Based on Black and Scholes European call option pricing formula, the call option premium will be higher the larger the volatility of options is. The correct answer is option a.
a) The larger the volatility of options is, the higher the call option premium will be based on the Black-Scholes European call option pricing formula.
This is because higher volatility implies a higher probability of the underlying asset's price moving up or down, which increases the potential profit for the option holder, and thus increases the option premium.
b) The shorter the maturity date, the lower the call option premium will be based on the Black-Scholes European call option pricing formula.
This is because with less time until expiration, there is less time for the underlying asset's price to move in favor of the option holder, which reduces the potential profit and thus lowers the option premium.
c) The lower the exercise price, the higher the call option premium will be based on the Black-Scholes European call option pricing formula.
This is because a lower exercise price implies a greater potential profit for the option holder if the underlying asset's price rises above the exercise price, which increases the option premium.
d) The higher the forward price, the lower the call option premium will be based on the Black-Scholes European call option pricing formula.
This is because a higher forward price implies a lower potential profit for the option holder if the underlying asset's price rises above the forward price, which reduces the option premium.
Therefore, the correct answer to the question is a) the larger the volatility of options is.
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Bill's home is assessed for $185,000. The tax rate is 22.5 mills including a city millage of 6 Mills, County millage of 7.5 mills, and a school millage of 9 mills. Bill is eligible for a standard homestead tax exemption. What is the amount of Bills property taxes?
A. $3,626.50
B. $4,621.50
C. $3,262.50
D. $4,162.50
If Bill is eligible for the homestead exemption and the home is assessed for $185000, The amount of Bill of the property taxes is $3,626.50. Option A.
What is property tax?An ad valorem tax on the value of a property is known as a property tax or millage rate. The governing body of the region where the property is located is responsible for collecting the tax. A town, a county, a federated state, or the federal government are all examples of this.
The assessed value of the owner's property is multiplied by the mill levy to determine property taxes. The assessed value provides an estimate of your home's fair market worth. It is based on the current state of the neighborhood real estate market.
$185,000 * 0.0225
= $4162.5
6 city + 5.5 county = 13.5
= 0.0135
25000 x 0.0135 = 337.5
25000 x 0.0225 = 562.5
Exemption = 337.5 + 562.5 = 900
$4162.5 - 900 = $3,626.50
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The excess of a product's selling price over its variable costs is referred to as:
a. gross profit
b. gross margin
c. contribution margin
d. manufacturing margin
The excess of a product's selling price over its variable costs is referred to as c. contribution margin.
It represents the amount of revenue remaining after subtracting the variable costs directly associated with producing or providing the product. Here's an explanation of the other options:
a. gross profit: Gross profit is the excess of a product's selling price over its total cost of goods sold (including both variable and fixed costs). It represents the revenue remaining after deducting the cost of producing the goods.
b. gross margin: Gross margin is the gross profit expressed as a percentage of the selling price. It is calculated by dividing the gross profit by the selling price and multiplying by 100. Gross margin is used to assess the profitability of a product or service relative to its selling price.
d. manufacturing margin: Manufacturing margin is not a commonly used term in accounting or finance. It is not specifically defined, and its meaning may vary depending on the context. However, in general, it could refer to the difference between the selling price of a manufactured product and the direct manufacturing costs associated with producing it.
To summarize, the excess of a product's selling price over its variable costs is known as the contribution margin. It represents the amount of revenue available to cover fixed costs and contribute towards profits.
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There are three different types of slings. What determines which type you use?
The type of sling used depends on several factors, including the weight and size of the load to be lifted, the shape of the load, the location of the lift, and the environmental conditions.
The three main types of slings are:
1. Chain slings: These are made of metal chains and are suitable for lifting heavy loads that have sharp edges or rough surfaces. They are durable and resistant to high temperatures, making them suitable for use in harsh environments.
2. Wire rope slings: These are made of steel wire rope and are used for lifting loads that require flexibility and resistance to abrasion. They are commonly used in construction and mining industries.
3. Synthetic slings: These are made of synthetic materials such as nylon, polyester, or polypropylene and are lightweight, flexible, and easy to handle. They are suitable for lifting loads with delicate surfaces, as they do not cause damage or scratches.
The choice of sling depends on the load's characteristics and the conditions under which the lift will occur. The weight of the load, its shape, and the lifting points all play a crucial role in determining which type of sling is most appropriate. Environmental factors such as temperature, moisture, and exposure to chemicals or UV radiation may also influence the choice of sling.
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__________ can be described as the glue that holds communities together.
Social cohesion can be described as the glue that holds communities together.
Together is a word that signifies unity, collaboration, and a sense of collective action. It represents the power of individuals joining forces to achieve common goals, solve problems, and create positive change. When people come together, they can share ideas, resources, and skills, leading to innovation and progress. Together implies mutual support, empathy, and a willingness to work towards a common purpose. It fosters a sense of belonging, strengthens relationships, and promotes a sense of community. Whether it's in personal relationships, teamwork, or societal efforts, the concept of togetherness emphasizes the importance of cooperation, solidarity, and the understanding that we are stronger when united.
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What are the four phases of the Business cycle?
Answer:
1) expansion, 2) peak, 3) contraction, 4) trough
Which ONE of the statements below about an LLC is incorrect?
a. LLC members can actively participate in management without jeopardizing their liability protection
b. An LLC can choose to be taxed either as a partnership or a corporation
c. An LLC can have an unlimited number of members, or just one
d. An LLC needs to hold an annual shareholder's meeting once a year
The incorrect statement about an LLC is option d. An LLC does not need to hold an annual shareholder's meeting once a year.
An LLC, or Limited Liability Company, is a flexible business structure that combines aspects of a corporation and a partnership. It provides its members with limited liability protection, allowing them to participate in the management of the company without jeopardizing their personal assets. However, when it comes to the requirement of holding an annual shareholder's meeting, LLCs differ from corporations.
Unlike corporations, LLCs are not typically required by law to hold annual shareholder's meetings. In fact, one of the advantages of an LLC is its flexibility in terms of governance and formalities. LLCs have fewer formal requirements compared to corporations, making them more suitable for small businesses and startups.
While it is recommended for LLCs to hold regular meetings to discuss important matters, make decisions, and maintain proper documentation, there is no specific legal requirement for an annual shareholder's meeting. The members of an LLC can determine the frequency and format of their meetings based on their needs and preferences.
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Yield % (each fruit, not per case)Cantaloupe 58. 1%Honeydew 57. 5%Purple Grapes 89. 4%Strawberries 91. 9%Purchase Amounts:Cantaloupe 15 ea. Per case $18. 25 (one case is 12# approximately)Honeydew 6 ea. Per case $16. 95 (one case is 15# approximately)Grapes 18# per case $22. 45Strawberries 8(1pound containers) per case $12. 95
The overall yield percentage for the given fruit purchase amounts is approximately 4.04%.
To calculate the total yield percentage for the given fruit purchase amounts, we need to multiply the yield percentage of each fruit by its respective purchase amount. Then we can sum up the results and calculate the overall yield percentage.
Let's calculate the yield percentage for each fruit:
Cantaloupe: 15 ea. * 58.1% = 8.715 units
Honeydew: 6 ea. * 57.5% = 3.45 units
Purple Grapes: 18 lbs * 89.4% = 16.092 units
Strawberries: 8 containers * 91.9% = 7.352 units
Next, let's calculate the total purchase amounts:
Cantaloupe: 15 ea. * $18.25 = $273.75
Honeydew: 6 ea. * $16.95 = $101.70
Purple Grapes: 18 lbs * $22.45 = $403.05
Strawberries: 8 containers * $12.95 = $103.60
Now, let's calculate the overall yield percentage by dividing the total yield units by the total purchase amount:
Total yield units = 8.715 + 3.45 + 16.092 + 7.352 = 35.609
Total purchase amount = $273.75 + $101.70 + $403.05 + $103.60 = $882.10
Overall yield percentage = (Total yield units / Total purchase amount) * 100
Overall yield percentage = (35.609 / 882.10) * 100 ≈ 4.04%
Therefore, the overall yield percentage for the given fruit purchase amounts is approximately 4.04%.
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The presentation recommends updating and modifying your budget how often?
The presentation recommends updating and modifying your budget on a regular basis, typically at least once a month.
What is presentation?Presentation is the act of presenting something to an audience. It could be a speech, a product demonstration, or a visual aid. Presentations are typically used to inform, explain, persuade, and/or entertain. They often involve visuals such as slides, charts, graphs, pictures, and videos. Presentations can also be used to teach, illustrate a concept, or to demonstrate a process. Presentations can take place in a variety of settings, such as a classroom, boardroom, or auditorium.]
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which of the following would most likely cause the firm's cost curve to shift upward? group of answer choices a decrease in resource prices an increase in government regulations a decrease in taxes an improvement in technology that makes things easier to produce
An increase in government regulations would most likely cause the firm's cost curve to shift upward.
An increase in government regulations typically means that companies are required to comply with new or stricter rules, which can result in additional costs. These costs can come in the form of increased paperwork, hiring additional staff, investing in new equipment or technology, or making changes to production processes to meet the new regulations. As a result, the firm's cost of production increases, and the cost curve shifts upward. Conversely, a decrease in resource prices, a decrease in taxes, or an improvement in technology that makes things easier to produce would likely lower the firm's cost of production and cause the cost curve to shift downward.
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"How do you access the Expression Builder to add a calculated field to a report? in the Report Wizard in the Format tab through Control Source in the Property Sheet through the Group & Sort function in Design tab through the Design View dialog box under Controls
B through control source in the property sheet
Answer: absnaja
Explanation: ekaksjen
Congress passes a bill calling for a 5% tax decrease. The president then signs it
a.) the government's monetary policy
b.) government's open. market regulations
c.) the government's tight money policy
d.) the government's fiscal policy
Answer:
d.) the government's fiscal policy
Explanation:
Fiscal policy is the actions of a government to alter spending and taxation to influence economic direction. This implies that fiscal policy tools are the level of government spending and taxation.
Reducing taxes and government spending increases the money supply in the market. The government will consider these actions during recessions to stimulate economic growth. Increasing taxes and decreasing spending reduces money circulation in the economy, thereby regulating economic growth.
Write H if the resource is a human resource, and NH if it is a nonhuman resource. 1.Machines
2.Tools
3.Workers
4.Land
5.Water
6.Capital
7.Labor force
8.Time
9.Entrepreneur
10.Process
1.H
2.H
3.NH
4.NH
5.H
6.NH
7.H
8.NH
9.H
10.H
give me some solutions for ups and please read the articles in ordered to do that & I’ll remark u as brainliest
The first element as per the order of the article be 'The Heading'. The 2d component as per the order of the article must be 'The Name Of The Writer'. The 1/3 aspect as per the order of the article must be 'Introduction'.
Which article used before order?As usual, the precise article "the" is used where the object is recognised information. I would assume "an order" here. If you say "the order", this implies that the recipient already is aware of which order you mean: presumably you have beforehand discussed it.
Does the order of articles in a journal matter?Although an creator list should solely mirror those who have made enormous contributions to a research mission and its draft manuscript (see, for example, the authorship recommendations of the International Committee of Medical Journal Editors), we might be remiss to say that writer order does not matter.
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(d) During the fiscal year ended December 31, 2021, Campo Inc found that that for two machines that were originally purchased for $10,000 each on Jan 1, 2018 (estimated to have a residual value of $2,000 each and a useful life of 4 years), they had erroneously neglected to make the journal entries for depreciation expense in 2019. Show the correcting entry for this error in 2021. After this correcting entry was made, they determined that the useful life was 6 years and the residual value at the end of this new useful life would be $1,100. Show below the necessary journal entries that will need to be made on December 31st of 2021.
