Refer to Figure 15-8. What is the socially efficient price and quantity? a. price= A; quantity = X
b. price = B; quantity = Y
c. price = B; quantity = X d. price = C; quantity = X
Answers
The right response is b. The socially optimal price and quantity are: price = B; and Y.
Definition of Equilibrium Monopoly.When a monopoly unjustly restricts supply to drive up prices, it still maintains its equilibrium of marginal cost equal to marginal income. The same intercept and twice as steep a slope for the marginal revenue are present on a linear demand curve.
Prices and quantities that would be offered in a fully competitive market are those that are socially efficient. This happens when demand and marginal cost are equal at price B and quantity Y. This suggests that any deal that might have benefited both parties may have taken place. Monopolies would strive to operate at quantity X and price A.
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The complete question is:
Refer to the figure below. What is the socially efficient price and quantity?
a. price = A; quantity = X
b. price = B; quantity = Y
c. price = B; quantity = X
d. price = C; quantity = X
Related Questions
Specify that only the top 20% of the ranked values in the selected range will have a bright yellow fill color (all other values will have no formatting).
Answers
In Excel, you can easily get key percentile ranks using the PERCENTILE function. This function requires two arguments: a range of data and the percentile score you want to see.
How to highlight data based on ranks in excel?Select the data cells in your target range, click the Home tab of the Excel Ribbon, and then select Conditional Formatting→New Rule.
This opens the New Formatting Rule dialog box.
In the list box at the top of the dialog box, click the Use a Formula to Determine which Cells to Format option.
This selection evaluates values based on a formula you specify. If a particular value evaluates to TRUE, the conditional formatting is applied to that cell.
In the formula input box, enter the formula.
In this formula, you evaluate whether the data in the target cell is within the percentile. If so, the conditional formatting will be applied.
Click the Format button.
This opens the Format Cells dialog box, where you have a full set of options for formatting the font, border, and fill for your target cell. After you have completed choosing your formatting options, click the OK button to confirm your changes and return to the New Formatting Rule dialog box.
Back in the New Formatting Rule dialog box, click the OK button to confirm your formatting rule.
At this point, you should be in the Conditional Formatting Rules Manager dialog box.
Click the New Rule button.
This opens the New Formatting Rule dialog box.
In the list box at the top of the dialog box, click the Use a Formula to Determine which Cells to Format option. This selection evaluates values based on a formula you specify. If a particular value evaluates to TRUE, then the conditional formatting is applied to that cell.
In the formula input box, enter the formula.
In this formula, you’re evaluating if the data in the target cell within the target percentile. If so, the conditional formatting will be applied.
Click the Format button.
This opens the Format Cells dialog box, where you have a full set of options for formatting the font, border, and fill for your target cell. After you have completed choosing your formatting options, click the OK button to confirm your changes and return to the New Formatting Rule dialog box.
Back on the New Formatting Rule dialog box, click the OK button to confirm your formatting rule.
If you need to edit your conditional formatting rule, simply place your cursor in any of the data cells within your formatted range and then go to the home tab and select Conditional Formatting→Manage Rules. This opens the Conditional Formatting Rules Manager dialog box. Click the rule you want to edit and then click the Edit Rule button.
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A change in the number of producers of a good will Group of answer choices increase the market supply because market supply is the sum of all individual supply curves increase the market supply only if all suppliers have identical supply curves decrease the market supply because firms compete with each other and each firm will supply more increase the market supply because the price will rise increase the market supply only if market demand increases too
Answers
An increase in producers will result in more competition, which will eventually push out less-effective producers and lead to a reduction in supply.
While less competition increase allows the manufacturer the chance to have a larger market share with a smaller supply, more competition typically results in a drop in supply. According to the law of supply, there is a direct correlation between price and the amount delivered. In other words, producers the price rises, the amount supplied rises as well. An upward-sloping line from left to right is used to illustrate this. A good's supply grows if the cost of one of its production-related replacements decreases.
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What is the current value of a $1,000 bond with a 6% annual coupon rate (paid annually) that matures in 5 years if the appropriate discount rate is 2%.
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If the appropriate discount rate is 2%, the current value of a $1,000 bond with a 5-year maturity and a 6% annual coupon rate is $1,032.98.
The interest rate used to determine the present value of future cash flows in a discounted cash flow (DCF) analysis is known as the discount rate. This helps determine whether the cash flows from a project or investment will be worth more than the capital investment needed to fund it in the present.
