Answer:
no double coincidence of wants is required. People with different interest can work together. As Claire want's to work but do not want their entire salary in tomatoes.
Explanation:
Under a bartering system Wendy should look for a person willing to work for tomatoes or other of her belongings else, they will not accep the job.
As there is a currency economy Wendy pays Claire with it and Claire can then spend on tomatoes or, any other good she consider to maximize her utility.
While Wendy can sale the tomatoes anywhere else thus, amking a gain right away. If Wendy was required to look only for tomatoe interest some portion of their harvest could be lose while looking ofr commercial parties.
Answer:
Material cost per unit = $3.64
Conversion cost per unit = $4.59
Manufacturing cost per unit = $8.23
Explanation:
1. Calculate the unit cost for materials:
Material cost per unit =
Material cost per unit = $3.64
2. Calculate the unit cost for conversion costs:
Conversion cost per unit =
Conversion cost per unit = 4.59
3. Calculate the total manufacturing costs:
Manufacturing cost per unit = Material cost per unit + Conversion cost per unit
Manufacturing cost per unit = $3.64 + $4.59
Manufacturing cost per unit = $8.23
Answer:
By comparing the opportunity cost of producing cheese in the two countries, you can tell that Spain has a comparative advantage in the production of cheese and Germany has a comparative advantage in the production of beer.
Explanation:
- To produce a pound of cheese, Spain gives up to the production of 3 barrels of beer, while to produce the same amount of cheese, Germany gives up to the production of 11 barrels of beer. Then, it is relatively cheaper to Spain to produce cheese, compared to Germany, because for every pound of cheese produced, Spain gives up to fewer barrels of beer. Then, Spain has a comparative advantage in the production of cheese.
- On the other hand, Germany can produce 11 barrels of beer, by giving up to 1 pound of cheese, while Spain can only produce 3 barrels of beer by giving up to one pound of cheese. Germany is more efficient producing beer, because it is relatively cheaper for German compared to Spain, producing and additional barrel of beer in terms of the cheese they do not produce when they produce more beer. Germany has a comparative advantage in the production of beer.
Answer:
The correct answer is B
Explanation:
Financial frictions is the stickiness involve in making the transactions, aggregate process comprise of money, time, tax effects and time for gathering the information and make a transaction like borrowing money or purchase a stock.
So, if the policy rate is zero and stimulate the economy at the provided inflation rates, policymakers should lower or decrease the financial friction.