Answer:
The correct answer is option D.
Explanation:
The efficient market hypothesis is a theory in modern financial economics which states that the share prices reflect all available information and alpha generation is impossible. Neither fundamental nor technical analysis can give excess returns which are also risk-free.
Share prices in an efficient market reflect all the information, both public and private. This information includes future predictions. All this information is widely available to all the investors and they correctly interpret this information and quickly adjust to it.
Answer:
Bellisima's opportunity cost:
-
Production of corn per million hours of labor = 12 / 24 = 0.5 pairs of jeans of corn
- Production of jeans per million hours of labor = 24 / 12 = 2 bushels of corn
Felicidad's opportunity cost:
- Production of corn per million hours of labor = 8 / 32 = 0.25 pairs of jeans of corn
- Production of jeans per million hours of labor = 32 / 8 = 4 bushels of corn
Felicidad has a comparative advantage int he production of corn while Bellisima has a comparative advantage in the production of jeans.
If both countries specialize:
- Felicidad will produce 128 million bushels of corn.
- Bellisima will produce 48 million pairs of jeans.
Total production of corn has increased by 24 million bushels.
Total production of jeans has increased by 12 million pairs.
Assuming that Bellisima trades 26 million pairs of jeans and Felicidad exchanges 78 million bushels of corn, then:
- Felicidad's consumption of jeans will increase by 2 million pairs, while their consumption of corn will increase by 50 million bushels.
- Bellisima's consumption of jeans will increase by 10 million pairs, while their consumption of corn will increase by 6 million bushels.
Answer:
10 tabletops
Explanation:
Given that her basic weekly income is $300
Hence for her to meet are target of $1000 she has to work for the extra $700 since $300 is guaranteed
If one completed table top earn her $75
Hence she must complete 10 table tops to earn $750
Total earning = 750+300= $1050
Answer:
C
Explanation:
An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky