If the interest had been compounded annually over a 10-year period, Beatrice would have made $128.89.
Describe an interest.Borrowing money comes with a fee known as interest. Although interest income or expense is sometimes reported as a cash sum, the interest rate used to compute interest is frequently stated as an annual percentage rate (APR).
A lender or financial institution receives remuneration in the form of interest for releasing cash. Also known as interest, a shareholder's ownership in a corporation is represented by the portion of their shares.
Calculation:
1,000 (0.05 × 10) + 1,000 = 1,500
1,000 × (1.05)^10 = 1.62889
1628.89 - 1500 = 128.89
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which of the following is correct? group of answer choices the long-run and short-run supply curves are both consistent with the idea that nominal variables affect real variables. the long-run, but not the short-run, aggregate supply curve is consistent with the idea that nominal variables do not affect real variables. neither the long-run nor the short-run aggregate supply curve is consistent with the idea that nominal variables affect real variables. the short-run, but not the long-run, aggregate supply curve is consistent with the idea that nominal variables do not affect real variables.
The long-run, but not the short-run, aggregate supply curve is consistent with the idea that nominal variables do not affect real variables is the correct option.
What are nominal variables?
A nominal variable is a variable that is used to name, label, or categorise specific attributes being measured. It accepts qualitative values that represent various categories, and there is no inherent ordering of these categories. If you want, you can code nominal variables with numbers, but the order is arbitrary, and any calculations, such as calculating a mean, median, or standard deviation, would be meaningless. Nominal variables include things like genotype, blood type, zip code, gender, race, eye colour, and political party.
So, The long-run, but not the short-run, aggregate supply curve is consistent with the idea that nominal variables do not affect real variables is the right option.
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From the mid-1950s until the early 1970s, organizations managed their data in a _________; this created ________.
From the mid-1950s until the early 1970s, organizations managed their data in a file management environment this created information silos.
Is a data warehouse an example of a source system?
Transaction processing applications are typically the source systems for a data warehouse. An order entry system, for instance, might be one of the source systems for a sales analysis data warehouse because it keeps track of all of the current order activities.
Which three kinds of data warehousing are there?
Enterprise data warehouse (EDW), operational data store (ODS), and data mart are the three main types of data warehouses.
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One consequence for defaulting on a loan is having your transcript withheld. How could this affect you as you graduate?.
Negative items like collection accounts, defaults, and late payments can remain on your credit reports for up to seven to ten years.
What are the consequence for defaulting on a loan?Your credit rating is harmed, and you may be unable to purchase a car, house, or obtain a credit card as a result of the default being reported to national consumer reporting agencies.
Your tax refunds and federal benefit payments can be withheld and used to pay back a loan that you have stopped making payments on.
Therefore, Your credit scores can be negatively impacted by even one recorded late payment, and the damage can get worse if you keep missing payments.
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Which of the following characteristics are required for a business expense to be deductible? 1) Necessary
2) Ordinary
3) Directly related to the business
Ordinary, Necessary, and Directly related to the business activity are characteristics required for a business expense to be deductible.
A cost is an item requiring an outflow of cash, or any shape of fortune in trendy, to every other man or woman or group as a charge for an item, provider, or different class of prices. For a tenant, rent is an expense. For college students or mothers and fathers, tuition is a fee. Shopping for food, apparel, fixtures, or a vehicle is regularly called a rate. A fee is a price that is "paid" or "remitted", generally in change for something of a cost. Something that appears to cost an amazing deal is "pricey". Something that seems to price little is "less expensive". "charges of the desk" are costs for eating, refreshments, a ceremonial dinner, etc.
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n the a-b-c method of self-management the 'a' items are: those items that are very important and need to be done today or tomorrow at the latest. those items that absolutely must be done today. those items that are important but don't need to be done today. those items that can become 'b' or 'c' items if it helps us manage time better.
In the A-B-C method of self-management, items that can become 'b' or 'c' items if it helps us manage the time better is work your as off.
What is A-B-C method?With the aid of the activity-based costing (ABC) technique, an organization's activities are identified, and the cost of each activity is then allocated to all of the goods and services depending on how much of each is actually consumed. Therefore, in comparison to traditional costing, this model allocates more indirect expenses (overhead) into direct costs. The ABC strategy to costing and monitoring operations is described by CIMA, the Chartered Institute of Management Accountants, as involving tracking resource consumption and costing outputs at the end of the process. Objects with costs are assigned to activities based on consumption estimations, and activities are assigned resources. These latter ones link activity costs to outcomes using cost drivers. Activity-based costing is described as an accounting technique by the Institute of Cost & Management Accountants of Bangladesh (ICMAB) as one that first identifies the activities that a firm does before tying indirect costs to cost items.
