the equilibrium price in this market is $2.50 and the equilibrium quantity is 25 units. if the government imposes a tax of $3 in this market, only 10 units will be sold, and the deadweight loss will equal:

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Answer 1

The deadweight loss will be equal to $37.5, considering the equilibrium price and equilibrium quantity.

Given,

Equilibrium price = $2.50

Equilibrium quantity = 25 units

Tax imposed by government = $3

No. of units sold = 10

No of units remained unsold = 25-10 = 15

Deadweight loss = $15*$2.50 =$37.5

When market supply and demand are in harmony, prices become steady. This is known as price equilibrium. In general, a surplus of products or services results in lower prices which increases demand, while a shortfall or insufficient supply drives up prices, which diminishes demand.

A state of equilibrium is generated by the action of supply and demand balancing one another.

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Related Questions

the following expenditures relate to machinery purchased by callabasas manufacturing: purchase price$ 16,000 transportation costs800 installation500 testing2,000 repair of part broken during shipment300 at what amount should callabasas capitalize the machinery?

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At $19,300 Callabasas should capitalize the machinery. All expenses incurred to bring an asset to a usable state are capitalized as part of the asset.

What percentage of the equipment's cost should be capitalized?

All expenses incurred to bring an asset to a usable state are capitalized as part of the asset. They include installation costs, labor charges if it needs to be built, transportation costs, and so on. Capitalized costs are initially recorded at their historical cost on the balance sheet.

amount to capitalize the machinery= purchase price+ transportation costs+ installation + testing

16000+800+500+200= $19,300

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which of the following is true of organizations that practice a performance-driven approach? question 24 options: employee rewards vary significantly from person to person and are not based on individual performance. performance appraisal activities are not valued by managers and employees and are often viewed as a bureaucratic exercise. employee rewards are standardized irrespective of job duties. performance evaluations link results to employee compensation and development.

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A true statement on the organizations that practice a performance-driven approach is that performance evaluations link results to employee compensation and development.

What is the performance driven-approach?

The performance driven approach refers to an approach that some companies use where employees are rewarded based on how much work they put into the company in a certain period, or how much activity can be traced to them.

The performance-driven approach is used by companies that prioritize the production of goods and services in higher quantities so that they can be able to sell more of their goods or service. The way that the performance of an employee is linked to them is through performance evaluations. Based on the result of these evaluations, employee compensation and their development and promotion in the company is determined.

In conclusion, the performance driven approach, relies on performance evaluations.

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an policy that insures the title received by the grantee against deficiencies that may have been in existence at the time the title was transferred is known as

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A title opinion is an insurance that protects the grantee's title against any potential flaws that may have existed at the time the title was transferred.

Write a note on title opinion.

Title opinions are intended to positively guarantee two things with regard to commercial loans:

that an owner/borrower has good title to a property; and that the lender has a good and valid mortgage charging the property.

It is necessary to hire a lawyer to analyze the property's title and to conduct (and review) in-depth research on the title as well as any off-title issues that might affect a lender's security position. The attorney will provide a "title opinion" after reviewing the document, supposing no serious flaws were discovered, which will affirm the guarantees mentioned above.

Unfortunately, title opinions are not infallible, which means that mistakes could occur. When a loan defaults after closing and an issue with the owner's title or the lender's mortgage occurs when the lender tries to enforce its security through the mortgage, the lender may turn to the attorney and ask that the issue be resolved. However, unless the issue can be resolved quickly, the lender and the lawyer may find themselves in a contentious situation. If this happens, the lender may need to file a lawsuit against their (now-former) lawyer in order to demonstrate negligence and recover any losses brought on by the error or omission on their part.

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The complete question is mentioned below :

A policy that insures the title received by the grantee against deficiencies that may have been in existence at the time the title was transferred is known as

a. real property insurance

b. title insurance

c. title opinion

d. deed insurance

the growth of the international capital market has been facilitated with the blank of financial services. multiple choice question. expansion regulation deregulation containment

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Deregulation of financial services. Financial deregulation gave banks and other financial institutions the freedom to decide how to use and allocate their capital.

What is Deregulation ?

Financial deregulation gave banks and other institutions the freedom to choose how they would utilise and distribute their capital. It made it possible for banks to invest their money in securities and compete with rivals on a global scale without being constrained by restrictions.

