a. The Opportunity cost for holding 8% interest rate on Government Bonds is $800.
b. The Opportunity Cost for holding 10% interest rate on Government Bonds is $1,000.
c. The previous analysis suggest about the market for money is: b. The quantity of money demanded decreases as the interest rate rises.
a. 8% Opportunity cost
Opportunity cost= 8%× $10,000
Opportunity cost=$800
b. 10% Opportunity cost
Opportunity cost= 10%× $10,000
Opportunity cost=$1,000
c. The previous analysis suggest about the market for money is: b. The quantity of money demanded decreases as the interest rate rises.
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Your organization acknowledges that providers want to improve their user experience with health information technology (IT) products. You want to raise awareness of the potential benefits to the organization. You could draw on stated benefits such as:
Answer:
1. Better productivity
2. Safety of all patients
3. Improved customer service and support costs.
Explanation:
Medical facilities can improve their user experience with health information technology (IT) products by raising awareness of the potential benefits to the organization.
Also, they could draw on stated benefits such as:
1. Better productivity
2. Safety of all patients
3. Improved customer service and support costs.
Answer:
Improved productivity , patient safety and decreased customer support costs
Explanation:
Your organization acknowledges that providers want to improve their user experience with health information technology (IT) products. You want to raise awareness of the potential benefits to the organization. You could draw on stated benefits such as: Improved productivity , patient safety and decreased customer support costs
The health information (IT) products seeks to provide better care for patients and help achieve health equity. It records, analyze and share data so as to help a patient's productivity, and safety.
What effect do you think seasonal demand might have on the price of goods? Explain
why.
If demand rises while supply stays unchanged, the optimum price and quantity rise as well.
Demand falls while supply remains constant, resulting in a lower equilibrium price.
Seasonal demand changes can have an impact on personnel, planning, and cash flow.
The aim is to balance demand by luring consumers with low pricing during sluggish periods and maximize earnings during peak periods by charging higher prices.
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Friends, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with higher quality products such as house wines and fresh foods. Friends has most likely changed its ________. A. organizational structure B. service level C. corporate identity D. price strategy E. positioning
Answer:
E. Positioning
Explanation:
Positioning deals with what organizations should do in order to sell its product and services to consumers. Positioning indicates an organization's product or service place in the mind of consumers. It is aimed at putting the product or services in the mind of the consumers. By redesigning and restocking the store to offer lre upscale environment with higher quality product, Friends had changed its positioning.
Revenues that are legally restricted to expenditures for specified purposes should be accounted for in special revenue funds, including ____________.a. Proprietary fund revenues b. Gasoline taxes to finance road repairs c. Pension trust fund revenues d. Resources accumulated for payment of general long-term debt principal and interest
Answer:
b. Gasoline taxes to finance road repairs
Explanation:
Revenues that are legally restricted to expenditures for specified purposes should be accounted for in special revenue funds, including gasoline taxes to finance road repairs.
Cheryl is a senior legal secretary of a large software company. Her job duties include handling legal secretarial duties, managing the legal support team, and advising managers on the legal aspects of their teams. In the context of organizational authority, which of the following functions does Cheryl most likely perform?A) Line functionB) Staff functionC) Marketing functionD) Core function
Answer:
B. Staff function
Explanation:
Organizational authority refers to the ranking of employee in an organization from lowest to the top level management. The duties, line of authoity and roles of employees are spelt out in organizational authority.
Staff function is one of the members of organizational authority . The other is line authority.
Staff function often times presents an employee or managers who are expertise in various fields like consulting, policies and decision making. Staff function is part of the operations team in an organization. They work directly with employees in an organization.
Answer:
B) Staff function
Explanation:
Generally secretaries and administrative clerks perform staff functions. Staff functions are secondary activities that support other tasks or activities. In management, the main activities carried out by the business are called line functions, while staff functions are refereed to as not line. E.g. sales is a line function, while a messenger is a non line (or staff) function
Micro Tech, Inc. made the following cash expenditures during current-year related to the development of a new technology which was patented at the end of the year:Materials and supplies used - $38,000R&D salaries - 120,000Patent filing fees - 3,000Payments to external consultants - 50,000Purchase of R&D equipment - 140,000
The equipment purchased has no future use beyond the current project. $10,000 of the materials and supplies used and $32,000 in salaries relate to the construction of prototypes. In its current-year financial statements, Micro Tech should report research and development expenses of:
a. $348,000b. $306,000c. $208,000d. $351,000
Answer:
a.$348,000
Explanation:
Research & Development Cost=Materials and supplies+R&D Salaries+Consultant fees+purchase cost of equipment=38,000+120,000+50,000+140,000
=$348,000
Final answer:
Micro Tech, Inc. should report $348,000 as research and development expenses, which includes costs for materials and supplies, R&D salaries, payments to external consultants, and the purchase of R&D equipment that has no future use beyond the current project. Patent filing fees are not included in this expense.
Explanation:
To calculate the research and development expenses Micro Tech should report in its current-year financial statements, we need to consider costs that are directly associated with R&D activities. These would include:
Materials and supplies used: $38,000 (including the $10,000 for prototypes, since it's part of the R&D process).R&D salaries: $120,000 (including $32,000 for prototype construction).Payments to external consultants: $50,000.Purchase of R&D equipment: $140,000, since the equipment has no future use beyond the current project, it is part of the R&D cost.However, patent filing fees are not considered R&D expenses; they are considered separate intangible assets. Thus, we do not include the $3,000 patent filing fees in R&D expenses. Adding the applicable expenses, we get:
$38,000 + $120,000 + $50,000 + $140,000 = $348,000
Therefore, Micro Tech should report $348,000 as research and development expenses.
A company wishes to monitor the variation in the length of time it takes to process and send a bill to a customer. Seven bills will be randomly selected each day for a 60-day period and the length of time it takes to process and send the bill to a customer will be recorded for each bill. The appropriate control chart is a(n):
a. -chart.b. R-chart.c. p-chart.d. u-chart.
Answer:
B. R-chart
Explanation:
An R-charts is used in monitoring the variation of a process, and it is based on samples that are taken from the process at given times , for example, hours, shifts, days, weeks, months, etc. In other words, an R-chart is a type of control chart that is used to monitor the process variability (for example the range) when measuring small subgroups (n ≤ 10) at regular intervals from a process.
R-charts are the most commonly used control charts for the process variation, because they are the simplest to calculate.
Assume you have a home which would cost $120,000 to replace. You currently have the home insured for $85,000. Last night a tornado damaged your home, causing an estimated $25,000 in damage. How much will your insurance company pay for repairing the damage to your home?
Answer:
The insurance claim is $22,135
Explanation:
In this question, we are to calculate the amount an insurance company will pay for a damaged house that was insured.
Firstly, it should be noted that at the time of replacement, the insurance company offer the insurance amount at 80% on actual replacement cost.
Thus, the insurance claim is calculated as follows;
Insurance claim = (Estimated damage * amount insured)/ 80% of replacement cost
insurance claim = (25,000 * 85,000)/80% of 120,000
= 2,125,000,000/96,000 = $22,135
Answer:
$22,135
Explanation:
We are given
Estimated damage = $25,000
Amount insured = $85,000
Base on the scenario been described in the question we are to calculate the how much the insurance company will
This can be calculated using this method
Insurance claim = (Estimated damage × amount insured)/ 80% of replacement cost
insurance claim = (25,000×85,000)/80% of 120,000
Insurance money = 2,125,000,000/96,000
Insurance money = $22,135
Which of the following stages in a customer relationship management cycle is characterized by the sharing of customer information to all areas of a business after it has been analyzed and transformed into useful information?
a) identifying profitable and un-profitable customers.
b) leveraging customer information.
c) identifying customer relationships with the organization.
d) storing and integrating customer data.
Answer:
The correct answer is letter "B": leveraging customer information.
Explanation:
Customer Relationship Management (CRM) refers to the set of steps companies take to store and handle information about consumers to build long-lasting relationships with them. The CRM cycle involves:
Identifying customer relations. Understand interactions with the current customer base. Capture customer data based on interactions. Store and integrate customer data using IT. Identify the best customers. Leverage customer information.
Leveraging customer information implies studying the database including all the customer details, preferences and patterns to share it among different units within the firm. It is the final stage in the CRM cycle and the objective of the system since thanks to this data the institution will be able to profit out of the implementation of the CRM.
On Feb 10, Amara Inc. sold goods to a customer for $8,000 with credit terms 2/10, n/30. The company uses the net method of accounting for sales discounts. What entry would the company make on Mar 10, assuming the correct payment was received on that date?
Answer:
The answer is given below;
Explanation:
March 10
Bank Dr.$8,000
Accounts Receivable Cr.$7,840
Sales Discount (8,000*2%) Cr.$160
As the payment was not received within 10 days from the date of sale, therefore 2% discount will be reversed and full payment will be received.
A _____ tour is one in which a tour representative only meets with the tour travelers when they need to see him or her. Hybrid student hosted fly-drive
Answer:
Hosted tour
Explanation:
A hosted tour is one in which a tour representative only meets with the tour travelers when they need to see him or her. A tour representative who is the "host" is usually the one in charge of the tour.
Answer:
A hosted tour
Explanation:
Any pre-planned (and prepaid) plan to one or more places for sightseeing.
In an hosted tour, the tour representative is available to answer questions throughout the duration of the tour, but the tour travellers are on their own most of the time.
Hosted tours are for your travellers that want the freedom to do what they want, but who would need tour representatives available whenever they have the need for them.
The Lightning Rod is a fishing rod being introduced by Castaway Sports. At a preliminary meeting with its agency, the president of Castaway Sports mentions that the rod can improve casting distance for an average individual by more than 20 percent. The account executive asks if the president has data to support this, and the president says "Yes." The agency proceeds to produce a series of television spots featuring a well-known sports celebrity using the rod and rating it as excellent. The spots run on network television and trumpet the improved casting distance that the rod provides. The slogan of the spots is "Lightning Rod—The Finest Rod Ever Cast." After about a week, a competitor questions whether the rods really offer the improved performance Castaway Sports claims, and decides to file a complaint with the FTC.The slogan for the spot, "Lightning Rod—The Finest Rod Ever Cast," would most likely be considered by U.S. courts to be:A) a false and misleading statement, which needs to be retracted.B) a superlative, which must be provable.C) unethical, but not truly deceptive.D) puffery, which doesn't need to be proved or disproved.
Answer:
B) a superlative, which must be provable.
Explanation:
The slogan for the spot, "Lightning Rod—The Finest Rod Ever Cast," would most likely be considered by U.S. courts to be a superlative, which must be provable.
Every company is required to pay an unemployment tax that is based on the __________. Group of answer choices type of industry and its seasonal fluctuations in employment number of claims filed by ex-employees employer’s total payroll cost. total number of employees covered under workers’ compensation
Answer:
number of claims filed by ex-employees
Explanation:
According to Corporate Tax Laws and Regulations, every company is required to pay an unemployment tax that is based on the number of claims filed by ex-employees.
In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you forecast that you will be able to sell only 20,000 room-nights, which cost $80 per room per night to service. You spent $30.00 million on the hotel in 2008, and your cost of capital is 20%. The current going price to sell the hotel is $25 million. If the estimated demand is 20,000 room-nights, the break-even price is $ per room, per night. (Hint: Remember that the cost of capital is the opportunity cost, or true cost, of making an investment.)
Answer:
The break-even price is $330
Explanation:
It is important to note that the break-even price is considered as the average avoidable cost. For each room, it is considered as the addition of marginal cost with the annual cost of avoidable capital/room.
The Break-even price is calculated below:
[tex]P^{BE} =[/tex] $25,000,000 × 20% / 20,000 + $80
= $330.
Therefore, the break-even price is $330.
Lucy has organized her craft shop as a sole proprietorship. Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business. What is the name of this principle?
Answer:
Unlimited liability
Explanation:
Unlimited liability means that
owners of businesses are liable to pay all the debts incurred by the business.
A sole proprietorship refers to owner of a business which has no distinct legal entity from its owner. It is not a legal entity because the owner can not be separated from the business and all the debts incurred by the business will be borne or paid by the owner.
An example of a sole proprietor is a barber who has his business registered with the corporate affairs commission. It therefore means that all the debts incurred by the business will be borned by the owner.
Grey Corporation has $100,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a credit of $1,000. Experience suggests 5 percent of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is: a.$1,000 b.$2,070 c.$5,000 d.$6,000 e.$4,000
Final answer:
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is $4,950.
Explanation:
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is $4,950. Bad Debt Expense is calculated by multiplying the percentage of uncollectible receivables (5%) by the total accounts receivable ($100,000), resulting in $5,000. We then subtract the balance of the Allowance for Doubtful Accounts ($1,000) to get $4,000. Finally, we adjust the amount by the amount already reserved in the Allowance for Doubtful Accounts, which is $50 ($5,000 - $1,000). So, the answer is option e. $4,000.
A put on Sanders stock with a strike price of $31 is priced at $2 per share, while a call with a strike price of $31 is priced at $2.50. The maximum per-share loss to the writer of an uncovered put is __________, and the maximum per-share gain to the writer of an uncovered call is _________.
Answer: $29; $2.50
Explanation:
The maximum per share loss to the writer of an uncovered put; that is price of put is zero on expiration
Strike price = $31, at $2 per share
Therefore, maximum per share loss ;
($31 - 0) - $2 =
Maximum per share gain to the writer of an uncovered put occurs when the stock price falls below $31 on expiration.
Maximum per share gain equals $2.50
The maximum per-share loss to the writer of an uncovered put is $29, and the maximum per-share gain to the writer of an uncovered call is -$26.
Explanation:The maximum per-share loss to the writer of an uncovered put is $31 (strike price) minus $2 (price per share), which equals $29. The maximum per-share gain to the writer of an uncovered call is the price per share of the call minus the strike price, which is $2.50 (price per share) minus $31 (strike price), which equals -$28.50. However, since the call writer receives a premium of $2.50 per share, the maximum per-share gain would be -$28.50 plus $2.50, which equals -$26.
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A method for calculating price changes that takes an average of price changes using base years from consecutive years produces a A. value-added index. B. chain-weighted index. C. consumer-pricing index. D. import-weighted index.
Answer:
B. Chain weighted Index
Explanation:
Chain weighted index is a technique that measures changes in price and spending patterns of individuals and economy. It is an alternative form to the traditional consumer price index. It is used in calculating changes in price using average price from base year gotten from consecutive years. The chain weighted index puts products substitutions and other factors that affects spending made by consumers into consideration. Chain weighted index helps in estimating the real GDP.
A group of newly recruited employees were bullied by senior members of the facilities team. Jodie, one the team members who witnessed the event, wrote a letter to the head of her division describing the bullying incident. In this case, Jodie is engaging in _____.A) downward communicationB) upward communicationC) horizontal communicationD) informal communication
Answer:
B) Upward communication
Explanation:
Upward communication defines that the employees follow hierarchy from downward to upward which means a lower employee to a higher. For example Worker to supervisor and supervisor to Manager. Upward communication is the most effective source in every organization as traditional forms of communication increasingly become less common.
Therefore as per the situation, Senior members of the facilities team had intimidated a group of newly hired workers. Jodie, one of the team members who observed the event, wrote a letter detailing the harassment incident to her division manager. In this case, Jodie is engaging in upward communication.
McDonald's is creating a multinational distribution system for all of its foreign and domestic subsidiaries. The project manager is from the corporate headquarters and he manages teams from each of the countries involved. The project would be classified as:
A) Global
B) Overseas
C) Local
D) Domestic
E) Foreign
Answer:
A. Global project
Explanation:
Global project -
It refers to the project, where the team members are from various cultures across the world , consisting of many centers spread allover fro the trade purpose, is referred to as a global project.
Each location is managed by the headquarter, which consists of various members assigned different tasks and activities for the growth of the company.
The method helps for the growth of the goods and services at the international market, where all people can access the product.
Hence, from the given scenario of the question,
The project of McDonald's to have various distribution system for all the domestic as well as foreign subsidiaries, is an example of a global project.
In the context of visionary leadership, _____ control and manipulate followers, do what is best for themselves instead of their organizations, want to hear only positive feedback, share information that is only beneficial to themselves, and have moral standards that put their interests before everyone else's.
A) ethical charismatics
B) democratic leaders
C) transformational leaders
D) unethical charismatics
Answer:
D. Unethical charismatics
Explanation:
Unethical charismatics leaders are the type of charismatic leaders that have unreasonably high sense of self importance which is based on gaining attention and getting commendations, applause, etc from others while they ignore opinions that are contrary or opposite.
Gregory Trout has just received a memo explaining that because of his department’s success with the newly developed TemperTool, his request for three new employees has been approved. Gregory now faces the challenge of working with the areas of human resource management in recruiting, selecting, training, and maintaining effective employees. In recruiting and selecting employees for the new positions, Gregory will apply which human resource management goal?
Answer:
Maintaining an effective workforce
Explanation:
One of the major goals of human resource management function is ensuring productivity by providing an entity with right number of highly skilled and efficient employees.
Following are the key goals of human resource management process:
Mintaining productivity and workforce planningDeveloping training programs and modes of evaluationEngaging employees Policy creation w.r.t employeesCoherence of processes for efficiencyAn effective workforce refers to, all the employees as one group, working together, accomplishing the organizational goals in an efficient manner.
In the given case, Gregory's request for three new emoloyees has been approved. The immediate challenge for him being relating to selection, recruitment and training and maintaining effective employees.
Maintaining effective employees also refers to keeping and retaining efficient skilled employees and timely filling up gaps arising due to such employees leaving the organization.
Digg Co. installs a manufacturing machine in its factory at the beginning of the year at a cost of $36,000. The machine's useful life is estimated at 10 years, or 300,000 units of product, with a $6,000 salvage value. During its first year, the machine produces 14,000 units of product. Determine the machine's first year depreciation expense under the units-of-production method.
Answer:
Annual depreciation (year 1)= $1,400
Explanation:
Giving the following information:
Buying price= $36,000.
Useful units= 300,000 units of product.
Salvage value= $6,000
During its first year, the machine produces 14,000 units of product.
To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(36,000 - 6,000)/300,000]*14,000
Annual depreciation= 0.1*14,000= $1,400
To calculate the first year depreciation expense for the machine using the units-of-production method, subtract the salvage value from the machine's cost, divide by the estimated total units of production, and multiply by actual units produced. The depreciation expense was $1,400 for the first year.
The student has asked how to determine the machine's first year depreciation expense under the units-of-production method. To calculate this, we must first subtract the salvage value of the machine from its initial cost to determine the total amount that can be depreciated over the machine's useful life. Then, we determine the depreciation per unit by dividing this total depreciable amount by the estimated total units of production. Finally, we multiply the depreciation per unit by the actual units produced in the first year to find the depreciation expense for that year.
The formula for computing the depreciation per unit is:
Depreciation per unit = (Cost of machine - Salvage value) / Estimated total units of production
Therefore, for the Digg Co. machine:
Depreciation per unit = ($36,000 - $6,000) / 300,000 units
Depreciation per unit = $30,000 / 300,000 units
Depreciation per unit = $0.10 per unit
For the first year's depreciation expense:
First year depreciation expense = Depreciation per unit * Units produced in the first year
First year depreciation expense = $0.10 per unit * 14,000 units
First year depreciation expense = $1,400
A manufacturer of nickel-hydrogen batteries randomly selects 100 nickel plates for test cells, cycles them a specified number of times, and determines that 12 of the plates have blistered. (a) does this provide compelling evidence for concluding that more than 10% of all plates blister under such circumstances? state and test the appropriate hypotheses using a significance level of 0.05.
Answer:
Explanation:
The calculation is shown in the picture attached
P-value > 0.05 it is concluded that the null hypothesis is not reject.
There is not enough evidence to claim that the more than 10% of all plates blister under such circumstances.
Katya is developing a business message about a green initiative that her company is hoping to launch. In the process of creating the business message, she studies the background of the employees and considers their needs and priorities. This action belongs to which step of the AIM planning process? a) ideas structuring message b) analysis audience c) analysis message d) development audience review.
Answer: B. analysis audience
Explanation: Audience analysis or Analyzing the Audience entails identifying the audience and creating a speech to adapt the audience style , attitude, interest , needs, priorities and understanding. Audience analysis tasks are done by technical writers in the early stage of a project.
Katya action in developing a business message on the green initiative her company is about to launch was " Audience analysis ".
Worker Corporation allocates its single support department to its operating departments based on the single rate method using machine hours. The following information has been gathered for the assembly department, one of the two operating departments: Actual Budgeted Fixed costs $50,000 $47,960 Machine hours – Assembly 1,900 1,976 Variable costs – Assembly $121,000 $120,000 What is the cost-allocation rate for the assembly department using the single-rate method?
Answer:
$85 per machine hour
Explanation:
Actual Budgeted
Fixed costs $50,000 $47,960
Machine hours – Assembly 1,900 1,976
Variable costs – Assembly $121,000 $120,000
since the single rate method does not distinguish between fixed or variable costs, in order to determine the cost allocation rate we must add the fixed allocation rate and the variable allocation rate:
variable allocation rate = $120,000 / 1976 machine hours = $60.73fixed allocation rate = $47,960 / 1976 = $24.27total = $60.73 + $24.27 = $85 per machine hour
Final answer:
To determine the cost-allocation rate for the Assembly department using the single-rate method, combine the actual fixed and variable costs and divide by the number of machine hours, which results in a rate of $90 per machine hour.
