Costs that are incurred in a business transaction are referred to as accounting costs, while costs that include the value of the next-best alternative foregone are referred to as economic costs.
What are the accounting costs?Accounting costs refer to the actual monetary expenses incurred in the production of goods or services. Opportunity costs, on the other hand, represent the value of the next best alternative that must be forgone in order to pursue a certain action or decision.
Accounting costs refer to the explicit costs that are recorded in a firm's accounting system, including expenses such as salaries, rent, utilities, and materials. These costs are usually measured in monetary terms and are relatively easy to calculate and record.
In contrast, economic costs take into account both explicit and implicit costs. Implicit costs are the opportunity costs of using owned resources, such as the value of a business owner's time or the foregone opportunity to earn income from other investments.
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question number 2) government regulation influences the operations of most businesses. which regulatory topic did software ag's ceo briefly discuss?
Every industry is subject to certain government rules, and institutions are required to abide by these regulations.
What is the purpose of software AG?Enterprise software integration solutions are offered by the technology firm Software AG (SAG). The company provides a number of platforms, including adabas & natural, apis, integration, and microservices platforms, as well as IoT and analytics systems.
What would you say about Software AG's growth plan?Its declared objective is to grow through a "string of pearls" acquisition plan that emphasizes selective purchases that offer value in certain areas and are in demand by current clients.
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a change in relative prices between two counties has caused net exports to increase, resulting in real gdp increasing from $12,000 to $17,000. what is the percent change in real gdp? round your answer to the nearest tenth.
The percent change in real GDP between two countries is (17000 - 12000) / 12000 = 41.7%. The percent change in real GDP is 41.7%, rounded to the nearest tenth.
To find the percent change in real GDP, we can use the following formula:
Percent change in real GDP = ((New real GDP - Old real GDP) / Old real GDP) x 100%
Substituting the given values, we get:
Percent change in real GDP = ((17000 - 12000) / 12000) x 100%
Percent change in real GDP = (5000 / 12000) x 100%
Percent change in real GDP = 41.7%
Therefore, the percent change in real GDP is 41.7%, rounded to the nearest tenth.
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what is the term for the negative result of an organization raising the price of a product too far above the equilibrium
The term for negative result of an organization raising the price of a product too far above the equilibrium is "price ceiling" or "price floor."
What is a price ceiling?A price ceiling is a government-imposed limit on the maximum price that can be charged for a particular good or service. The intention behind a price ceiling is often to make that good or service more affordable and accessible to consumers, especially those with lower incomes. Price ceilings are typically implemented during times of economic hardship or crisis, such as during a natural disaster or a recession. However, setting a price ceiling can have unintended consequences, such as shortages, decreased quality, and even a black market for the product or service. In some cases, businesses may stop producing or offering the good or service altogether if they cannot earn a profit under the price ceiling, which can worsen the situation for consumers.
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in customer feedback surveys, rtc corp customers have indicated that they have a similar experience each time they interact with the company. this reflects success in which service quality dimension?
In customer feedback surveys, RTC Corp customers have indicated that they have a similar experience each time they interact with the company. This reflects success in the consistency service quality dimension.
RTC Corp customers experiencing a similar experience each time they interact with the company reflects success in the service quality dimension of consistency.
Consistency is a service quality dimension that refers to the uniformity and reliability of the service. It is the extent to which a company offers dependable and accurate services, including availability, delivery, dependability, and reliability.
The consistency dimension of service quality encompasses the following:-
Keeping promises made to customersConsistency across channelsDependability and reliability of service deliveryQuality of service deliveryTherefore, this ensures that customers are satisfied with the services they receive and that they have a positive experience. So, the success of RTC Corp in the consistency dimension of service quality reflects its ability to meet customer expectations and provide high-quality services.
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a differentiator will always seek out ways of distinguishing itself from similar competitors to justify price premiums greater than the costs incurred by differentiating. group of answer choices true false
Answer: The statement is generally true.
Differentiation is a strategy that businesses use to make their products or services stand out from similar offerings in the market. By highlighting unique features, benefits, or attributes, businesses can create perceived value for their offerings and justify price premiums that are greater than the costs incurred by differentiating.
However, it is important to note that the success of differentiation depends on several factors, such as the target market, the level of competition, the quality of the offering, and the effectiveness of marketing and branding efforts. Differentiation is not always a foolproof strategy and may not always result in sustained competitive advantage or increased profitability.
Explanation:
last-resort laws: a. are rules that require general providers to accept different types of insurances. b. encourage more competition between hospitals and lower prices for care. c. mandate that hospitals treat all patients who enter their emergency rooms. d. mandate that luxury care, such as cosmetic surgery, must be covered under insurance plans.
The correct answer is c. Last-resort laws mandate that hospitals treat all patients who enter their emergency rooms. These laws require hospitals to provide medical care to anyone in need, regardless of their ability to pay or whether they have insurance.
The purpose of these laws is to ensure that individuals who are in need of emergency medical treatment are not turned away due to their inability to pay. While last-resort laws do not address the issue of healthcare affordability, they do provide a safety net for individuals in emergency situations who may not have access to healthcare otherwise.
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what is an advantage of direct marketing? multiple choice question. it can be customized to match the needs of a target
An advantage of direct marketing is that it can be customized to match the needs of a target audience.
What is direct marketing?Direct marketing is a marketing strategy that involves communicating with customers directly without using intermediaries such as advertising, public relations, or salespeople. Companies use direct marketing to contact customers with targeted messages, encouraging them to make purchases, respond to surveys, or take some other action.
Direct marketing has several advantages, including:
Personalization - Direct marketing allows businesses to tailor their messaging to the needs and preferences of individual customers, providing a more personalized experience. This is important because customers are more likely to respond positively to messages that are relevant to their interests.Cost-effectiveness - Direct marketing is a cost-effective way to reach customers because businesses can target specific segments of the population with tailored messages.Improved response rates - Direct marketing has been shown to have higher response rates than traditional forms of advertising because it is more targeted and personalized.Measurability - Direct marketing campaigns can be easily tracked and measured, allowing businesses to determine the effectiveness of their messaging and adjust their strategies accordingly.Greater control - Direct marketing gives businesses greater control over the messages they send to customers, allowing them to tailor their messaging to specific segments of the population as needed.To know more about direct marketing refer here :
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fill in the blank A human resource ______ of an organization reveals the demographic of the firms labor force and whether it is technically up to date an thoroughly trained.
A human resource audit of an organization reveals the demographic of the firms labor force and whether it is technically up to date an thoroughly trained.
What is Human Resource Audit?Human resource audit is an examination of policies, procedures, documentation, systems, and practices of a human resource function.
The primary purpose of HR audit is to determine the effectiveness of HR policies and practices in order to ensure the HR department is in compliance with employment laws and to improve the overall functioning of the organization.
The audit identifies areas of HR where deficiencies exist and what actions need to be taken in order to rectify those deficiencies.
An HR audit should cover:
Employment policies and procedures
Personnel files
Benefits administration
Payroll Administration of human resources programs and functions
Training and development programs
Equal employment opportunity and affirmative action programs
Performance appraisal systems
Labor relations and compliance with employment laws
Occupational health and safety policies and practices
Personnel transactions conducted on an HRIS
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if 63 million workers produced gdp in mexico in 2018, using the bar graph, how much output did the average worker produce?
To calculate the output of the average worker, we need to divide the GDP by the number of workers. Using the bar graph, we can estimate that the GDP for Mexico in 2018 is approximately $2 trillion.
Therefore, the output of the average worker can be calculated as follows: Output of the average worker = GDP / Number of workers Output of the average worker = $2 trillion / 63 million Output of the average worker ≈ $31,746Therefore, the output of the average worker in Mexico in 2018 was approximately $31,746.
GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.
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lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers. this is because
The statement that lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers because: Lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers because of their higher education and specialized skills.
The level of education required for a lawyer is much higher than for a construction worker. Lawyers usually have completed an undergraduate degree and then have gone to law school for at least three years. During their education, they have learned skills such as research, writing, and critical thinking, as well as specialized knowledge of the law. These skills and knowledge are in high demand and are what allow lawyers to command higher salaries.Construction workers typically do not require as much education and training as lawyers. While there may be some specialized skills required for certain construction jobs, the overall level of knowledge and education required is generally lower than that of a lawyer. This is why construction workers typically receive lower pay than lawyers, even though their jobs may involve more physical labor and a higher risk of injury.
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who at ucf is required to comply with the prohibition of discrimination, harassment and related interpersonal violence policy? group of answer choices faculty and staff only faculty, staff, students and ucf-affiliated vendors non-affiliates of ucf, such as visitors students only
The group of people at UCF who are required to comply with the Prohibition of Discrimination, Harassment and Related Interpersonal Violence Policy are faculty, staff, students, and UCF-affiliated vendors.
Prohibition of Discrimination, Harassment and Related Interpersonal Violence Policy is an official university policy that prohibits acts of discrimination, harassment, sexual harassment, dating violence, domestic violence, stalking, retaliation, and any other forms of interpersonal violence.
It aims to prevent and promptly address all forms of violence and harassment, foster a safe, respectful, and inclusive learning and working environment, and ensure that the university community is free from any form of discrimination or harassment.
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project risk is lowest during the: concept stage of the project life cycle. implementation stage of the project life cycle. termination stage of the project life cycle. development stage of the project life cycle.
The project life cycle stage where risk is lowest is when the project is terminated.
When in a project's life cycle is risk the greatest?Stakeholders have the most power to affect project results during the project's first phases. Due to the huge proportion of unknowable elements, risk is at its maximum during this phase.
Why is a project considered low risk?Minimal risk suggests that there won't be a significant negative effect on the organisation should the project fail. Hard implementation describes the resources needed to successfully accomplish the project, which include both a large number of people and a large sum of money or assets.
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teenagers have more frequent unemployment spells and spend more time searching for jobs. other thing the same, this means that teenagers have a
Yes, Teenagers have more frequent unemployment spells and spend more time searching for jobs. This is due to the fact that teenagers often lack the experience and qualifications needed for more competitive jobs.
Additionally, employers are often reluctant to hire teenagers due to lack of reliability or potential for a lack of commitment to a job.
As a result, teenagers often spend more time searching for jobs and experience longer unemployment spells than adults with more experience and qualifications.
In conclusion, other things being equal, teenagers have a higher risk of unemployment and longer spells of unemployment than adults due to lack of experience and qualifications, as well as employers' reluctance to hire them.
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if you have a choice between consuming either two apples or three oranges or one candy bar, the opportunity cost of the candy bar is (a) two apples. (b) three oranges. (c) two apples and three oranges. (d) two apples or three oranges, whichever you most prefer. (e) the difference in the prices of the three options.
The opportunity cost of the candy bar is two apples and three oranges. The correct option is b).
Opportunity cost refers to the value of the best alternative that is forgone when a choice is made. In this scenario, if a person chooses to consume a candy bar, they are giving up the opportunity to consume two apples and three oranges.
Therefore, the opportunity cost of the candy bar is the combined value of two apples and three oranges. The option of two apples or three oranges, whichever the person most prefers, is not relevant in determining the opportunity cost.
The difference in the prices of the options is also not relevant in determining the opportunity cost because it only represents the monetary value and not the value of the forgone alternative.
Hence, option b) is correct.
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if 12,500 units were produced and sold, what is the average fixed manufacturing cost per unit produced?
The average fixed manufacturing cost per unit produced is calculated by dividing total fixed costs by the number of units produced. In this case, if 12,500 units were produced and sold, the average fixed manufacturing cost per unit is calculated by dividing total fixed costs by 12,500 units.
Total fixed costs can be found by subtracting the variable manufacturing costs from the total costs. This can be calculated by multiplying the variable costs by the number of units produced and subtracting it from the total cost of production. After subtracting variable costs, divide the resulting number by the number of units produced to find the average fixed manufacturing cost per unit.
Therefore, the formula to calculate the average fixed manufacturing cost per unit produced is as follows: Average fixed manufacturing cost per unit produced = (Total cost of production - (Variable cost per unit x Number of units produced)) / Number of units produced.
In this case, the average fixed manufacturing cost per unit produced is equal to (Total cost of production - (Variable cost per unit x 12,500)) / 12,500.
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All else equal, what happens to the price level and unemployment when investment spending by firms increases?
When investment spending by firms increases, "the price level tends to increase, while unemployment decreases" due to increased demand for labor and production.
This relationship is based on the theory that increased investment spending leads to an increase in aggregate demand, which causes an upward pressure on prices as demand exceeds supply. At the same time, the increased demand for goods and services also creates more job opportunities, reducing the number of unemployed workers seeking jobs.
Therefore, as firms invest more, the economy tends to experience a higher level of economic growth, which leads to lower unemployment and higher inflation.
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which of the following would ordinarily be classified as current assets on the balance sheet? note: select all that apply. check all that apply accounts receivable accounts receivable accounts payable accounts payable cash cash
A: Accounts Receivable and C: Cash are ordinarily classified as current assets on the balance sheet.
