The idea that "the invisible hand" of competition sets prices and determines quantities produced in a market economy was the principal idea of B.) ADAM SMITH.
Invisible hand is said to be the metaphor Adam Smith used in referring to unintended social benefits that resulted from individual's actions.
Answer:
True
Explanation:
the country with the lower opportunity cost in producing a good is more efficient in production and should specialise in production of that good. While the country with the higher opportunity cost is inefficient in the production of the good and should import from the country with the lower opportunity cost.
Let's illustrate with an example
Scenario A
Country X's opportunity cost in the production of good A = 12 units of B
Country Y's opportunity cost in the production of good A = 2 units of B
Country Y is more efficient and should specialise in the production of good A
Scenario B
Country X's opportunity cost in the production of good A = 12 units of B
Country Y's opportunity cost in the production of good A = 12 units of B
Both countries have the same opportunity cost, so, we can't decide which country should specialise
Demand drives the price up. Supply shortages would be cause for offshore drilling. I am an ROV pilot in the Oil & Gas Industry and trust me we have enough supply. There just needs to be more demand for oil.
Answer:
the annual after-tax cost of financing the purchase of the home is $23,638.40
Explanation:
The computation of the annual after-tax cost of financing the purchase of the home is shown below:
= Installment amount - tax saving
= $33,200 - ($29,880 × 32%)
= $33,200 - $9,561.60
= $23,638.4
hence, the annual after-tax cost of financing the purchase of the home is $23,638.40
We simply applied the above formula
Answer:
PV=1,175
Explanation:
this question can be solved thinking as if we have a perpetuity, it is a future infinite payments, but in this particular case we have those payments (dividends) increasing over the time, so we can apply the next formula:
where PV is the present value of the future payments, i is the interest rate and k is the annual increasing, so applying to this data we have:
