Refer to Scenario 12.1 At the assumed annual inflation rate of 5 percent, approximately how much will the $6.00 pack of cigarettes cost in 30 years, when Jennifer reaches the retirement age of 60?

How do firms make investment decisions?

What will be an ideal response?

Suppose country X can produce a personal computer at an opportunity cost of 1000 t-shirts. Assume that country X has a comparative advantage in the production of t-shirts

Would country X ever agree to terms of trade with country Y such that one personal computer would be exchanged for 1100 t-shirts?