Campo Inc has two machines that were originally purchased for $10,000 each on Jan 1, 2018, with a residual value of $2,000 each and a useful life of 4 years. It was found that they had erroneously neglected to make the journal entries for depreciation expense in 2019.
Debit Depreciation Expense $1,100Credit Accumulated Depreciation $1,100As of December 31st, 2021, the machines will have been in use for four years (2018 - 2021), and Campo Inc will need to make adjustments for the prior years to account for the revised useful life of the machines.
Debit Depreciation Expense $7,450 ($2,000 × 2 + $1,483.33 × 3). Therefore, the necessary journal entries that will need to be made on December 31st of 2021 are Debit Depreciation Expense $1,100Credit Accumulated Depreciation $1,100.
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In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements
Answer:
Design
Explanation:
Product design involves development of of ideas that will lead to new or different areas products.
Design of a product gives it a unique looks, feels, and functions in terms of customer requirements.
This provides a competitive advantage to the seller by differentiating this product from others in the market.
For example customers that purchase Sony televisions enjoy a unique quality that is associated with Sony televisions. They prefer to buy this product because of these unique traits
A business executive feels the need to win in everything he does, from his business deals, to his golf, and even with his romantic partners. The executive's behavior illustrates a(n):
A business executive feels the need to win in everything he does, from his business deals, to his golf, and even with his romantic partners. The executive's behavior illustrates a(n):need for achievement.
What is need for achievement?Need for achievement can be defined as the way in which a person is determine to achieve their goals or when a person is always eager to achieve their set goals and objectives.
Hence, the personalities display by the business executives is called need for achievement as the executives feels the need to win in everything he does,.
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Police are investigating the site of a convenience store robbery. The glass door was
broken, and it looks as if several packages of cigarettes are missing from behind the
counter. One police officer notices a man walking past the store and gets an odd
feeling about him. He stops the man and insists on searching his pockets. Inside the
man's pockets, police find several packs of cigarettes. They arrest the man and
charge him with the crime. Unfortunately, the judge throws out the charges. What is
MOST likely the judge's reason for dismissal?
A-The man is under 18 years old.
B-The man did not have money to post bail.
C-The policeman did not have probable cause to search the man.
D-The policeman did not have enough evidence that the man was the robber.
The MOST likely judge's reason for dismissal is the policeman did not have enough evidence that the man was the robber. Thus the correct option is D.
What is Robbery?Theft or robbery is defined as the stealing of someone else's property without their permission and using force or a threat of force that exhibits fear in them to perform any action against them.
To prove a crime against someone requires one to submit enough evidence which helps to establish the claim as the justice system is based on evidence not on arguments.
In the given case, police found the activity of the men suspicious as they found cigarette packets from him. There is no evidence that he has stolen the cigarette packets might be possible he has purchased them.
So due to a lack of evidence against the person the Judge dismissal the case. Therefore, option D is appropriate.
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The expen Accounting changes are often made and the monetary impact is reflected in the financial statements of a company even though, in theory, this may be a violation of the accounting concept of se recognition principle states that expenses should be matched with revenues. Another way of stating the principle is to say that:
Another way of saying the above is that d. efforts should be matched with accomplishments.
The Matching Principle in Accounting falls under the Accrual basis which means that expenses should be matched to the period they were incurred and revenue should be matched to the period it was received for.
This ensures that the expenses match the revenue. Another way to say this is that efforts should be matched with their accomplishments because the business incurred expenses as efforts in a period in order to be able to get revenue as accomplishments in that same period.
For example, a business paying salespeople $30,000 in a year are doing so because they hope those salespeople will sell more than that $30,000 in that same year.
In conclusion, matching expenses to revenue is like matching efforts to accomplishments.
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Precision Paper Products produces both paper towels and paper napkins. The production process begins with the receipt and pulping of raw timber. Once the timber is pulped, it is screened, rolled, and dried into large rolls of paper. At this point, half the paper is cut and folded into napkins, while the other half is cut, perforated, and rolled into towels. Based on this description, which of the costs listed below would NOT be classified as a joint cost?
a. The administrative costs associated with tracking and processing incoming timber shipments.
b. The materials costs for the various chemicals involved in the pulping process.
c. The direct labor costs associated with operation of the screening machine.
d. The maintenance costs associated with the napkin folding machine.
