Suppose wages in Ruritania rose 2.50% last year, while labor productivity changed by −1.3% . The inflation rate is: 3.8%.
How to find the inflation rate?Using this formula to find the inflation rate
Inflation rate = Increase in wages + Change in labor productivity
Where:
Increase in wages = 2.50%
Change in labor productivity = -1.3%
Let plug in the formula
Inflation rate = 2.50% + (-1.3%)
Inflation rate = 3.8%
Therefore the inflation rate is 3.8%.
Learn more about inflation rate here:https://brainly.com/question/28083534
#SPJ1
An economist estimated that the cost function of a single-product firm is
C(Q) = 100 + 20Q + 1502 + 1003
Based on this information, determine:
a. The fixed cost of producing 10 units of output.
b. The variable cost of producing 10 units of output.
c. The total cost of producing 10 units of output.
d. The average fixed cost of producing 10 units of output.
e. The average variable cost of producing 10 units of output.
f. The average total cost of producing 10 units of output.
g. The marginal cost when Q = 10.
Where C(Q) = 100 + 20Q + 15Q² + 10Q³ is the cost function,
(a) Fixed cost (FC) = $100 (which is fixed irrespective of output level)
(b) Variable cost (VC) = 20Q + 15Q² + 10Q³
When Q = 10, VC = (20 x 10) + (15 x 10 x 10) + (10 x 10³) = 200 + 1,500 + 10,000 = $11,700
(c) Total cost (TC) = FC + VC = $(100 + 11,700) = $11,800
(d) Average fixed cost (AFC) = FC/Q = $100 / 10 = $10
(e) Average variable cost (AVC) = VC/Q = $11,700 / 10 = $1,170
(f) Average total cost (ATC) = TC/Q = $11,800 / 10 = $1,180
(g) Marginal cost (MC) = dC(Q)/dQ = 20 + 30Q + 30Q²
When Q = 10, MC = 20 + (30 x 10) + (30 x 10 x 10) = 20 + 300 + 3,000 = $3,320
What is a cost Function?The cost function calculates the cheapest way to produce a particular amount of output for some set factor costs. The cost function describes a firm's economic options.
The functional connection between cost and output is referred to as the cost function. It investigates the cost behavior at various levels of production when technology is considered to be constant. It may be stated as follows: C= f(Q) (where C is the cost of production and Q is the quantity of output).
Learn more about cost function:
https://brainly.com/question/12909885
#SPJ1
Full Question:
An economist estimated that the cost function of a single-product firm is:
C(Q) = 100 + 20Q + 15Q² + 10Q³.
Based on this information, determine the following:
a. The fixed cost of producing 10 units of output.
b. The variable cost of producing 10 units of output.
c. The total cost of producing 10 units of output.
d. The average fixed cost of producing 10 units of output.
e. The average variable cost of producing 10 units of output.
f. The average total cost of producing 10 units of output.
g. The marginal cost when Q = 10.
Coverage C of the commercial general liability policy will cover reasonable medical expenses incurred within how many years of the accident?
Within One year of the accident, the medical expenses will be covered by the policy.
CGL, or commercial general liability, is a type of insurance policy that covers a company's medical expenses for personal injury, bodily harm, and property damage caused by the company's operations or products, as well as injuries that occur on the company's premises.
Expenses incurred and reported within one year of the date of the accident are covered by Commercial general liability coverage.
A Commercial General Liability (CGL) coverage shields your company from financial harm in the event that you are held accountable for property damage, bodily injury, or advertising injury brought on by your products, activities, or personnel. It covers careless behavior committed by amateurs.
For more information on Insurance, visit:
https://brainly.com/question/14289097
#SPJ9
If a working environment becomes toxic the productivity of all workers will decline. What will happen to the average cost of production as a result?.
If a working environment becomes toxic the productivity of all workers will decline, average cost increases.
