Opportunity costs are the measures of things you must give up when you make a certain decision.
In this case, if country A decides to produce all petroleum, they are choosing not to produce 8 units of seafood. This is their opportunity costs because they are giving up the 8 units of seafood to make petroleum.
The same is true for country B. If they choose petroleum, they are giving up the ability to make 8 units of seafood.
Answer:
As we become more experienced, more senior, and lead bigger teams, the focus of leader development becomes more about enhancing the performance and building of characters. Moreover, leaders must remain competent, and team performance is the primary success of any leader. A leader must be a solution finder at any stage to leads the team towards success.
Explanation:
Answer:
Improving Reasoning Skills:
If one can improve one’s reasoning, one can perform anything.
High-performing workers are able to analyze sophisticated streams of data and solve complex problems.
Explanation:
Reasoning skills assist one to think critically, analyze complex problems, evaluate various solutions, and summarize wider issues and information. Thus enabled, the reasoning professional can help her organization to success by tackling problems and coming up with workable solutions. In today's organizations, leadership belongs to those who can distinguish themselves as problem-solvers. This is why it is important to hone one's reasoning and critical thinking skills in order to be a solution provider.
Answer:
- Monetary rules may lead to a lower sacrifice ratio because the public is more confident that the Federal Reserve will keep inflation low.
- The time inconsistency of policy problem can be eliminated by having the central bank commit to a particular policy rule.
Explanation:
Monetary Policy by a central bank is what decides how much money will be in an Economy and so can have influence on interest and inflation rates.
There have been some arguments as to whether Central banks like the Fed should use a Rule based approach where monetary policy is in line with set rules vs Discretionary where the Fed can implement monetary policy based on their perception of Economic events.
Some of the arguments presented by proponents for the Rule based approach are;
- If certain rules in place to govern monetary policy in terms of inflation keep the inflation rate stable and low, the sacrifice ratio will be lower. The sacrifice ratio refers to the costs of a fluctuating inflation rate on the economy with producers producing less when inflation falls as they wait for it to rise again. If the rate is kept low, the producers would have to produce regardless.
- If the Fed were to commit to certain rules, policy will be implemented on a consistent basis such as the increase in money supply every period. This would remove the time inconsistency of policy problem.
