Answer:
a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.
b. Who has the comparative advantage in the production of shirts? What about for computers?
- China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.
c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?
- China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.
d. Explain at what price of computers (in terms of shirts) the two countries might trade.
- the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.
Explanation:
opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers
opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts
opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers
opportunity cost of producing 1 computer in China = 100/10 = 10 shirts
without trade:
- total production of shirts in the US = 50 million
- total production of computer in the US = 10 million
- total production of shirts in China = 50 million
- total production of computer in China = 5 million
with trade:
- total production of computers in the US = 20 million
- total production of shirts in China = 100 million
Option (b), The salesperson is one of the most crucial in-store elements. The exchange theory, which emphasizes that each participant provides to the other and anticipates receiving something in return, can be used to explain this influence.
<h3>What does exchange theory actually mean?</h3>
According to the social exchange hypothesis, two people's relationships grow as a result of a process of cost-benefit analysis. In other words, it's a statistic designed to measure the amount of effort a person expends during a face-to-face conversation.
<h3>What are the basic tenets of the exchange theory?</h3>
The basic tenet of the theory of social trade is the concept of costs and benefits. This suggests that people's decisions and behaviors are influenced by their estimations of cost and reward. Costs are the unfavorable outcomes of a decision, including time, money, and energy. Social interactions produce benefits, which are rewards.
Learn more about exchange theory: brainly.com/question/29611150
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Answer:
A.rose making the interest rate fall
Explanation:
According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.
The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.
<span>This is most likely an example of a franchise opportunity. It could also be considered to be a hybrid type of franchise where the indepenent dealers have more leeway in how the business looks and how it is run. This would be a win/win for many independent dealers as the would still be making most of the local decisions.</span>
Answer:
$101,200
Explanation:
the cost of land = purchase price of the land + razing expenses - sales of salvaged materials + attorney's fees + broker's fees = $86,000 + $9,700 - $4,400 + $1,500 + $8,400 = $101,200
The cost of the driveways and parking lot are recorded separately (as land improvements), not under cost of land because they can be depreciated.
Architect's fees are generally included in the construction costs of the building, not in the land cost. The architect's fees are covered before the construction starts because you need the blueprints in order to start the construction.