How does a toxic work environment affect productivity?Today, many workers report to unhealthful workplaces.Low morale, increased turnover, decreased productivity, poor job quality, and physical discomfort can all be caused by these work conditions. Workplace noise levels that are too loud cause workers to operate less efficiently and make more mistakes.Additionally, having access to natural light and sufficient ventilation at work increases employee productivity.Another important element in creating a better work environment is effective workplace communication. When less output is generated without a corresponding drop in input, productivity declines .More input results in the same output. The most frequent reason for low productivity at work is a result of employees' incomplete training.Time management and resource management are naturally hampered when employees are not properly trained.To learn more about average cost of production refer
https://brainly.com/question/29216138
#SPJ4
Alex's parents decide to deposit an amount of money at the end of every month into a bank account earning interest at the rate of 5% per year compounded monthly. If the savings program began when Alex was 4 years old, how much money should his parents deposit monthly so there will be an accumulated fund of $100,000 by the time he turns 19 years old?
The amount of money that Alex's parent should deposit monthly is $374.43.
What should be the monthly deposit?The payments made by Alex's parents is known as an ordinary annuity. An ordinary annuity is when a series of payments is made over a period of time at the end of the period.
The formula that can be used to determine the amount that should be deposited monthly is:
Monthly payments = future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
r = monthly interest rate = 5% / 12 = 0.417%n = number of payment period = number of compounding x number of yearsNumber of years = 19 - 4 = 15
15 x 12 = 180
Monthly deposit = 100,000 ÷ [{(1.00417^180) - 1} / 0.00417] = $374.43
To learn more about annuities, please check: https://brainly.com/question/24108530
#SPJ1
Answer right away!!!!!!!! 10 points
Alena has just joined a chapter of FBLA-PBL. Public speaking skills with the most likely to gain with FBLA-PBL. The correct option is D.
What does FBLA-PBL teach?Leadership Development—by holding chapter officer positions at the local, state, and national levels; networking with accomplished business professionals; and participating in business-focused workshops, seminars, and academic competitions, members develop essential soft skills.
Through innovative leadership and career development programs, the FBLA-PBL mission is to foster a positive working relationship between business and education. Career exploration, civic service, economic education, and technical skill advancement are examples of extracurricular activities.
Thus, the ideal selection is option D.
Learn more about FBLA-PBL here:
https://brainly.com/question/28844194
#SPJ1
When considering the three basic decisions a firm must make when it decides to enter a foreign market, it must determine the market to enter, the timing of entrance, and.
When considering the three basic decisions a firm must make when it decides to enter a foreign market, it must determine the market to enter, the timing of entrance, and the scale.
A firm taking into account overseas growth must make 3 simple selections: which markets to go into, whilst to go into those markets, and on what scale.
Agarwal and Ramaswami (1992) depicted elements that determine the choice of unique foreign market entry mode in 3 classes: ownership gain of a firm, area gain of a market, and internalization advantage of integrating transactions.
Learn more about market here: https://brainly.com/question/25754149
#SPJ4
"which of the following statements regarding a sole proprietorship are correct?
- sources of funds for a sole proprietorship typically include personal savings, as well as raising funds from a bank or personal loans from friends and family
- the sole proprietor is personally responsible for all debt of the sole proprietorship
- sole proprietorships are easy to set up with no paperwork required before the business can be opened."
A sole proprietorship's owner is liable for all debts incurred by the business. A sole proprietorship enables one person to do business but does not separate the business from the owner., Thus, option (B) is correct.
What is debt?Debt can be defined simply as the amount owed by the borrower to the lender. A debt is a quantity of money borrowed for a set period of time and must be repaid together with interest. The amount as well as the approval of the debt are determined by the borrower's creditworthiness.
Debt is an obligation that forces one party, the debtor, to pay another party, the creditor, money, or other agreed-upon value. Debt is a delayed payment or series of payments, Contracts entered into by a solo proprietor are legally his or her responsibility. The business is a sole proprietorship and is regarded as a distinct legal entity.
Therefore, thus option (B) is correct.
Learn more about debt here:
https://brainly.com/question/17286021
#SPJ1
Which of the following is likely not a reason Disney was eager to enter its initial strategic alliance with Pixar?
a. strengthen competitive position
b. assess critical complementary assets
c. hedge against uncertainty
d. learn new capabilities
e. enter new markets
Disney's early strategic collaboration with Pixar was probably not motivated by a desire to learn new skills. As a result, option (D) is the best one.
