Answer:
a. they tell us whether a firm is profitable or not.
Explanation:
The shape of a firms curve tells us if a firm is profitable or not. If the firm is charging a higher price that is greater than its average cost of production for whatever quantity that was produced, we will have it that this firm will earn profits. But when the price that the firm is charging is smaller than its average cost of production, the firm will experience losses.
There are seven main instruments used in trade policy with tariffs being the oldest and the simplest. local content requirements tariffs subsidies voluntary export restraints import quotas.
Explanation:
Trade policy incorporates seven principal tools: tariffs, subsidies, import quotas, voluntary restrictions on exports, local content needs, administrative policies and anti-dumping duties. Tariffs are the easiest and earliest type of the tools of trade policy.
They have historically been utilized as a reservoir of government revenue but are primarily employed nowadays to shield particular home industries from foreign competition by artificially hiking the local cost of the foreign good.These are also the mechanism most effective in restricting by the GATT and WTO.
Answer:
2.64%
Explanation:
A = P(1 + r)^n
A = $12,000
P = $10,000
n = 7 years
12,000 = 10,000(1 + r)^7
(1 + r)^7 = 12,000/10,000 = 1.2
(1 + r)^7 = 1.2
1 + r = (1.2)^1/7
I + r = 1.0264
r = 1.0264 - 1 = 0.0264
r = 0.0264 × 100 = 2.64%
The Micro Islands have a comparative advantage in producing neither good.
The Micro Islands have a comparative advantage in producing bamboo towels.
The Micro Islands have a comparative advantage in producing botanical soaps.
The Micro Islands have a comparative advantage in producing both goods.
Answer:
The Micro Islands have a comparative advantage in producing botanical soaps.
Explanation:
Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.
The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.
While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
c. The term Eurobond applies only to foreign bonds denominated in U.S. currency.
d. Any bond sold outside the country of the borrower is called an international bond.
e. Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.
Answer:
b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.
Explanation:
A Eurodollar is a bond issued by a foreign company in US dollars instead of heir own domestic currency. Eurodollars are issued and redeemable at the foreign country, no the US. It has nothing to do with money deposited in banks outside of the US, since it refers to bonds, not deposits.
Answer:
8.30% is the rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding
Explanation:
Per annual rate = r = 8% = 0.08
Numer of compounding = m
Compounding Interest rate = ( ( 1 + r / m )^m ) - 1
Compounding Interest rate = ( ( 1 + 0.08 / 12 )^12 ) - 1
Compounding Interest rate = 0.0829995
Compounding Interest rate = 0.083
Compounding Interest rate = 8.30%
So, 8.30% is the rate of interest with continuous compounding is equivalent to 8% per annum with monthly compounding.
Answer:
Annual depreciation= $1,275
Explanation:
Giving the following information:
Purchase price= $5,600
Useful life= 4 years
Salvage value= $500
To calculate the annual depreciation, we need to use the following formula each year:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1:
Annual depreciation= 2*[(5,600 - 500) / 4]
Annual depreciation= $2,550
Year 2:
Annual depreciation= 2*[(5,100 - 2,550) / 4]
Annual depreciation= $1,275
The second year's depreciation expense using the double-declining balance method for the point of sale system purchased by Marlow Company would be $1,400.
The double declining balance method is a type of accelerated depreciation accounting method. In the first year, Marlow Company will depreciate the asset at a rate of 2/4 (50%) of the purchase price (i.e., $5,600), which totals $2,800. However, the asset has a salvage value of $500, which must be considered.
In the second year, the depreciation expense will be determined using the remaining book value of the asset after the first year of depreciation (i.e., $5,600 - $2,800 = $2,800) and again applying the rate of 50%. The second year's depreciation will therefore be 50% * $2,800 = $1,400.
So the correct option is e. $1,400.
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