The price of the movie ticket is a sunk cost, thus it shouldn't affect your choice. You should only consider if you want to see the movie while making your selection.
What exactly does the term "behavioral economics" mean?To comprehend how and why people behave the way they do in the real world, behavioral economics integrates elements of economics and psychology. It is distinct from neoclassical economics, which makes the assumption that most people have well defined interests and base their decisions on those values in a well-informed, self-interested manner.
Understanding economic behavior and the motivations behind the activities of economic actors is crucial. Then, behavioral economists examine them using social, moral, and psychological variables. Economic players are typically presumptively rational in textbooks.
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issuing 1,000 shares of 5%, $100 par value, cumulative preferred stock for $110 in cash per share affects the accounting equation by_____ (select all that apply.)increasing total liabilitiesincreasing Additional Paid-in Capitalincreasing Assetsincreasing Retained Earningsdecreasing total stockholders' equityincreasing total stockholders' equity
Assets rising Additional Paid-in Capital rising
raising total equity of stockholders
How do stocks work?Stocks come in two varieties: favored and ordinary. The owner of the latter cannot vote in corporate decisions, in contrast to the former, whose owner can. However, preferred shareholders have a legal entitlement to a set amount of dividend payments prior to any dividends being paid to other shareholders.
Additionally, there is a thing known as "convertible preferred stock." Essentially, this is a preferred stock with the option to convert at any point after a set date into a predetermined number of common shares.
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One of the most significant creation-related issues to consider when selecting a business’s organizational form is __________.
A) the organization’s policies
B) the target demographic for the services or products of the organization
C) how much time it will take to create a particular organization
D) how many people are recruited annually by the organization
E) the cost of creation
When choosing an organizational structure for a firm, one of the most important creation-related factors to take into account is the organization's policies.
What exactly do you mean by business?An entrepreneurial organization or establishment that does commerce is known as a business. They could be of the commercial, industrial, or other variety. For-profit companies operate with the goal of turning a profit, whereas nonprofit companies prioritize charitable causes.
What constitutes a company's foundation?If you want to succeed, you should begin by mastering the foundations of business. By researching your clientele and finding out what they want and need, you may create a long-lasting business, but you must first master the essential business skills.
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Which of the following is the most effective control procedure to detect vouchers that were prepared for the payment of goods that were not received?
Count goods upon receipt in storeroom.
Match purchase order, receiving report, and vendor's invoice for each voucher in accounts payable department.
Compare goods received with goods requisitioned in receiving department.
Verify vouchers for accuracy and approval in internal audit department.
Option (b), The best control method to identify vouchers produced for the payment of products that were not received is to match each voucher with the purchase order, receiving report, and vendor's invoice.
How are the vendor invoice and the related receiving report matched with the purchase order?Three-way matching involves comparing purchase orders (PO), goods receipt notes, and supplier invoices in order to detect fraud, save money, and maintain accurate records for the audit trail. The supplier is often paid after delivery but before three-way matching is completed.
Does the invoice need to match the PO?The sole invoice that is approved for payment must therefore match the PO, the goods receipt, the tolerances, and the inspection slip. These invoice matching techniques ensure that companies only pay for the goods and services they have requested and received.
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AAA, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:
Maintenance $320,000
Inspection $160,000
The following data have been assembled for use in developing a bid for a proposed job:
Direct materials $2,400
Direct labor $6,400
Machine-hours 160
Number of inspections 2
Direct labor-hours 320
The practical capacity of machine-hours for all jobs during the year is 10,000, and for inspections is 320. These are the cost drivers for maintenance and inspection costs, respectively.
Using the appropriate cost drivers, the total cost of the potential job is:
Select one:
a. $8,800
b. $14,920
c. $29,840
d. $13,040
Answer:
A training session doesn't match the requested one the employees some
Explanation:
photo Deewar
multinational agencies have advanced the environmental effort by applying uniform environmental standards to projects they finance. for example: group of answer choices the tokyo stock exchange allows no investors who do not adhere to its environmental guidelines. none of these are correct. the world health organization has guidelines for pollution controls. the world bank has a volume of environmental guidelines for industrial projects.
