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using straight line method. Generate the plots using Microsoft excel.
4. A company has purchased an equipment whose first cost is BD1,00,000 with an estimated life of eight years. The estimated salvage value of the equipment at the end of its lifetime is BD. 20,000. Determine the depreciation charge and book value at the end of various years using the sinking fund method of depreciation with an interest rate of 12%, compounded annually.
The tοtal amοunt οf the depreciatiοn charge οver the 8 years is BD 666,666.67. At the end οf the 8th year, the bοοk value οf the equipment is BD 233,333.33.
What is amοunt?Amοunt is a term used tο refer tο the quantity οr size οf sοmething. It is used tο describe a numerical value that can be measured οr cοunted. Amοunt is οften used in financial cοntexts, such as when discussing the amοunt οf mοney in an accοunt, the amοunt οf mοney οwed, οr the amοunt οf mοney spent οn a purchase.
The fοllοwing table shοws the depreciatiοn charge and bοοk value at the end οf variοus years using the sinking fund methοd οf depreciatiοn with an interest rate οf 12%, cοmpοunded annually.
Year | Depreciatiοn Charge | Bοοk Value
-----|--------------------------------|-----------
1 | BD 83,333.33 | BD 816,666.67
2 | BD 83,333.33 | BD 733,333.33
3 | BD 83,333.33 | BD 650,000.00
4 | BD 83,333.33 | BD 566,666.67
5 | BD 83,333.33 | BD 483,333.33
6 | BD 83,333.33 | BD 400,000.00
7 | BD 83,333.33 | BD 316,666.67
8 | BD 83,333.33 | BD 233,333.33
The total amount of the depreciation charge over the 8 years is BD 666,666.67. At the end of the 8th year, the book value of the equipment is BD 233,333.33.
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We are given the following labour per output ratios for the US and Mexico:
Chemicals Radios
US 1 3
Mexico 10 5
This should be read as; in order to produce 1 unit of the good, for example chemicals, we need 1
unit of labour in the US and 10 units of labour in Mexico
Suppose that the US has a labour endowment of 600 units and Mexico has a labour
endowment of 2000 units. Show and explain the production possibility frontier for
each country with and without trade at the limits that you identified in part c. Who
gains from trade at each limit?
We first determine the maximum amount of each good that can be produced given their labor endowment and labor per output ratios in order to depict the production potential frontier (PPF) for each country.
What does the production possibility frontier mean?
The graph known as the Production Possibilities Frontier (PPF) shows every potential output combination of two products that can be produced with the current resources and technology. A production-possibility frontier (PPF), production possibility curve (PPC), or production possibility boundary (PPB) is a graphical representation in microeconomics of all the output options for two goods that can be produced using all factors of production, where the resources are used fully and efficiently per unit time. Allocative efficiency, economies of scale, opportunity cost, product efficiency, and resource scarcity are just a few of the economic ideas that a PPF shows.
For the US:
The chemicals: 600 labor units / 1 labor unit per chemical = 600 chemicals
Radios: 600 labor units / 3 labor units per radio = 200 radios
For Mexico:
The chemicals: 2000 labor units / 10 labor units per chemical = 200 chemicals
The radios: 2000 labor units / 5 labor units per radio = 400 radios
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________ viewed the social contract as indicating that government rules by "consent of the governed", while ________ believed the social contract was a way that humans could find security from their naturally dangerous selfishness. a. thomas hobbes; john locke
b. john locke; thomas hobbes
c. john locke; jean-jacques rousseau d. jean-jacques rousseau; john locke
The legitimacy and political commitment to the free consent of those governed were the foundations upon which Aristotle, Locke, and Rousseau formed their "models" of political society.
What is ruled over?The British government selected him to lead the colony. Since being installed as the nation's leader in a military coup, he has been in charge.
What exactly is constitutional?Pertaining to or involving the basic components of something significant. being permitted or in conformity with a state's constitution.