What is a strategic alliance?A strategic alliance is an arrangement between two or more parties to pursue a specific set of agreed-upon goals while still remaining independent organizations (also called a strategic partnership).
Generally speaking, a strategic alliance will fall short of a formal agency, partnership entity, or corporate affiliate arrangement. A strategic alliance is typically formed between two enterprises when they each have one or more company assets or skills that will benefit the other by advancing their respective industries.
Hence, option (D) is accurate.
Learn more about the strategic alliance, from:
brainly.com/question/17250330
#SPJ1
This management style is used with new employees. _______
An authoritarian management style is used with new employees. If you have new or inexperienced employees who require a lot of guidance and instruction, an authoritarian management style can also be effective.
Why is authoritarian leadership good?
Authoritarian leaders are effective because of their ability to inspire, motivate, and influence their teams. This motivation is frequently derived from their ability to comprehend a company's strategic goals and communicate them in an easy-to-follow manner to employees.
Authoritarian leadership, also known as autocratic leadership, is a leadership style in which a single person has complete decision-making authority and absolute control over his subordinates.
Learn more about authoritarian leadership here:
https://brainly.com/question/10182978
#SPJ1
Describe the demographic segmentation that a company would use to
categorize you as a potential customer. Do you think you are representative of
that segmentation? Explain why or why not.
Seach engines are tracking all sorts of other things. Such as the most recent searches. What you've been reading so far. What you've been looking for but haven't purchased- your clothing measurements, your moral principles, the information in your emails. Psychographic profiling is all about understanding who your customers are, what really matters to them, what their values are, and how that intersects with their purchasing decisions, preferred information sources, and so on.
Demographic segmentation of customer bases is now extremely complex, allowing for micro-targeting on previously unimaginable scales. So, do I represent a segmentation? I am, indeed.
For more information on Demographic segmentation visit:
https://brainly.com/question/25198831
#SPJ1
What tax preparation option do you think you are most likely to use? Why? What are the advantages and disadvantages of using this option?
The tax preparation option that I think I am most likely to use is the use of software because it is simple to use and effective at creating tax returns as long as you already have the data provided and prepared to be encoded. Its accessibility, however, makes it vulnerable to manipulation by others, which is a drawback to employing it. And this can make the client's confidentiality less secure.
What does "tax preparation" mean?Federal, state, and local tax returns are all included in tax preparation. For clients ranging from individuals to businesses, tax advising services include analyzing financial and tax issues, coming up with solutions, and offering recommendations.
To get ready for income tax season, one must
Select a Tax Preparer.Make an Appointment.Put together Your Documents.Round Up Your Receipts.List all of one's Personal Information, etc.Learn more about tax from
https://brainly.com/question/27300507
#SPJ1
Lack of participation in decisions that affect daily work tasks is a source of organizational stress.
True
False
It is a true statement that lack of participation in decisions that affect daily work tasks is a source of organizational stress.
What is an organizational stress?Basically, an organisational stress means a cognitive, emotional and behavioural response to the harmful and aggressive aspects of work, organisational climate and work environment.
In a case when an employee feels uneasy and helpless in solving tasks, such condition comes under organisational stress. In work setting, many people face various job-related issues such as discrimination, job dissatisfaction etc which result in stress.
Some sources of an organisational stress can be narrowed down to long hours, heavy workload, changes within the organisation, tight deadlines, changes to duties, job insecurity, lack of autonomy, boring work etc.
Read more about organizational stress
brainly.com/question/24074777
#SPJ1
Is a principal under a duty to compensate an agent who works on the principal’s behalf?.
The principal has a duty to compensate, or indemnify, the agent for liabilities arising from the agent's lawful and authorized acts on the principal's behalf.