For example, the world health organization has the guidelines for pollution controls.
What is pollution?The introduction of contaminants into the environment's natural systems that have a negative impact is pollution. Any material (solid, liquid, or gas) or energy can be considered a form of pollution (such as radioactivity, heat, sound, or light). The elements of pollution, or pollutants, can be either naturally occurring toxins or substances or energy from outside the body. The term "pollution" often suggests that the contaminants have an anthropogenic source, which is a source made by human activity, even if environmental pollution might be brought about by natural processes. Pollution is frequently categorized as coming from a point source or a nonpoint source. Nine million people worldwide died from pollution in 2015. (one in six deaths). In 2019, little meaningful progress against pollution was seen, therefore this remained the same. Three-quarters of these earlier deaths were due to air pollution.
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Explain the different types of competition or industry structure. Illustrate your answer with relevant examples in the country of your choice.
Economic market structures can be grouped into:
perfect competition monopolistic competition oligopoly, monopoly.Examples of perfect competition is Foreign exchange markets.
Examples of industries with monopolistic competition are those that sell Items like dish soap or hamburgers are sold.
Examples of oligopoly can be seen in industries, like steel manufacturing, oil, railroads.
Examples of monopoly can be seen in induystries like Water and electricity, Eyeglasses.
What is market structure?In economics, market structure illustrates how businesses are categorized and distinguished according to the sorts of items they sell and how external circumstances and elements impact their operations. It is simpler to comprehend the peculiarities of various marketplaces when there is a clear market structure.
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which of the following best describes the chain of events that will occur if the value of the u.s. dollar appreciates?
exports ↓ → Aggregate demand (AD) ↓ best encapsulates the series of circumstances that would arise if the value of the US dollar rises.
What triggers an increase in the value of US currency?A currency cannot be either strong or weak on its own; it can only be either in relation to another object. The Fed's vigorous monetary policy response to skyrocketing inflation is resulting in the strengthening of the US currency.
Why is there inflation if the value of the dollar is increasing?Dollars from the US account for 90% of all global transactions. As a result of its reputation as a somewhat secure haven, the dollar often appreciates during periods of general economic unrest (like the one we are presently experiencing).
What takes place when the dollar's value rises?Positively, lower import costs and inflation are being kept under control by a stronger currency. A stronger currency may be able to divert demand away from the American economy and toward other economies around the world, despite the fact that the U.S. unemployment rate is still low and restricts the country's capacity to absorb more demand without some inflation.
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Two companies, Acme and Pinnacle, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits (in millions of dollars) for the two companies. Refer to Table 17-7. Which of the following statements is correct? O a. Acme can potentially earn its highest possible profit if it produces a good quality product, and for that reason it is a dominant strategy for Acme to produce a good quality product O b. The highest possible combined profit for the two firms occurs when both produce a poor quality product, and for that reason producing a poor quality product is a dominant strategy for both firms. O c. Regardless of the strategy pursued by Acme, Pinnacle's best strategy is to produce a good quality product, and for that reason producing a good quality product is a dominant strategy for Pinnacle. O d. Our knowledge of game theory suggests that the most likely outcome of the game, if it is played only once, is for one firm to produce a poor quality product and for the other firm to produce a good quality product.
C. Regardless of the strategy pursued by Acme, Pinnacle's best strategy is to produce a good quality product, and for that reason producing a good quality product is a dominant strategy for Pinnacle.
This is because Pinnacle will always make the highest possible profit, regardless of what Acme does, if Pinnacle produces a good quality product. For example, if Acme produces a poor-quality product then Pinnacle would make a profit of $8 million.
If Acme produces a good quality product then Pinnacle would make a profit of $10 million. Therefore, it is always in Pinnacle's best interest to produce a good quality product. This is why producing a good quality product is a dominant strategy for Pinnacle.
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When considering the most typical research design, although the practiced limb should show the greater amount of improvement, a significant amount of improvement should occur for the non practiced limb, indicating that bilateral transfer has occurred.
When considering the most typical research design a significant amount of improvement should occur for the non practiced limb.