Based on typical accounting practices, the following items would ordinarily be classified as current assets on the balance sheet:
Accounts receivable: This is money that a business is owed by its customers for goods or services that have been sold but not yet paid for.Cash: This includes all the cash that a business has on hand or in bank accounts.Accounts payable, on the other hand, is typically classified as a current liability on the balance sheet. Accounts payable refers to the money that a business owes to its suppliers or vendors for goods or services that have been purchased but not yet paid for.
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during times of economic recession, what can stimulate the economy? group of answer choices both monetary and fiscal policy can be used to influence economic activity the government erases debt for both individuals and businesses the central bank uses monetary policy to determine how much money and credit is available to consumers the government uses fiscal policy to impact government spending and taxes
During times of economic recession, both monetary and fiscal policy can be used to influence economic activity. The central bank uses monetary policy to determine how much money and credit is available to consumers, while the government uses fiscal policy to impact government spending and taxes.
What is Fiscal Policy?Fiscal policy is the use of government revenue collection and expenditure to influence the economy. The two major instruments of fiscal policy are government spending and taxation.
Changes in the level and composition of taxation and government spending can influence the following macroeconomic variables in an economy:
Aggregate demand and the level of economic activity;The pattern of resource allocation;The distribution of income;Fiscal policy is frequently used in conjunction with monetary policy, which attempts to influence the supply of money and credit in the economy.What is Monetary Policy?Monetary policy is the process by which the monetary authority of a country, like a central bank, controls the supply of money, often targeting an inflation rate or interest rate to guarantee price stability and general trust in the currency. Monetary policy is usually contrasted with fiscal policy, which focuses on government spending and taxation, and is implemented by the government rather than the central bank.
In monetary policy, the central bank uses several policy tools to influence the availability and cost of money and credit. These include open market operations, the discount rate, and reserve requirements, among others. Monetary policy is executed through a variety of channels, such as interest rates and credit flows. Monetary policy can be used to stabilize macroeconomic variables like inflation, output, employment, and foreign exchange rates, among others.
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when there is a sharp decline in the cboe volatility index (vix), stock prices also tend to decline. group of answer choices false true
The statement that when there is a sharp decline in the CBOE Volatility Index (VIX), stock prices also tend to decline, is true. The CBOE Volatility Index (VIX) is a measure of market volatility and is often referred to as the “fear gauge”, as it is a measure of the expectation of volatility over the next 30 days.
When the VIX is high, it typically indicates that investors are expecting a sharp market move, either up or down. When the VIX is low, it typically indicates that investors are expecting a relatively calm and steady market. Therefore, when the VIX experiences a sharp decline, this is often a sign that investors are becoming more confident and less fearful, and that stock prices will tend to follow suit.
To illustrate this, consider the recent market volatility caused by the coronavirus pandemic. As the virus spread, market uncertainty increased and the VIX spiked to an all-time high of 82.69. This was followed by a sharp decline in the VIX, as investors became increasingly confident that the worst of the crisis was over. This confidence was reflected in the stock market, and the S&P 500 rose by approximately 25%.
Overall, the statement that when there is a sharp decline in the CBOE Volatility Index (VIX), stock prices also tend to decline, is true. The VIX is a measure of market volatility, and when it declines, it typically indicates that investors are becoming more confident and stock prices will rise as a result.
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berta, the manager of an automobile showroom, announces a new scheme wherein the company offers an all-expenses paid trip to the salesperson who sells the most number of cars in the next quarter. this inspires berta's subordinates to work harder and improve their performance. in this scenario, berta uses a(n) . group of answer choices countertransference technique intrinsic motivation technique counterconditioning technique positive reinforcement technique
In this scenario, Berta is using a Positive Reinforcement Technique to motivate her subordinates.
Positive Reinforcement is a type of behavior modification that rewards desirable behavior. By offering an all-expenses paid trip to the salesperson who sells the most cars, Berta is providing a positive reward that encourages her subordinates to work harder and improve their performance.
This reward serves as a motivation for them to strive for higher results and encourages them to maintain their performance. By implementing this technique, Berta is reinforcing the desired behavior, which in turn leads to better outcomes.
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normative economic statements group of answer choices violate the law of ceteris paribus. contain value judgments. are usually irrational. are easily testable.
Normative economic statements "contain value judgments" and are usually irrational. Thus, Option B is correct.
