Author Question: For purposes of determining comparative advantage, the cost of producing a good in each of two ... (Read 37 times)

anjilletteb · **on:** Jun 30, 2018

For purposes of determining comparative advantage, the cost of producing a good in each of two countries is measured in terms of:
a. metric units only.
b. opportunity costs.
c. total costs.
d. the currency of the importing country.
e. the currency of the exporting country.

Question 2

Suppose Mark invests a sum of 100,000 in a new venture. To fund his investment, Mark withdraws 50,000 from a savings account paying 10 per year and uses the proceeds from a bond that has just matured worth 50,000 . If he had reinvested the proceeds from the bond, he could have earned interest at the rate of 5. Calculate the opportunity cost of capital for Mark in a particular year.
a. 5,000
b. 7,500
c. 10,000
d. 12,500
e. 100,000