Answer:
Daniel will not be able to eventually pay of the loan.
Explanation:
At the end of the first month, the bank will charge interest of $100 i.e [tex]interest = $10,000 * 1% = $100[/tex]
Daniel pays $100 at the end of this first month, and this payment goes towards covering the interest charged on the loan, such that he begins month 2 with a balance of $10,000 in his loan account. At the end of the month, the bank charges interest of $100 again, i.e 1% of $10,000 and Daniel again makes a payment that is just enough to cover the interest only for that month and this payment is not reducing the principal owed.
This goes on and on, with Daniel only paying accrued interest at the end of each month. Therefore, Daniel will not eventually be able to pay off his loan.
Ayan, the newly appointed team manager of the sales team, practices autocratic leadership in his team. However, his team members who are quite experienced and equipped in their fields are not satisfied with the style of leadership practiced by Ayan, particularly that he doesn’t seek consensus in many of his decisions, which negatively affects team productivity. This scenario depicts the violation of _________ .
Answer: contingency approach to leadership
Explanation: As per the contingency approach of leadership theory the effectiveness of the team depends upon the style that the leader of the team uses as per the situation.
Autocratic leadership style refers to the situation when the leader of the team exercise individual control over the operations, this style is usually used when the members of the team are not experienced enough but in this case the members of the team are quite experienced, therefore we can conclude that Ayan is not contingent in his leadership.
George, a regional manager for a global corporation, is meeting with several upset managers from the Rome plant about Steve, who is originally from Florida but moved to Italy to manage the Rome facility. Phillipe, the assistant manager, tells George, "We all feel that Steve sees things only one way—his—and very seldom considers our perspective on things." Steve is employing a ______ management style
Answer: Parochial
Explanation: A style of management in which the manager having decision authority considers every situation only from his or her own perspective is called Parochial management style. The parochial mangers are the one with illiberal thinking they only considers the situation on the pros and cons related to themselves.
In the above case study, as per the description of the assistant, we can conclude that Steve is a parochial manager.
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Flora’s crops, the obligation to deliver produce to Harvesters is A. suspended. B. breached. C. discharged. D. not affected.
Answer: the correct answer is A. suspended
Explanation:
Because of a major cause the obligation to deliver produce to Harvesters is suspended.
Answer:
C) discharged
Explanation:
Since Flora's crops were destroyed by bad weather, her contract obligation is discharged due to a clear impossibility to perform. This means that even if Flora tries to perform her part of the contract, she will not be able to do it, at least not according to the recent circumstances. This type of actions are caused by acts of God (legal way to say natural forces), e.g. floods, fires, hurricanes, etc., and the parties involved in the contract are not responsible for them.
Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to require a permit for each ton of manure applied. The government gives each farmer 50 tradeable permits. Farmer A incurs losses of $25 for each ton of manure he does not apply, and Farmer B incurs losses of $50 for each ton of manure he does not apply. After permit trading, we would expect that
Using the permit trading system, Farmer B will likely buy permits from Farmer A because the cost of not applying manure is greater for Farmer B. The government ensures the overall manure applied does not increase, while farmers have flexibility in managing their operations.
Explanation:After implementing a permit trading system, we'd expect that Farmer B, who incurs more loss per unapplied ton of manure, would purchase additional permits from Farmer A. This is under the assumption that Farmer A is willing to sell, thus reduce manure application and incur a loss, for more than $25 and less than $50 per permit. The trading of permits creates a balanced system where the government ensures the overall applied manure does not increase, while each farmer has the flexibility to manage their losses more effectively. Farmer B would end up applying more manure than Farmer A because the cost of not doing so is higher for him.
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A government's assets include inventory of $2 million, roads constructed for $25 million with accumulated depreciation of $10 million, and equipment acquired for $5 million with accumulated depreciation of $1 million. Its liabilities include an outstanding balance of $5 million for bonds payable issued to construct the roads and a $1 million short-term loan for inventory purchases. What amount should be reported as the net investment in capital assets in the government-wide statement of net position?
$10 million
$26 million
$14 million
$25 million
Answer: $14 million is the amount that should be reported as the net investment in capital assets in the government-wide statement of net position.
Inventory is not a capital asset also the liability in regards to acquisition of inventory is left out. In this case capital assets are in regards with the roads and equipment.
Final answer:
The net investment in capital assets is calculated by subtracting accumulated depreciation and associated debt from the capital assets' historical costs. In this case, the net investment in capital assets is $14 million for the government's roads and equipment, after accounting for depreciation and outstanding bonds.
Explanation:
To calculate the net investment in capital assets for the government-wide statement of net position, we need to consider the historical cost of the capital assets and subtract accumulated depreciation and any outstanding debt associated with those assets. The calculation for the student's question is as follows:
Cost of roads: $25 millionLess accumulated depreciation on roads: $10 millionCost of equipment: $5 millionLess accumulated depreciation on equipment: $1 millionMinus bonds payable for roads: $5 millionMinus short-term loan for inventory (not included in net investment in capital assets calculation)Net investment in capital assets is calculated as the roads cost ($25 million) minus the accumulated depreciation on roads ($10 million) plus equipment cost ($5 million), minus accumulated depreciation on equipment ($1 million), minus the bonds payable for roads ($5 million). This equals $14 million, which is the total net investment in capital assets
Gamma corporation, an American company, signs a contract with Theta corporation, a company from another nation, where Theta will provide Gamma with certain raw materials. Because of the economy in its nation, there are many more people looking for jobs than there are jobs available. Theta hires employees at extremely low wages and does not maintain facilities up to American standards. Newspapers accuse Gamma of engaging in unethical behavior. Is Gamma's behavior ethical?
a. Yes, because it is good business to maximize profits, and those foreign citizens are better off with a job than without one.
b. No, because Gamma has an ethical obligation to make sure that people who work for them, either directly or indirectly, are being treated fairly.
c. No, because Gamma has a legal and ethical duty to make sure that foreign suppliers maintain working conditions that meet or exceed American standards.
d. Yes, because Gamma cannot be expected to investigate and oversee all of their suppliers, and Gamma is not doing anything wrong.
Answer:
b. No, because Gamma has an ethical obligation to make sure that people who work for them, either directly or indirectly, are being treated fairly.
Explanation:
In the context of productive globalization, it is natural for companies in one country to set up their factories in other countries and to hire companies that outsource their labor. However, contracting companies must maintain the standards of labor rights in force in the country in which employees are hired. A multinational corporation that considers itself ethical has a moral duty to enforce compliance with legislation that protects the welfare of workers.
The manager of a sales group has presented the weekly target on the number of sales her group must achieve. For this particular target to be achieved, she decides to reward the members of her group solely based on the number of sales each member makes. The type of task dependency that will exist in this case is
A) pooled task interdependency
B) simultaneous task interdependency
C) reciprocal task interdependency
D) sequential task interdependency
E) orded task interdependency
Answer: The type of task dependency that will exist in this case is "Pooled Task Interdependence. "
Here the Manager settles to reward the member of her group, it can be further interpreted that its a pool task interdependence as here the member make specific independent contribution towards the group performance increasing client welfare. In this type of interdependence, each organization executes separate role.
Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian’s savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his first year. Which of the following statements is correct?
$30,600
$55,600
$50,000
$75,600
Answer:
the opportunity cost will be $30,600
Explanation:
Investment 40,000
50,000 revenue
(15,000) supplies cost
35,000 operating income
(400) interest expense 20,000 x 2%
34,600 net income
Opportuniy Cost:
30,000 (he would just take one job, so we must use the higher value)
600 interest revenue of the saving 20,000 x 3%
30,600
Economic gain 4,000
A change in the asset turnover ratio from 1.3 to 1.6 would indicate a. a decrease in the effectiveness of assets in producing sales. by. an unfavorable trend in using assets to generate sales. ca favorable trend in using assets to generate sales. d. None of these choices are correct.
Answer:
a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.
Explanation:
Assets turnover ratio = [tex]\frac{Net Sales}{Average assets}[/tex]
Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.
Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.
An increase in the asset turnover ratio from 1.3 to 1.6 indicates a favorable trend in using assets to generate sales, reflecting improved efficiency and financial health of the company.
The asset turnover ratio measures how effectively a company uses its assets to generate sales revenue; the higher the ratio, the more efficient the company is at utilizing its assets. In this case, the improvement from 1.3 to 1.6 suggests that the company has become more efficient at converting its assets into sales, which is a positive trend for its financial health.
The underlying principle here is that a company's financial strength or health can often be assessed by how well it can turn its assets into revenue. This includes understanding not just the balance sheet but also the income statement, which shows the relationship between revenues and expenses.
Poe Co. had 300,000 shares of common stock issued and outstanding at December 31, Year 1. No common stock was issued during Year 2. On January 1, Year 2, Poe issued 200,000 shares of nonconvertible preferred stock. During Year 2, Poe declared and paid $75,000 of cash dividends on the common stock and $60,000 on the preferred stock. Net income for the year ended December 31, Year 2, was $330,000. What should be Poe’s Year 2 basic earnings per common share?
Answer:
Poe's Year 2 Basic Earnings per share = $0.9
Explanation:
Provided Year 2 Net income = $330,000
Cash dividend paid to preference shares = $60,000
Net earnings available for equity = $330,000 - $60,000 = $270,000
Now outstanding common equity = 300,000 shares
Earnings per share = $270,000/300,000 = $0.9 per share
Note: Dividend paid to common stock is also earnings of common stock, that is dividend is part of common stock.
Therefore dividend paid to common stock will not be deducted and preference shares are paid in priority to equity, therefore dividend to preference is deducted to get the value of earnings available for equity.
Final Answer
Poe's Year 2 Basic Earnings per share = $0.9
The owner of Fido's Pet Supplies wants to know how much dry dog food to stock in her new location. On her customer questionnaire, which of the following questions would be most likely to help her estimate her needs? A. How often do you buy dry dog food? B. How much do you spend every week on dog food? C. Does your dog prefer canned or dry food? D. How many pounds of dry dog food do you buy each week?
Answer: Option D
Explanation:
A. Asking how often the customer buys the product might not give fair results as it highly depends on customers behavior and also no certain time period is considered.
B. Expenditure might not give fair results as some customers might purchase less of a product but the brand they consume is expensive than others.
C. Preference of the user is not complete information as there is no quantity and time period consideration in data.
D. In this option one is getting information about both quantity required and the time period for which it required. Hence, option D is the correct answer.
Answer:
D. How many pounds of dry dog food do you buy each week?
Explanation:
I got this correct on the PF test.
Hope this helps! :))
The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making sure that the organization's strategic goals cascade down through the organization so that the employees can work together in pursuit of common ends. Peter's Group is using ________ in their organization.
Answer:
The Peter's Group originated four years ago, and since then, the company has grown each year. Management has focused on making sure that the organization's strategic goals cascade down through the organization so that the employees can work together in pursuit of common ends. Peter's Group is using aligned goals in their organization.
Explanation:
Aligned goals is what organizations do in order to gather all the forces towards the achievement of common objectives.
Sue’s bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction Cost ($) Rent 353.76 Video game 32.79 Bike maintenance 60.26 Jacket 55.62 Rug 80.40 Night out 35.77. Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?
Answer:
Sue cannot afford to split the cost of a new TV as she only has $281.23 in her bank account after transactions. She has to contribute $302.22 and she doesn't have enough money.
Explanation:
Item Debit Credit Balance
Bank balance before transactions 899.83
Rent 353.76 546.07
Video game 32.79 513.28
Bike maintenance 60.26 453.02
Jacket 55.62 397.40
Rug 80.40 317 .00
Night out 35.77 281.23
Sues bank balance after all the transactions is $281.23
Answer:
C : No, making that purchase will overdraw her account.
Explanation:
Which resource management task includes activating local resource requirements, if available? A. Track and Report B. Mobilize C. Order and Acquire D. Reimburse and Restock
Answer:
The answer is (C) Order and Acquire
Explanation:
Resource management is the deployment or organizational resources according to what the organization currently needs. The options given in the question is part of the process commonly implemented during a resource management action. In the event that resources need to be acquired to solve the problem in the organization, the step that the manager must engage in is to order and acquire these resources.
The resource management task that includes activating local resource requirements is Order and Acquire. It focuses on identifying, ordering, and acquiring necessary resources including personnel, supplies, and equipment required during times of need.
Explanation:The resource management task that includes activating local resource requirements, if available, is C. Order and Acquire. This task involves identifying, ordering, and acquiring resources including personnel, supplies, and equipment required to support disaster response activities. The function of this task is to ensure that all necessary resources are in place and ready for use when their need arises. For instance, in case of a natural disaster, this may involve activating local healthcare providers, emergency services, and supplies of food and water.
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Which Response core capability includes delivering essential commodities, equipment, and services in support of impacted communities and survivors, to include emergency power and fuel support, as well as the coordination of access to community staples? A. Logistics and Supply Chain Management B. Mass-Care Services C. Infrastructure Systems D. Environmental Response/Health and Safety
Answer: the correct answer is A. Logistics and Supply Chain Management
Explanation:
Logistics and Supply Chain Management has to do with delivering and managing essential commodities, equipment, and services whether it is in an emergency or a routine operation in a company.
Answer:
"A"
Explanation:
Logistics and supply chain management is about delivering essential commodities ,equipment and services in support of impacted communities and survivors to include emergency power and fuel support .as well as coordination of access to community staples.
While supply chain management is the administration of goods and services from the stage of raw materials to finished goods , Logistics addresses the area of network design transportation and inventory management
You deposit a $100 check from a friend in your account. A couple of days later, you buy $45.20 worth of groceries and pay with a check. Two days later you receive a note from the bank stating that your friend’s check bounced and you owe the bank a $25 fee. Since your friend's check bounced, your account balance was actually $100 less than you thought it was, and the check you wrote to the grocery store bounced. Guess what? The bank debited your account another $25 for bouncing the check. It gets worse. The next day you receive a letter from the grocery store that you owe them $25 in fees for the bad check and that you have to pay the original $45.20 with a money order that will cost you $1. Calculate how much you actually spent for your groceries.
Answer:
The correct answer is, $121.2
Explanation:
You went for grocery and paid the bill through check.
Amount of grocery purchased: $45.20
You check bounced and you owe bank $25 because you didn't have much balance in your account that you paid for the groceries.
Your bank did an additional transaction of debiting your account with $25 for the bouncing of your check.
Grocery store sent you the letter to tell that you owe them $25 for the bounced check
You will have to pay again $45.20
Money order fee: $1
So the amount that you actually spent on groceries would be:
$45.2(real grocery amount) + $25(you owe to bank for bouncing your friend's check) + $25( Your check bounced) + $25(grocery store charged due to bounced check) + $1(money order)
= $121.2
So you are actually charged $ 121.2 for the groceries.
We are going to choose either of Mary or Mark for the role of Scrum Master. Mary knows Scrum very well, but she's very young and has no real world experience. Mark doesn't know Scrum, but has eight years of experience in managing IT projects. Which one is a better choice for the role of Scrum Master?
A. Mary, because she knows Scrum and doesn't have to manage the project. B. Mary, because she knows Scrum and she will learn project management soon.C. Mark, because he knows project management and doesn't have to know Scrum.D. Mark, because he knows project management and will learn Scrum soon.
Answer: Scrum Master is provided with responsibilities for ensuring that his/her group actively follow intelligent belief and value, also pondering onto the fact that the group follows the operation and practices agreed upon.
Their roles mostly encompasses the following:
(a) removing hindrance for his/her team, so they can work smoothly.
(b) Providing his/her team with surroundings where they can be effective.
(c) Addressing group dynamics whether it is intra-group or inter-group.
Here, in this particular case we have two candidates:
1. Mary knows Scrum very well, but she's very young and has no real world experience.
2. Mark doesn't know Scrum, but has eight years of experience in managing IT projects.
So, in this case Mary is a better choice for the role of Scrum Master because she knows Scrum and she will learn project management soon.
The given treasury bill was sold in april of this year. find (i) the price of the t-bill, and (ii) the actual interest rate paid by the treasury. round dollar amounts to the nearest cent and interest rates to the nearest thousandth. six-month $17,000 t-bill with discount rate 0.130%
The bond's price will be lower than its face value when its interest rate is below the market rate; the price is determined by discounting future payments at the current market rate, resulting in a maximum price equal to an alternative investment that provides the same future value.
Explanation:When a bond's interest rate is less than the market interest rate, the bond's price tends to be lower than its face value. To calculate the price of a bond in such a scenario, we use present value calculation methodologies that discount the bond's expected future payments at the current market interest rate. In the instance where a bond with expected payments of $1,080 (including final interest payment and principal repayment) one year from now, and market interest rates are at 12%, we could use an alternative investment to receive $1,080 after one year by investing $964 now (since $964 × (1 + 0.12) = $1,080). Therefore, in a competitive market, an investor would not pay more than $964 for the bond to earn the equivalent return as the alternative investment.
An allocation is efficient if: a. it is technically infeasible to make anyone better off without making someone worse off. b. the surplus is split equally between producers and consumers. c. no individual has an incentive to change behavior. d. profits are maximized.
Answer:
An allocation is said to be efficient when it is not feasible to make someone better off without making someone worse off.
Explanation:
Allocation of resources can be defined as the process of assigning resources to different uses.
If it is technically feasible to make someone better off without making someone worse off, it indicates that the allocation is not efficient. In this situation efficient reallocation of resources can take place.
Allocation is said to be in equilibrium when no one has an incentive to change behavior.
If you are vacationing in France and the dollar depreciates relative to the euro, then a. the dollar buys more euros. It will take more dollars to buy a good that costs 50 euros. b. the dollar buys fewer euros. It will take fewer dollars to buy a good that costs 50 euros. c. the dollar buys fewer euros. It will take more dollars to buy a good that costs 50 euros. d. the dollar buys more euros. It will take fewer dollars to buy a good that costs 50 euros.
Answer:
c. the dollar buys fewer euros. It will take more dollars to buy a good that costs 50 euros.
Explanation:
When a currency depreciates, it will decrease their value in relathinship wth the other currency.
This means the dollar will buy less euros.
This makes statment A and D FALSE.
If the dollar is worth less then, the amount of dollar required for a given amount (50) will be higher,
it takes more dollars to buy 50 euros of goods.
Option C is the only statment which express both situation.
Tara works as a programmer for XYZ Electronics Company. About one month ago, Tara bought 500 shares of a small start-up firm with great technology because she heard rumors from the CFO's secretary that XYZ was planning to purchase the smaller company and give it an infusion of cash. Yesterday, XYZ announced the decision to buy the small firm, which significantly increased the small company's stock price. Tara most likely performed her trade based upon
A, public information
B, XYZ's treasury stock
C, faulty information
D, insider trading information
Answer: OPTION D
Explanation:
A. Public information can be defined as the information the dissemination of which would not threaten the security.
B. The stock repurchased by the company leading to reduction in outstanding stock is called treasury stock.
C. Faulty information as the name says is the information that is not true.
D. Insider trading information is the information that is not made available to public yet and can influence the decision of the investor.
Hence we can conclude that Tara worked on insider information.
Which of the following statements are correct (Select all that apply): Select one or more: A. A balance sheet reports on investing and financing activities. B. An income statement reports on financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. E. A balance sheet reports on a company's assets and liabilities over a period of time.
Balance sheet (A, E) shows investments/financing indirectly and assets/liabilities at a point. Equity statement (C) tracks changes in equity accounts. Cash flow statement (D) details cash in/out for operating, investing, and financing. Income statement (B) excludes financing activities. Choose A, C, D, E. So, the statement B is incorrect.
The following statements are correct:
A. A balance sheet reports on investing and financing activities: While the balance sheet primarily focuses on a company's assets and liabilities at a specific point in time, it also indirectly reflects past investment and financing decisions through the composition of those assets and liabilities.
C. The statement of equity reports on changes in the accounts that make up equity: This statement specifically tracks changes in retained earnings, share capital, and other equity components over a period.
D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time: This statement provides detailed information on the sources and uses of cash during a specific period, categorized by operating, investing, and financing activities.
E. A balance sheet reports on a company's assets and liabilities over a period of time: As mentioned earlier, the balance sheet captures a snapshot of a company's financial position at a specific point in time, showcasing its assets (what it owns) and liabilities (what it owes).
Therefore, the correct answers are A, C, D, and E.
Statement B is incorrect: An income statement primarily focuses on a company's revenues and expenses during a specific period, reflecting operating performance and profitability. It does not directly report on financing activities.
Q- Which of the following statements are correct (Select all that apply): Select one or more: A. A balance sheet reports on investing and financing activities. B. An income statement reports on financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. E. A balance sheet reports on a company's assets and liabilities over a period of time.
After trying out different brands of toothbrushes, Martin has decided that he prefers Oral B the most. Whenever he is out grocery shopping, he always purchases several of these toothbrushes, to stock up in case the store runs out in the future. To Martin, Oral B toothbrushes are _____ offerings.
Answer:
To Martin Oral b toothbrushes are shopping offerings.
Explanation:
First of all offerings are nothing but the goods and services which are designed by firms in such a way that they deliver values to the consumers.
Shopping offerings are that type of offerings for which a consumer ( like Martin in this case ) would make an effort to do comparison between certain products of two different brands , to see which one is right for him ( like in this case oral b is for Martin ) and that too at the right price.
Let’s suppose that a lender has established a 90% loan-to-value ratio cutoff as one of its primary underwriting criteria. If a borrower is willing to make a down payment of $125,000 on a home recently appraised at $550,000, what best describes the lender’s decision on whether or not to approve the loan along this dimension?
Answer:
77.27% or
(17/22)%
The loan will accepted
Explanation:
property value 550,000
haircut 125,000
550,000 - 125,00 = 425,000 mortage value
425,000/550,000 = 77.27% = (17/22)%
The ratio is below the cutoff, so it is within the boundaries the lender expect. The loan will be given.
Andrews Company accepted a note receivable from a credit customer who failed to pay their $2,000 Accounts Receivable balance. The customer signed a promissory note which was accepted for 9 months at 5% interest. At the end of the 9 months, the customer does not pay, so it becomes a dishonored note receivable.
Answer:
First.At the time of delivery of the document, the company must cancel the customer's debt and register the document to charge more interest.( 2.000 x 0.05 = 100)
Notes receivable 2.100
interest to accrue 100
accounts receivable 2.000
Second. Then at the time of payment the client does not pay. The company must cancel the document and interests and according to its criteria, it can register an asset (1), a doubtful credit provision (2) or a loss (3) for this credit.
Notes receivable 2.100
interest to accrue 100
(1)accounts receivable 2.000
(2)provisions on doubtful debts
(3)bad debts
The decision about what goods and services will be produced made in a market economy is made by:
A. Workers deciding to produce only what the boss says must be produced.
B. Lawmakers in the government voting on what will be produced. producers deciding what society wants most.
C. Consumers and firms choosing which goods and services to buy or produce.
D. Consumers dictating to firms what they need most.
Answer:
The correct answer is C
Explanation:
. A market economy is based on the basic principle of supply and demand. This means that there is a group that needs goods and services for their daily lives (consumers) and another group that is responsible for producing these goods and services in order to obtain results in return.
In this market economy neither the workers, nor the bosses, nor the states decide unidirectionally what should be consumed or what should be produced (there are exceptions as mandatory vaccines). For example, society can demand more electric cars because of the increase in the price of gasoline (a demand will create the supply) or a company can create a new air conditioner that everyone wants to have in their home. (an offer will create the demand).
The variation of supply and demand will also be affected by the different prices of goods and services that are in the market.
In a market economy, the decision about what goods and services will be produced is made by consumers and firms choosing which goods and services to buy or produce.
In a market economy, the decision about what goods and services will be produced is made by consumers and firms choosing which goods and services to buy or produce. In this type of economy, businesses supply goods and services based on demand, and the quantity, quality, and price of these goods are determined by the preferences and choices of consumers. The market forces of supply and demand drive the decision-making in a market economy.
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'As fewer people buy gym memberships, the demand for running shoes will decrease and the price of a pair of running shoes will increase. The rise in the price of a pair of running shoes will increase the supply of running shoes". This statement is _____ because _____. a. true; the increase in the price of a pair of running shoes increases the supply of running shoes to eliminate the shortage. b. false; a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase teh supply of running shoes. c. true, when the demand for running shoes increases, the supply for running shoes increases too so that no surplus occurs d. true; when the demand for running shoes increases, the supply of running shoes increases so that the price of a pair of running shoes doe not increase e. false; the decrease in the demand for running shoes creates a surplus and to eliminate the surplus, supply increases
Answer: "The rise in the price of a pair of running shoes will increase the supply of running shoes".
This statement is false because a decrease in demand for running shoes does not increase the price of a pair of running shoes and an increase in the price of a pair of running shoes does not increase the supply of running shoes.
This occurs as the price of a pair of running shoes increases,therefore decreasing the demand and thus the supply will not increase.
One of the reasons why the AD curve slopes downward is that as theA. Price level rises, purchasing power rises.B. Price level falls, purchasing power rises.C. Nation's income level rises, purchasing power rises.D. Nation's income level rises, purchasing power falls.E. This is a trick question, because the curve is upward sloping.
Answer: Option (B) is correct.
Explanation:
If the price of a commodity decreases, as a result purchasing power of a consumer increases. This is one of the reasons why the AD curve slopes downward.
Suppose there is a fall in the price of a commodity, this will increase the demand for that commodity as well as the purchasing power of the consumer.
Because with a lower price of the commodity, individuals can buy more quantity of goods with the same level of income.
The AD curve, or Aggregate Demand curve, slopes downward Price level falls, purchasing power rises
Explanation:The correct answer to your question is B. Price level falls, purchasing power rises. In economics, the AD curve, or Aggregate Demand curve, slopes downward. This occurs due to the wealth effect, which suggests that as price levels decrease, the real value or purchasing power of money held by consumers increases, leading to increased consumption, and thereby increasing aggregate demand.
Simply stated, when the price levels fall, consumers are able to buy more goods and services with the same amount of money. This means the purchasing power increases as they can now afford more things than they could before.
It's important to note that other elements such as interest rates and the exchange rate effect also play a role in the downward slope of the AD curve, but purchasing power is one of the key factors.
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Understanding opportunity cost before you started applying for college, a job recruiter offered you a full-time cashier position at a doctor’s office, earning an after-tax salary of $22,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $34,000. You decide to go to college probably because?
A. You value a year of college at $22,000
B. You value a year id college of $34,000
C. You value a year of college less than $34,000
D. You value a year of college at more than $56,000
Answer: You decide to go to college probably because"You value a year of college at more than $56,000"
Opportunity costs are the benefits an respective individual, leaves while determining to pick one alternative over another.
So, you will attend college if you perceive value of attending college more than ($22,000 + $34,000)= $56,000
Susanne, the CEO of a national IT manufacturer, was approached by Simple Phones, a new company that is marketing a new type of phone, to partner with the company on a project. The results of the partnership are uncertain because the company (Simple Phones) and its technology are new. Susanne is uncertain what to do because she is limited by numerous constraints, such as the uncertainty and complexity of the technology, the management success of Simple Phones, and time (because other companies are interested in the partnership). Susanne is experiencing ____________.
Answer: Susanne is experiencing bounded rationality
Explanation: While taking a decision individuals take various factors into consideration like amount of time and information they have, limitations of mind etc. Bounded rationality states that rationale of individual while taking decisions gets affected by such factors. Just in this case,Susanne is not confident about decision making because she does not have enough level of information.