Following the legislation's repeal, banks were only permitted to invest in low-risk securities. Banks started investing in high-risk financial derivatives instead, but they didn't follow through. As a result, several nations attributed the 2008 Global Financial Crisis to the deregulation of the banking sector.

Deregulation in the energy industry was intended to increase market competition, which would lower prices for consumers. The fact that many utility firms were monopolies made them fear that by lowering entry barriers, they might lose their current position of dominance.

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how do self-employed independent contractors deduct their business expenses? multiple choice question. for agi against all forms of income from agi against business income from agi against all forms of income for agi against business income

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You can deduct business expenses as an independent contractor to lower your overall tax burden.

Self-employed people can deduct their business costs on Schedule C while still taking the standard deduction on Form 1040. By subtracting from their taxable income a standard amount determined by the IRS, taxpayers can use the standard deduction to reduce their tax liability.

You must discover a means to spark interest in your goods or services if you own a small business. That implies you'll likely need to publicise your business in some way unless you already have a sizable clientele or customer base.

You must have pass-through income to be qualified for the write-off, which essentially rules out C-Corporations. Additionally, there is a limit on the amount of income you can deduct, and if you go over it, the size of your deduction is determined by the kind of business you run.

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pension plan assets were $80 million at the beginning of the year. the return on plan assets was 5%. at the end of the year, retiree benefits paid by the trustee were $6 million and cash invested in the pension fund was $7 million. what was the amount of the pension plan assets at year-end?

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The amount of the pension plan assets is equal to $83 million.

Assets may be defined as those entities that prove beneficial to an organization or to an individual. The assets help in betterment of the society as well as the economy. The assets can also be used as collaterals in the times of need. Pension plan assets are he facilities that are bought in order to receive benefits of the services even after the retirement of the individual. The formula for calculating the amount of pension plan assets is expressed as

Pension plan asset = Plan asset at the beginning of year + Actual return + Cash contribution - Retiree benefits

Pension plan assets = $80000000 + $4000000 + $6000000 - $7000000

Pension plan assets = $83000000

Pension plan assets = $83 million

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the consumption function in the solow model assumes that society saves a: constant proportion of income. smaller proportion of income as it becomes richer. larger proportion of income as it becomes richer. larger proportion of income when the interest rate is higher.

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Consumption function in the solow model assumes that society saves constant proportion of income. It can be seen from the formula of consumption function in solow model.

The consumption function in economics can be defined as a relationship between consumption and disposable income. The concept of consumption function has been introduced by John Maynard Keynes in 1936 into macroeconomics.

The formula of consumption function in solow model is:

C = (1-s)Y

Which C represent consumption and Y represent output, and also s is represent constant proportion.

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Prior to the great depression, most economists believed that a recessionary downturn would be reversed by?.

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Recessionary downturn that caused by great depression would be reversed by lower wages that would increase the quantity of labor demanded. Lower wages also would increase the reduced unemployment.

A recession simply can be defined as a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, industrial production, real income, employment, and wholesale-retail sales.  If there is a widespread drop in spending, it can caused recession. Recession can make a significant impact for our daily lives, such as increasing the price of goods.

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the income effect, the substitution effect, and diminishing marginal utility together explain: multiple choice question. the importance of prices. how markets function. why demand curves are downward-sloping. why demand curves exist.

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The income effect, the substitution effect, and diminishing marginal utility together explain why demand curves are downward-sloping.

A consumer's increased enjoyment from owning one extra unit of a good or service is known as marginal utility. Economists utilize the idea of marginal utility to estimate how much of a given good buyers are willing to buy. When a product's price increases, consumers may switch to less expensive substitutes, which results in a decline in sales. The income effect and the substitution effect are the two factors that affect how much a consumer will desire of a commodity when its price changes. The Hicks substitution effect makes the new point of tangency and the old bundle different from one another.

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which is a local organization that controls a city or county government to an extent that enables it to reward large numbers of political supporters with tangible benefits such as government jobs

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A local organization that controls a city or a county government to an extent that enables it to reward a large number of political supporters with tangible benefits such as government jobs is known as a political machine.

What is the significance of a political machine?

A political machine can be referred to or considered as an organization that is backed by political support of the region that it operates in. The scope or jurisdiction of a political machine is very limited. A municipal corporation or a local government can be identified as an example of a political machine. It matches the description given above with respect to tangible benefits such as government jobs.