The "bank rate," often known as the "discount rate" in American English, refers to the interest rate that a central bank charges on its loans and advances to a commercial bank.
A bond's yield to maturity determines the proper discount rate (YTM).
The yield to maturity, or YTM, is an investor's expected return if they hold the bond until it matures.
If we know one, we can infer the other because the bond price and YTM are connected.
Consider the following: C = bond semiannual coupon = 10% / 2 1,000 = $50 r = semiannual interest rate (discount rate, YTM) = 9% / 2 = 4.5% n = number of semiannual periods = 4 2 = 8 Price
The current value is therefore $1,032.98.
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Santa Fe Retailing purchased merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 2/10. N/60 and an invoice price of $28. 300. The merchandise had cost Mesa $19. 301. Assume that both buyer and seller use a perpetual inventory system and the gross method. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. Prepare entries that the seller records for the (a) sale, (b) cash collection within the discount period, and (c) cash collection after the discount period
Answers
Entries that the buyer records for the purchase:
Debit Accounts Payable (Mesa Wholesalers) for $28,300
Credit Inventory for $28,300
How do you prepare the other entries?Entries that the buyer records for the cash payment within the discount period:
Debit Cash for $27,724 (28,300 x 0.98)
Credit Accounts Payable (Mesa Wholesalers) for $27,724
Entries that the buyer records for the cash payment after the discount period:
Debit Cash for $28,300
Credit Accounts Payable (Mesa Wholesalers) for $28,300
Entries that the seller records for the sale:
Debit Sales for $28,300
Credit Accounts Receivable (Santa Fe Retailing) for $28,300
Entries that the seller records for the cash collection within the discount period:
Debit Accounts Receivable (Santa Fe Retailing) for $27,724
Credit Cash for $27,724
Entries that the seller records for the cash collection after the discount period:
Debit Accounts Receivable (Santa Fe Retailing) for $28,300
Credit Cash for $28,300
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Do we need life insurance?
Answers
Life insurance is not for everyone, it depends on their situation. Example of people who need life insurance are: couples who are not financially independent or new parents. Example of People who might not need life insurance are: a single person or very rich man.
List of people who might need or do not need life insurance:People who do not need life insurance:
- A person who has amassed enough fortune to provide for their family after their death,
- A single person and no one depends on his/her income.
- A person whose children are independent adults
People who might need life insurance:
- Couples who are not financially independent
- A person who is a mortgage holders
- New parents or parents who has little kids
- Those who desire to leave a financial legacy
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Bruce is a nonexempt employee at Grissom Industries, where he works in both the manufacturing and design departments. He is married with three dependents and is paid biweekly. He earns $25 per hour in the manufacturing department and $31.50 per hour in the design department. During the most recent biweekly pay period, he worked a total of 92 hours, 20 of which were in the design department. All overtime was in the manufacturing department. What is his gross pay
Answers
All overtime was in the manufacturing department. His gross pay is $2430.
Gross income is the sum of all wages, salaries, profits, interest, rent, and other income before any deductions or taxes for households and individuals. It is the opposite of net income, which is defined as total income minus taxes and other deductions.
Gross income is the difference between revenue and the cost of producing a product or providing a service before deducting operating expenses, wages, taxes, and interest payments for a business. It's not the same as operating profit. The terms gross margin and gross profit are sometimes used interchangeably, but they are not the same thing.
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What are 5 of the 6 financial goals that you should start saving for right away?
Answers
Your fiscal pretensions as a pupil ensure that you're academically stable and have financial goals to take care of some of your academic requirements.
SMART fiscal planning is similar to saving plutocrats, investing, erecting your exigency fund, etc. You're sure to secure your fiscal well-being. SMART is an acronym that means Specific, Measurable, Attainable, Applicable, and Timebound. Imagine you've set a thing to save plutocrats.
This thing is vague, and there is no way to tell when. Success has been reached. Short-term financial goals are objectives that associations aim to achieve in a fairly short time( frequently daily or annually). These objects are generally lower in compass and easier to prognosticate and realize than long-term fiscal pretensions.
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Retained earnings of $100,000 represent a corporation's cumulative earnings ______ and is shown on the ______.
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A corporation's cumulative profits balance sheet is represented by retained earnings of $100,000, which are displayed on the statement or retained sheet.
How are cumulative retained earnings determined?After subtracting any net dividends given to shareholders, the retained earnings are calculated by adding net income to the retained earnings from the prior term (or subtracting net losses from them). At the conclusion of each accounting period (monthly, quarterly, or annually), the amount is determined.
What exactly is retained income?Retained earnings are the portion of profits or earnings that are not distributed to shareholders as dividends. These profits are put back into the company to buy fixed assets and meet working capital needs. It can also be employed to pay off any form of debt.
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Kaitlin bought a desk on sale for . This price was less than the original price. What was the original price
Answers
The price was less than the original price. The original price of the desk is 409.53.
The fact that the suit is 27% off the original price also means that he paid 73% of the original price (x). yes,
0.73x=561
x=561/0.73
x=409.53
The original price was 409.53. fancy suit.
Marketers typically induce customers to buy by offering goods and services at a significant discount off their original price.
People tend to compare the price of a product to a reference price, and if the new price is heavily discounted compared to the original price, this may lead to a purchase.
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The complete question is:
Isabel bought a suit on sale for $561. This price was 34% less than the original price. What was the original price?
What is an example of a country with a mixed economy?
Answers
Countries like England, France, and India follow the mixed profitable system where the state and private players control the coffers of distribution.
For illustration, the United States is a mixed economy, as it leaves the power of the means of production in substantially private hands but incorporates rudiments similar to subventions for husbandry, regulation on manufacturing, and partial or full public power of some diligence like letter delivery and public defense.
Nations like Norway and Germany are balanced near the middle of this diapason. They are some of the stylish exemplifications of this style of frugality. Still, the United States and the People's Republic of China could be said to have mixed economy.
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What are the five 5 important factors that she needs to consider before buying the business?
Answers
The important factors that she/he needs to consider before buying the business is Location, Furniture, fixtures and equipment, Inventory, Trained employees, Established customer base, Existing cash flow.
If you include the time needed to find a potential target firm, the process of buying a business might take longer and involve months of negotiation. However, it may be a gratifying process that results in the acquisition of a prosperous company with proper planning and the assistance of an advisory team.
You are buying an income stream when you buy an existing company. The cash flow need to be sufficient to cover your living expenses as well as the new debt service to be paid to the bank, SBA, vendor, or whoever else.
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which of these actions would most likely decrease a person’s net worth for at least the next 6 months?
Answers
A person's net worth would probably decline after suffering a substantial financial loss for at least the next six months.
What is net worth ?Net worth is an individual's or company's total assets minus total liabilities, such as money, investments, real estate and other property. It is a measure of how much an individual or business is worth, and is usually calculated by subtracting a person's liabilities from their assets. Net worth can also be used to measure the financial health of a company or individual and is often used by financial institutions and lenders as an indicator of creditworthiness. Net worth is not necessarily a reflection of an individual's or company's success, but rather an indication of the value of their overall assets.
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________ are stocks and bonds representing secured or asset-based claims by investors against issuers.
Answers
C. Private placements are stocks and bonds representing secured or asset-based claims by investors against issuers.
A select number of buyers are only offered and sold firm shares through a private placement. Banks, pension funds, mutual funds, insurance firms, and extremely affluent investors are frequently the buyers. Under the Securities and Exchange Act of 1933, private placements in the United States are directly governed by SEC regulations.
______ are stocks and bonds representing secured or asset-based claims by investors against issuers.
A. Commodities
B. Securities
C. Private placements
D. IPOs
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The discovery of a large amount of previously-undiscovered oil in the U.S. would shift
a) the long-run aggregate-supply curve to the right.
b) the long-run aggregate-supply curve to the left.
c) the aggregate-demand curve to the left.
d) None of the above is correct.
Answers
The long-run aggregate-supply curve would be moved to the right in the event that a significant amount of previously undiscovered oil was found in the United States. the lengthy term (b)
What is aggregate supply formula
The short-run aggregate supply is calculated using the equation Y=Y+(PPe). In the equation, Y stands for the economy's output, Y* for its natural level, coefficient is always positive, P stands for the current price level, and Pe stands for the predicted price level. To determine the state of the economy, economists use a variety of macroeconomic and microeconomic criteria. The general demand for the goods and services produced is one of the most significant criteria they take into account. Aggregate demand is the term used to describe this.
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Which items represent examples of Adam Smith’s "invisible hand" at work?
Correct Answer(s) 1.) An auto manufacturer uses imported leather for the seats in its vehicles. 2.) A tailor who makes suits for clients by hand buys his own suits off the rack.