What kind of augmented feedback provides details on the movement traits that lead to a performance result?Knowledge of Results (KR) is a type of augmented feedback that provides details about how an attempt to perform a skill turned out. Enhanced feedback's knowledge of performance (KP) category provides details on the movement traits that contributed to a certain performance outcome.
What is learning transfer? Why is learning transfer crucial for motor learning?WHAT IS LEARNING TRANSFER? Transfer of learning is typically defined by learning researchers as the impact of prior experiences on mastering a skill in a new setting or on learning a new skill. This effect could be favorable, unfavorable, or neutral (zero).
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an appliance store carries a specialty model of microwave ovens. the demand for the microwave oven is relatively constant at 2500 units per year. placing an order costs the store $500 regardless the quantity ordered. carrying one unit over a one year period costs the store $50. the store opens 300 days per year and the lead time for this item is 12 working days. because of the special features of the microwave oven, customers may buy it whether it is currently available in the store. hence, the store is considering selling it on a back order basis if it is beneficial. it is estimated that one unit on back order for a one year period costs the store $150. assuming shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the maximum allowable shortage. 224 258 260 65 none of the above
The maximum allowable shortage is 224. Hence, option (a) can be considered as the relevant answer.
Give a brief account on Economic Order Quantity.Economic Order Quantity (EOQ), often referred to as Economic Buying Quantity (EPQ), is the order quantity used in inventory management that minimises both total holding costs and ordering expenses. It's one of the earliest forms of conventional production scheduling. Only when a product's demand is steady throughout the year and every new order is fully fulfilled when the inventory level drops to zero does EOQ apply. No matter how many units are ordered, each order has a fixed cost; orders are considered to contain just one item. There is also a charge for each unit kept in storage, which is known as the holding cost and is occasionally represented as a percentage of the item's purchase price. Although the EOQ formulation is simple, there are other considerations to take into account when applying it, such as transportation costs and quantity discounts.
To solve the question :
D = 2500 units / year
S = $500 / order
H = $50 / unit / year
n = 300 days
LT = 12 days
EOQ = √2DS/H
= √2 × 2500 × 500 / 50
= 223.60 = 224
Hence, the maximum allowable shortage is 224.
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Solve the set of linear equation to obtain complete reciprocated costs of support department DB
A. DB= $75,773
B. None of them
C. DB = $105,154
D. DB = $67,010
DB = $105,154 is the set of linear equation to obtain complete reciprocated costs of support department DB.
How are support department costs accounted for?Cost allocation from support departments to producing departments is necessary to apply the support department expenses, which are a portion of the overall product costs, to the products. Determine the predefined overhead rates for the producing departments.
What are complete reciprocated costs?According to the reciprocal technique of cost accounting, a service department's budgeted amount plus any allocations from other service departments make up a total reciprocated cost. Utilizing simultaneous equations, the reciprocal technique distributes costs incurred by service departments to other departments while also generating distributions within the service departments themselves. As a result of this method, the cost distribution is correct.
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Orange and Billsung both produce smartphones and are considering increasing the rates on their data plans. Assume that each firm has complete knowledge of the other's payoff for a given decision. The payoff matrix represents the payoffs to each firm, where Orange values are in bold and Billsung values are in italics. The decision tree assumes Billsung chooses its strategy first. Use this information to complete the statement. Increase rates Increase rates $40 million $40 million $45 million $35 million Keep current rates $35 million $45 million $25 million $25 million Keep current rates Increase rates Billsung $40 million Orange $40 million Increase rates Keep current rates Billsung $35 million Orange $45 million Increase rates Billsung $45 million Orange $35 million Van rant ratas Increase rates Billsung $40 million Orange $40 million Increase rates Keep current rates Billsung $35 million Orange $45 million Increase rates Billsung $45 million Orange $35 million Keep current rates Keep current rates Billsung $25 million Orange $25 million Billsung will choose to increase rates and Orange will increase rates. 7 keep current rates. keep current rates increase rates. increase rates 7.
Bill Sung will decide to preserve the present rate, while Orange will opt to raise the rate, in accordance with the supplied statement.
