Q# 1
How Goods Market will be in Equilibrium according to saving and investment approach?
Q# 2
An increase in the expected real interest rate tends to raise desired saving, but lower desired investment. Explain how and why? Also give an example.
Answers
(1) The goods market is in equilibrium according to the saving and investment approach when the total amount of savings (S) is equal to the total amount of investments (I).
(2) An increase in the expected real interest rate increases the return on saving, leading to a higher desired saving level, but reduces the profitability of investment, leading to a lower desired investment level.
For example, suppose the real interest rate increases from 2% to 3%.
In the Goods Market, equilibrium occurs when planned saving (S) equals planned investment (I). In other words, S=I. The saving and investment approach explains how changes in the real interest rate affect the level of desired saving and investment in the economy. When the expected real interest rate rises, it increases the return on saving, which leads to a higher desired saving level.
At the same time, it reduces the profitability of investment, which leads to a lower desired investment level. As a result, the equilibrium level of output and price level adjust to balance the quantity of saving and investment in the economy.
An increase in the expected real interest rate can have different effects on desired saving and investment. When the real interest rate rises, saving becomes more attractive because individuals and businesses can earn higher returns on their savings. As a result, desired saving increases. On the other hand, a higher real interest rate makes borrowing more expensive for businesses and individuals, reducing their incentive to invest in new projects. Consequently, desired investment decreases.
For example, suppose the real interest rate increases from 2% to 3%. This change makes saving more attractive, as individuals can now earn 3% on their savings instead of 2%. As a result, people might decide to save more money instead of spending it on consumption. However, businesses considering a new investment project will now face higher borrowing costs due to the increased interest rate.
This higher cost may discourage some businesses from investing, leading to a decrease in overall desired investment.
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Related Questions
The data show the
number of railroad crossing accidents for the 50 states
of the United States for a specific year. Construct a
histogram, frequency polygon, and ogive for the data.
Comment on the skewness of the distribution. (The data
in this exercise will be used for Exercise 14 in this
section.)
Class limits Frequency
1–43 24
44–86 17
87–129 3
130–172 4
173–215 1
216–258 0
259–301 0
302–344 1
Answers
Answer:
I hope this helps
Explanation:
216-258 0
1. Analyse the benefits and challenges of establishing a company versus other forms of ownership
Answers
Explanation:
Some of the various forms of business ownership include:
partnershipsole proprietorshiplimited liability companyThe benefits of establishing a company (limited liability company):
owners asset are separated from any liability the company incurs > in sole proprietorship the owners personal asset can incur liability. excluded from federal income taxe.The challenges:
requires high setup cost > this is not the case with sole proprietorship.raising capital for operations is diffficultSelect all that apply.
Learning styles include all of the following:
bodily/kinesthetic
verbal/linguistic
naturalistic
personal
Answers
Answer:
bodily/kinesthetic
verbal/linguistic
Explanation:
Learning styles can be regarded as range of competing as well as contested theories which analyse
differences that exist learning of in individuals. It should be noted that the Learning styles includes
✓bodily/kinesthetic
✓verbal/linguistic
Answer:
verbal/linguistic
bodily/kinesthetic
naturalistic
Explanation:
checked answer on Odyssey
Your small business is considering purchasing one of two different computers. Computer A costs $820 today and will increase after-tax revenues by $91, $254, and $734 over years 1-3 respectively. Computer B costs $690 today and will increase after-tax revenues by $451, $246, and $89 over years 1-3 respectively. If your firm’s financing rate is 12%, what is the cross over rate between these two computers and which should you choose?
Answers
considering a financing rate of 12%, the preferable option would be Computer A.
To find the crossover rate between the two computers, we need to determine the discount rate at which the net present value (NPV) of the cash flows from each computer is equal. We can calculate the NPV for each computer using the given after-tax revenue figures and the financing rate of 12%.