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which of the following combinations will result in a bond with the greatest price volatility? a) low coupon and long maturity b) high coupon and short maturity
The combinations will result in a bond with the greatest price volatility is Low coupon and long maturity.
A commodity's price changes are referred to as "price volatility." The daily percentage difference in the commodity price is used to gauge volatility. A volatile market is one that exhibits a high degree of volatility rather than high prices. Price is a function of supply and demand, so volatility must be a result of the market's underlying supply and demand dynamics. High levels of volatility therefore reflect unusual characteristics of supply and/or demand.
Natural gas, electricity, and heating oil prices are among the most variable of all prices for commodity. When the price of natural gas or other fuels fluctuates, many consumers have very limited options for substituting them, which contributes to the erratic nature of energy prices.
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the economy will be producing along the long run aggregate supply when . a.) there is zero unemployment b.) there is an underutilization of resources c.) all resources are being used to their optimal level d.) prices will affect output by producers
The correct option c.) all resources are being used to their optimal level, for the economy will produce along with the long-term total supply.
Define the term long run aggregate supply?The term "long run aggregate supply" (LRAS) describes to the output in which an is able to produce when all of its productive factors are utilized,
and as a result, when it is at full employment. The output is unaffected by modifications in the cost level over the long term, according to the graph of the relationship.a long-run is any variable amount of time that is long enough for nominal wages and many other input prices to vary in reaction to a variation in the price level. This instead refers to the period of time it takes for all prices to completely change.Increased aggregate demand cannot, in the long run and assuming all factors are employed, lead to additional output; rather, it has an impact on the price level as opposed to actual output.Thus, once all resources are already being exploited to their full potential, the economy will just be generating along the long-term aggregate supply.
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the excess return required from a risky asset over that required from a risk-free asset is called the
The risk premium is the excess return required from a risky asset over the return required from a risk-free asset.
A risk premium is a measure of excess return required by an individual to compensate for being exposed to a higher level of risk. It is frequently used in finance and economics, with the standard definition being the projected hazardous return less the risk-free return, as indicated by the formula below. There are numerous types of risk, including financial risk, bodily danger, and reputation risk. If the risk premium can be quantified, the expected payout from these risks can be computed. In the equities market, the amount of a stock's standard deviation from the mean can be used to measure its riskiness.
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perfect price discrimination is mostly hypothetical. however, as data mining becomes more ubiquitous, we can expect markets to perfect price discrimination, as . b. under perfect price discrimination, sellers benefit, because they can thereby sell their products at maximum prices. buyers with smaller marginal benefits benefit, because . c. perfect price discrimination leads to market output.
Perfect price discrimination is mostly hypothetical. However, as data mining becomes more ubiquitous, we can expect markets to increasingly resemble perfect price discrimination, as perfect price discrimination, as companies ammas more information about individual consumer's preferences.
What is Perfect Price Discrimination?When a firm charges the highest feasible price for each unit consumed, this is referred to as first-degree discrimination. Because prices differ across units, the company takes all possible consumer surplus for itself or the economic surplus.
Because the marginal revenue curve corresponds with the market demand curve under perfect price discrimination, the monopolist will also produce until the marginal cost equals the product price.
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only women would ever be hired if it were true that sexist businesses could get away with paying women less even though they were equally qualified.
A. true
B. false
"Only women would ever be hired if it were true that sexist businesses could get away with paying women less even though they were equally qualified." This statement is True.
A company is defined as an organization or company engaged in commercial, industrial, or professional activities. A business can be either a commercial enterprise or a non-profit organization.
Company types range from limited liability companies to sole proprietors, corporations and partnerships. Business can be singular or plural nouns, and uncountable nouns. The company as a number noun - Company ending in -es is the plural form of company. Business includes any person or entity that engages in activities or transactions with the intention of making a profit. Activities or transactions may be commercial, industrial, professional or otherwise. Business is the offering of goods and services to the public, usually while conducting business for profit.Learn more about businesses here: https://brainly.com/question/24448358
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determining what items or products you need is the first step in purchasing. this is called a purchasing .
Identification of the need is the first step for purchasing process.
Is a buying situation in which the customer purchases a product or service for the first time?Modified rebuy: A business shopping for scenario in which the buyer needs to alter product specifications, prices, terms, or suppliers. New task: A enterprise shopping for situation in which the consumer purchases a product or carrier for the first time.
