Answer:
FRANCE has a comparative advantage in the production of cheese and SWEDEN has a comparative advantage in the production of oil.
- Comparative advantages result form the lowest opportunity costs. In this case, France's opportunity cos tot produce cheese is lower, while Sweden's opportunity cost of producing oil is lower.
France can gain from specialization and trade as long as it receives more than 3 BARRELS of oil for each pound of cheese it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than 1/11 POUNDS of cheese for each barrel of oil it exports to France.
Based on your answer to the last question, which of the following terms of trade (that is, price of cheese in terms of oil) would allow both Sweden and France to gain from trade?
- a. 6 barrels of oil per pound of cheese
- c. 4 barrel of oil per pound of cheese
Answer:
1 is the base index of CPI, so a value of 0.418 means that the prices were 0.418 times the base index and 2.4 means that prices were 2.4 times the index
The 1972 graduate's job paid $7200 in nominal terms and (7200/0.418) in real terms
Real terms 1972= 17224
Real terms 2016= 25000
17224/25000= 68%
The 1972 graduate's job paid 68 percent of the 2016 graduates job in real terms.
Explanation:
Interactive is the answer
Answer:
$5,000
Explanation:
Since the payments are due semi-annually and the bond were issued on January 1, 2016 at 100, we will have to calculate the interest cash payments for the two semi-annuals in 2016. Therefore, the interest rate to use is the full annual 5% stated rate. Therefore, we have:
Interest cash payment = Bond face value × Interest rate
= 100,000 × 5%
Interest cash payment = $5,000.
Therefore, the cash interest payments in 2016 is $5,000.
Answer:
Explanation:
1. Some of the operational and behavioral benefits that are generally attributed to a participatory budgeting process are as follows:
a) Utilization of the best knowledge of activities in a specific area, because the participants are close to daily operations.
b) Goals that are more realistic and acceptable.
c) Improved communication and group cohesiveness.
d) A sense of commitment and willingness to be held accountable for the budget.
2. Four deficiencies in Patricia Eklund’s participatory policy for planning and performance evaluation, along with recommendations of how the deficiencies can be corrected:
Deficiencies Recommendations The setting of constraints on fixed expenditures includes uncontrollable fixed costs, thereby mitigating the positive effects of participatory budgeting. Rewards should be based on meeting budget and/or organizational goals or objectives. The arbitrary revision of approved budgets defeats the participatory process. The contingency budget should be separate, over and above each department’s srcinal submission. The division manager holds back a percentage of each budget for discretionary use. Managers should be involved in the revision of budgets. Managers could submit a budget with programs at different levels of funding. Evaluation based on budget performance must be accompanied with intrinsic rewards. Divisional constraints could be at a budget "kick-off meeting;however individual limit of controllable expenses should be set by each manager