For Computer A:
NPV_A = -$820 + ($91 / (1 + 0.12)^1) + ($254 / (1 + 0.12)^2) + ($734 / (1 + 0.12)^3)
NPV_A = -$820 + $81.25 + $184.66 + $445.46
NPV_A = $16.37
For Computer B:
NPV_B = -$690 + ($451 / (1 + 0.12)^1) + ($246 / (1 + 0.12)^2) + ($89 / (1 + 0.12)^3)
NPV_B = -$690 + $402.68 + $184.66 + $58.99
NPV_B = -$43.67
To determine the crossover rate, we need to find the discount rate at which NPV_A = NPV_B. Since the NPV of Computer A is positive and the NPV of Computer B is negative, there is a crossover point between the two.
Using a financial calculator or spreadsheet software, we can find that the crossover rate is approximately 5.8%. This means that if the financing rate is below 5.8%, Computer A would be the better choice, and if the financing rate is above 5.8%, Computer B would be the better choice.
Therefore, considering a financing rate of 12%, the preferable option would be Computer A.
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If you tell me a good counter to this argument fast, I'll give u brainliest + five star (HELP)
If a school duration is not year-round, then students will most likely forget alot of things they learned over school year.
Answers
We certainly blank out things over time, and there's no reason to evaluate that what students learn in school should be an exception.
What do you mean by Argument?Making an argument involves two or more individuals reacting to one another's claim and support for such a claim.
There are a few unusual reasons why the brain forgets, but the two main causes are decay and disuse. Decay is a natural process that refers to the gradual loss of information over time. When we first learn something, it is stored in our short-term memory, which is relatively small and can only hold a very small amount of information.
Therefore, The statement “If a school duration is not year-round, then students will most likely forget a lot of things they learned over the school year.” is correct.
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Kenneth would like to invest in gold and is aware that the returns on such an investment can be quite volatile.
Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, e.g. 0.07680.)
Probability Return
Boom 0.1 27%
Good 0.2 23%
Ok 0.3 8%
Level 0.2 6%
Slump 0.2 -24%
Coefficient of variation enter the coefficient of variation rounded to 5 decimal places
Answers
The coefficient of variation for the investment in gold is 1.13721.
to calculate the coefficient of variation for the investment in gold, we need to determine the standard deviation of the returns and then divide it by the mean return. here's how to calculate it:
step 1: calculate the expected return (mean):expected return = (probability1 * return1) + (probability2 * return2) + ... + (probabilityn * returnn)
expected return = (0.1 * 27%) + (0.2 * 23%) + (0.3 * 8%) + (0.2 * 6%) + (0.2 * -24%)
expected return = 0.027 + 0.046 + 0.024 + 0.012 - 0.048
expected return = 0.061 or 6.1%
step 2: calculate the standard deviation:
standard deviation = √[((probability1 * (return1 - mean))²) + ((probability2 * (return2 - mean))²) + ... + ((probabilityn * (returnn - mean))²)]
standard deviation = √[((0.1 * (27% - 6.1%))²) + ((0.2 * (23% - 6.1%))²) + ((0.3 * (8% - 6.1%))²) + ((0.2 * (6% - 6.1%))²) + ((0.2 * (-24% - 6.1%))²)]
standard deviation = √[(0.00289)² + (0.03459)² + (0.00169)² + (-0.00001)² + (-0.06001)²]
standard deviation = √[0.0000083521 + 0.0011969081 + 0.0000028561 + 0.0000000001 + 0.0036001201]
standard deviation = √0.0048072364
standard deviation = 0.06934
step 3: calculate the coefficient of variation:coefficient of variation = (standard deviation / mean)
coefficient of variation = 0.06934 / 0.061
coefficient of variation = 1.13721 (rounded to 5 decimal places)
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Which of the following countries would be more likely to experience strong economic growth, other things equal?
Group of answer choices
Country JKL’s government has the right to take away property from individuals to distribute to government officials as they are better suited to have successful businesses.
Country ABC has an extensive set of business laws and property rights laws which promote trust in economic activity.
Country DEF has common property laws and economic activity is regulated by a national council.
Country GHI enforces private property rights only for some groups in society.
Answers
Country ABC would be more likely to experience strong economic growth, other things equal. This is because an extensive set of business laws and property rights laws promote trust in economic activity, which encourages investment and entrepreneurship.