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Answer:
Pretty postitive its C
Explanation:
.....
Which one of the following statements is false?
A. A Pigouvian tax is used to internalize pollution costs
B. Transactions costs could reduce the potential for parties in a dispute to reach an efficient agreement
C. The assignment of initial property rights affects the distribution of costs and benefits.
D. The market equilibrium level of production in the presence of externality maximizes social net benefits.
The false statement is D) The market equilibrium level of production in the presence of externality maximizes social net benefits, I will show you why.
What is an externality?An externality refers to a cost or benefit from an economic activity that is borne by someone other than the individuals involved in the transaction or in the production of the goods. An externality exists when the welfare of one individual is influenced by the activity of another individual or a firm, without any compensation or price for the impact of the activity.
In the presence of an externality, the market equilibrium level of production does not always lead to the most efficient social outcome. It may result in an inefficient level of production if there are positive externalities or an overproduction of the good if there are negative externalities, option D being the correct one.
Another options are not correct because all true: the Pigouvian tax refers to a tax that is levied on an activity that creates a negative externality, thetransaction costs are costs incurred while completing a transaction, and the Initial property rights refer to the initial assignment of the property rights of a given resource.
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Suppose that Ireland and Luxembourg both produce boots and liquor. Ireland's opportunity cost of producing a case of liquor is 6 pairs of boots while Luxembourg's opportunity cost of producing a case of liquor is 11 pairs of boots.
By comparing the opportunity cost of producing liquor in the two countries, you can tell that LUXEMBOURG/IRLAND has a comparative advantage in the production of liquor and LUXEMBOURG/IRLAND has a comparative advantage in the production of boots.
Suppose that Ireland and Luxembourg consider trading liquor and boots with each other. Ireland can gain from specialization and trade as long as it receives more than 1PAIR - 1/11 PAIR - 1/6 PAIR- 6 PAIR - 11 PAIR of boots for each case of liquor it exports to Luxembourg. Similarly, Luxembourg can gain from trade as long as it receives more than 1 CASE - 1/11 CASE - 6 CASE - 11 CASE of liquor for each pair of boots it exports to Ireland.
Based on your answer to the last question, which of the following prices of trade (that is, price of liquor in terms of boots) would allow both Luxembourg and Ireland to gain from trade? Check all that apply.
a) 14 pairs of boots per case of liquor
b) 5 pairs of boots per case of liquor
c) 1 pair of boots per case of liquor
d) 10 pairs of boots per case of liquor
Based on the information given, both Luxembourg and Ireland can gain from trade if they agree to the following prices of trade:
a) 14 pairs of boots per case of liquor,
b) 5 pairs of boots per case of liquor,
c) 1 pair of boots per case of liquor,
d) 10 pairs of boots per case of liquor.
This is because each country has a comparative advantage in different goods: Luxembourg has a comparative advantage in producing liquor while Ireland has a comparative advantage in producing boots.
By trading goods with each other, both countries can benefit from specialization and receive more of the good they have a comparative advantage in.
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which of the following is false concerning the template model of object recognition? accounts for the human ability to recognize novel configurations of objects
The statement that is false concerning the template model of object recognition is that it "accounts for the human ability to recognize novel configurations of objects."
The template model of object recognition suggests that we recognize objects by comparing them to a template or prototype that we have stored in our memory.
However, this model has difficulty accounting for the human ability to recognize novel configurations of objects, as it relies on the presence of a stored template or prototype for recognition. Therefore, the statement that the template model "accounts for the human ability to recognize novel configurations of objects" is false.
In contrast, other models of object recognition, such as the feature-based model and the structural description model, are better able to account for the recognition of novel configurations of objects.
These models suggest that we recognize objects based on their individual features or structural relationships, rather than comparing them to a stored template or prototype.
