Explanation:
Spain's opportunity cost of producing a pound of cheese is
= 4 barrels of oil
Austria's opportunity cost of producing a pound of cheese is
= 10 barrels of oil
Spain's opportunity cost of producing a barrel of oil is
= 
= 0.25
Austria's opportunity cost of producing a barrel of oil is
= 
= 0.1
A country is said to be having a comparative advantage in the production of a commodity if it has a relatively lower opportunity cost of production.
Here, Spain has a lower opportunity cost of producing cheese, so it has a comparative advantage in producing cheese.
Similarly, Austria has a lower opportunity cost of producing oil, so it has a comparative advantage in producing oil.
Spain can gain from trade as long as it is getting more than 4 barrels of oil for a pound of cheese.
While Austria can gain from trade as long as it is getting more than 0.125 pounds of cheese for a barrel of oil.
Both will gain from trade if the price of the trade is 9 barrels of oil per pound of cheese and 7 barrels of oil per pound of cheese.
Spain will not accept 1 barrel of oil per pound of cheese and Austria will not pay 16 barrels of oil per pound of cheese.
Answer:
Unitary cost= $41.2
Explanation:
<u>First, we need to calculate the predetermined overhead rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (54,400/32,000)
Predetermined manufacturing overhead rate= $1.7 per direct labor hour
<u>Now, we can allocate overhead based on actual direct labor hours:</u>
<u></u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Direct labor hours= 1,664 / 5.2= 320
Allocated MOH= 1.7*320= $544
<u>Finally, the total cost and unitary cost:</u>
Total cost= 544 + 1,664 + 2,736
Total cost= $4,944
Unitary cost= 4,944 / 120
Unitary cost= $41.2
Answer:
His bank, if it is a large international bank.
Explanation:
Herrick needs to go to his bank that has international operations to get more stable rates for his international business.
International banks have corresponding banks they operate with for international transactions. A major advantage of this is that eachange rates between banks and their corresponding banks are more stable and not prone to huge fluctuations.
This will be the best option for Herrick.
Answer:
im so so sorry i dont know how to do this
Explanation:
Answer:
The correct answer is:
- Conduct monetary policy;
- Ensure that the financial system is stable;
- Provide banking services to commercial banks, depository institutions, and the federal government.
Explanation:
A central bank is the apex monetary authority in a country. It plays several crucial roles in the smooth working of the economy.
- A central bank issues currency on behalf of the government.
- It formulates monetary policy on behalf of the government.
- It acts as a banker for the government.
- It acts as a banker for commercial banks.
- It supervises all financial institutions.
The role of providing services to businesses and consumers is played by commercial banks. Fiscal policy is formulated by the government. The responsibility of ensuring the growth of the economy also falls with the government.