Explanation:
The cost-allocation rate using the single-rate method is computed by combining the total fixed costs and variable costs and then dividing by the number of machine hours. In this case, the given information indicates that the actual fixed costs are $50,000 and the actual variable costs for the Assembly department are $121,000. Therefore, the total costs for the Assembly department would be $50,000 + $121,000 = $171,000. Since there are 1,900 actual machine hours, to calculate the cost-allocation rate we divide the total costs by the number of machine hours. The calculation is as follows:
Cost-Allocation Rate
= Total Costs / Machine Hours = $171,000 / 1,900
=$90
per machine hour.
You purchased 500 shares in a mutual fund for $32 NAV. You elected the dividend reinvestment plan and had all dividend and capital gains distributions reinvested in additional shares. You just closed your account and sold 550 shares for $48 NAV. What was your total return on this investment?
Answer:
Return on investment = 50%
Explanation:
Return on Investment is the proportion of investment cost that an investor earns as as return in dollar
For a mutual fund= total return in dollar/investment cost
= (48-32)× 500/(500× 32) × 100
=50%
Note that the gains in dollar is the difference between the selling price at the end and the selling price at the beginning.
Increased investment alone will guarantee economic growth. A. This is a false statement, because an economy must rely on capital injections from abroad. B. This is a true statement, because money is the only resource needed for growth. C. This is a true statement, because growth occurs only with savings. D. This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.
Answer:
D
Explanation:
This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.
Increased investment in physical capital, such as factories, machinery, and roads, can yield increased productivity. Physical labour is not as efficient as Good factories and machinery.
The quality of human capital, that is the number and quality of skilled workers can also bring about Economic growth.
Technological improvements can cause an increase in productivity thereby causing increase in Economic growth.
Suppose that consumption is $400 and that the marginal propensity to consume is .8. If disposable income increases by $1200, consumption spending will increase by: (Don't feel guilty if you used a calculator here, you will able to use one on the AP exam this year!)
Answer:
Consumption will increase by $960
Explanation:
Consumption Function is a function showing consumption & income relationship, signifying how consumption is dependent on income.
C = a + b.Y ;
where C = Consumption ; a = Autonomous consumption at 0 income level; Y = Income ; b = Marginal Propensity to consume, i.e Change (addition) in consumption due to change (additional) Income = ΔC /ΔY.
MPC = ΔC /ΔY
Given : MPC = 0.8 , ΔY = 1200
0.8 = ΔC / 1200
ΔC = 1200 (0.8)
ΔC [Change in Consumption] = 960
Final answer:
If disposable income increases by $1200, consumption spending will increase by $960.
Explanation:
The question involves understanding how an increase in disposable income affects consumption spending, given a marginal propensity to consume (MPC).
If consumption is initially $400 and the MPC is 0.8, an increase in disposable income by $1200 leads to an increase in consumption spending calculated as follows:
Identify the MPC, which is 0.8, indicating 80% of any increase in disposable income will be spent on consumption.Calculate the increase in consumption by multiplying the increase in disposable income ($1200) by the MPC (0.8).This results in a $960 increase in consumption spending ($1200 x 0.8).Therefore, if disposable income increases by $1200, consumption spending will increase by $960.
You work for a major athletic brand company and have just recently entered a new market abroad. The marketing team has just identified the target market in the region and is in the process of asking questions that will help identify marketing mix strategies. Which of the following questions is correctly associated with the marketing strategy to which it relates?
A. The organization focuses its marketing strategies on multiple publics.
B. Cash cow
C. Your company has several strategic business units (SBUs)
D. Person marketing is only effective when the person representing your product is fully committed, and consumers believe that the pairing is realistic.
E. contribute meaningfully to the community and the greater good.
F. Star
G. Market tangible goods to help raise money.
Answer:
A
Explanation:
Among the different options given, option A is the correct one, where different people are targeted in the region with mix products to understand which type of customers would like which products.
Effective marketing strategies consist of the target marketing and marketing mix variables.
Marketing mix includes product, distribution, promotion, and price of the product and to get more effective results, these results should be applied to some variety of people in targeted region
In the above question, your options are not inline with the answer you need. However, I have provided you the answer.
Answer:
Is this item affordable in this new market?" This relates to price strategy.
Explanation:
When entering new market, one of the major concern of marketers is determine the price at which the product will be sold. marketing team after identifying the target market, they make research on whether the new items are affordable to the buying population depending, on whether their is alternative to the products or not and their purchasing power. All these questions relate to the price strategy.