When businesses are confident that their property rights are protected and that the rule of law is enforced, they are more likely to invest and innovate, leading to economic growth.
In contrast, the other countries listed have policies that may discourage economic growth. In Country JKL, the government taking away property from individuals to distribute to government officials undermines property rights and could discourage investment.
In Country DEF, common property laws and regulation by a national council could limit private enterprise and reduce the incentives for innovation. And in Country GHI, enforcing private property rights only for some groups in society could lead to inequality and discourage investment and entrepreneurship among those who are not granted those rights.
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medical costs, taxes, and interest are all examples of deductions that are subtracted from adjusted gross income.
true/false
Answers
The statement medical costs, taxes, and interest are all examples of deductions that are subtracted from adjusted gross income is false. Your AGI may occasionally be lower and will never exceed your gross total income on your tax return.
An agreement known as medical reimbursement allows employers to cover some of an employee's medical costs. The Income Tax Act permits a tax exemption of up to INR 15,000 for employer-paid medical expenses. Modified Adjusted Gross Income (MAGI) Medi-Cal is the most prevalent type of the programme. Non-MAGI Medical is Medi-Cal that determines eligibility using different criteria, such as property value, household size, and income.
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Which of the following is an example of the U.S. agreeing to allow imports from selected countries at the lowest
custom duty rates?
A free-trade zone
A most-favored nation status
A common market
A free trade agreement
Answers
The Free Trade Agreement of the U.S. is an example of the US agreeing to reduce barriers to imports and exports by lowering tarries. The correct answer thus is D.
What is an example of a Free Trade Agreement?The agreement between the U.S. and Mexico and Canada are examples of the Free Trade Agreement.
The agreement described above is called North American Free Trade Agreement (NAFTA)
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A share of ownership in a company is known as which of the following?
А.Stock
B.Investment
с.Rebate
D.Bond
Answers
Answer:
Stock
Explanation:
The worth of a company is subdivided into small units known as shares. Each unit of a share represents the ownership of the company. The owners of the shares are described shareholders, and they are the owners of the company.
The term share is, at times, substituted with stock or equity. In ownership of a company, stock, shares, and equity will refer to the same things. Shareholders are also then referred to as stockholders.
Do not use "x" as a multiplier. It is a variable. Round your
answer to the nearest cent.
= The demand function for a commodity is given by D(z) = 2000 – 0.12 – 1.0122. Find the consumer surplus when the sales level is 100. Round your answer to the nearest cent.
Answers
The consumer surplus when the sales level is 100 is $5661.
Given the demand function for a commodity as D(z) = 2000 – 0.12z – 1.0122z.
The sales level is 100.
Now we need to find the consumer surplus.
The difference between the highest price a consumer is willing to pay and the actual price he pays is the consumer surplus.
Formula for Consumer Surplus:
CS = 1/2 * Q * (Pmax - P)
Where,
CS is Consumer Surplus
Q is the quantity
Pmax is the maximum price a consumer is willing to pay for that quantity.
P is the actual price paid by the consumer.
We know the formula for demand is P = a - bQ
So,
2000 - 0.12z - 1.0122z = P
We have Q = 100.
So, P = 2000 - 0.12(100) - 1.0122(100)
P = $1886.78
Let's substitute the values in the formula of Consumer Surplus:
CS = 1/2 * Q * (Pmax - P)
CS = 1/2 * 100 * (2000 - 1886.78)
CS = 1/2 * 100 * (113.22)
CS = $5661
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Suppose the U.S. Treasury offers to sell you a bond for $557.25. No payments will be made until the bond matures 8 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?
Answers
The interest rate earned on the bond if bought at the offer price is 7.94% or 0.0794 as a decimal.
The formula for the interest rate earned on a bond is (Face Value - Purchase Price) / Purchase Price * (365 / Days until Maturity).
It can be expressed as a decimal or a percentage. When solving the problem, the following steps must be taken:
Given: Purchase price of bond, P = $557.25
Face value of bond,
F = $1000
Time to maturity, t = 8 years
To find: Interest Step 1: Determine the difference between the face value of the bond and the purchase price.