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Spanish coerced labor of Mexican natives:
A indentured servitude
B mita
C encomienda
D chattel slavery
In the rental housing market, what would be the effect of a rent control that was set at the market equilibrium rental price? (A) It would increase the number of housing units available, creating a surplus. (B) It would decrease the number of housing units available, creating a shortage. (C) It would have no impact on the number of housing units available. (D) It would increase the consumer surplus and decrease the producer surplus. (E) It would decrease the consumer surplus and increase the producer surplus
In the rental housing market, what would be the effect of a rent control that was set at the market equilibrium rental price it would have no impact on the number of housing units available.
The correct answer is (C).
When rent control is set at the market equilibrium rental price, it means that the price ceiling is set at the market price level. This creates no incentive for landlords to raise their rents, but also no incentive for them to provide more housing units. As a result, the quantity supplied of rental housing will remain the same as before, and the quantity demanded will also stay the same since renters will not have an incentive to consume more rental housing at the same price level.
If the rent control was set below the market equilibrium price, it would create a shortage of rental housing since the quantity supplied would decrease due to the lack of incentive for landlords to produce more rental housing, and the quantity demanded would increase since renters would want to consume more rental housing at a lower price level.
Thus, rent control set at the market equilibrium rental price would not affect the quantity of housing units available in the rental housing market.
The correct answer is (C).
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Member of Congress are paid by the Department of Treasury and can have a private personal office in addition to work in Congress
((True or false ))
Member of Congress are paid by the Department of Treasury and can have a private personal office in addition to work in Congress
((True or false ))
Ans: True
The _______ middle refers to a group of products that are well suited to be sold online because they are fairly complex and require a medium level of trust to sell.
"The complex trust middle refers to a group of products that are well suited to be sold online because they are fairly complex and require a medium level of trust to sell."
The "complex trust" middle refers to a group of products that are ideally suited to be sold online because they require a medium level of trust and are fairly complex. These products are typically higher in price and require a significant amount of research and consideration before a customer makes a purchase decision.
Examples of complex trust middle products include electronics, furniture, and household appliances. Customers are likely to research these products thoroughly before making a purchase, and they require a certain level of trust in the seller and the product's quality. Selling these products online provides customers with the convenience of shopping from home, and sellers can take advantage of the ability to provide detailed product information and customer reviews to build trust with potential buyers.
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How is the federal legislature formed? Mention in according to the constitutional provision. State the reasons maintaining the provision of legislatives in three levels of the government
In U.S, both the House and Senate have the power to propose and pass legislation, although certain types of bills, such as revenue bills, must originate in the House.
The Constitution also provides for a complex system of checks and balances between the two chambers and between the legislative, executive, and judicial branches of government.
How is the U.S. federal legislature formed and its structure?The federal legislature, also known as the United States Congress, is formed by the U.S. Constitution in Article I, Section 1. The Constitution establishes a bicameral legislature consisting of two chambers: the Senate and the House of Representatives.
The House of Representatives is composed of 435 members who are elected every two years by popular vote in each of the 435 congressional districts. The number of representatives for each state is determined by its population as determined by the decennial census.
The Senate, on the other hand, consists of 100 members, with each state electing two senators for six-year terms. Senators were originally elected by state legislatures, but this was changed by the 17th Amendment to the Constitution, which provides for the direct election of senators by the people.
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A closed economy is described as follows:
Desired consumption C ^ d = 600 + 0.5(Y - T) - 50r
Desired investment I ^ d = 450 - 50r
Real money demand L = 0.5Y = 100i
Full-employment output overline Y = 2210
Expected inflation pi ^ e = 0.05
In this economy, the government always has a bal- anced budget, so T = G where T is total taxes collected.
a. Suppose that M = 4320 and G = 150 Use the clas- sical IS-LM model to find the equilibrium values of output, the real interest rate, the price level, con- sumption, and investment. (Hint: In the classical model, output always equals its full-employment level.)
b. The money supply rises to 4752. Repeat part (a). Is money neutral?
c. With the money supply back at 4320, government purchases and taxes rise to 190. Repeat part (a). Assume, for simplicity, that Y is fixed (unaf- fected by G). Is fiscal policy neutral in this case? Explain.
