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Suppose That in Belize,the Opportunity Cost of Producing a Sailboat

question 68

Essay

Suppose that in Belize,the opportunity cost of producing a sailboat is 5 hang gliders.In Honduras,the opportunity cost of producing a sailboat is 8 hang gliders.
A)What is the opportunity cost of producing a hang glider for Belize?
B)What is the opportunity cost of producing a hang glider for Honduras?
C)Which country has a comparative advantage in the production of hang gliders?
D)Which country has a comparative advantage in the production of sailboats?


Definitions:

Semiannual Deposits

Semiannual deposits refer to money deposits made twice a year into a financial account or investment.

Compound Interest

Interest that is computed on both the initial principal amount and the interest that has been added to that principal from past periods of a deposit or loan.

Annual Rate

The interest rate for a period of one year, often used to compare the annual interest between different investments or loans.

Equal Annual Amounts

A term generally used in loan repayments or amortization schedules where payments are made in consistent amounts over the term of the loan.

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