Answer: A. Increase / Appreciate / Depreciate
Explanation:
If disposable income increases more in South Africa than it does in the U.S., assuming the U.S. is a trading partner to SA, they will export more goods to SA because South Africans will demand more goods and services as they can afford to.
This will lead to a higher demand for the U.S. dollar which is the price that the U.S. goods will be denominated in and a higher demand for the dollar will make it appreciate.
The South Africa rand will depreciate because there is less demand for it relative to the U.S. dollar.
Answer:
debit to Bad Debt Expense for $5800 is the correct answer.
Explanation:
Answer: 16 units more than social optimum.
DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96
Explanation:
Q=1200 - 4P and Q=-240 + 2P
In a free market quantity demand =quantity supplied
1200 -4P = -240 +2P
P =240
Sub P
Q* = 240
Socially optimal quantity is
Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC
MPC= marginal private cost =inverse of supply function
MPC = (1/2)*Q + 120
MEC=12
MSC =(MPC +MEC) = (1/2)Q +120 +12
MSC= MPB where MPB is marginal private benefit = inverse of demand functn
MPB = 300 -(1/4)Q
(1/2)Q + 132 =300 - (1/4)Q
Q° = 224
Difference btw Q* & Q° = 16 units more than social optimum.
DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96
Answer:
By comparing the opportunity cost of producing cheese in the two countries, you can tell that <u>GREECE</u> has a comparative advantage in the production of cheese and <u>AUSTRIA</u> has a comparative advantage in the production of beer.
Suppose that Greece and Austria consider trading cheese and beer with each other. Greece can gain from specialization and trade as long as it receives more than <u>4 BARRELS</u> of beer for each pound of cheese it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than <u>0.1 POUND</u> of cheese for each barrel of beer it exports to Greece.
Based on this, which of the following terms of trade (that is, price of cheese in terms of beer) would allow both Austria and Greece to gain from trade?
a. 18 pounds of fish per pound of cheese.
<u>b. 9 pounds of fish per pound of cheese.
</u>
c. 1 pound of fish per pound of cheese.
d. 3 pounds of fish per pound of cheese.
WHAT HAPPENED TO THE BEER?
Assuming it is barrels of beer instead of fish, then both would gain if they traded 9 BARRELS OF BEER PER POUND OF CHEESE.
Explanation:
Opportunity costs are the benefits lost or extra costs associated to choosing one activity or investment over another alternative, I.e. the cost of the next best choice.
Answer: The correct answer is "a. may incorporate in any state it chooses."
Explanation: When incorporating, a business may incorporate in any state it chooses.
There are no limitations on the state in which a business is incorporated, therefore, each business can be incorporated in the desired state.