Answer:
Section 1..... Italy has a comparative advantage in the production of shoes, and Austria has a comparative advantage in the production of fish.
Section 2.... 5 pounds of fish, ; 1/10 pairs of shoes
Section 3..... A and C.
Explanation:
The comparative advantage is known to be a term that is in use in the economic world,where a country or company has the ability of producing goods at extremely lower cost compared to that of its partners or competitors.
This is very important because, the country or company will be able to produce its goods by making use of fewer resources.
And thereby gives the country or company an edge in selling its goods at a reasonable lower price when compared with that of its competitors.
In this case, it is summarized or concluded that, Italy has a lower opportunity cost of producing shoes. So, Italy has a comparative advantage in shoes and Sweden has a comparative advantage in fish.
Currently I am a family team member and over the summer I’m hoping to get a job at a local super market to start making money for myself
The answer is false. The role of entrepreneurs is accounted by economic models. They are directly connected with the consumers and have firsthand information about the things that they would like. Entrepreneurs play a big role to ensure that businesses circulate.
Great question!
Fiat money deries it's value from law or regulation. However representative money derives its value either from a claim on a commodity (gold for example).
However sometimes representative money means it has value higher than what it is made of, ie if you melt it down it is worth less than before it is melted down. In this sense fiat money is a type of representative money