What do statistics call rates?Last but not least, a rate is an more broad measurement that involves dividing two values, neither of which must use the same measure unit. It is capable of being equal to just about any value, including a negative one. It can even be expressed as both an integer or a percentage, much like proportions.
Briefing:(i). Bill sung → increase rate → orange → increase rate (40m, 40m)
From Orange → keep current rate (35m, 45m)
(ii). Bill sung → keep current rate → orange → keep current rate (25m, 25m)
From Orange → increase rate (45m, 35m)
Orange will opt to raise the rate, while Bill Sung may choose to preserve the present rate.
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Which of the following dimensions of e-commerce technology involves engaging consumers in a dialog that dynamically adjusts the experience to the individual?
A) Ubiquity
B) Personalization/customization
C) Richness
D) Interactivity
E) Information density
Interactivity dimension of e-commerce technology involves engaging consumers in a dialog that dynamically adjusts the experience to the individual.
Ecommerce: What is it?E-commerce, sometimes referred to as electronic commerce or internet commerce, is the term used to describe the exchange of data and money in order to carry out transactions involving the buying and selling of goods or services through the internet.
Give an example of what e-commerce is.E-commerce is typically defined as a commercial transaction that takes place online. Examples of e-commerce websites include Amazon, Flipkart, Shopify, and Myntra. Global retail e-commerce by 2020 may total $27 trillion.
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most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. in this scenario, commercial television advertising exemplifies the availability of appropriate question 45 options: 1) demonstrations. 2) personal selling services. 3) direct mailing services. 4) public relations. 5) communication channels.
In this scenario, commercial television advertising exemplifies the availability of appropriate communication channels.
Describe communication and what it is.Speaking, writing, listening, and reading are all forms of communication. Communication is the process of delivering, receiving, and sharing information. Clear speakers and writers who respect other points of view are good communicators.
The importance of communicationBy enabling us to connect with people and share our needs and experiences, communication supports relationship building in daily life. The ability to communicate our thoughts, share information, and express our emotions is at the core of existence. We must all communicate.
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________________ revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period
Deferred revenue arises when a business receives cash in one period, but does not provide all of the related goods or services until a later period
In accrual accounting, money received for products or services but not yet earned is referred to as deferred income. It is recorded as a liability up until delivery is made, at which point it is transformed into revenue in accordance with the revenue recognition principle.On the balance sheet, deferred revenue is shown as a liability, while the amount received increases the cash (asset) account.On the balance sheet, the deferred revenue item is typically categorized as a current liability. If performance is not anticipated over the next 12 months, it can be categorized as a long-term liability.To know more about Revenue here
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an example of an interface icon metaphor for listing all the items ordered is
a. shopping cart
b. storyboarding
c. content awareness
d. tape receipt
e. checkbook
Shopping cart is an illustration of an interface icon metaphor for listing all the things ordered.
User interface icons are visual representations of a functionality, concept, specific object, or the application itself. A lock icon, for instance, may indicate that it will activate and lock a certain function of an application by striking a striking likeness to the actual thing. In computing and digital design, icons are pictograms or ideograms that are used in web or mobile interfaces to enhance usability and guarantee a seamless flow of human-computer interaction. Continuing our examination of icons' advantages, one of the most important benefits is the ability to replace text. Because they are visual indicators, computer icons help users identify what they need or want quickly and easily. They are more enjoyable to use than text since they employ icons.
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Shopping cart is an illustration of an interface icon metaphor for listing all the things ordered.
User interface icons are visual representations of a functionality, concept, specific object, or the application itself. A lock icon, for instance, may indicate that it will activate and lock a certain function of an application by striking a striking likeness to the actual thing. In computing and digital design, icons are pictograms or ideograms that are used in web or mobile interfaces to enhance usability and guarantee a seamless flow of human-computer interaction. Continuing our examination of icons' advantages, one of the most important benefits is the ability to replace text. Because they are visual indicators, computer icons help users identify what they need or want quickly and easily. They are more enjoyable to use than text since they employ icons.
