What is your favorite food? do you love pets? do you make good grades?

When each person specializes in producing the good in which he or she has a comparative advantage, total production in the econo

OLga [1]

Answer:

The correct answer is c) rises.

Explanation:

Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally participate in the international market. In this sense, it can boost its foreign trade.

It is then the basic idea that countries choose to specialize in order to trade in activities where they have a certain advantage. That is, instead of producing what they do best in an absolute way, they produce what they do best in a relative way. Therefore, the difference with the theory of absolute advantage is that it does not produce what the country costs less, but the one with lower comparative costs.

7 0

3 years ago

Which of the following are arguments that are given to support trade barriers?

Roman55 [17]

Answer:

E To prevent dumping

Explanation:

There are several arguments that are given to support trade barriers; one of which is to prevent dumping. A country would place embargo on imports with respect to some of the goods that are produced in her country. This is to enable and encourage local production of such goods. Where a country permits importation of goods that are produced locally, such action could being down the efforts of local production ; hence local industries might not thrive in terms of production.

Also, placing embargo on the importation of goods that are produced locally in a country would take away the possibility of making the country for dumping ground in terms of goods that are not up to standard, produced in a foreign country and same would have been imported.

5 0

3 years ago

Bob holds a portfolio of 20 stocks from different industries, whereas Sharon holds only one stock in her portfolio. Assuming the

nikdorinn [45]

Answer:

The correct answer is: C. larger decrease in total risk.

Explanation:

The risk of an investment portfolio refers to the possibilities of obtaining the return, profit or profit you expect. Every investment involves a risk, and the more you can earn, the greater the risk. If you put your money on a fixed term, the risk is minimal, but it hardly gives you an interest even less than inflation. If you invest in the forex market, for example, you can earn a lot of money, but also the risk (that you do not achieve and even that you lose what you invested) is much greater. Every investor knows that he must assume some risk, because it is something inherent in the investment.

5 0

3 years ago

Marginalâ€‹ cost-benefit analysis and the goal of the firmâ€ƒâ€ƒâ€ƒKenâ€‹ Allen, capital budgeting analyst for Ballyâ€‹Gears, In

mafiozo [28]

Answer:

a.The marginal (added) benefits of the proposed new robotics.

$195,000

b. The marginal (added) cost of the proposed new robotics.

-$227,200

c. The net benefit of the proposed new robotics.

loss = -$32,200

d. What should Ken recommend that the company do? Why?

Based only on this analysis, the company should keep the old robotics. The new robotics are too expensive and do not generate enough benefits.

e. What factors besides the costs and benefits should be considered before the final decision is made?

increases in efficiency and reductions in manufacturing time.

Explanation:

Marginal cost benefit analysis refers to analyzing the additional benefits of a new project or activity compared to the benefits generated by an alternative project or activity.

In this case, both alternative should be evaluated as follows:

alternative 1 alternative 2 marginal

keep robotics change robotics benefits

revenue (in $446,000 $568,000 $122,000

today's $)

required invest. $0 -$227,200 -$227,200

old robotics $0 $73,000 $73,000

sales value

marginal benefits / losses -$32,200

6 0

3 years ago

When companies set their dividend payout, they generally aim for a rate that is?

Svet_ta [14]

The companies set their dividend payout, they generally aim for a rate that is when it is sustainable. The dividend payout ratio is the amount of dividends paid to stockholders relative to the amount of total net income of a company. The amount that is not paid out in dividends to stockholders is held by the company for growth. The amount that is kept by the company is called retained earnings.

8 0

3 years ago

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