Answer:
d. The maintenance costs associated with the napkin folding machine.
Explanation:
The cost that required one or more processors to produced a final product is known as joint cost
Here in the given question, the maintenance cost is not considered to be a joint cost as this cost are associated with the paper napkins
Also, the pulping, screening, rolling, etc are considered to be joint cost
Hence, the correct option is d.
according to the video what are some quality's petroleum engineers need? check all that apply.
Hello! Your answer is shown below,
Petroleum engineers should have natural abilities to make them successful. Personal attributes include strong mathematics and analytical skills to design equipment and solve problems in drilling.
Hope this helps!
Answer:
The answer is
A) willingness to travel
E) problem-solving skills
F) patience
Explanation:
Norma's health insurance plan does not require Norma to get a doctor's
referral for any tests or specialist visits. Norma most likely has what type of
insurance plan?
A. PCP
B. Long-term
C. HMO
D. PPO
SUBMIT
Answer:
D. PPO
Explanation:
PPO is an acronym for the preferred provider organization. PPO is one of the insurance health plans and is most popular among the family and individual markets. Under the PPO plans, the insurance company provides the insured with a long list containing doctors and hospitals to seek care. The list is the provider's preferred network, where patients should go for services.
A member of a PPO plan is encouraged to use the insurer network of preferred doctors. Members do not require a primary care physician's referral to see any specialist in the preferred doctors' network.
Answer:
D.
Explanation:
What are the types of partnership and examples of each?
Answer:
here you go
Explanation:
Types of partnerships
General partnership. A general partnership is the most basic form of partnership. ...Limited partnership. Limited partnerships (LPs) are formal business entities authorized by the state. ...Limited liability partnership. ...Limited liability limited partnership
In alphabetical filing, which name would appear first?
a. pipeline coastal group
b. pip pipes and plumbing services
c. pipe and drains co.
d. pipe fitters & plumbers services
In alphabetical filing, b. pip pipes and plumbing services
A service is an " act or use for which a patron, company, or government is inclined to pay." Examples consist of work carried out by barbers, medical doctors, lawyers, mechanics, banks, insurance groups, and so on. Public services are those that society as a whole can pay for.
Offerings are intangible monetary sports that require private interaction between the patron and the provider provider on the time of transport of the offerings. services need not contain any form of production or sale of products and are in particular supplied so one can satisfy individuals' wishes.
Services are varied in 3 agencies; business offerings, social services and personal services.
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The monetary value of all goods and services produced in a country in a year is called Question 2 options: Currency Supply and Demand Industry Product Gross Domestic Product.
The monetary value of all goods and services produced in a country in a year is called Gross Domestic Product (GDP).
Gross Domestic Product (GDP) is a widely used economic indicator that measures the total value of all final goods and services produced within a country's borders during a specific time period, usually a year. It serves as a measure of the country's economic output or production.
GDP encompasses various sectors, including agriculture, manufacturing, services, and construction, and takes into account both private and public consumption, investments, and government spending. It provides a comprehensive assessment of a country's economic performance and is used to compare the relative economic strengths of different nations.
The calculation of GDP involves adding up the monetary value of all final goods and services produced within the country's borders, regardless of whether they are consumed domestically or exported. It excludes intermediate goods and focuses on the final products that reach consumers.
GDP can be measured using three different approaches: the production approach, which adds up the value of goods and services produced; the expenditure approach, which sums up the spending on goods and services; and the income approach, which calculates the total income generated from production.
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Advantage 2 Starting a business can be risky, but it depends on the opportunity of the entrepreneur's time. If they would be unemployed otherwise, then what looks like risk may actually be a benefit or a reward.
Answer: Running a business or start up requires a lot. Asides capital, the individual would gave to learn how to keep a business running day instead and also ensuring the system runs well.