Therefore, the significance regarding a political machine has been aforementioned.

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other things the same, in the open-economy macroeconomic model, if the real exchange rate rises, the a. quantity of dollars demanded falls. b. demand for dollars shifts left. c. quantity of dollars demanded rises. d. demand for dollars shifts right.

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(C) the quantity of dollars demanded falls If the real exchange rate rises. It is because these two aspects is related each other.

Exchange Rate generally can be defined as the value of a country's currency versus the currency of another country or economic zone. To determine currency exchange rates in a country, there are two main systems that used, there are floating currencies and also pegged currencies. Floating exchange rate or known as floating is determined by market. In other words, currency is worth whatever the buyer is willing to pay for it. It is determined by supply and demand, which in turn is driven by foreign investment, the import/export ratio, inflation, and a number of other economic factors.

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a supermarket expects to sell 4000 boxes of sugar in a year. each box costs $2, and there is a fixed delivery charge of $20 per order. if it costs $1 to store a box for a year, what is the order size and how many times a year should the orders be placed to minimize inventory costs?

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If  it costs $1 to store a box for a year, the order size is 400 units and the number times a year should the orders be placed to minimize inventory costs is 10 times.

Economic order quantity (EOQ)

Economic order quantity:

Using this formula to determine the economic order quantity

EOQ = √[2 (setup costs)(demand rate)] / holding costs.

Let plug in the formula

EOQ =√(2× 20× 4000)/1

EOQ = √160,000

EOQ = 400 units

Number of orders:    

Number  of orders = Annual Demand / EOQ

Number of order = 4000/400

Number of order  = 10 times

Therefore the EOQ is 400 units and the number of orders is 10.

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if market price is $60, how many units of output will the firm produce? 2 a. zero units of output because the firm shuts down. b. 1 unit of output. c. 2 units of output. d. 3 units of output. e. none of the above

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If market price is $60, how many units of output will the firm produce : none of the mentioned choices are correct.

Define market price.

Market price is regarded as the price at which a good or service can be purchased or sold in particular period. The dynamics of demand and supply have an impact on a good or service's market pricing. The cost at which the quantity supplied and the amount wanted are equal is known as the market price.

In order to evaluate consumer as well as economic surplus, the market price is utilized. The difference between the highest price a consumer is prepared to pay and the actual price they pay for the good is known as customer surplus, often referred to as the market price.  Two related concepts of consumer and producer surplus are referred to as economic surplus. Producer surplus, often known as profit, is the sum that producers make when they sell their goods at the going rate. Consumer surplus and producer surplus together make up economic surplus.

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the process of determining an organization's basic mission and long-term objectives and then implementing a plan of action for pursuing this missionand attaining these objectives is known as

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Strategic management, then, is the process of carrying out a plan to achieve these kinds of goals.

The process of identifying an organization's long-term mission and objective is known as strategic management. It essentially consists of organizing the analyses, administration, and planning necessary to achieve the main goal.

The main focus of strategic management is on developing plans of action that managers may employ to effectively accomplish their objectives.

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explain how a technological advancement in one sector of the economy can lead to a change in the number of people who work in another sector of the economy. give an example to help support your answer.

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Technological advances in one sector of the economy can lead to a change in the number of people who work in another sector of the economy due to the interconnectedness of the economy.

What is economy?

An economy is described as a set of activities like trading of goods, consumption of goods, and production of goods and services in a nation or within a geographical area.

Technological advancement in one sector of an economy causes the other lagging sectors to also progress. For example, when the information technology sector of a region or a country experiences growth, other sectors like schools, healthcare institutions, and training institutes also experience growth, and it also generates employment. The other sectors use advanced technologies to increase productivity and enhance student learning. All the sectors in an economy are connected, and this causes other sectors in an economy to develop as well.

It can be concluded that technological advances in one sector of the economy can lead to a change in the number of people who work in another sector of the economy due to the interconnectedness of the economy.

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joe has the same qualifications (education and experience) as chelsea, and they work for the same company. joe finds out that chelsea is earning a higher salary than him, even though they both do the same job. based on equity theory, what is joe most likely to experience? multiple choice negative inequity (underreward) negative justice positive justice positive inequity (overreward) equity

Answers

Joe is most likely to experience negative inequity.