Incorrect Answer(s) 1.) A cafe owner discards expired food, to avoid a fine from the health department. 2.) A gas station owner closes on certain days of the year, for religious reasons.
Answers
1.) An auto manufacturer uses imported leather for the seats in its vehicles. 2.) A tailor who makes suits for clients by hand buys his own suits off the rack represents examples of Adam Smith’s "invisible hand" at work.
What does Invisible hand mean?
Adam Smith developed the metaphor of the invisible hand in his book The Wealth of Nations (1776). It refers to the unseen forces of the free market that move resources and goods from where they are in surplus to where they are in deficit. It is the idea that people, acting in their own self-interest, will act in ways that benefit the economy as a whole.
What is a Free market ?
A free market is an economic system in which the prices of goods and services are determined by the unrestricted interaction between buyers and sellers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. It is a market characterized by a spontaneous and unregulated ordering of economic activities. It is a market system in which the prices of goods and services are determined by the open market and by consumers. In a free market economy, competition and supply and demand set prices and determine who gets the goods and services produced.
Therfore the correct option is A.1.) An auto manufacturer uses imported leather for the seats in its vehicles. 2.) A tailor who makes suits for clients by hand buys his own suits off the rack.
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Along a bowed out PPF, as more of one good is produced, Group of answer choices efficiency decreases the opportunity cost of producing both goods must remain constant the opportunity cost of producing that good decreases the opportunity cost of production increases the opportunity cost of producing that good remains constant
Answers
The correct answer is: c. the opportunity cost of production increases
The production possibilities frontier with a bowed-out form suggests that when more of one commodity is produced in exchange for the other, the opportunity cost along the PPF rises. When two products are made from the same finite resource, the PPF curve on a graph shows the maximum amounts that may be produced of each product. The production possibility curve is another name for PPF. PPF is essential to economics as well. It might show, for instance, that a country's economy is operating at its peak efficiency. When creating things, opportunity cost refers to what is lost when resources are diverted from one product to another. A curve on a graph represents the greatest amount that can be produced. The PPF is the region on a graph that depicts production levels that are impossible to achieve given the resources at hand; the curve denotes optimal levels.
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after listing a home for sale, the broker learns that a fence is enroaching on the sellers property. when discusssing the property wit hprospectice tenese tst he broker should?
Answers
When discussing the property with prospective purchasers, the broker should disclose the encroachment and suggest the buyers talk to an attorney before making the purchase.
A broker is a person who serves as a middleman between a property's seller and buyer. A broker is also known as a real estate agent or realtor. Brokers may be qualified in either residential or commercial real estate.
The broker prepares and completes the required paperwork and documents for sale when the agreement is finalized. As a result, a broker must be well-versed in State and Federal legislation, taxes, stamp duty and registration fees, house financing procedures, among other things.
They must make sure that clients are correctly charged. They must promptly provide the clients with the necessary data, receipts, and statements.
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In the following list of jobs, which one is least likely to be taken over by automation? A) clerical jobs B) jobs that require unskilled labor C) assembly-line jobs D) knowledge-work jobs that require creativity and problem solving E) bookkeeping jobs
Answers
I think the correct answer is D
What are the 5 types of risk factors?
Answers
Risk factors can be categorised into 5 types. Those are:
Behavioural, Physiological, Demographic, Environmental, Genetic.
What do you mean by Risk Factors?
Since correlation does not imply causation, risk factors, it is incorrect to say that being young causes measles; yet, measles rates are higher in young people because they are less likely to have built up an immunity during a prior epidemic. In studies examining the relationship between smoking and lung cancer, for instance, statistical techniques are routinely employed to evaluate the strength of a correlation and to present causal evidence. The biological sciences and statistical analysis can prove that risk factors are causal.
So, The required risk factors are Behavioural, Physiological, Demographic, Environmental, Genetic.
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Jamie wants to focus on selling her overstocked blue saucepans. She sets up keywords using a broad-match modifier. What are two ways the broad-match modifier makes Jamie's work easier? (Choose two.)
Answers
She doesn't have to think of all the related saucepan keywords. and She can easily select the color she wants to focus on.
Shares are a type of protection that gives stockholders a proportion of possession in an employer. shares also are known as “equities. “An inventory is a well-known time period used to describe the possession certificate of any enterprise. A percentage, on the other hand, refers to the inventory certificates of a specific employer. maintaining a particular enterprise's proportion makes you a shareholder. Description: shares are of sorts—common and desired.