F - P = $1,000 - $557.25
= $442.75
Step 2: Determine the number of days until the bond matures. We know that there are 8 years in total, and there are 365 days in a year, so:
Days until Maturity = 8 years × 365 days per year
= 2920 days
Step 3: Substitute the values obtained in steps 1 and 2 into the formula for interest rate.
Interest rate = (F - P) / P × (365 / t)
= ($442.75 / $557.25) × (365 / 2920)
= 0.0794
= 7.94%
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Kayla is going to invest in an account paying an interest rate of 6% compounded continuously. How much would kayla need to invest, to the nearest dollar, for the value of the account to reach $650 in 7 years?.
Answers
Kayla would need to invest approximately $428 (rounded to the nearest dollar) for the value of the account to reach $650 in 7 years with continuous compounding at a 6% interest rate.
To calculate the initial investment needed for the account value to reach $650 in 7 years with an interest rate of 6% compounded continuously, we can use the formula for continuous compound interest:
\(A = P * e^{rt}\)
Where:
A = Final account value ($650 in this case)
P = Initial investment
e = Euler's number (approximately 2.71828)
r = Interest rate (6% or 0.06 as a decimal)
t = Time period (7 years)
We can rearrange the formula to solve for P:
\(P = A / e^{rt}\)
Plugging in the given values:
P = \(650 / e^{0.06 * 7}\)
P ≈ \(650 / 2.71828^{0.42}\)
P ≈ 650 / 1.52149
P ≈ 427.61
Therefore, Kayla would need to invest approximately $428 (rounded to the nearest dollar) for the value of the account to reach $650 in 7 years with continuous compounding at a 6% interest rate.
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4 On 1 July 20-6 Mumtaz started a business. The following are her transactions for the first two weeks of trading:
Answers
Mumtaz started a commercial enterprise. the following are her transactions for the primary weeks of trading: can do economic transactions thru cellular banking using a smartphone.
Definition of transaction: something transacted specially: a trade or switch of goods, services, or funds digital transactions. b transactions plural: the often posted record of the meeting of a society or affiliation: an act, system, or example of transacting.
Examples of transactions are as follows: Paying a provider for offerings rendered or items added. Paying a seller with coins and notice so that you can attain ownership of belongings previously owned by means of the seller. Paying an employee for hours worked.
In accounting, a transaction in any financial commercial enterprise event impacts a commercial enterprise's monetary statements. because transactions include any occasion that has an economic effect on your monetary data, there are a whole lot of items that are transactions.
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What is the term used to describe a design created to represent a company or
brand?
A. Headline
B. Visual
C. Logo
D. Body copy
Answers
Answer:
logo
Explanation:
i took the quiz!
Which is the end result of a review process that shows voluntary compliance with guidelines of an external, nonprofit organization
Answers
The end result of a review process that shows voluntary compliance with guidelines of an external, nonprofit organization can be a certification or accreditation.
A certification is a recognition that an organization has met certain standards set by an external body. This recognition is often displayed through a logo or seal that can be used on the organization's marketing materials. Accreditation, on the other hand, is a more comprehensive review process that evaluates an organization's entire operations, including its policies, procedures, and practices.
Accreditation is typically a more involved process that requires an organization to demonstrate ongoing compliance with standards over time. Both certifications and accreditations are voluntary and demonstrate an organization's commitment to meeting certain standards of quality or best practices.
These recognitions can be valuable for marketing and branding purposes, as well as for establishing credibility and trust with customers or stakeholders. Additionally, certifications and accreditations can help an organization identify areas for improvement and establish a culture of continuous improvement.
Overall, voluntary compliance with external nonprofit organization guidelines can lead to a variety of benefits for an organization, including improved reputation, increased customer trust, and enhanced operational excellence.
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Was the revocation effective?
Defend your position by citing
which legal principle is involved
and how it applies.
Answers
In this case, the revocation was not effective as a valid contract was formed between him and Sally when she sent her acceptance.
Was the revocation of an offer effective?Revocation refers to annulment or cancellation of a statement or agreement. In this scenario, Sally's acceptance was valid because it was sent before she received the revocation from Victor. The revocation would only have been effective if it had been received by Sally before she mailed her acceptance.
