Consider the economies of the hypothetical nations Icecountry and Sandland. These nations produce only two goods, scooters and food. Let’s say that, in one day, a worker in each country can produce either the number of scooters or the amount of food indicated in the table below: Icecountry Sandland
Number of scooters 16 20
Quantity of food 40 lb 100 lb
A. What is the opportunity cost of producing a scooter in each country?
B. Which country has a comparative advantage in the production of food? In your answer, identify the opportunity cost paid by each producer.
C. If the countries specialize and trade, into what range could the terms of trade (pounds of food exchanged per scooter) possibly fall? Explain your answer. In your explanation, be sure to indicate which country is producing which good.

Consider the market for gasoline. suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon, and employees at gas stations earn $17.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect the government has instituted a legal minimum price of $3.40 per gallon for gasoline. the government prohibits gas stations from selling gasoline for more than $3.40 per gallon. due to new regulations, gas stations that would like to pay better wages in order to hire more workers are prohibited from paying more than $14.50 per hour.

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)

What two things do you consider when evaluating the time value of money