A stock is a sort of investment in an organization. agencies problem inventory shares to raise money that allows you to finance operational desires and to fuel growth, and traders buy the one's stock stocks for the possibility to generate a go back on their funding. A proportion is a monetary instrument that represents the component possession of an organization. An inventory is a financial tool that represents part possession in one or more establishments.
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During the year, Spirit Fun had net credit sales of $800,000. Past experience shows that 1.5 percent of the firm's net credit sales will be uncollectible. Determine the adjusting entry needed to recognize the estimated expense for these uncollectible accounts.
Answers
debit $12,000 for Uncollectible Accounts Expense and credit $12,000 for Allowance for Doubtful Accounts.
Every one of the following transactions would be found in which financial statement—the net income, income statement, or statement of shareholders' equity?
The income statement will include items related to revenue and expenses. The balance sheet is populated with accounts for assets, liabilities, and stockholders' equity.
What does the Mcq accrual basis mean?One of the two accounting techniques is the accrual basis of accounting, the other becoming the monetary basis of accounting. The procedure of documenting transactions is a little bit more difficult when using the accrual foundation of accounting. Its foundation is the idea that transactions are documented digitally and when they occur.
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Experts estimate that for the US to reach 100% renewable energy in 2050, it will require $7. 8 billion. Calculate the percent change
Answers
In the US, investments in renewable energy increased by 308% between 2005 and 2018.
Renewable power is generated from resources that are obviously renewed throughout the course of a human lifetime. It is made up of resources including sunshine, wind, water movement, and geothermal heat. Many renewable energy sources are sustainable, but not all of them. For instance, certain biomass resources are deemed unsustainable at the rate at which they are being used.
Renewable energy commonly supplies energy for stand-alone energy systems, air and water heating/cooling, and electricity technology for a grid. Initiatives in renewable energy technologies are often large-scale, but they may also be ideal for rural, distant, and underdeveloped places, where power is frequently essential for human growth. Renewable energy is frequently used in conjunction with comparable electrification, which has a number of advantages energy may efficiently flow heat or devices and is easy on the factor of intake. Furthermore, electrification using renewable energy is more effective and, as a result, causes significant drops in the demand for electricity.
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Note : The correct question would be as bellow,
Experts estimate that for the us to reach 100% renewable energy in 2050, it will require $7.8 trillion. calculate the percent change this would represent from the 2018 investment level of $46.5 billion.
Which type of costs are related to higher insurance premiums and increased disability payments due to obesity-related health conditions
Answers
Direct medical expenses due to obesity-related medical issues, what expenditures are associated with higher insurance rates and greater disability payments
How much cash does disability provide you with?Most people typically receive between $910 & $1,310 per month. The average monthly benefit for eligible people in 2021 is $1,277, according to the Administration for Social Security (SSA). Benefits for those with high incomes during their working years might reach $3,148 per month.
How is a disability determined?The Weekly Benefit Allocation (WBA) you receive is based on your yearly income. To the maximum WBA, it is projected to be between 60 and 70 percent of a earnings you made in the five to eighteen months prior to the start of your claim. The beginning of your impairment is the date on which your claim begins.
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Melissa, a marketing manager for an amusement park, has a goal of increasing sales for the month of October. Melissa needs to first spend time mapping out the necessary steps she and her team of sales representatives must take so that they can increase their sales numbers. Which managerial function is she performing
Answers
She is fulfilling the managerial duty of planning. If Melissa, a marketing manager for an amusement park, has a goal of increasing sales for the month of October.
What is the MIS on management information systems?Management Information Systems (MIS) is the study of how people, technology, processes, and data interact with information systems. A specific kind of information system that aids managerial level tactical decision-making is also referred to by this term. The MIS assists in the creation of information, communication, problem identification, and decision-making. Therefore, the MIS is crucial to the management, operation, and administration of an organisation.
Among the above, which best sums up management information systems (MIS)?Utilizing and managing information systems to assist firms in achieving their goals and objectives They aid managers in making standard decisions.
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Steven and Sally have income from all sources (taxable and nontaxable) totaling $139,506. Their taxable income is $114,706. Their tax liability is $16,815. Their average tax rate is % (rounded to the nearest whole number).
Answers
Their average tax rate is 15%. An income statement's final line item before the bottom line, or net income, is often the tax expense.