A. The equilibrium values for consumption and investment, C and I is C = 1255 and I = 902.5.
B. Money is not neutral in this case.
C. Fiscal policy is not neutral in this case since an increase in government purchases and taxes leads to a decrease in the equilibrium values for consumption and investment.
a. In the given economy, the equilibrium output is the full-employment output, Y = 2210. The equilibrium real interest rate, r, can be found by solving the IS equation for desired investment and desired consumption, which yields r = 0.1. The equilibrium price level, P, can be found by solving the LM equation for real money demand and money supply, which yields P = 1.38. The equilibrium values for consumption and investment, C and I, can then be calculated from the given desired consumption and desired investment equations, which yields C = 1255 and I = 902.5.
b. With the money supply increased to 4752, the equilibrium real interest rate, r, increases to 0.27, the equilibrium price level, P, increases to 1.54, and the equilibrium values for consumption and investment increase to 1302.5 and 937.5, respectively. Money is not neutral in this case since an increase in the money supply leads to an increase in the equilibrium real interest rate, price level, and values for consumption and investment.
c. With government purchases and taxes increased to 190, the equilibrium real interest rate and price level remain unchanged at 0.1 and 1.38, respectively. However, the equilibrium values for consumption and investment decrease to 1220 and 867.5, respectively.
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the method of limits takes into account the variability of human perception by a. measuring brain activity concurrently. b. using deception to hide the true purpose. c. consistently presenting subliminal stimuli to avoid bias. d. averaging the results of several trials.
The method of limits is more objective because it requires less feedback from the individual. It is also less prone to bias because the results are based on D. an average of several trials.
The method of limits is used to determine the threshold value of a stimulus. It is a popular method in psychophysics that considers the variability of human perception. The method of limits determines the threshold by measuring the least amount of stimulus that an individual can detect, recognize or identify.The method of limits takes into account the variability of human perception by averaging the results of several trials. During these trials, the stimulus intensity is varied in small increments. The stimulus intensity is increased or decreased until it reaches a point where it can no longer be detected by the individual being tested. This point of threshold is noted and recorded.
The method of limits is more objective because it requires less feedback from the individual. It is also less prone to bias because the results are based on an average of several trials. It provides a more accurate measurement of the threshold value of a stimulus because it takes into account individual differences in perception and response.The method of limits can be used for various stimuli such as sounds, lights, or tastes. It has been used to test hearing thresholds, visual acuity, and even taste thresholds. The method of limits is used to determine the threshold value of a stimulus by averaging the results of several trials. The variability of human perception is taken into account to provide more accurate measurements.
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Why did Senator James Henry Hammond feel that enslaved people were needed in the South?
Senator James Henry Hammond was a pro-slavery politician from South Carolina who believed that enslaved people were essential to the economy and way of life in the South.
Why did Senator James Henry Hammond want slavesHe argued that the institution of slavery was necessary for the economic success of the South, and that without it, the region would suffer.
Hammond believed that slavery allowed for the efficient production of crops such as cotton and tobacco, which were major sources of wealth for the South. He believed that enslaved people were better suited to labor-intensive work in hot and humid conditions than free workers, who he felt were not as motivated to work hard and would demand higher wages.
Hammond also argued that slavery provided a stable and hierarchical social order in which white people held power and authority over black people.
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16. Family members were put in charge of specific regions by Zhou rulers
for what reason?
O To ensure that everyone in the empire was happy
O To keep control and influence over all of the different regions in the empire
O To start a civil service that met the criteria of Confucianism
By having a strong army on standby at all times
* 1 point
Answer:
The answer is: O To keep control and influence over all of the different regions in the empire.
Explanation:
Define the term balanced market. What is meant by equilibrium price?
A balanced market con-sists of supply meeting demand. In other words, the num-ber of homes for sale is equal to the num-ber of people trying to pur-chase properties. There are 3 types of mark-ets that every one needs to know :
Balanced Market
Buyers’ Market
Sellers’ Market
What do you mean by equilibrium price?A market is said to have reached equilibrium price wh-en the supply of goods mat-ches demand.
A market in equili-brium demonstrates three character-istics : the behavior of age-nts is consistent, there are no incent-ives for agents to change behavior, and a dy-namic process governs equilibrium out-comes.
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What is crucial when collecting evidence to determine a wrongful death?
surveillance
protecting the scene of the crime
documenting the scene of the crime
conducting a search of the crime scene
is
it ok that drug companies want you to pick their brand over other
brnad drugs?
It is acceptable for drug companies to want you to select their brand over other brands, because they must compete in the market to gain customers' attention and establish their brand as the preferred one.
What is the goal of the drugs companies?Drug companies' ultimate goal is to establish their brand as the most preferred one among customers, and it is acceptable for them to desire that you select their brand over others.
Companies must compete in the market to gain customers' attention, and they do this by implementing effective advertising campaigns, using attractive branding, and offering various perks and discounts to their customers. It is up to the consumer to decide which drug brand to use based on the product's quality, price, and effectiveness.
In conclusion, it is acceptable for drug companies to want you to select their brand over other brands because they must compete in the market to gain customers' attention and establish their brand as the best one.
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What should be the core values, mission, objectives, and vision of the Economics Department of a University?
The answer should be well explained with different headings.
Core values of the Economics Department of a University are integrity and honesty, innovation and scholarship, professionalism, diversity, and collaboration.
Mission of the Economics Department of a University is to provide high-quality education, advance economic knowledge and research, and foster economic development, in service of the public good.
The objectives of the Economics Department of a University include:
Providing rigorous and relevant education to undergraduate and graduate students in economics, econometrics, and related fields.Advancing knowledge and understanding of economic theory, policy, and practice through cutting-edge research and scholarly activity.Engaging in service to the university, the economics profession, and the wider community.Vision of the Economics Department of a University is to be recognized as a leading center of excellence in economics education, research, and service, and to be a valued contributor to the economic well-being and prosperity of society.
The department aspires to produce outstanding graduates who have the knowledge, skills, and values to make meaningful contributions in their chosen fields, and to be a source of intellectual leadership and innovation in economic theory, policy, and practice.
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which of these statements is true? question 17 options: japanese americans have had a stronger influence than chinese americans on the culture of the united states. chinese americans have had a stronger influence than japanese americans on the culture of the united states. there are more japanese americans than chinese americans living in the united states.
The true statement is that Chinese Americans have had a stronger influence than Japanese Americans on the culture of the United States.
The Japanese culture and Chinese culture have both had a significant influence on the culture of the United States.
What is culture?
Culture can be defined as a set of learned and shared beliefs, values, behaviors, and material objects that define the members of a society. It is learned because we are not born with culture but acquire it through interaction with people who share our culture.
What is Japanese culture?
Japanese culture is distinct from other East Asian cultures because of its unique aesthetics, art, and rich history. Japanese cuisine is known for its artistry, presentation, and exceptional quality. Artistic traditions, such as ikebana and origami, are also prevalent in Japanese culture.
What is Chinese culture?
China is known for its rich history, culture, and achievements in science and technology. Chinese culture, like other cultures, is composed of customs, values, beliefs, material artifacts, and other tangible and intangible elements.
Chinese food, music, martial arts, and calligraphy are all elements of the country's culture.
QUESTION 17: Japanese Americans have had a stronger influence than Chinese Americans on the culture of the United States.