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a. when addressing a negative externality associated with the use of a commodity (e.g., energy), it is more efficient to impose a pigouvian tax on households but not on firms, because taxes on firm inputs disturb production efficiency
When producers do not bear the full cost of output, negative externalities impede a market economy from attaining equilibrium, according to Pigou.
it is more efficient to impose a pigouvian tax on households
A Pigovian Tax: What Is It?
A tax levied against private individuals or companies for engaging in activities that have negative side effects for society is known as a Pigovian (sometimes spelled Pigouvian) tax. Adverse side effects are expenses that are not accounted for in the market price of the product. The selling of tobacco products puts a load on the public healthcare system, and any other side effects that have an adverse external effect are among them.
After English economist Arthur Pigou, who made a substantial contribution to the early externality theory, Pigovian taxes were given their name.
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Which operational plans did amazon use? Standing plan or Single use plan?
Amazon's business strategy focuses on technology investments, developing its logistics applications, upgrading its web services by increasing its capacity for the fulfillment, using M&A as a strategy, doing R&D in logistics, experimenting with Fintech, and patenting its ideas.
What is the investment?Investment is the ceremonial of money to purchase an asset to attain an increase in value over a time period of time. Investment requires a sacrifice of some present quality, such as time, medium of exchange, or effort. In finance, the purpose of investing is to generate a return from the invested asset.
We will examine Amazon's semi-annual budgeting and planning procedure, known as OP-1 and OP-2, in this post (OP stands for Operating Plan). A very large corporation can strategically divide its resources according to Amazon's method while still preserving the autonomy and flexibility of its divisions and teams.
Therefore, The development of its logistics applications and technological investments are at the center of Amazon's business strategy.
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cognitive engagement process of quickly arranging the information that we select to pay attention to, noticing different aspects of an encounter.
Yes ,The Statement is Correct. A cognitive investment in learning, effortful task completion with purpose and the application of strategies, as well as metacognition and self-regulated learning are all examples of cognitive engagement.
What is Cognitive engagement?Cognitive engagement is the act of paying continuous, focused attention to an activity that requires mental effort and falls within the learners' zone of proximal development. As a result, when their pupils are actively involved in cognitively challenging learning, teachers perform at their best.
Cognitive engagement is the act of paying continuous, focused attention to an activity that requires mental effort and falls within the learners' zone of proximal development.The degree to which a student is strategically thinking, questioning, creating, and modifying in order to gain new information, develop, and comprehend their environment is reflected in cognitive engagement (Cognitive Processing).here are some of the cognitive engagement strategies used among students
Input Cognitive Strategies.
A cognitive input method depends on the things that students pay attention to. Most teachers overestimate how much attention students pay to the learning experience's instructional goals (the teacher's lecture, for instance). In addition to having short attention spans, students divert their focus by choosing to do so or by engaging in other activities.
Process Cognitive Strategies. A process cognitive strategy helps learners make sense of what they learn
Output Cognitive Strategies.
By applying what they have learned and making sense of their experiences, learners might gain new knowledge or skills with the use of an output cognitive approach. Giving students the opportunity to teach about a subject they are interested in learning.
Feedback Cognitive Strategies
By providing feedback to others, learners can use cognitive techniques to gain new information or abilities. As an illustration, invite students to listen to a speech or sermon and then give another student input on how it was delivered.
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you are a financial adviser. your client, mena, does not like risk and wants federal deposit insurance corporation (fdic) insurance. which of the following instruments should she invest in?
You are a financial adviser. Your client, Mena, does not like risk and wants Federal Deposit Insurance Corporation (FDIC) insurance. I would suggest him to invest in a bank savings account.
What does a financial advisor do?A financial advisor assists clients in developing long-term plans for accumulating money and controlling risk. They can assist you in monitoring, managing, and balancing your investment portfolio. They can also offer valuable guidance on a variety of other financial decisions and difficulties.
Better financial advisor or accountant?Financial planners assist individuals with asset management and retirement planning while accountants handle auditing tasks, financial forecasting, and the creation of financial statements. While financial planners are stronger at sales and networking, accountants are typically more detail-oriented and numerate.