What is Indemnification?To "indemnify" someone implies to make restitution for their losses or damages. In most contracts, an indemnity clause is used to make up for damage or loss caused by the other party's conduct or inaction. The goal is to transfer responsibility from one party to the one providing indemnification. It is also referred to as a "keep harmless" clause because each party agrees to defend the other in specific situations. Typically, the events result from a circumstance within the indemnifying party's (again, the party who is doing the compensating, or the paying party).To learn more about Indemnification, refer to
https://brainly.com/question/11927668
#SPJ4
A new business owner decides to do his
taxes himself instead of hiring an
accountant to handle it for him. This
takes 2 days. If he were to hire
the accountant, he could have used
those two days to meet new clients and
bring in more business, which he will
now miss out on. This tradeoff is an
example of:
O Opportunity cost
O Hobson's choice
O Accounting Process Outsourcing
(APO)
O Time Value of Money
O Monetary Value of Time
Answer:
apo
Explanation:
Institutional owners are
a. shareholders in the large institutional firms listed on the New York Stock Exchange.
b. banks and other lending institutions that have provided major financing to the firm.
c. financial institutions such as mutual funds and pension funds that control large-block shareholder positions.
d. prevented by the Sarbanes-Oxley Act from owning more than 50 percent of the stock of any one firm
Institutional owners are c. financial institutions such as mutual funds and pension funds that control large-block shareholder positions.
What Is Institutional Ownership?Institutional ownership can be described as the company's available stock that is been owned by mutual as well as:
the pension funds insurance companies investment firms private foundationsendowmentsIt should be noted that they can be reffered to as the Financial institutions which are institution that encompass a broad range of business operations and they can be attributed to the financial services sector including banks as well as the trust companies,.
In conclusion, the Institutional owners can be descriobed as the financial institutions which could be the mutual funds as well as the pension funds and they do have some control large-block shareholder positions.
Therefore, option C is correct.
Learn more about financial institutions at:
https://brainly.com/question/3590636
#SPJ1
Use the Internet to research careers in information technology. Jot down answers to these questions:
What kinds of careers are available in IT?
What kinds of responsibilities, tasks, and skills does a person have or need to be successful in this field?
Create a two-column chart. In the first column, list what you would say in the ad. Keep your sentences short, use strong verbs, and be persuasive. In the second column, list effects for the ad. For example, you might include upbeat music at the start of the ad and describe sound effects.
Principle benefits of the usage of the net for your activity search encompass the capability to: get entry to timely activity notices across the clock. Discover unusual or hard-to-find career data. Speak with experts or aid corporations in specialized areas.
Information technology specialists look at, design, increase, put in force, support, and control pc-primarily based facts systems, including each software program and laptop hardware.
Almost every organization desires a team of savvy pc professionals to maintain its structures up and walking. You could discover work in pretty much every industry you want, including economic offerings, enjoyment, authorities, hospitality, healthcare, manufacturing, retail and extra.
Learn more about corporations here: https://brainly.com/question/13551671
#SPJ1
Would you expect a $1 increase in a call option’s exercise price to lead to a decrease in the option’s value of more or less than $1?.
The call price will decrease by less than $1 if a $1 increase in a call option’s exercise price to lead to a decrease in the option’s value of more or less than $1.
Are calls priced at face value?Typically, the call price consists of the bond's face value plus an additional percentage. The indenture agreement relating to the bond specifies the amount of the call price and the period during which it may be enacted.
What exactly are call price and strike price?The strike price of an option indicates the price at which you can buy (for a call) or sell (for a put) the underlying securities before the contract expires. The option's "moneyness," a measurement of its intrinsic value, is the difference between the strike price and the current market price.
To know more about call price visit:
https://brainly.com/question/14777177
#SPJ1
If you choose a passive investing strategy, how will your portfolio look with its first allocation?.
The portfolio will look at its first allocation The trend suggests the stock's price will fall.
The time period stock is used to explicit equity possession in an enterprise. An inventory represents a piece of ownership in an enterprise. However, a proportion of stock is a unit of possession inside the enterprise. The range of shares determines how massive of a piece of ownership in a business you have.
Stocks give you a possession hobby in one or extra businesses. However, stocks constitute ownership of 1 specific company best. For example, if A has made an investment in shares, it is able to imply that a has a portfolio of shares that spans different businesses.
Shares offer investors the best capacity for growth (capital appreciation) over the long haul. Investors willing to stay with stocks over lengthy intervals of time say 15 years, typically had been rewarded with sturdy, superb returns.
