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2 years ago

According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation imports?

Business

1 answer:

aliina [53]2 years ago

6 0

Answer:

The correct answer is option C.

Explanation:

The law of comparative advantage states that a country will produce and export the commodity it has a comparative advantage in producing.

In other words, if the country can produce good cheaply or at a lower opportunity cost.

The good that cannot be produced cheaply or has a higher opportunity cost will be imported from the country that produces it cheaply.

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A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output w

Tom [10]

If the returns are constant to scale, the output increases by the same as the increase in inputs, therefore, it would double.

7 0

2 years ago

Which of the following taxes are paid by the employee and the employer? a.FUTA b.Federal withholding taxes c.SUTA d.FICA

vlabodo [156]

Answer:

The correct answer is letter "D": FICA.

Explanation:

The FICA (Federal Insurance Contributions Act) is a U.S. law that requires a paycheck deduction to be paid to Social Security and Medicare. Employers and employees share half the payment unless an individual is self-employed meaning the full amount must be covered by that person.

8 0

2 years ago

Sheffield Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs

frosja888 [35]

Answer:

1. the net income if selling price increased by 10% would be = $59,700

Net income increased by $31,500.

Explanation:

Given,

Sales = $315,000

Variable costs = $216,000

Fixed costs = $70,800

No. of units = 5,000

Sheffield Company

Income Statement (Contribution Margin Format)

Particulars $

Sales 315,000

Less: Variable expenses (216,000)

Contribution Margin 99,000

Less: Fixed costs (70,800)

Net Income 28,200

Since the selling price increased by 10% and no change in variable costs and volume, therefore, we can get -

Sales = $315,000 x (1 + 0.10) = $346,500

In this case, the net income will be as follows:

Sales = $346,500

Less: Variable Costs = (216,000)

Contribution Margin = 130,500

Less: Fixed Costs = (70,800)

Net Income = 59,700

5 0

3 years ago

Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $6.0 million. Sultan pays out

Kisachek [45]

Answer:

A) $60.00

Explanation:

to calculate the value of Sultan's stocks, we need to use the growing perpetuity formula:

stock price = dividend / (required return rate - growth rate)

dividend = ($6,000,000 x 60%) / 1.2 million shares = $3,600,000 / 1.2 million shares = $3 per share
required return rate = 10%
growth rate = 5%

stock price = $3 / (10% - 5%) = $3 / 5% = $60 per share

5 0

2 years ago

3 Points

Maslowich

Answer:

C. An auction market

Explanation:

Option A is wrong because merchant wholesalers purchase any products directly from the manufacturers and sell those to the retailers, or consumers. In that case, buyers and sellers do not need to come together to complete a transaction.

Option B is incorrect as the warehouse club is recognized as a retail store where customers can purchase bulk products to reduce the expenses. In that case, only sell is the motive.

Option D is wrong because drop shippers cannot hold the inventory to their stocks. Therefore, customers and manufacturers will not come together.

Option C is correct because, in an auction market, the buyer and the seller have to come at the same time to complete a transaction. In that market, the buyer will directly negotiate with the seller to purchase a product or something else.

5 0

3 years ago

Read 2 more answers