What are the 3 buying process?It is the journey or shopping for manner that customers go through to grow to be conscious of, evaluate, and buy a new product or service, and it consists of three degrees that make up the inbound advertising framework: awareness, consideration, and decision.
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https://brainly.com/question/1489991#SPJ4opening story - in addi on to popula on growth, economic development is increasing resource consump on in china. which do you think plays a bigger role in achieving sustainability: popula on growth or economic development?
Affluence (in the form of economic progress) is not necessarily advantageous to environmental sustainability, as was mentioned in the Opening Story. However, resource use is directly impacted by population expansion, which has detrimental effects on the ecosystem. Thus, ensuring sustainability depends more on economic development.
What is Economic Development?Programs, policies, or initiatives aimed at enhancing a community's economic health and quality of life are known as economic development initiatives. Your definition of "economic development" will vary depending on the neighborhood you are in. There are opportunities, problems, and unique to each community.
The word "economic development" is frequently linked to ideas like industrialization and modernization, whose fundamental principles include advancement.
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In a given portfolio, replacing an existing investment with a lower beta investment results in _____.
In given portfolio, replacing the existing investment with lower beta investment results in decrease in required rate of return of portfolio.
What is portfolio?A portfolio is any collection of the financial assets, including cash, bonds, and the stocks. Individual investors have the option of managing their own portfolios, or they can have them managed by financial professionals, hedge funds, banks, and other financial institutions. The investor's investing objectives, time horizon, and risk tolerance should all be taken into consideration when building a portfolio. This idea is widely recognised. The monetary worth of each asset may have an impact on the risk/reward ratio of the portfolio. Maximizing expected return and reducing risk are the two main objectives of asset allocation. This is an example of a multi-objective optimization problem; there are many viable solutions, and the optimal one must be selected by balancing the trade-off between risk and reward.
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carter communications does not currently pay a dividend. you expect the company to begin paying a dividend of $3.40 per share in 10 years, and you expect dividends to grow perpetually at 4.4 percent per year thereafter. if the discount rate is 11 percent, how much is the stock currently worth?
The stock is currently worth $20.14 if the discount rate is 11%.
Another option to buy stocks is through stock ETFs. These are a particular class of mutual fund that mostly invests in stocks. A stock fund may focus on a specific kind of stock, such as blue chips, large-cap value stocks, or mid-cap growth stocks, depending on its investing aim and policies.
Stock valuation is a technique used in the financial markets to determine the hypothetical values of businesses and their stocks.
Dividend in 10 years = $3.40
Growth rate = 4.4% or 0.044
Discount rate = 11% or 0.11
Price in 9 years = Dividend in 10 years/(discount rate - growth rate)
Price = $3.40 / (0.11 - 0.044) = $3.40/0.066
Therefore, the Price in 9 years = $51.5151515151
Now,
Current price = Price in 9 years / (1 + discount rate) 9
Price = $51.5151515151 / (1 + 0.11) 9
Price = $51.5151515151 / (1.11) 9
Price = $51.5151515151/2.55803692436
Therefore, Current Price = $20.14
So, it can be inferred that the stock is currently worth $20.14
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cross-side benefits arise due to interaction among members of a single class of participant.
A. true
B. false
Cross-side benefits arise due to interaction among members of a single class of participants. This statement is false.
The maximum not unusual place kinds of social interplay are exchange, competition, conflict, cooperation, and accommodation. The Interaction Model of verbal exchange describes verbal exchange as a procedure wherein members exchange positions as sender and receiver and generate that means through sending messages and receiving comments inside bodily and mental contexts (Schramm, 1997). Instructional layout techniques for online mastering have normally taken into consideration 3 principal kinds of interplay: learner-content material interplay, learner-trainer interplay, and learner-learner interplay (Moore, 1989)."Social interplay many of the personnel turned into encouraged." "The interplay among the animals turned into interesting." "She had no interplay together along with her neighbors."
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choose the statement below which is correct regarding which bank reconciliation items require adjusting journal entries.
a. Only the items reconciling the bank balance require adjustment
b. All items reconciling both the bank balance and the book balance require adjustment
Only the items reconciling the book balance require adjustment. bank reconciliation items require adjusting journal entries.
In accounting, reconciliation is the method of making sure that units of records (generally the balances of accounts) are in agreement. Reconciliation is used to make certain that the cash leaving an account suits the real cash spent. This is achieved with the aid of using ensuring the balances in shape on top of a selected accounting period.