Learn more about stocks here https://brainly.com/question/28539863
#SPJ4
Pls help i will give branlyist
Choose a specific administrative support job. Then explain the type of multitasking a person might have to do in that job.
Give an example of a clear subject line for an email and an unclear subject line. Then explain why the clear subject line is better.
Human Resources is the administrative job that performs multitasking like payroll, hiring, recruitments, maintaining the atmosphere in office and others.
What is Human Resources?Human resources specialists recruit, interview, and screen job candidates as well as assign newly hired employees to positions. They could also be in charge of training, employee relations, and pay and benefits. Labor relations professionals oversee and evaluate employment contracts.
HR management frequently involves processing payroll, creating job descriptions, developing workplace standards, and buying benefits.
Thus, Human Resources is the administrative job.
For more information about Human Resources, click here:
https://brainly.com/question/13190588
#SPJ1
As emphasized in the text, much of our success within organizations is connected to.
Much of our performance in organizations is related to our cognitive potential, as was underlined in the text.
Knowledge acquisition, information manipulation, and reasoning all require cognitive skills, sometimes known as cognitive potential, cognitive talents, or cognitive capacities.Perception, attention, memory, learning, decision-making, and language skills are all examples of cognitive potential.
Cognitive functioning is the term for a person's capacity for mental processing. It's described as "the capacity for carrying out the various mental tasks that are most closely related to learning and problem-solving. The verbal, spatial, psychomotor, and processing-speed abilities are a few examples." Memory, speech, and the capacity to pick up new information are the main components of cognition.
To know more about cognitive potential click here:
https://brainly.com/question/4667490
#SPJ4
What type of decision determines whether a project is worth all the effort and investment or should it be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project?.
No Go decision type of decision determines whether a project is worth all the effort and investment or should it be halted, and is commonly based on the outcome of a multi-dimensional feasibility assessment of the project.
The smallest mistake you make can start a chain reaction that will lead to failure. Project management is a hard business. The Go/No Go decision can be used to ensure that everything is impeccable throughout.
A project's worth and viability are determined by a go/no-go decision, which decides whether to move forward with it or put it on hold. The decision-making standard is established by the organization itself and is specific to the requirements of the business. Whether a corporation continues the process or not depends on the outcome of the process.
Go no go analysis is a final checklist for incremental initiatives that assesses whether or not the project should move on to the next stage.
Learn more about Decision here:
https://brainly.com/question/27400967
#SPJ4
A firm finds that as it adds workers, each worker is adding less and less output to the production process. What must be true about average cost?.
Since the marginal product for each extra worker is rising, total variable costs rise as production rises but at a decreasing pace.The overall variable cost increases at a rising rate as the marginal product declines.
What is the change in output from adding one more worker called?The phrase "economies of scale" describes a situation in which the long-term average cost falls as the firm's output rises.The chemical industry is a classic illustration of economies of scale in action. The facility with the lowest average total cost for a given output is the most economically efficient one.A company is functioning on its long-run average cost curve when it is producing at a certain output at the lowest cost. This is due to the company's continued efficient production.The firm is not producing at its maximum capacity if the marginal product falls as more input is added.The company should then stop making new units.To learn more about average cost refer
https://brainly.com/question/25799822
#SPJ4
Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:
1. Materials price variance?
2. Materials quantity variance?
3. Labor rate variance?
4. Labor efficiency variance?
5. Variable overhead rate variance?
6. Variable overhead efficiency variance?
The calculation of the following cost variances for Becton Labs, Incorporated's Fludex production is as follows:
Materials price variance = $18,000 F
Materials quantity variance = $6,912 Unfavorable
Labor rate variance = $7,040 Unfavorable
Labor efficiency variance = $9,520 Unfavorable
Variable overhead rate variance = $4,800 Favorable
Variable overhead efficiency variance = $2,040 Unfavorable
What are cost variances?In production terms, cost variances refer to the differences in the standard and actual costs of materials, labor, and overhead.
Variances can be either favorable or unfavorable (or adverse).
Variance is favorable when the actual cost is less than the standard cost.
Variance becomes adverse when the actual cost is more than the standard cost.
