Answer:
$23
Explanation:
Calculation for how much total value was created in this exchange
First step is to calculate Deltra Surplus
Using this formula
Surplus (Deltra)=Purchase value - Agreed Price
Let plug in the formula
Surplus(Deltra)=$50−$31
Surplus(Deltra)=$19
Second step is to calculate Deirdre Surplus using this formula
Surplus (Deirdre)= Agreed Price - Amount Willing to sell
Let plug in the formula
Surplus(Deirdre)=$31−$27
Surplus(Deirdre)=$4
Now let calculate the total value that was created in this exchange
Total value=$19+$4
Total value=$23
Therefore the amount of total value that was created in this exchange is $23
Answer: <u><em>(A.)The employment contract specifies the level of work effort required from a worker.</em></u>
(<u><em>C.) The buyer in the labor market is a price setter.</em></u>
Explanation:
In a economy the employment contract specifies the level of work effort required from a worker. i.e. while hiring an employee for a position in a organisation, It is required to completely specify the level of work effort required from that worker.
Also, Firms interact with individuals, employing them, discharging them and promoting or cutting wages and hours. The relationship between the forces of supply and demand influences the hours the worker works and their compensation.
The answer is B. Fixed expenses are just expenses that you know won’t change. They have a specific amount that will remain constant.
False. Price ceilings, provided there are no other government policies in place, will cause deadweight loss. Diagram provided.
This is a key idea with international trade. This involves what is known as comparative advantage.
let's say country A can produce a ton of soybeans in 4 hours and a ton of corn in 2 hours. While country B can produce a ton of soybeans in 15 hours and a ton of corn in 5 hours.
Looking at this set up you can see that country A can produce both corn and soybeans faster, so they have an absolute advantage in both!
However what trade is based on is opportunity cost. So if we think about how much corn country A has to give up to produce soybeans, they have to divert a total of 4 hours from corn to soy beans to produce one ton of soy beans. That 4 hours could be used to produce 2 tons of corn (since 2 hours for 1 ton and we're taking away 4 hours!). So opportunity cost of soybeans in country A is 2 corn.
In country B they would need a total of 15 hours to produce one extra ton of soybeans, but those 15 hours could instead be used to produce 3 tons of corn (5 hours per ton and we're stealing 15 total hours). That means country B's opportunity cost is 3 corn.
Since A has a lower opportunity cost in produce soybeans they will specialize and B will specialize in corn.