According to Adams' Equity Theory, the inputs and outputs of an employee must be balanced fairly. Finding this appropriate balance in accordance with the principle, aids in establishing a solid and fruitful relationship with the worker. This results in satisfied and motivated employees.

A person's opinion of whether or not they receive appropriate incentives to make up for their positive contributions is at the center of feelings of inequity. People carry out these evaluations by contrasting their employment transaction with that of relevant others in terms of perceived fairness. People often compare themselves to others who they have close interpersonal links with, like friends and/or those doing the same work or those who are the same gender and educational level, rather than to others who are different from them.

Here, Joe and Chelsea are doing the same work yet Joe is receiving less pay. Hence, he is probable to feel negative inequity as he is being underpaid.

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use this information for best corporation: the contribution margin ratio is 30% for the and the break-even point in sales is $150,000. if the company's target net operating income is $60,000, sales would have to be:

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If the company's target net operating income is $60,000, the sales would have to be $350,000.

Define sales.

The revenues received when a corporation sells its items, products, stuff, etc. are referred to as sales in accounting. The sum paid when a corporation sells a noncurrent asset that was formerly used in its operations (such as an old delivery vehicle, display counters, company car, etc.) is not reported as a sale. It is the quantity of goods and services that a company sells over the course of a reporting period. It is listed at the top of the income statement as a monetary amount, from which operational and other expenses are deducted to determine if a profit or loss was made.

Contribution Margin = 30%

Break even point sales = $150,000

Break even point = Fixed Cost/Contribution Margin

150,000 = x/30%

So Fixed cost x = $45,000

Contribution = Net income + fixed cost

= 60,000+ 45,000

= $105,000

So when contribution is 30% , sales is 100%

sales = 1,05,000/30%

= $350,000

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suppose that real gdp per capita in the united states is $32,000, while its annual growth rate is 2%, and that real gdp per capita in china is $4,000, while its annual growth rate is 7%. how long will it take china's real gdp per capita to double? 35 years 10 years 50 years 14 years

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The time in which the real GDP per capita of China will be double is 10 years.

GDP or Gross Domestic Product is defined as the sum of all the goods and services produced within a territory in a year. GDP is a measure of determining the economic worth of a particular country. According to the question GDP per capita of United States is $32000, GDP per capita of China is $4000. The growth rate of US is 2% and growth rate of China is 7%. By the rule of 70 the GDP of China will get double in

70/Growth rate.

So, the GDP of US will get double in 70/2 = 35 years and

The GDP of China will get double in 70/7 = 10 years and the amount will be equal to $8000.

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Dividing a market into smaller segments of buyers with distinct needs or behaviors that might require separate marketing strategies is known as​ __________.

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Segmentation.

Segmentation is the process of breaking a market into smaller groups of consumers with different wants, traits, or behaviors that may call for separate services.

What does the process of segmenting a market entail?The process of segmenting a market of potential customers into groups or segments depending on various qualities is known as market segmentation. Consumers that have characteristics like similar hobbies, requirements, or geographic areas and who will react similarly to marketing efforts make up the segments.The four primary categories of market segmentation are thought to be geographic, psychographic, behavioral, and demographic; however, there are many other tactics you can employ, as well as countless variants on the four primary types.Market segmentation is a marketing technique that involves identifying certain customer groups in order to deliver particular goods or product lines to them in a way that appeals to their preferences.

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3. it takes the same amount of inventory to operate a single warehouse system as a four warehouse distribution network. true of false? explain your answer.

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Operating a single warehouse system requires the same amount of inventory as a four-warehouse distribution network is false.

What is inventory?

Raw materials used in production as well as finished products that are offered for sale are both included in the definition of inventory. Inventory is one of a company's most crucial assets because it is one of the main sources of income production and, as a result, a source of profits for the company's shareholders. There are three different categories i.e., finished commodities, work-in-progress, and raw materials constitute inventory. It appears as a current asset on the balance sheet of a business.

Inventory is a crucial asset for any business. It is described as the assortment of raw materials or completed products that a company maintains throughout the normal course of operations.

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4. if the partnership purchases the withdrawing partner's interest, the assets and the owners' equity of the partnership are reduced by the book value. the market value. the purchase price. none of these choices are correct.

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The equity of the partnership are reduced by the  purchase price.

The required details about purchase price is mentioned in below paragraph.