Standard Qty or hours Rate Cost per unit
Direct materials 2.40 ounces at $18 per ounce = $43.20
Direct labor 0.70 hours at $14 per hour = $9.80
Variable overhead 0.70 hours at $3 per hour = $2.10
Total standard cost per unit = $55.10
Materials purchased during November = 12,000 ounces
Cost of materials purchased = $198,000
Actual direct materials cost per ounce = $16.50 ($198,000/12,000)
Direct materials usage = Material purchase - Ending inventory
= 8,800 ounces (12,000 - 3,200)
Production units = 3,600
Actual labor hours = 3,200 (20 x 160)
The standard quantity of materials = 8,640 ounces (3,600 x 2.40)
Standard labor hours = 2,520 (3,600 x 0.70)
Materials price variance = (Actual unit cost - Standard unit cost) * Actual Quantity Purchased
= ($16.50 - $18.00) x 12,000
= $18,000 F
Materials quantity variance = Standard Unit Cost (Standard Quantity - Actual Quantity)
= $43.20 (8,640 - 8,800)
= $6,912 Unfavorable
Labor rate variance = Actual Hours x (Actual Rate - Standard Rate)
= 3,200 x ($12 - $9.80)
= $7,040 Unfavorable
Labor efficiency variance = (standard hours allowed for production – actual hours taken) × standard rate per direct labor hour.
= (2,520 - 3,200) x $14
= $9,520 Unfavorable
Variable overhead rate variance = Actual hours * (Actual rate - Standard rate)
= 3,200 x ($1.5 - $3)
= $4,800 Favorable
Variable overhead efficiency variance = Standard overhead rate x (Actual hours - Standard hours)
= $3 x (3,200 - 2,520)
= $2,040 Unfavorable
Learn more about cost variances at https://brainly.com/question/24321036
#SPJ1
What is Jewelry Districts site?
Answer:
This is an area located in downtown Los Angeles that is home to many jewelry stores. Shopping in the LA jewelry district allows you to visit a large number of shops all located within walking distance of each other. (thats what goggle says)
Explanation:
charging a customer different prices per unit, depending upon the number of units purchased is called
It can be inferred that charging a customer different prices per unit depending on the number of units is called price discrimination.
What is price discrimination?
Price discrimination is a sales strategy in which customers are charged different prices for the same product or service based on what the seller thinks they can get the customer to accept. In pure price discrimination.
The seller charges each customer the maximum price he will pay. In the most common forms of price discrimination, the salesperson divides customers into groups based on certain attributes and charges each group a different price.
more insight on price discriminationPrice discrimination is practiced based on the seller's belief that customers of certain groups may be asked to pay more or less based on certain demographics or how they value the product or service in question.
Price discrimination is most useful when the gain from separating markets is greater than the gain from keeping markets together. The effectiveness of price discrimination and the length of time that different groups are willing to pay different prices for the same product depends on the relative elasticity of demand in the submarkets
Learn more about Price Discrimination at:
https://brainly.com/question/29540756
#SPJ1
What power tactic is being used when a manager says that their request corresponds with a corporate policy or rule?.
Legitimacy power tactic is being used when a manager says that their request corresponds with a corporate policy or rule.
Legitimating refers to persuading someone that, in light of their circumstances or position, they should comply with a request. It's a push tactic with only a small amount of impact.
There are various kinds of influence strategies, and some are more successful than others. Some of them have most likely been used by you or you've at least seen them in action.
In general, we can categorize them into two groups: hard or push tactics and soft or pull tactics.
Push tactics are more often appropriate for situations that call for immediate action, like when an employee has engaged in misconduct.
Pull tactics are more suitable for managing teams on a daily basis. Instead of merely complying, they cultivate support.
learn more about corporate policy here:
https://brainly.com/question/14378811
#SPJ4
In the context of inventory costs, _____ costs can reflect backorders or service interruptions for external customers.
In the context of inventory costs, stockout costs can reflect backorders or service interruptions for external customers.
