Posted this question already and no response.

Two isolated nations, Alphaland and Betaton, are considering opening their borders to trade with each other. Both nations consum

Artist 52 [7]

Answer:

5 tons of salt for 1 ton of pepper

10 tons of salt for 1 ton of pepper

Explanation:

Alphaland's opportunity cost of producing one ton of pepper = 80 ÷ 5

= 16 tons of salt

Betaton's opportunity cost of producing one ton of pepper = 3 ÷ 1

= 3 tons of salt

Alphaland's opportunity cost of producing one ton of salt = 5 ÷ 80

= 0.0625 tons of pepper

Betaton's opportunity cost of producing one ton of salt = 1 ÷ 3

= 0.3333 tons of pepper

Therefore, Betaton has a comparative advantage in producing pepper because it has the lower opportunity cost of producing pepper as compared to Alphaland. On the other hand, Alphaland has a comparative advantage in producing salt because it has the lower opportunity cost of producing salt as compared to Betaton.

Hence, Betaton is specialized in the production of pepper and Alphaland is specialized in the production of salt.

Trade is beneficial for both the nations when Alphaland buys pepper at a price lower than the 16 tons of salt and Betaton sells pepper at a price greater than 3 tons of salt.

Trade ratios:

5 tons of salt for 1 ton of pepper

10 tons of salt for 1 ton of pepper

7 0

4 years ago

Porter Incorporated issued $210,000 of 6 percent, 10-year, callable bonds on January 1, Year 1. The bonds were issued at their f

pshichka [43]

Answer:

Jan. 1

Dr Cash $210,000

Cr Bonds Payable $210,000

Dec. 31

Dr Loss on Bond Redemption $4,200

Bonds Payable $210,000

Cr Cash $214,200

Explanation:

Porter Incorporated Journal entries

Jan. 1

Dr Cash $210,000

Cr Bonds Payable $210,000

Dec. 31

Dr Loss on Bond Redemption $4,200

Bonds Payable $210,000

Cr Cash $214,200

(102%×$210,000=$214,200)

7 0

4 years ago

Prepare the journal entry to record Jevonte Company’s issuance of 35,000 shares of its common stock assuming the shares have a:

Tanzania [10]

Answer: Please see answer in explanation column

Explanation:

a)journal entry to record Jevonte Company’s issuance at $3 par value and $22 cash per share

Account Debit Credit

Cash(35,000 x $22) $770,000

Common stock, $3 par value(35,000 x 3) $105, 000

Paid-in captial in excess of par value, common stock

($770,000 - $105, 000 ) $665,000

b)journal entry to record Jevonte Company’s issuance at $3 stated value and $22 cash per share

Account Debit Credit

Cash (35,000 x $22) $770,000

Common stock, $3 stated value (35,000 x 3) $105, 000

Paid-in captial in excess of stated value, common stock

($770,000 - $105, 000 ) $665,000

8 0

4 years ago

The fiscal policy target for achieving full employment when an inflationary gap exists is known as the?

GenaCL600 [577]

The fiscal policy target for achieving full employment when an inflationary gap exists is known as the fiscal policy target or inflationary gap.

<h3>What is an inflationary gap?</h3>

An inflationary gap is a macroeconomic concept that gauges the difference between the current level of real GDP and the GDP that would exist if an economy was fully employed. The current real GDP must be greater than the potential GDP for the gap to be termed inflationary. Reduced government expenditure, tax rises, bond and securities offerings, interest rate increases, and transfer payment reductions are all policies that can help close the inflationary gap. An inflationary gap occurs when demand for products and services exceeds supply due to factors such as greater overall employment, increased trade activity, or increased government spending.

To learn more about the inflationary gap, visit:

brainly.com/question/28271156

#SPJ4

7 0

2 years ago

Does a higher GDP imply high welfare. Why?

Ainat [17]

Answer:

All economic value is subjective—free-market prices are determined by how much better off individuals believe a good or service can make them. ... So, in some sense, higher GDP should equate to greater human progress, because it means more valuable goods and services have been created.

8 0

3 years ago