This is based on the principle of the "mailbox rule" in contract law, which states that an acceptance is valid once it is mailed or otherwise dispatched, rather than when it is received by the offeror. As a result, Victor's revocation was not effective, and a valid contract was formed between him and Sally when she sent her acceptance.
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Define a Small Scale Enterprise as per ‘MSMED Act, 2006’.
Answers
Explanation:
the Government of India has in acted, small and medium enterprises development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is an enterprise where the investment in plant and machinery is more than rate 25 lakh but does not exceed rate.
Distinguish between the sources of information about foreign employment and the ways of getting it.
Answers
Working for a company in another country is referred to as foreign employment, and you usually only work in one country. This wouldn't be your native country .
While the terms "foreign employment" and "international workforce" (people of a different nationality) are sometimes used interchangeably, the term really refers to a multinational corporation expanding outside of its home country and recruiting there.
Employers prefer foreign employment because they cannot find qualified local employees, necessitating the hiring of foreigners to do the job.
The following are some methods for obtaining information about foreign employment:
Newspapers, notice boards, electronic media (radio, FM, television, etc.), websites, and public programs
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Seed capital pays for which of the following?
A. Operating expenses for the first year of a new business
B. Expanding production and advertising budgets
C. Funding for research and development of a business idea
D. Competitive wages for high-tech workers
Edit: It's C
Answers
Answer:
It's C !
Explanation:
Hope you have a good day!
Seed capital pays for: C. Funding for research and development of a business idea.
The seed capital pays for market research for initial steps of product development. For example, development of the prototype or paying for all operating expenses like legal costs.
Seed capital provides operating expenses for the entire process of business. Hence, A is incorrect.
It has no role directly in the expansion of production and advertising budgets. Hence, B is incorrect.
It has no role in decision of competitive wages for high tech workers. Hence, D is incorrect.
Hence, C is correct option.
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Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 26,517 $ 30,075 $ 31,325 Accounts receivable, net 75,332 54,780 42,628 Merchandise inventory 96,629 73,097 47,247 Prepaid expenses 8,286 7,895 3,516 Plant assets, net 238,225 217,764 201,484 Total assets $ 444,989 $ 383,611 $ 326,200 Liabilities and Equity Accounts payable $ 110,802 $ 64,830 $ 44,350 Long-term notes payable 83,658 86,466 73,532 Common stock, $10 par value 162,500 163,500 163,500 Retained earnings 88,029 68,815 44,818 Total liabilities and equity $ 444,989 $ 383,611 $ 326,200 For both the current year and one year ago, compute the following ratios: Exercise 17-6 (Algo) Common-size percents LO P2 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable?
Answers
Answer:
hello
Explanation: the awnser is tooooo long! sorry...
Differentiate between generic and enterprise competition
Answers
Answer:
Generic competition is competition among different products that solve the same purpose while enterprise competition is am orderly established business with limited liability of another person. The main difference between the two is that generic is rivalry among similar businesses while enterprise is the company itself.
Differences between generic and enterprise competition
Generic competition is regarded as the third level of competition while enterprise competition is not among the level of competition but it does existGeneric competition are often longer-term and focuses on substitutable product categories that is it exists between business product while Competitive Enterprise is simply a type of competition that exist been enterpriseFor better understanding, lets explain what Differences between generic and enterprise competition
Generic competition is a type of competition that is outward-oriented and focuse on products. the market that exists here consists of those products and services fulfilling the same customer needCompetitive Enterprise is simply when an existing or planned business enterprise are involved or engages in any activity and also owns or controls some a useful interest and are involved in any activity that tends to competes or will compete with other enterpriseFrom the above, we can therefore say that the answer
Differences between generic and enterprise competition
Generic competition is regarded as the third level of competition while enterprise competition is not among the level of competition but it does existGeneric competition are often longer-term and focuses on substitutable product categories that is it exists between business product while Competitive Enterprise is simply a type of competition that exist been enterpriseLearn more about enterprise competition from:
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Prompt What is an economy?
Answers
Answer:
An economy is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated.