Normative economic statements are subjective statements that involve value judgments and opinions. These statements cannot be easily tested or proven true or false, as they are based on personal beliefs and opinions. They are different from positive economic statements, which are objective and based on empirical evidence.
Normative statements violate the law of ceteris paribus, which means that they do not consider all the factors that could affect an economic decision. As a result, they cannot be easily tested or verified. It is important to differentiate between normative and positive statements when analyzing economic theories and policies.
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your assistant gives you the following diagram as the efficient frontier of the group of stocks you asked him to analyze. the diagram looks a bit odd, but your assistant insists he double-checked his analysis. would you trust him? is it possible to get such a diagram?
No, I wouldn't trust him as it is not possible to get such a diagram as it does not meet the instructions of the given data and required efficient frontier.
The efficient frontier is the set of optimal portfolios that either offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. Portfolios below the efficient frontier are suboptimal because they do not provide sufficient returns for their risk levels. Portfolios clustered on the right side of the efficient frontier are suboptimal because they have a higher level of risk for the defined return.
Introduced by Nobel laureate Harry Markowitz in 1952, Efficient Frontier Theory is the foundation of Modern Portfolio Theory (MPT).
The Efficient Frontier evaluates/estimates portfolios (investments) on a scale of return (y-axis) versus risk (x-axis). Asset compound annual growth rate (CAGR) is commonly used as a return component and standard deviation (annualized) is a risk metric.
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Complete question:
Your assistant gives you the following diagram as the efficient frontier of the group of stocks you asked him to analyze. the diagram looks a bit odd, but your assistant insists he double-checked his analysis. would you trust him? is it possible to get such a diagram?
philip morris markets marlboro cigarettes, the number-one selling cigarette brand in the world. outside the united states, marlboro generates huge profits that philip morris uses to support other less successful sbus. according to the bcg matrix, marlboro is an example of a .
Marlboro is an example of a cash cow according to the BCG Matrix.
Cash cows have high market share in a mature market, meaning that they have already established themselves as a leader in their market, and the demand for their product is stable and consistent.
Marlboro cigarettes have been the leading brand of cigarettes in the world for decades and the demand for their product remains steady. The profits from Marlboro cigarettes outside the United States are used to support other, less successful SBUs within the Philip Morris company. As a cash cow, Marlboro brings in steady profits to the company, which can then be used to support the other parts of the business.
In summary, according to the BCG Matrix, Marlboro cigarettes are classified as a cash cow. A cash cow is a product that has a high market share in a low-growth industry, generating excess cash that can be used to fund other business units that are not as profitable.
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the toy box pays an annual dividend of $2.40 per share and sells for $46.60 a share based on a market rate of return of 15 percent. what is the capital gains yield?
The capital gains yield is 9.44%.
Capital gains yield is the percentage of an investment's value that increases in a given year as a result of share price increases. In this question, we are asked to find the capital gains yield of the toy box that pays an annual dividend of $2.40 per share and sells for $46.60 a share based on a market rate of return of 15 percent. The formula to calculate capital gains yield is: Capital gains yield = (P1 - P0) / P0 × 100%Where:P0 is the purchase price of the stock, which is $46.60P1 is the selling price of the stock, which is unknown at this point.
Therefore, the formula to calculate the capital gains yield can be written as: Capital gains yield = (P1 - $46.60) / $46.60 × 100%We need to solve for P1. To do that, we can use the following formula: Market rate of return = dividend yield + capital gains yield Or Capital gains yield = market rate of return - dividend yield .Substituting the values into the above formula: Capital gains yield = 15% - ($2.40 / $46.60)Capital gains yield = 9.44%Therefore, the capital gains yield is 9.44%.
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what three things do businesses typically do when faced with increased risk from cross-border investments?
Businesses typically take the following three steps when faced with increased risk from cross-border investments: diversification, hedging, and insurance.
Diversification means investing in a variety of assets, as it reduces the risks of a single investment. Hedging is the use of financial instruments to reduce the potential losses of a particular investment.
Lastly, insurance can be purchased to protect against any losses due to unexpected changes in the market.
By diversifying, hedging, and insuring investments, businesses are able to reduce their risk from cross-border investments.
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individual taxpayers are not taxed on their cancellation of debt (cod) income if their debt was forgiven as part of bankruptcy proceedings group of answer choices true false
True. Individual taxpayers are not taxed on their Cancellation of Debt (COD) income if their debt was forgiven as part of bankruptcy proceedings.