The typically conventional accounting principles (GAAP) are fixed of accounting principles, approaches, and requirements that establishments use so as to assemble their monetary statements. GAAP states that the reason of account reconciliation is to offer accuracy and consistency in monetary accounts. To make certain all coins outlays and inlays in shape among cashflow statements and profits statements it's miles vital to perform reconciliation accounts.
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classify each market characteristic in terms of whether it is a trait of perfectly competitive markets, monopolistically competitive markets, or both market structures. a. identical/homogenous goods perfectly competitive markets monopolistically competitive markets both perfectly competitive and monopolistically competitive markets b. many buyers and sellers perfectly competitive markets monopolistically competitive markets both perfectly competitive and monopolistically competitive markets c. few, if any, barriers to entry perfectly competitive markets monopolistically competitive markets both perfectly competitive and monopolistically competitive markets d. no one buyer or seller can control price perfectly competitive markets monopolistically competitive markets both perfectly competitive and monopolistically competitive markets e. differentiated goods perfectly competitive markets monopolistically competitive markets both perfectly competitive and monopolistically competitive markets
A) Competitive Markets:
- Identical homogenous goods
- No one buyer or seller can control the prices
B) Monopolistically Competitive Markets:
- Differentiated goods
- Few, if any, barriers to entry is a feature
C) Both Market Structures:
- Many buyers and sellers.
Homogeneous combos are uniform in shape or composition. For example, in case you blend desk salt into water, this aggregate is homogeneous due to the fact the salt absolutely dissolves into the water, which means that the salt debris is frivolously disbursed at some stage in the water. Homogenous maximum usually means it includes elements or factors which are all equal. Something this is homogenous is uniform in nature or person at some stage.
Homogenous also can be used to explain a couple of matters which are all basically alike or of equal kind. Homogeneous substances are described as substances of uniform composition at some stage that can not be robotically disjointed, in principle, into exceptional substances. Examples of homogeneous substances are polypropylene, steel, shampoo, glass cleaner, nylon yarn, finish, and coating.
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a newly independent eastern european nation wants to adopt a floating exchange rate system in order to restore monetary control to its government. using the monetary autonomy argument, how do this country's ministers justify establishing this system?
A newly independent eastern european nation . This country's ministers justify establishing this system----Trade deficits are determined by the balance between savings and investment in a country, not by the external value of its currency.
What is a floating exchange system?A floating exchange rate is an exchange rate system in which the foreign exchange market determines the price of a country's currency according to the relative supply and demand of other currencies. Floating exchange rates, unlike fixed exchange rates, are not constrained by trade restrictions or government regulations.
Why Do Countries Introduce Floating Exchange Rates?The main economic advantage of floating exchange rates is that monetary and fiscal authorities are free to pursue internal goals such as full employment, stable growth and price stability, and exchange rate adjustments are the automatic means of promoting these goals. It often acts as a stabilizer.
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As the recession of the early 2000s wound down in the last quarter of 2001, gdp growth was slow at first because?
a. consumer savings also decreased.
b. inventories, which had built up during the recession, decreased.
c. tax rates increased.
d. inventories of consumer goods increased.
B. During the recession, inventories had grown, which had led to a decrease.
In an effort to shield the economy from an overvalued stock market, the Federal Reserve increased interest rates repeatedly between 2000 and 2001.
Using the stock market as an informal benchmark, a recession would have begun in March 2000, when the NASDAQ plummeted following the dot-com bubble's demise.
In the 2000s, the country experienced a weak job market. According to the EPI, employment only increased by 0.6% during this time, which was insufficient to keep up with the population's growth. Accordingly, there were 1.5 million additional jobless laborers toward the finish of the business cycle than toward the start.
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After one year of operation, jake and rolando learned that several top athletes were driving to a larger town to receive similar services. In order to learn about the potential customers who were going elsewhere for service, jake and rolando proceeded to look online to determine how competitors’ services differed from theirs. They learned that competitors were open longer hours on weekends and even had celebrity endorsements. The new information they gathered and its interpretation was the __________ part of the marketing research process.
The new information they gathered, and its interpretation was the Option C. data analysis part of the marketing research process.
Group of answer:
A. lastB. firstC. data analysisD. problem definitionE. research designData analysisC. data analysis is the correct answer because it is the part of the marketing research process where Jake and Rolando looked at the data they collected and interpreted it to learn about their potential customers.