The ratio at which a company or individual is taxed is known as the tax rate, and it is typically stated as a percentage. Statutory, average, marginal, and effective tax rates are some of the ways that are used to display them. When applied to a tax base, the phrases inclusive and exclusive might be used to present these rates. The rate imposed by law is known as a statutory tax rate. A sales tax might have a flat statutory rate, whereas an income tax might have several statutory rates for various income levels. The statutory tax rate, which is calculated as a percentage, is always greater than the actual tax rate. If an individual's gross annual income exceeds Rs. 2,50,000 during a fiscal year, they are required to file an ITR. For older folks, this restriction is more than Rs.
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What message does the song in Brother, Can You Spare a Dime convey about socio economic situation in the USA?
Answers
When the job is finished and their labor is no longer required, the song questions why the men who built the country—the railroads, the skyscrapers, the war, and the tillage of the land—should now find themselves abandoned and in bread lines.
One of the most well-known Great Depression-era American songs is "Brother, Can You Spare a Dime?" Its lyrics were written by Yip Harburg and the music was created by Jay Gorney for the 1932 musical revue Americana. The melody is based on a Russian-Jewish lullaby. The song portrays the tale of the universal everyman, whose hard work toward realizing the American ideal has been thwarted by the financial crisis. It was written primarily in a minor key, which is unusual for a Broadway song but appropriate given the theme.
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Six months ago, Christopher bought 500 shares of stock at $25 per share. Today, he sold all 500 shares for $48 per share. What type of tax is Christopher obligated to pay as a result of this financial transaction
Answers
Because of this financial transaction, Christopher is required to pay a certain form of tax called capital gains tax.
What exactly are financial exchanges?An agreement between a buyer and a seller to trade products, services, or assets in exchange for money is referred to as a financial transaction. Every transaction involves a shift in the financial standing of two or more companies or people.
Where are business deals made?In the financial account, financial transactions are carefully compiled and recorded. The financial account shows how gross lending sectors deploy their surpluses by buying assets or paying down obligations, and how utilizing sectors gain resources by taking on liabilities or depleting assets.
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According to Kotler (2003), the marketer's job boils down to one action: A. advertising. B. pricing. C. creating demand. D. maximizing revenues.
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According to Kotler (2003), the marketer's job boils down to one action of creating demand.
Option C is correct.
Why is it important to create demand?Demand generation is important because it helps you stand out to potential customers. Demand generation raises awareness of a need rather than concentrating on selling your solution.
How is demand generated and defined?The economic concept of demand refers to a consumer's willingness to pay a certain price for goods and services and their desire to purchase them. The demand for a good or service tends to decrease when its price rises.
What is meant by "demand"?The desire of a customer to purchase a particular product or service is called demand. The market's demand for a particular good is market demand. The economy's total demand for goods and services is called aggregate demand. The price of the good or service is determined by matching demand and supply.
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sexual harassment at work occurs whenever ? on the basis of gender affects a person's job. true or false
Answers
Every time unwanted behavior based on a person's gender has an impact on their career, it becomes sexual harassment at work. So statement is true.
If there is workplace harassment who is impacted?The safety of your employees and your company are constantly at danger due to sexual harassment at work. The financial health of your business, employee morale, and your reputation are just a few of the many areas that sexual harassment in the workplace may have a negative effect on. Harassment based on a person's perceived or actual sex is known as gender-based harassment. Along with physical threats, assaults, or other unpleasant behavior motivated by a person's gender, it also includes insults, name-calling, stereotypes, and taunts.
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Suppose that you really enjoy going to the movie theater, but at your current level of income, it is more affordable to rent a movie at home. Then suppose you receive a promotion and your income rises. With this extra money, you go to the movie theater more often instead of renting movies. This scenario demonstrates that to you, rental movies are a(n) the movie theater are a(n) good. good and movies at normal; normal normal; inferior inferior; normal inferior; inferior
Answers
Inferior products are ones whose price elasticity is negative; nevertheless, inferior products are not necessarily of lesser quality.
Explain Inferior Goods and Consumer Behavior.When their income level fluctuates, consumers frequently spend more or less on a certain commodity. Due to preferences that are constrained by income level, this has happened. Accordingly, there are three categories of goods: subpar, ordinary, and necessary. When a consumer's income increases, they will switch from inferior products to better ones. The demand for common commodities rises as income levels do. Despite variations in income, the demand for necessities stays consistent. Therefore, in the given case, renting movies is a poorer good whereas going to the movies is a standard good.
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