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What kind of interest group is the American Bar Association
A.welfare
B.religious
C.professional
D.Labor
The largest voluntary organization of attorneys and other legal professionals in the world is the American Bar Association. The legal profession's national voice,
What does the name "American Bar Association" mean?Etymology. The term "bar" is most commonly used to refer to "the entire body of attorneys, the legal profession" in English. The Inns of Court's hall was divided by a railing in the early 16th century, with pupils occupying one side and readers or benchers on the other.
What role does the American Bar Association have in politics?The American Bar Association (ABA) is a voluntarily organized group of American judges and attorneys. In 1878, the ABA was established, and by the 20th century's end, it had over 375,000 members. Its corporate offices are at Ill.'s Chicago.
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Problem \#1 (20 pts) J
B
is planning to retire in 35 years. He would like to deposit a regular amount every 2 weeks until he retires at an average rate of return of
12%
compounded quarterly. Following his retirement, he wishes to receive an annual payment of
$120,000
increasing by
$3,000
per year for 25 years. Assume that withdrawals occur at the beginning of each year during retirement. a. How much money he must have in his saving account at retirement?
JB needs to have $3,828,263.77 in his savings account at retirement.
Calculation of the final account balance: Final account balance is the amount of money a person should have in his/her savings account at the time of retirement.
In this problem, we have to find the final account balance of JB. The formula for the final account balance is: B = [P(1 + r/n)nt – A / (1 + r/n)nt - 1](1 + r/n)Assuming that JB deposits a regular amount, say P, every 2 weeks, we will have to find the value of P to use in the formula above.
The first step is to determine how much will be deposited over the next 35 years every two weeks: We will find the future value of this ordinary annuity with the following formula:
Future value of an ordinary annuity (A) = P[((1 + r/n)nt - 1) / (r/n)]A = $[P((1 + 0.12/4) * (35 * 52) - 1) / (0.12/4)]$1,233,513.45 = P[((1 + 0.12/4)^(4 * 35) - 1) / (0.12/4)]
To calculate the present value of the annuity:
PV of annuity = P[((1 + r/n)nt - 1) / (r/n)] × 1 / (1 + r/n)n
PV of annuity = P[((1 + 0.12/4)^(4 * 35) - 1) / (0.12/4)] × 1 / (1 + 0.12/4)^(4 * 35)
PV of annuity = $1,233,513.45 × 1 / (1 + 0.12/4)^(4 * 35)
PV of annuity = $69,159.02Now, we can find the final account balance by using the above formula:
FAB = [P(1 + r/n)nt – A / (1 + r/n)nt - 1](1 + r/n)
FAB = [$69,159.02(1 + 0.12/4)^(4 * 25) - $120,000 / (1 + 0.12/4)^(4 * 25) - 1] × (1 + 0.12/4)FAB = $3,828,263.77.
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Concept of ethnocentrism in japan that are being observed
Ethnocentrism refers to the tendency to view one's own cultural group as superior to others. While ethnocentrism is a common human tendency, it can sometimes lead to discrimination and prejudice against individuals or groups from different cultures.
Homogeneity: Japan is a relatively homogenous society with a strong emphasis on group identity and conformity. This can sometimes lead to a sense of cultural superiority and a reluctance to accept or adapt to different cultural practices.
Language: Japanese is the primary language spoken in Japan, and while there is a growing interest in learning other languages, there is also a sense that speaking Japanese is essential to being fully integrated into society.
Cultural practices: Japan has a rich cultural heritage, and many traditional practices are still widely observed. However, there can be a tendency to view these practices as superior to those of other cultures, which can lead to a reluctance to adopt new practices or ideas from outside of Japan.
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Based on both accounts, what opinion about the Boston Tea Party do Joshua Wyeth and John Andrews share? Answer and give 2 details please
John Andrews was a loyalist who opposed the actions of the Sons of Liberty and the Boston Tea Party. He believed that the colonists should not take violent actions against the British government.
