Answer:
France should specialize in producing phones and import computers from Sweden
Explanation:
France can produce: 4 phones or 3 computers
The opportunity cost of producing 1 phone = (3 ÷ 4)
= 0.75 computers
The opportunity cost of producing 1 computer = (4 ÷ 3)
= 1.33 phones
Sweden can produce: 1 phone or 2 computers
The opportunity cost of producing 1 phone = (2 ÷ 1)
= 2 computers
The opportunity cost of producing 1 computer = (1 ÷ 2)
= 0.5 phones
According to the comparative advantage,
Sweden has a comparative advantage in producing computers because the opportunity cost of producing computers is lower for Sweden than for France.
France has a comparative advantage in producing phones because the opportunity cost of producing phones is lower for France than for Sweden and import computers from Sweden because Sweden has a comparative advantage in producing computers.
Answer: The rate at which he is willing to substitute one good for the other
Explanation: Indifference curve shows the combination of two goods that give the consumer the same level of satisfaction. the slope of this indifference curve shows how much the consumer is willing to substitute one good for the other in order to keep utility constant.
Slope of Indifference curve for soda and chips shows how much soda Timothy is willing to substitute to get 1 additional unit of chips.
So, the correct option is the rate at which he is willing to substitute one good for the other.
Hello,
to get the current yield of the bond, determine first the<span> annual interest payment which is calculated as stated
interest rate times the face value of the bond. In this question, the bond’s
value is $1,000 and the stated interest rate is 6.5 percent, therefore, the
annual interest payment is 65. Finally, the annual interest payment of 65 is
divided by the current market price quote of 101.23 to get the current yield of
64.21%. Hope this helps.</span>
Answer:
The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery
Explanation:
Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.
The most common depreciation methods include:
- Straight-line.
- Double declining balance.
- Units of production.
- Sum of years digits.
Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.
Answer:
The correct answer is option B.
Explanation:
As people are using more tablets and fewer television sets, the demand for television sets will decline. This will cause the demand curve to shift to the left. As a result, the price level will decline.
Now, with new production technique the cost of production declines. As a result, there will be an increase in the supply as the firm will be able to produce more at the same cost. This will cause the supply curve to shift to the right. This rightward shift in the supply curve may lead to an increase or decrease in the quantity of output. It depends on the extent of change in supply.