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boca corporation, a u.s. corporation, reported u.s. taxable income of $1,000,000 in the current year. boca also received a dividend of $100,000 from the corporation's 100 percent owned subsidiary in italy. the dividend qualifies for the 100 percent dividends received deduction. the italian government imposed a withholding tax of $5,000 on the dividend. compute boca corporation's net u.s. tax liability for the current year.
Boca corporation's net u.s. tax liability for the current year is $210000
What is Tax Liability?The total amount of taxes that a person, business, or other entity owes to the government is known as their tax liability. Tax responsibilities include things like capital gains tax, income tax, and sales tax. Governments at all levels, including the federal, state, and municipal levels, levy taxes.
The amount of money you owe to the government in the form of taxes is known as your tax liability. It is the whole amount of tax that you owe the government. Any individual's or organization's compensation that is utilized to calculate tax liabilities is referred to as taxable income.
Given:
Tax on US Taxable Income 1000000 × 21% 210000
Tax on Foreign dividends (tax free due to 100% foreign subsidiary) 0
Foreign tax credit (No credit, because dividend is exempt) 0
Corporation's net US tax liability for 2018 210000
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You have a goal to increase scale and improve CPA performance and efficiency. Which of the following marketing objectives aligns to that goal?
Action
Hybrid
Awareness
Consideration
Action will be the marketing objective by which the goal of increasing the scale can be achieved that is option A is correct.
Within the market if any organizations wants to increase it's efficiency or it needs to increase the performance of the organization, its members will have to take suitable measures or actions to do the job. IF the members will not take suitable actions, it is possible that the reputation of the organization as well as the revenue from the organization will go down. The members will have to take measures including the advertisement of the products to hiring skilled and efficient labors that work for the betterment of the company. Instead of formulating plans, the plans should be applied at a good pace.
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in an oligopoly, firms can increase their market power by pursuing dominant strategies. selling to buyers who have market power. colluding to set prices. undertaking heavy advertising expenditure.
Companies can expand their market dominance in an oligopoly by banding together to fix prices.
How do oligopolies grow the size of their market?Oligopolists favor non-price competition when they are in competition to prevent price wars. A price cut may have strategic advantages, such as increasing market share or preventing entry, but there is a risk that competitors will also lower their prices in response.
The most likely cause of a breakdown in collusive activity between businesses in an oligopoly is which of the following?The answer is that one company can make a quick profit. A market structure known as an oligopoly occurs when a small group of powerful companies work together to control the market.
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A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pairof shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and$220 on groceries from a local store. As a result, U.S. GDPa. increases by $40.b. increases by $220.c. increases by $280.d. increases by $1500.
The correct answer is (c) Increases by $220. In social science, the term value is associated end-value of all the ultimate merchandise services that a nation produces in an accounting year or comparison with the previous year.
GDP is outlined because the current price of all final product and services created during a nation during a year. GDP measures the price of ultimate product and services—that is, those who area unit bought by the ultimate user—produced during a country during a given amount of your time (say 1 / 4 or a year). It counts all of the output generated among the borders of a rustic.
Economists don't issue intermediate product once they calculate gross domestic product (GDP). value may be a activity of the value of all final product and services created within the economy.
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An entrepreneur must be able to ___________, if his income statement does not match the industry average?
A) remove any information that deviates from the average
B) adjust and refine your metrics accordingly
C) understand and explain the differences
D) change the metrics to more appropriate ones
E) rewrite your projections from scratch
An entrepreneur must be able to understand and explain the differences, if his income statement does not match the industry average .
An income statement is a financial statement that lists the revenue and expenses of the firm. Additionally, it displays a company's profit or loss over a specific time frame. You may better comprehend your company's financial situation by comparing the income statement to the balance sheet, cash flow statement, and cash flow forecast.
The cash flow statement is likely the most significant financial report for a small firm. This report effectively shows whether or not the company is making money.
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which of the following will help to determine the likelihood that users will readily adopt a new system? group of answer choices resource allocation organizational feasibility study project scope calculation cost benefit analysis
Cost benefit analysis will help to determine the likelihood that users will readily adopt a new system.