The sum an investor pays for an investment is referred to as the purchase price, and that amount becomes the investor's cost basis for determining gain or loss when the investment is sold. Any commission or sales fees paid for the investment are included in the purchase price, and the weighted average cost is applied when buying the same asset more than once. Therefore, in order to calculate the quantity of inventory acquisitions, the following procedures are needed: Get the initial and ending inventories' combined values, as well as the cost of the goods sold. Between the starting and ending inventories, subtract one. The cost of goods sold enlarges the gap between ending and beginning inventories.

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political action committees question 11 options: are not covered by federal election laws. are committees created under federal or state law for the purpose of collecting political donations. coordinate all expenditures directly with the candidate. collect funds from the candidate and transfer them to the political party. are limited in how much they spend.

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The independent regulatory body tasked with overseeing and upholding the federal campaign finance legislation is the Federal Election Commission (FEC). The financing of American political campaigns falls within the purview of the FEC.

The Federal Election Commission limits and regulates public funding for presidential elections, as well as upholds federal campaign finance regulations, which include monitoring donation bans.

Networked PACs Corporations and labor unions are not allowed to directly contribute to or spend money on federal elections under the Federal Election Campaign Act. These organizations may, however, support a "linked PAC," sometimes known as a "separate segregated fund" (SSF).

A political action committee (PAC) in the US is a 527 organization that collects member campaign contributions and distributes those monies to campaigns for or against candidates, legislation, or ballot initiatives.

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if atlantis and zanadu specialize based on comparative advantage and trade, would they be able to gain from trade if the terms of trade are 1 helmet for 3 baseballs? explain.

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Assume that Atlantis and Zanadu both manufacture baseballs and helmets. Atlantis can create 1 helmets or 3 baseballs with the same resources, but Zanadu can produce 1 helmets or 6 baseballs.

How are baseball helmets decorated?

Players use pine tar, a sticky material, to their bats to lessen bat sliding. When they adjust their batting gloves, the goop gets on them and is then transferred to their helmets. Players like Cabrera who continuously alter their helmets leave more debris on them. (a) While running the bases and at bat, all players are required to wear a protective helmet of some kind. (a) While at bat, every player in National Association Leagues is required to wear a double ear-flap helmet. (c) A single ear-flap helmet is required for all Major League players (or, at the player's discretion, a double ear-flap helmet).

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if you are holding two identical bonds, except that one matures in 10 years and the other matures in 5 years, which bond's price will be more sensitive to interest rate risk?

Answers

The 10 year bond will be more sensitive to interest rate risk. The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate.

What is Interest rate?

The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate. The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing was made.

An interest rate indicates how expensive borrowing is or how lucrative saving is. Therefore, if you are a borrower, the interest rate is the sum you pay for borrowing money and is expressed as a percentage of the overall loan amount.

With the help of the interest rate formula, we can calculate the interest rate, which is the percentage of the principle sum that the lender or bank would charge the borrower in exchange for using its assets or money for a given period of time. Interest Rate = (Simple Interest 100)/(Principal Time) is the formula for calculating interest rates.

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the structural unemployment rate is 1.5 percent, the frictional unemployment rate is 3.1 percent, and the economy's current unemployment rate is 6.9 percent. the economy is in

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If the structural unemployment rate is 1.5 percent, the frictional unemployment rate is 3.1 percent, and the economy's current unemployment rate is 6.9 percent, the economy is going to be in the recessionary gap because they are producing less than the GDP.

How to solve for the unemployment rate

The formula for the natural unemployment rate would be: structural unemployment rate + frictional unemployment rate

This would be 1.5 + 3.1 percent

= 4.6%

We can see that the current unemployment rate is higher than the natural rate of unemployment therefore we would say that the nation is in a state of recessionary gap producing less than the GDP

What is unemployment?

This is the term that is used to refer to the situation that is knwon to exist in a government where the people that are willing and are able to do work are unable to get the work and the jobs that they are to offer.

There are different states of unemployment. These are the cyclic unemployment, the frictional unemployment and other forms of unemployment in the society.

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if the mpc in an economy is 0.80, government could close a recessionary expenditure gap of $160 billion by cutting taxes by multiple choice $128 billion. $200 billion. $160 billion. $80 billion.

Answers

The government can close a recessionary expenditure gap of $160 billion by cutting taxes by $200 billion. So, the correct answer is (b).