Matthew mcconaughey, jay-z, and jeff bezos are reportedly bidding to buy which nfl franchise? new york jets cleveland browns seattle seahawks washington commanders.
Answers
According to Any-post, Matthew McConaughey participated in a bid for the Bezos/Jay-Z Group led by Jeff Franchise to acquire Washington Commanders.
A method of selling goods or services that involves a franchisor creating and a franchise bidding and paying a license fee and often an upfront payment. Right to use the franchisor's name and system.
Famous franchise business models include H&R Block, Subway, United Parcel Service and McDonald's (NYSE: MCD) (NYSE: HRB).
In the United States, there are opportunities for franchise business in a variety of industries.
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Common trade agreements include the World Trade Association, economic communities, bartering, countertrade, and free-trade zones. What are possible concerns regarding trade agreements?
Answers
Explanation:
1. Unequal terms: Trade agreements could potentially create an unfair balance of power between two entities, allowing one country or party to benefit while the other is left with unfavorable terms.
2. Exploitation: Trade agreements could be manipulated to allow countries or entities to exploit resources or labor in the other countries in exchange for unfair terms.
3. Job Loss: Trade agreements can lead to job losses in countries that are unable to compete globally due to their industry not being competitive enough. This can create economic instability in countries as well as social unrest.
4. Impacts on Local Communities: Trade agreements can lead to adverse impacts on local communities, such as displacement from their traditional lands, decreased access to natural resources, or ecological destruction.
5. Risk of Dumping: Dumping is the practice of exporting products at very low prices to create an unfairly competitive market for other countries, potentially resulting in major losses for countries that cannot compete. This practice is often seen in trade agreements.
How does the Better Business Bureau effect the economy?
Answers
Answer:
Varies
Explanation:
It helps people find businesses that are trustworthy.
Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies.
Answers
Answer:
oligopolistic competition
Just as you have to include everything when you budget, you also need to plan on everything when you are
arranging insurance.
O False
O True
Answers
Answer:
True :)
Explanation:
Farmer Bill has a 2-acre farm. He can divide this land in any way he wants between cows and corn (that is, he could use ½ acre to grow corn and 1 ½ acres to raise cows… or any other such division). If he grows grass on the land then each acre could support 10 cows each year. If he grows corn on the land then one acre – near the river – would yield 5 thousand bushels of corn. The other acre would yield 2 thousand bushels of corn. Consider this land as the only input into production (or, alternatively, his labor exhibits a constant opportunity cost – unlike his land).
a. Plot the production possibilities curve.
b. If he initially uses all of his land to raise cows, what is the opportunity cost of 1 thousand bushels of corn?
c. If he is initially growing 6 thousand bushels of corn, what is the opportunity cost of another 1 thousand bushels of corn?
d. If he is initially growing 6 thousand bushels of corn, what is the opportunity cost of raising one more cow?
e. What happens (if anything) to the opportunity cost of corn if fertilizer allows him to support twice as many cows as before?
Answers
a. If Farmer Bill uses all of his lands to raise cows, then the opportunity cost of 1,000 bushels of corn is 5 cows.
b. The opportunity cost of 1 thousand bushels of corn is 2 cows.
c. If he is initially growing 6,000 bushels of corn, then the opportunity cost of another 1,000 bushels of corn is 5 cows.
d. If he is initially growing 6,000 bushels of corn, then the opportunity cost of raising one more cow is 1,000 bushels of corn.
e. If fertilizer allows him to support twice as many cows as before, then the opportunity cost of corn decreases.
The production possibilities curve (PPC) shows the maximum potential output of two goods that an economy can achieve with limited resources. Farmer Bill can use his two-acre farm to grow either cows or corn. If he grows grass on the land, each acre can support 10 cows each year, while one acre (near the river) can yield 5,000 bushels of corn, and the other acre can yield 2,000 bushels of corn.
By plotting the curve, Farmer Bill can identify the opportunity cost associated with each of his choices. If he chooses to produce more of one good, then he must produce less of the other good. The opportunity cost increases as the amount of one good increases, while the other decreases.
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5. A number with the addition of itself becomes 38. What
is the number?
Answers
Answer:
19+19=38
...........................