Suppose that one US dollar buys 1.50 Swiss francs. A chocolate bar costs 0.75 francs in Switzerland. How much will the chocolate bar cost in US dollars?


Compared to country Y country X has a comparative advantage I’m producing computers. Country Y has a comparative advantage over country x in producing automobiles. How can the two countries best take advantage of this situation?

Answers

Answer 1

Answer: 1) 50 cents 2) they can trade with each other

Explanation of question 1

Ratio of dollars to francs

1: 1.5

The chocolate costs 0.75 francs. Divide 1.5 by 0.75 to find the multiplier in the ratio which is 2. Divide $1 by 2 to get 50 cents


Related Questions

The CEO of Tough Mudder believes that teams in his company are not working as effectively as they could, and he is asking you for advice. Provide the best answer to his question.

“Our teams in different countries have learned a great deal, so I am putting together an international team to study and share the best practices that have been developed. This team will have people from each continent where we operate. How should I plan to manage this team?”

a. To promote a sense of privacy, do not monitor online team communications. Keep information that may change frequently to yourself, as sharing it would be confusing.
b. Speak about everyone on the team as though they are the same to help team members feel they are being treated equally. Do not single people out for special recognition.
c. Encourage team members to socialize online by sharing photos and videos. Reach out to people from cultures where proactively sharing ideas is not valued.
d. Understand that some people use online technology more than others and cannot be expected to participate as much. Accept that Internet culture often involves “trolling,” or disrespectful disagreement, and do not interfere if this happens.

Answers

Answer:

c. Encourage team members to socialize online by sharing photos and videos. Reach out to people from cultures where proactively sharing ideas is not valued.

Examples of variable costs include all the following except: A. the plant manager's salary. B. direct labor costs. C. electricity used in running production machinery. D. raw materials costs.

Answers

Examples of variable costs include all of the following except the plant manager's salary, which is an example of a fixed cost, which is an expense that does not change regardless of other related factors.

Other examples such as direct labor costs, costs of electricity used in the operation of production machines and raw material costs are variable costs, which are values that change according to the quantity of products or services sold.

Fixed costs, on the other hand, are related to costs that do not vary, that is, they remain the same regardless of the production volume, so the plant manager's salary is an example of fixed cost.

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