Inventory cost is the capital lost from inventory that customers can no longer purchase. If a customer cannot buy something because it is out of stock, the company suffers a loss. Out of stock occurs when we run out of stock of a particular item. Out-of-stocks can occur anywhere in the supply chain, but they have the greatest impact on retail shelves and profits when they occur when customers are about to buy. Inventory levels occur when a customer's order for a product exceeds the amount of inventory on hand. This situation occurs when demand is higher than expected and the amount of normal and safety stock is too low to fulfill all orders. Missing sales result in lost sales opportunities. Out-of-stock cost refers to the total cost of out-of-stock, including lost revenue. Out of stock can hurt your business, especially if the buyer is a first-time buyer.
Learn more about stock here-
https://brainly.com/question/14649952
#SPJ4
33. This question refers to the videos we watched about the “Crisis of Credit.” 1. Before 2008, why did investment bankers think that buying home mortgages was a good, safe investment? 2. What made “subprime” mortgages riskier than “prime” mortgages?
Before 2008, the investment bankers thought that buying home mortgages was a good and safe investment because it was a stable investment, which is less impacted by inflation.
The “subprime” mortgages were more riskier than “prime” mortgages because the lender were more likely to default the mortgage.
What was the event "Crisis of Credit" about?The Crisis of Credit, also known as the financial crisis of 2008 or Global Financial Crisis referred to a severe worldwide economic crisis that occurred in the early 21st century. It was considered the most serious financial crisis since the Great Depression (1929).
In 2008, the financial crisis began with cheap credit and lax lending standards that fueled a housing bubble. When bubble burst, all banks were left holding trillions of dollars as worthless investments in subprime mortgages and the Great Recession that followed cost many their jobs, their savings and their homes.
Read more about Crisis of Credit
brainly.com/question/25017656
#SPJ1
7. What Economic system exists in the Lorax? Market, Mixed or Command? Explain. Keep in mind private ownership, profit motive, consumer sovereignty, competition and government regulation.
In the Lorax there is a market economic system.
This known because there is no government in the Lorax, so it cannot be a command economy. The Once-ler started his own business and built it up from there.
An economic system in which a nation's businesses and citizens interact to determine economic policy and how much goods and services should cost.
Adam Smith, David Ricardo, and Jean-Baptiste Say were among the classical economists who created the theoretical framework for market economies. These traditional liberal proponents of the free market held that, in general, the profit motive and market incentives led economic decisions in more productive and efficient directions than did government economic planning. They thought that when governments intervened, it frequently resulted in economic inefficiencies that actually left people in worse financial situations.
To know more about market economic system :
https://brainly.com/question/27630988
#SPJ4
Answer:
In the Lorax there is a market economic system. This known because there is no government in the Lorax, so it cannot be a command economy. The Once-ler started his own business and built it up from there.An economic system in which a nation's businesses and citizens interact to determine economic policy and how much goods and services should cost. Adam Smith, David Ricardo, and Jean-Baptiste Say were among the classicaleconomists who created the theoretical framework for market economies. These traditional liberal proponents of the free market held that, in general, the profit motive and market incentives led economic decisions in more productive and efficient directions than did government economic planning. They thought that when governments intervened, it frequently resulted in economic inefficiencies that actually left people in worse financial situations.
Explanation:
"Which of the statements best describes why the aggregate demand curve is downward sloping?
a. An increase in the aggregate price level causes consumer and investment spending to fall, because consumer and money demand increases. purchasing power
b. As a good's price increases, holding all else constant, the good's quantity demanded decreases. c. As the aggregate price level increases, consumer expectations about the future change.
d. As the aggregate price level decreases, the stock of existing physical capital increases. decreases "
Because consumer buying power declines and money demand rises with an increase in the overall price level, consumer and investment spending decline, hence option a is correct.
What is the aggregate demand curve?To gauge how a price level affects consumer spending in the economy, one uses the Aggregate Demand (AD) curve. Investments, consumer spending, government expenditure, and net income make up the AD.
Households will spend less when prices are high since they can't afford to make large purchases, which will lower consumer expenditure.
Therefore, when prices rise, both of these AD components decline, and the opposite is also true, hence option a is correct.
Learn more about aggregate demand, here:
https://brainly.com/question/17518045
#SPJ1
