Sam and Christine both run their own lawn care businesses. Sam can mow a lawn in 30 minutes and trim a lawn in 20 minutes: Christine can mow a lawn in 20 minutes and trim a lawn in 20 minutes Who has absolute and comparative advantage in trimming lawns?

А

Sam has comparative advantage in trimming lawns; no one has absolute advantage in trimming lawns.

B

Christine has comparative advantage in trimming lawns; no one has absolute advantage in trimming lawns.

С

Christine has absolute and comparative advantage in trimming lawns.

D

Sam has absolute and comparative advantage in trimming lawns.

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

Retail industry fundamentals credential exam,part 1 all answers