This applies to any debts forgiven in the tax year, such as credit card debt, student loan debt, business debt, or other forms of debt.
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if the nominal interest rate is 8% and the real interest rate is 3%, then the inflation rate equals:
The inflation rate is equal to 5%.
The nominal interest rate is the rate of interest that is quoted and publicized by the lender. It does not take into account the decrease in purchasing power due to inflation.
The real interest rate is the nominal rate minus the inflation rate. Therefore, if the nominal rate is 8% and the real rate is 3%, then the inflation rate is 5%.
To calculate the inflation rate, we must take the nominal interest rate minus the real interest rate. The nominal interest rate is the rate of interest that is advertised and publicized by the lender, while the real interest rate takes into account the decrease in purchasing power due to inflation.
In this example, the nominal interest rate is 8% and the real interest rate is 3%. By subtracting the real interest rate from the nominal interest rate, we get the inflation rate of 5%. This means that the inflation rate is 5% for this example.
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aunt butch borrows $19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. the interest paid in the third year is
The interest paid in the third year is $1,336, which can be calculated using the formula for the present value of an annuity.
To calculate the interest paid in the third year, we first need to find the amount of each annual installment. We can use the formula for the present value of an annuity to do this:
[tex]PV = PMT x\frac{(1 - 1/(1+r)^n) }{r}[/tex]Where PV is the present value (the amount borrowed), PMT is the amount of each annual payment, r is the annual interest rate (8% or 0.08), and n is the number of payments (10). Plugging in the given values, we know:
PV = $19,500r = 0.08n = 10So:
[tex]PMT= PV /\frac{(1 - 1/(1+r)^n) }{r}[/tex][tex]PMT= 19,500 /\frac{(1 - 1/(1+0.08)^10) }{0.08}[/tex]PMT = $3,050.87So the amount of each annual payment is $3,050.87.
Now we need to find the interest paid in the third year. Since the payments are equal, we can use the formula for the future value of an annuity to find the amount of the remaining payments after two years:
[tex]FV = PMT x\frac{((1+r)^n - (1+r)^t) }{r}[/tex]where FV is the future value, t is the number of years already passed (2), and all other variables are the same as before. Plugging in the values, we get:
[tex]FV = 3,050.87 x\frac{((1+0.08)^10 - (1+0.08)^2) }{0.08}[/tex]FV = $22,376.98So after two years, Aunt Butch still owes $22,376.98. To find the interest paid in the third year, we subtract the remaining balance after two years from the total amount borrowed, and then calculate 8% of that amount:
Interest paid in third year = 0.08 x ($19,500 - $22,376.98)Interest paid in third year = $1,336.16Therefore, the interest paid in the third year is $1,336 (rounded to the nearest dollar).
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an economy in which elements of both private enterprise and government intervention are present is known as:
An economy that contains elements of private enterprise and government intervention is called a mixed economy.
A mixed economy is an economic system that combines elements of both capitalism and socialism. It has characteristics of both capitalism and socialism, but it is not purely either of them. It's a hybrid system that blends the best of both worlds.
What is a private enterprise? A private enterprise is a system in which businesses are owned and operated by individuals or groups of individuals. In a private enterprise system, the government has little or no involvement in the operation of businesses.
What is government intervention? Government intervention refers to the involvement of the government in the operation of the economy. The government may use its power to regulate or control economic activity, to redistribute income and wealth, or to provide public goods and services. Government intervention is often seen as necessary to correct market failures and ensure that the economy operates efficiently and fairly. However, too much government intervention can be harmful to economic growth and development.
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the announcement of an increase in the cash dividend should, according to mm, leads to an increase in the price of the firm's stock. true false
The announcement of an increase in the cash dividend should, according to MM, leads to an increase in the price of the firm's stock.
MM, also known as the Modigliani-Miller theorem, is an influential economic theory on capital structure. It implies that the market price of a company is decided by its future profits and should be independent of the financing choices made to achieve those profits. When a company announces an increase in the cash dividend, it can lead to an increase in the price of the firm's stock. It is because the dividend payment is an essential component of a firm's value for its investors. Companies use dividend payments to return capital to shareholders and also as a way of signalling that the company is doing well financially, which makes it more attractive to investors. Therefore, an increase in the cash dividend can have a positive impact on the value of the firm's stock.
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