What do you mean by Cost Benefit Analysis?A cost benefit analysis is a technique for assessing the benefits of a decision or course of action minus the costs associated with that decision or course of action. A cost benefit analysis includes measurable financial measures such as money made or costs saved as a result of the project's decision.
In a cost benefit analysis, intangible advantages, costs, or consequences of a choice, such as employee morale and customer satisfaction, can also be addressed. Sensitivity analysis, cashflow discounting, and what-if scenario analysis for a variety of solutions may be included in a more sophisticated cost benefit analysis. All else being equal, it is usually advantageous for the business to take on a project if the analysis reveals that the benefits outweigh the expenses.
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2. Searched for An effective employee screening test must be : a. Valid. b. Reliable. . Both aand b. . None of the above .
Answer: both a and b
Explanation:
Which of the following does not explain why is there an inverse (negative) relationship between price and quantity demanded?
A. Income effect--that is, a price change can affect the amount of some item you can afford to purchase
B. Substitution effect -- that is, a price change can affect the opportunity cost of purchasing some item and your willingness to switch to ( or from) another item.
C. Diminishing marginal utility-- as you consumer more, as the result of price decrease, the additional satisfaction received from the additional units consumer will start to go
D. When the price of an item increases, you buy more because it is more valuable
An economic principle known as the law of demand explains why there is an inverse relationship between the demand for a commodity or service and its price. When a good or service's price rises, fewer people will buy it, and vice versa, if all other variables stay the same. Hence we can say that option (d) does not explain the inverse relationship between price and quantity demanded
The law of demand states that as price decreases, quantity demanded increases and as price increases, quantity demanded decreases. The price and quantity demanded are inversely correlated.
The decreasing slope of the demand curve results from the inverse relationship between price and quantity desired. The link between price and quantity demanded is represented by the demand curve.
Demand is the capacity and desire of consumers to buy at a given price and time. Buyers' demand responsiveness to price fluctuation is known as elasticity of demand.
Demand might fluctuate more in response to price changes if it is elastic. Demand varies less in response to price changes when there is inelastic demand.
Demand is less responsive to price change, or inelastic, when: consumers see fewer substitute competing items; the item represents a small portion of the consumer's budget; and consumers have less time to adjust to price changes.
Switching to alternative products from competitors is more practical if there are no costs involved. Due to the ease of substituting commodities, demand for goods is elastic, or more responsive to price changes.
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The ______ indicates how investors must be compensated for time preference as well as for the amount of nondiversifiable risk that an investment carries.
The Security market line indicates how investors must be compensated for time preference as well as for the amount of nondiversifiable risk that an investment carries.
What is SMLA security market line (SML) is a line drawn on a chart that serves as a graphical representation of the Capital Asset Pricing Model (CAPM) —which shows the various systematic levels, or market risk, of various marketable securities, plotted against what is expected. the return of the entire market at any given time.
Also known as the “characteristic line”, the SML is a visualization of the CAPM, where the x-axis of the diagram represents risk (in beta terms), and the y-axis of the diagram represents expected results. The market risk premium of a given security is determined by where it is plotted on the graph relative to the SML.
Understanding the Security Market LineThe securities market line is an investment evaluation tool that originated with the CAPM — a model that describes the relationship of risk returns for securities — and is based on the assumption that investors need to be compensated for the time value of money (TVM) and related. the level of risk associated with any investment, is referred to as the risk premium.
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the money multiplier process also works in reverse when a loan is repaid since fewer checkable funds are then available to generate excess reserves.
It is true that the money multiplier process also works in reverse when loan is repaid since fewer checkable funds are then available to generate the excess reserves.
What is a money multiplier?A money multiplier is one of several closely related ratios of commercial bank money to central bank money in a fractional-reserve banking system, according to monetary economics. The entire number of loans that commercial banks are permitted to extend is equal to a multiple of the amount of reserves in a fractional-reserve banking system with legal reserve requirements. This multiplier, which is an economic multiplier, is the reciprocal of the reserve ratio minus one. Because some funds are kept as currency by non-bank public, actual ratio of money to central bank money, often known as money multiplier, is lower. Despite being a common representation of fractional-reserve banking, the money multiplier notion has come under fire for being inaccurate.
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