BUSINESS COLLEGE

Comparative advantage is based on the economic concept of:A. marginal cost.

B. opportunity cost.

C. nonsatiety

D. rationality.

Answers

Answer 1
Answer:

Answer:

B. Opportunity Cost

Explanation:

Comparative Advantage is when an economy can produce certain goods & services at a lower opportunity cost than other trading economies.

Opportunity cost is the cost of next best option forgone while choosing a particular option.

Comparative advantage (production ability at lower opportunity cost) implies: Economy can produce a good/ service by sacrifising lesser amount of other good, than the other economy.

Example : Production Possibilities of 2 countries, 2 goods :-

                   Good X       Good Y     Opportunity Cost (Goods Ratio)

Country A     10                30               1:3    (10/30)

Country B      5                 10                1:2   (5/10)

Country A can produce Good Y by sacrifising 3 units of Good X, Country B can produce Good Y by sacrifising 2 units of Good X. So, B can produce good Y at lesser opportunity cost than A. Hence, country B has comparative advantage in good Y.

Related Questions

Williams Company pays each of its two office employees each Friday at the rate of $240 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
The money lost by not working is called
Question 2 Pluto has $100 to spend and his preferences are represented by the quasi-linear utility function U (2,m) = 10x-1/2x^2+m where x is the amount of pizza he eats and m is the amount of money he spends on other stuff. (a) What is Pluto's demand curve for pizza? (b) How much consumer surplus does Pluto get when the price of pizza is $5? Illustrate the calculation of consumer surplus with a diagram. (b) What is Pluto's utility if the price of pizza is $5? (c) Suppose that Pluto is uanble to purchase pizza. What is his utility? What is the gain in utility when he has the opportunity to buy pizza at a price of $5?
Activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business should be accounted for in a. General Fund. b. Enterprise Fund. c. Internal Service Fund. d. Special Revenue Fund.
Of customers who register a complaint, ________. all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor none will do business with the company again customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied the speed of resolution has no impact on the likelihood of repeat business some will do business with the company again if their complaint is resolved

lauren is 17 years old. She report earned income of $3,000 and unearned income of $6,200. Is it likely that she is subject to the kidie tax? Explain.

Answers

Answer:

Following are the solution to this question:

Explanation:

Yes, at the end of the year Lauren is now under the age of eighteen but her salary is much more than $2,100, and she's eligible to its Kiddie levy. Notice that perhaps the child's net unpaid wages are a kiddie tax base. Net income that is undeserved shall be less than total salary of even an unarned infant minus $2,100 or tax payable of the child. Here, Lauren's Tax Income is measured as gross income of $9,200, minus her $3,350 = $5,850. That gross taxes unattained minus 2,100 dollars was estimated as 6.200 dollars less 2,100 dollars = 4,100 dollars taxed to use a fide and interest deduction schedule. The other $1,750 is paid 10 percent of Lauren's cost.

Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as _____. Multiple Choice A. laggards
B. lead users
C. early followers
D. intrapreneurs

Answers

Answer:

Letter B is correct. Lead Users.

Explanation:

Term developed by prof. Eric von Hippel, Lead Users are those users who are able to transform, adapt and modify a company's product or service for their own benefit, as they face the same market needs a while before regular users.

For Prof Eric von Hippel, there are four steps in developing Lead Users:

  1. Preparation,
  2. Needs and Trends Identification,
  3. Lead Users Identification, and
  4. Concept Design.

The premise is that the Lead Users method is effective in identifying innovation and product trends that need to be developed for a market for your needs.

Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adulit customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2018, Jake Lawson purchased a season pass for $450.1. What will be included in the Ski West 2018 Income statement and balance sheet related to the sale of the season pass to Jake Lawson? Complete this question by entering your answers in the tabs below. 2. When should Ski West recognize revenue from the sale of its season passes?3. Prepare the appropriate ournal enteries that Sky West would record on November 6 and December 31.

Answers

Answer:

Ski West, Inc.

1. What Ski West 2018 should include in its Income statement and balance sheet related to the sale of the season pass to Jake Lawson?

a) Income Statement:

Season Passes Revenue = $90 ($450/5).  This represents December season pass by Jake Lawson.

b) Balance Sheet:

Unearned Season Passes Revenue $360 as a current liability.

2. When Ski West should recognize revenue from the sale of its season passes:

Revenue should be recognized on December 31.

3. Journal Entries on November 6 and December 31:

November 6:

Debit Cash Account $450

Credit Unearned Season Passes Revenue $450

To record the receipt from Jake Lawson.

If this sale was on account, then the Accounts Receivable is debited instead.

December 31:

Debit Unearned Season Passes Revenue $90

Credit Season Passes Revenue $90

To record the earned revenue from Jake Lawson's.

Explanation:

Unearned revenue is not recognized in the income statement.  It is taken to the Balance Sheet as a current liability.  It is not recognized because it does not belong to the current period, as specified by the accrual concept and matching principle.

Feb 26- received $300 from a customer as a down payment on work to be undertaken on repairs to a cell. Is that unearned revenue.

Answers

If that work is done than it's revenue or if the work is going to happen in future then it's unearned revenue.

The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:Equipment $18,250 Service Revinue $10,800Office Supplies 1,400 Account Receivable 8,400Notes Payable 5,000 Accounts Payable 11,000Rent Expense 550 Retined Earnings, June 1, 2018, 3,900Cash 2,200 Salries Expense 1,900Dividends 4,000 Common Stock 6,000Required:a. Prepare the statement of retained earnings for Winfrey Towing Service for the month ending June 30, 2018.b. What does the statement of a retained earnings report?

Answers

Answer:

See explanations below.

Explanation:

First , we need to calculate net income

Revenues :

Service revenue $10,800

Less : Expenses:

Salary expense $1,900

Rent expense $550

Total expense. ($2,450)

Net income. $8,350

a. Winfrey Towing Service

Statement of retained earnings

Month ended, June 30 2018

Retained earnings June 1, 2018 $3,900

Add net income for the month $8,350

$12,250

Less: Dividends ($4,000)

Retained earnings June 30, 2018 $8,250

b. Statement of retained earnings report is the change in retained earnings of a firm or business unit during a given period of time.

Julio Company purchased a $200,000 machine that has a four-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 30% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be:(A) $15,000.
(B) $50,000.
(C) $140,000.
(D) $35,000.
(E) $200,000.

Answers

Answer: The correct answer is "(E) $200,000.".

The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be: "(E) $200,000.".

Explanation: At time 0, the course of time does not occur therefore there is no discount.
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