Answer:
The correct answer is <em>d. Canada requires fewer resources than the U.S. to produce a bushel of wheat.</em>
Explanation:
A country (in this case Canada) has a comparative advantage over another country (in this case the United States) to produce a certain product (in this case wheat) if the production costs of that product (wheat) are less than from the other country, regardless of the opportunity cost of producing that other product in that country.
The comparative advantage is based on the fact that the country has developed greater efficiency in the use of resources or that it has greater ease of access to them due to better conditions of nature, greater technological development in the field in question, human capital more specialized in that economic field, etc.
The opportunity cost of producing a product or another in the same country does not affect a deterioration or increase of the comparative advantage developed to produce such a product.
Answer:
Option (B) is correct.
Explanation:
The prices of two inputs 1 and 2 are as follows:
w1 = $5
w2 = $2
Q = min{2x1, x2}
Cost is minimized when 2x1 = x2
140 = min{2x1, x2}
2x1 = 140
x1 = 70
x2 = 2x1 = 140
Total cost, C = w1.x1 + w2.x2
= 5x1 + 2x2
C($) = (5 × 70) + (2 × 140)
= 350 + 280
= $630
Answer:
d) Equity would increase by $63,228
Explanation:
We are not given any information about stock prices, but we do not need them. Whenever new common stocks are issued, stockholders' equity will increase (always).
Retained earnings are affected by net income and dividends:
- net income increases retained earnings
- dividends decrease retained earnings
Answer:
Programmes that will lessen poverty in the long term include: education and capacity development, land redistribution, promoting economic development and job creation, building houses, providing water, sanitation and electricity, and building schools and clinics.
Fundamental objectives are the things that we ultimately want to achieve. Means objectives are our avenues to achieving fundamental objectives. In the context of renting an apartment while in college, our fundamental objective could be: graduate from college. Our fundamental objective may also be (and usually is) even greater: Let's say "Get a job at IBM".
In the example of the goal to work at IBM, graduating from college is actually a means objective, since it is not a destination in itself, but a vehicle toward employment at IBM.
In this context, lower-tier means objectives could be:
-Graduate from college
-Get good grades
-be happy in your living situation
-manage money responsibly so it doesn't distract from school.
The last two means objectives (toward getting good grades) can be pursued by obtaining affordable, pleasant housing.
In the context of your fundamental objective (what all these decisions and goals are ultimately for) renting a cheap, nice apartment ultimately accomplishes the lower-level means objectives that move you towards good grades, which moves you toward a successful graduation which moves you toward employment at IBM.
As you may have noticed, the fundamental /means objective hierarchy can always move up. Imagine that your fundamental objective is actually "marry a guy who likes women who work at IBM" A strange example, but "work at IBM" is now a means objective toward your ideal IBM-loving man, with all the previously discussed means objectives still relevant to your fundamental objective (still need good grades to graduate, in order to work at IBM, in order to meet Mr. Right)