After collecting data about their potential customers, Jake and Rolando learned that their competitors were open longer hours on weekends and had celebrity endorsements. This new information helped them to understand why their potential customers were going elsewhere for service, and how they could improve their own business to better meet the needs of their customers.
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a firm's cost of debt can be . multiple select question. calculated using the dividend growth model obtained by talking to investment bankers estimated easier than its cost of equity obtained by checking yields on publicly traded bonds
A firm's cost of debt can be estimated easier than its cost of equity, obtained by talking to investment bankers, obtained by checking yields on publicly traded bonds.
What is cost of debt?The effective interest rate that a business pays on its debts, such as bonds and loans, is known as the cost of debt. The cost of debt can be expressed as either before-tax cost of debt, which is amount owed by the business before taxes, or the after-tax cost of debt.
The annual interest rate of the funds a business borrows, or the total amount of interest a business will pay to borrow, determines the cost of debt for that business. The interest rate that loan providers will charge a business is determined by factors like the state of the business's finances and credit rating.
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the city of riverside levied property taxes in the amount of $20,000,000. the taxes were levied july 1, 2019 for the fiscal year ended june 30, 2020. during the year ended june 30, 2020, $17,800,000 in property taxes were collected from this levy. it is estimated that $940,000 will be collected during the next 60 days, $1,050,000 will be collected more than 60 days after june 30, 2020, and $210,000 will never be collected. when preparing the general fund financial statements, how much property tax revenue should be recognized from this levy for the year ended june 30, 2020? a. $18,550,000. b. $18,740,000. c. $19,790,000. d. $20,000,000.
The property tax revenue be recognized from the levy for the year ended june 30,2020 is $ 18,740,000.
Tax revenue :Tax revenue is defined as the earnings collected from levies on revenue and gains, social security benefactions, taxes levied on goods and services, payroll taxes, levies on the proprietorship and transfer of property, and different taxes.The maturity of this revenue is used to pay for government conditioning( employee payments, structure conservation), as well as to pay for goods and services handed to United States citizens and enterprises.
Simplifying the tax revenue :Revenue recognised in year ended june 2020 = Amount already collected + Receivable in next 2 months (or 60 days)
= 17,800,000 + 940,000
= 18,740,000
The property tax revenue be recognized from his levy for the year ended june 30 , 2020 is $ 18,740,000.
Why is tax revenue significant?
Taxes are the immediate source of revenue for utmost governments. Among other effects, this money is expended to enhance and conserve public structure, involving the roads we travel on, and fund public services, similar as schools, crisis services, and well-being programs.
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n the 1950s, imports and exports of goods and services constituted roughly 4% to 5% of u.s. gdp. in recent years, exports have accounted for approximately 12% of gdp, while imports have more than tripled to over 15% of gdp. which of the following help to explain the increase in international trade and finance since the 1950s? check all that apply.
The followings are to explain increase in international trade and finance since the 1950s is better high-speed rail lines, the widespread use of Internet to conduct business and the international trade agreements that lower tariffs and import quotas.
What is international trade?In order to satisfy a need or desire for products or services, people engage in international trade, which involves the exchange of capital, goods, and services across national boundaries. Such trade contributes significantly to the gross domestic product of the majority of nations (GDP). International trade has always occurred (for instance, along the Uttarapatha, Silk, and Amber Roads, in the race for Africa, the Atlantic slave trade, and on salt roads), but in recent centuries, its economic, social, and political significance has grown. Comparing international trade to local trade, the latter involves more complicated procedures. Currency, government policies, the economy, the judicial system, laws, and markets all have a role in international trade between two or more states.
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which item may a customer reuse at a self-service area
you may re-serve only unopened, prepackaged food in good condition.
What item may Customer reuse at a self serve area?In general, you may only re-serve food that has not been opened and is still in acceptable condition.Bottles of ketchup, mustard, and other condiments may also be used again.Sneeze guards should extend 14" above the counter and 7" beyond the food.Post self-serve guidelines like "Do not reuse dishes and utensils" on the wall.Only unopened prepackaged food can typically be re-served.This contains bottles of ketchup and mustard, wrapped crackers or breadsticks, and condiment packets.When customers serve themselves, there is a risk of cross-contamination.They may do this by using previously used, dirty utensils or refilling soiled plates.They may also put their heads under the sneeze guard while reaching for food or pick it up with their bare hands.Contamination must be prevented in self-service areas.To learn more about self-service areas. refer,
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Consider a company that manufactures automobiles. Which of the following costs would be considered a direct cost?