What was Joshua Wyett's perspective?In his words, he said, "I was just given a little heads-up about what was going to happen. We decided to disfigure ourselves and dress like Indians in order to avoid being discovered"
John Andrews believed that the colonists should instead pursue a peaceful resolution to their grievances. He argued that the Boston Tea Party was an illegal and immoral act of destruction and that it would only serve to further inflame tensions between the colonies and Great Britain
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what role was there for other branches and levels of government in enforcing brown v. board of education
Answer:
The role of the Brown II to the other branches of the government was to eliminate racial discrimination in public education. The board of members in each school was given the power to remove racial policies in public schools.
Is there anything food panda can do to retain its customers,
vendors and riders outside Dhaka,to beat its rivals who are
utilizing late movers advantages ?
Yes, there are things that Food Panda can do to retain its customers, vendors and riders outside Dhaka and beat its rivals who are utilizing late movers advantages.
Here are some of the things Food Panda can do:
Offer Competitive Prices: Food Panda can offer competitive prices to customers, vendors and riders outside Dhaka. This will help the company to retain its customers, vendors and riders and also attract new ones.
Provide Good Customer Service: Providing good customer service is essential for retaining customers. Food Panda can provide its customers with excellent customer service to keep them happy and loyal to the brand.
Improve Delivery Time: Food Panda can work on improving its delivery time to make sure that customers get their orders on time. This will help the company to retain its customers and also attract new ones.
Quick Response to Complaints: When customers have complaints, they want them to be resolved quickly. Food Panda can work on responding quickly to customer complaints to make sure that they are satisfied with the service.
Work on Branding: Food Panda can work on branding to make sure that customers, vendors and riders outside Dhaka recognize the brand. This will help the company to stand out from its competitors and retain its customers, vendors and riders.
In conclusion, Food Panda can do several things to retain its customers, vendors and riders outside Dhaka and beat its rivals who are utilizing late movers advantages. The above mentioned steps will be very useful in achieving this goal.
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BCG matrix used by stock brokers and other financial
professionals, is the BCG matrix used in most companies to
categories their products.
The BCG Matrix is a tool used by stock brokers and other financial professionals to analyze the investments of their clients. It is a portfolio analysis tool that helps classify products based on their market share and growth rate.
The market share is typically measured in terms of sales, while the growth rate is measured as the percentage of market share that the product has gained or lost over a certain period.
The BCG Matrix divides products into four categories: Dogs, Cash Cows, Stars, and Question Marks. Dogs are products that have a low market share and low growth rate, Cash Cows are products with a high market share and low growth rate, Stars are those with a high market share and high growth rate, and Question Marks are products with a low market share and high growth rate. By analyzing products this way, financial professionals can help their clients make informed decisions about their investments.
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Consider an individual who not only consumes good x and y, but also needs a minimum amount of x = x0 to survive. This is she has a Stone-Geary utility function given by U(x, y) = (x - x0)1/2y1/2
Let prices be PX, PY, and income is I > PXX0.
How do the ratios (PXX)/I and (PYY)/I (i.e., budget shares) change as income increases?
As income increases, the ratio (PXX)/I will decrease and the ratio (PYY)/I will increase. As income increases, the ratios (PXX)/I and (PYY)/I (i.e., budget shares) will change in the following way.
The budget share for x, (PXX)/I, will decrease as income increases because the individual will be able to purchase more y with the same amount of money. Since the Stone-Geary utility function is increasing in y, the individual will be willing to spend a larger share of their income on y, which will in turn decrease the share for x.
The budget share for y, (PYY)/I, will increase as income increases because the individual will be able to purchase more y with the same amount of money. Since the Stone-Geary utility function is increasing in y, the individual will be willing to spend a larger share of their income on y, which will in turn increase the share for y.
To conclude, as income increases, the ratio (PXX)/I will decrease and the ratio (PYY)/I will increase.
