Answer:
1) country A has a comparative advantage in production of capital goods.
2) for country A 24 units of food can be traded for 10 units of capital goods,
for country B 30 units of food can be traded for 10 units of capital goods.
Explanation:
country A has a comparative advantage in production of capital goods because they have been able to produce more capital goods with the same amount of input (worker) than country B.
For country A, 120 units of food = 50 units of capital goods, therefore
10 units of capital good will be traded for (120 x 10)/50 = 24 units of food.
for country B 90 units of food is equivalent to 30 units of capital goods, therefore,
(90 x 10)/30 = 30 units of food
Answer:
The quantity of money will fall as well.
Explanation:
According to the quantity theory of money, money supply (M) and price level (P) in an economy are in direct proportion to one another.
In other words, the percentage change in price level is proportionate to the percentage change in Money Supplied.
The formula is given as:
M*V= P*T
where, V = Velocity of money and T = volume of the transactions.
Cheers!
Answer:
The correct answer is Greg. He is the agent.
Explanation:
First of all, the term <em>agent</em>, in business, is understand as the individual that currently <em>manages another person's business affairs</em> and that commonly spend much of his time negotiating contracts for his clients.
Secondly, according to the definition of agent, it is understandable that in this case the agent is Greg due to the fact that he is the one that has to sell the collection, under Michael's orders.
Answer:
58.81% annual
or 3.93% monthly
Explanation:
Using a financial calculator, we can determine the internal rate of return of this investment. The initial outlay is -$110,000, and the 60 $4,800 cash flows follow. The IRR is 3.93 per month. In order to determine the effective annual rate, we can use the following formula:
effective annual rate = (1 + 3.93%)¹² - 1 = 58.81%
Answer:
B. the set of plans for product, price, place, and promotion that the marketer will use
