Answer:
III. Points on the PPF curve are the only ones that achieve "productive efficiency"
Explanation:
What is true about productive efficiency is that Points on the PPF curve are the only ones that achieve "productive efficiency".
Productive efficiency is an economic term that is concerned with producing goods and services with the optimal combination of inputs to produce maximum output for the minimum cost.
For it to be said that an economy is productively efficient means the economy must be producing on its production possibility frontier
Hence productive efficiency happens when production is reportedly occurring along a production possibility frontier (PPF).
That sounds about right for accounting anyway
Answer:
The risk free will be 3.82%
Explanation:
We post the CAPM formula and how given data
risk free ?
market rate 0.12
premium market market rate - risk free ?
beta(non diversifiable risk) 3.2
Ke = 0.3
Now we post the know values and solve for risk free
risk free = 0.0381818181818182 = 3.82%
Answer:
France has comparative advantage in production of wine
Austria has comparative advantage in production of rye.
4 bushels of rye for each bottle of wine
1 bottle of wine for each bushel.
b. 4 bushel of rye per bottle of wine.
Explanation:
France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.
Answer:
<u>a. True</u>
Explanation:
Indeed, we could rightly say the statement is true by remembering the four key factors of production (business):
- capital (wealth)
- labor
- resources
- entrepreneur.
Labor is part of the list of important factors and political freedom allows the entrepreneur to sucessfully manage business activities.