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The 3-period interest rate is related to short-term rates is i3,t = (i1t + ie1,t+1 + ie1,t+2)/3 + l3t
Let i1t = 0.08, l3,t = 0.03, and i3,t = 0.08 so the yield curve is flat. The unknown variables are ie1,t+1 and the ie1, t+2. How do I solve for the two unknown variables? I need to use the expectation theory of interest rates.
To calculate the two unknown variables, ie1,t+1 and ie1,t+2, using the expectation theory of interest rates, you need to follow these steps:
First, substitute the given values into the equation i3,t = (i1t + ie1,t+1 + ie1,t+2)/3 + l3t. You get: 0.08 = (0.08 + ie1,t+1 + ie1,t+2)/3 + 0.03.
Simplify the equation by multiplying both sides by 3, and then subtracting 0.03 from both sides: 0.21 = 0.08 + ie1,t+1 + ie1,t+20.13 = ie1,t+1 + ie1,t+2.
Since the yield curve is flat, we know that ie1,t+1 = ie1,t+2. So, we can substitute ie1,t+1 for ie1,t+2 in the above equation and solve for ie1,t+1:0.13 = 2 * ie1,t+10.065 = ie1,t+1Therefore, the two unknown variables are ie1,t+1 = 0.065 and ie1,t+2 = 0.065.
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Select all of the following that are true: An appreciation of the DC gives foreign investors (DI) an arbirtrage opportunity due to the lower relative price of investment (RP). An appreciation of the currency will reduce the GDP of a country A country can "export" its inflation by appreciating its currency, which is consistent with monetary policy An appreciation of the domestic currency reduces the reported profits of multi-national firms domiciled in the domestic country (assume no factor changes) An appreciation of the domestic currency increases the profits of domestic firms that make sales to foreigners (exports).
Following are true-A Multi-national firms domiciled in the domestic country (assume no factor changes). An appreciation of the domestic currency increases the profits of domestic firms that make sales to foreigners (exports).The correct answer is option d and e.
a. An appreciation of the DC (domestic currency) makes investment relatively more expensive for foreign investors. Therefore, it does not give them an arbitrage opportunity, but rather a disincentive to invest. On the other hand, it makes imports cheaper, which can benefit domestic consumers.
b. This is not necessarily true. An appreciation of the currency can reduce the GDP if it leads to a significant decrease in exports, as they become more expensive for foreign buyers. However, it can also increase the GDP if it leads to an increase in domestic consumption due to cheaper imports.
c. This is not consistent with monetary policy, as the objective of most central banks is to maintain stable prices. Exporting inflation by appreciating the currency can lead to higher import prices and inflationary pressure, which could undermine the central bank's efforts to maintain price stability.
d. This is true. If a domestic firm has operations in foreign countries and earns income in foreign currency, an appreciation of the domestic currency would reduce the reported profits when the foreign income is translated back into the domestic currency.
e. This is true. An appreciation of the domestic currency makes exports more expensive for foreign buyers, but it also makes imports cheaper for domestic consumers. Therefore, domestic firms that export goods or services would face a decrease in demand, but domestic firms that rely on imported inputs would see a decrease in costs and an increase in profits.
In conclusion, the effects of currency appreciation are complex and depend on various factors such as the structure of the economy and the nature of firms' operations.
While an appreciation of the currency can have both positive and negative effects, it is generally considered desirable by policymakers as it reflects the relative strength of the domestic economy and can enhance its credibility in international markets.
The correct answer is option d and e.
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Complete question
Select all of the following that are true:
a. An appreciation of the DC gives foreign investors (DI) an arbirtrage opportunity due to the lower relative price of investment (RP).
b. An appreciation of the currency will reduce the GDP of a country
c. A country can "export" its inflation by appreciating its currency, which is consistent with monetary policy
d. An appreciation of the domestic currency reduces the reported profits of multi-national firms domiciled in the domestic country (assume no factor changes)
e. An appreciation of the domestic currency increases the profits of domestic firms that make sales to foreigners (exports).