payoff of 6, also when Caroline chooses right, Antonio should choose left to get a payoff of 6. So, the dominant strategy for Antonio is to choose left.
The only dominant strategy in this game is for Antonio, to choose left.
b). For Nash Equilibrum, Antonio will have to choose his dominant strategy, that is to choose left, which will make Caroline is to choose left so as to get a payoff of 6. So, the Nash equilibrium is for Antonio to choose <u>left </u>and caroline chooses<u> left</u> too