1. Salary of production supervisor
2. Wages of factory maintenance worker
3. Salary of the accounting manager
4. Wages of assembly line workers
The wages of assembly line workers are the correct answer.
Salaried staff is sometimes paid a similar quantity each pay period, supported by their total wages. Associate in Nursing hourly worker, on the opposite hand, earns a group payment for every hour they work. For example, if they earn $20 per hour and work eight hours during a day, they'd earn $160 for that day (before taxes).
Salary and wages are each accustomed visits the cash paid to somebody often for the work they do. skilled individuals corresponding to academics are usually paid a salary. Their salary is the total amount of cash that they're paid each year, though this is paid in twelve parts, one every month. Wages include, however, don't seem to be restricted to Salaries, hourly pay, piece rate, or payments by the job. Commissions and bonuses.Overtime and vacation pay.
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how does tax increase cost of production?
Answer:
Tax incidence is the effect a particular tax has on the two parties of a transaction; the producer that makes the good and the consumer that buys it. The burden of the tax is not dependent on whether the state collects the revenue from the producer or consumer, but on the price elasticity of supply and the price elasticity of demand. To understand how elasticities influence tax incidence, it is important to consider the two extreme scenarios and how the tax burden is distributed between the two parties.
Answer:
As with the specific tax, the tax raises production costs, but the amount of tax varies with price level.
Explanation:
For each of the three throwers, compare the summary profiles for distance throws with those for accuracy throws. Are they different? If so, how?
Yes on comparing the summary profiles the throws are very different, you can tell by the amount of physical effort being exerted as well as the form of the thrower.
Throws can be differentiated by looking at the throwers way of throwing the javelin. Majority of throwers include distance throwers which consist of professionals as well as those who are doing it just for fun. The distance focused throwers use their strength and their physical effort.
Throwers who aim for accuracy are mostly the professional throwers and have a specific way of throwing.
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one of the following explains a basic difference between the classical model and the keynesian model in which the keynesian short-run aggregate supply curve exists. which one explains the difference?
Basic difference is that the classical model assumes that the level of real GDP is supply determined, while the Keynesian model assumes that it is demand determined.
A macroeconomic theory known as Keynesian model examines the total amount of expenditure in the economy and the way it impacts production, unemployment, and inflation. In an effort to comprehend the Great Depression, British economist John Maynard Keynes developed it in the 1930s.
The core element of Keynesian model is that economic stabilization may be achieved by government involvement. Keynes' theory was the first to clearly distinguish between the investigation of individual incentives and economic behavior from those of broad were as and constructs.
Subsequently, the term "Keynesian model" was used to represent the idea that the best possible economic efficiency could be attained—and economic downturns could be avoided—by affecting aggregate demand via governmental economic involvement.
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you are interested in learning about work factors that cause employee stress, so you watch employees in their organizational setting perform their jobs for a few days. the employees are not aware that they are being studied. what type of research design have you used?
The type of research design that you will use is unobtrusive observational design.
What is unobtrusive observation?
It is a measure that doesn't require the researcher to intrude in the research context. Direct and participant observation require that the researcher be physically present. This can lead the respondents to alter their behavior in order to look good in the eyes of the researcher.
From the question above, we can be sure that this is the observation type being used because it said that the employees were not aware that they were being studied, so the researcher did it in an undercover type so the result will not bias.
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select all that apply indicate the accuracy trade-off(s) with the assumption that the market basket is fixed. multiple select question. households increase quantity consumed toward the last quarter of the year. people tend to increase consumption as prices increase. fixed market baskets isolate price changes from behavior changes. in reality, price changes lead to changes in quantity consumed.
In actuality, fixed market baskets separate price changes from behavioral changes and show how variations in price affect how much is consumed.
What does increased consumption mean?When all else is equal, an increase in consumption increases GDP by exactly the same amount. Additionally, because actual income (GDP) is a key factor influencing consumption, an increase in income would be followed by an increase in consumption, create a feedback loop connecting consumption and income. First off, spending on goods and services rises as income does. For each and every $1 of income growth, consumption increases even by MPC times the rise in income. As a result, the MPC is the slope of a consumption function. Second, spending outpaces income at low income levels.
How does increased consumption affect the economy?Consumption growth can boost business revenue and profit margins, raising overall value of the individual stocks. The worth of the market as a whole could rise as a result of this growth in particular share price valuations. This could lead to a boom in the economy. Natural resource depletion and environmental contamination are two drawbacks of consumerism. The consumerist society is not sustainable in its current state. More than 70% of Earth's natural resources are currently being overused.
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