Given information,

Expenditure gap (consumption) = $160

Marginal propensity to consume (MPC) = 0.80

Let, income be Y

Marginal Propensity to Consume (MPC) = Consumption/ Y

Income (Y) = $160/0.80 = $200

A measure called marginal propensity to consume (MPC) quantifies the assumption of induced consumption, which maintains that because a boost in disposable income results in a rise in personal consumer expenditure (consumption). Marginal propensity to consume is the percentage of discretionary income that people can spend on spending. MPC is the proportion of extra revenue that a consumer is willing to pay.

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in monaco, a market basket of goods and services cost $130 in 2017, $140 in 2018, and $160 in 2019. based on this information, and assuming 2017 is the base year, the price index in 2019 was:

Answers

The price index is the weighted average of the price of goods and services of a particular year relative to the base year. It is used to measure the general price level.

The price index of 2019 was $123.07.

It is given that cost of goods and services in 2017 was $130

In 2018, it was $140 and in 2019, it was $160.

The year 2017 was assumed to be the base year.

To calculate the price index, we take price of goods and services of a particular year and divide it by the price of goods and services of the base year.

Thus,

Price index = (Price in particular year÷Price in base year)×100

Price index = (price in 2019÷price in2017) ×100

= ($160÷$130) ×100

= 1.2307×100

=$123.07

Thus, the price index in 2019 was $123.07

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If the yield to maturity of all of the following bonds is 6%, which will trade at the greatest premium per $100 face value?.

Answers

A bond with a $1,000 face value, five years to maturity and 6.3% annual coupon payments will trade at the greatest premium per $100 face value.

The dollar value of a financial asset when it is issued is referred to as its face value. The face value of a bond is the amount paid by the issuer at maturity, also known as "par value." A stock's face value, on the other hand, is the rate offered by the issuer once the stock would be first issued.

A bond may trade at a premium since such interest rate is greater than the market rate. The bond's price can also be influenced by the company's and the bond's credit ratings. Buyers are prepared to pay a higher price for a creditworthy bond issued by a financially viable issuer.

Here is the complete question-

If the yield to maturity of all of the following bonds is 6%, which will trade at the greatest premium per $100 face value?

A) a bond with a $10,000 face value, four years to maturity and 6.2% semiannual coupon payments

B) a bond with a $500 face value, seven years to maturity and 5.2% annual coupon payments

C) a bond with a $5,000 face value, seven years to maturity and 5.5% annual coupon

payments

D) a bond with a $1,000 face value, five years to maturity and 6.3% annual coupon payments

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in the stage of the product life cycle, most consumers who would buy the product are either repeat purchaser of the item or have tried and abandoned it, making it more challenging to acquire new customers. multiple choice question. maturity introduction growth competition

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In the growth stage of the product lifecycle, most consumers who would buy the product are either repeat purchaser of the item or have tried and abandoned it, making it more challenging to acquire new customers.

Typically, consumers learn about a product during its debut stage in its  life cycle. The product has only recently been released, thus commercials are being created to attract new buyers. Customers are learning more about a new good or service and how it can help them during this phase. Product life-cycle management is the progression of business management methods during a product's life-cycle.

The product has gained market acceptance during the expansion growth stage, and clients are starting to really buy in. This indicates that both demand and profitability are increasing, ideally at a steady and quick rate. The market for the product is growing and competition is starting to emerge during the growth stage.

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18. which of the following is a benefit to running an erp system? a. global integration c. capability to manage operations, not just monitor them b. elimination of updating and repairing multiple systems d. all of the above are benefits

Answers

Global integration, The capability to manage operations, not just monitor them, Elimination of updating and repairing multiple systems all are the benefit of running an ERP system. Hence, all of the above is the correct answer.

What is an ERP system?

ERP is the integrated management of significant corporate processes, which is typically done in real-time and is mediated by software and technology. ERP is a type of business management software—typically a suite of linked applications—that a company may use to gather, store, manage and interpret data from various business operations. ERP solutions can be either local or cloud-based. Cloud-based apps have risen in popularity in recent years as a result of the information being easily accessible from any location with Internet connectivity. Traditional on-premise ERP systems are increasingly seen as obsolete technology.

ERP systems monitor business resources such as cash, raw materials, and manufacturing capacity, as well as the status of business obligations such as orders, purchase orders, and payroll.

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