Explanation:
Running a business or start up requires a lot. Asides capital, the individual would gave to learn how to keep a business running day instead and also ensuring the system runs well. Despite the good things that come with owning a business, it actually requires a lot of work. In most cases being unemployed and not starting a business could be better than starting one because running a business would take everything in you, coupled now how things are evolving, the business owner has to be proactive, and enlightened severally and seek ways to bring innovate
Taking money to allow someone to get what they want is a(n) ___ choice
ethical
unethical
neither
Answer:
its b, unethical
Explanation:
fix your grammer
Answer:
Unethical
Explanation:
Imagine yourself later on down the line knowing that you did something that you can't undo. Think before you react!!! People are challenged every day, but it's up to you to make that right decision.
you have just had your first child and want to fund her college education. you anticipate that she will start college in 18 years. you estimate by then you will need $50,000 a year to cover her tuition at northeastern, and the associated expenses. you are hoping your daughter will only take five years to complete her education. you therefore are planning on having to provide $25,000 every six months for five years beginning 18 years from today. you cannot afford to start saving today, but will begin making yearly deposits 5 years from now, with you last deposit being the year before the first withdrawal of $25,000. the appropriate discount rate is 8% compounded monthly. how much do you need to deposit each year?
You will need to deposit $7,554.91 every year for 13 years, starting 5 years from now, in order to have enough money to fund your daughter's college education.
To determine the amount that needs to be deposited each year to fund your daughter's college education, we need to use the future value formula for an annuity due, which takes into account the fact that the first deposit is made at the beginning of the year.
First, we need to calculate the future value of the withdrawals that will be made over the 5-year period when your daughter is in college. We can use the future value formula for a series of payments as follows:
FV = PMT x [(1 + r)ⁿ - 1] / r
where FV is the future value of the payments, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.
In this case, the payment amount is $25,000, the interest rate is 8% compounded monthly, and there will be 10 six-month periods over the 5-year period, so n = 10. Substituting these values into the formula, we get:
FV = $25,000 x [(1 + 0.08/12)¹⁰ - 1] / (0.08/12)
FV = $197,830.33
So, the total amount needed to fund your daughter's college education is $197,830.33.
Next, we need to calculate the present value of this amount, taking into account the fact that you will start making deposits 5 years from now. We can use the present value formula for an annuity due as follows:
PV = PMT x [(1 - (1 + r)⁻ⁿ) / r] x (1 + r)
where PV is the present value of the payments, PMT is the payment amount, r is the interest rate per period, n is the number of periods, and (1 + r) is used to adjust for the fact that the first deposit is made at the beginning of the year.
In this case, the payment amount is unknown, the interest rate is 8% compounded monthly, and there will be 13 yearly deposits over the 13-year period, so n = 13. Substituting these values into the formula and solving for PMT, we get:
PMT = PV / [(1 - (1 + r)⁻ⁿ) / r] x (1 + r)
PMT = $197,830.33 / [(1 - (1 + 0.08/12)⁻¹⁵⁶) / (0.08/12)] x (1 + 0.08/12)
PMT = $7,554.91
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Morning light does not enter the swamp. Even the sunrise is dark. Still, time progresses, night into day
A picture of bayou country is deceiving Slow streams converge under mud to make the appearance of land that is actually water. One net of moss hangs from one hundred trees. Lightning strikes the
same stump many times.
People pass the swamp's fringes in trains, on tracks that cling to the last solid ground. Out of their windows are landscapes that take the earth's colors to every periphery, Bright orange sunsets
surround people like sky on an airplane. On gray foggy mornings they ride through a dream that has no beginning or end. But time has its limits, these people know. They are expected places--Memphis
by midnight, New Orleans by dawn
Deep in the swamp, animals keep the only appointments Birds gather at high places in trees. Raccoons make their last noisy passes for food across someone's back porch before he awakes. Fish all
around splash up, although they cannot see the morning coming to clean the picture of day like clothes bleaching in a galvanized tub from dark gray to light gray
Joan looked out from the porch to the swamp she had known all her life. Ahead of her in the veiled light were the outlines of many trees. Below and around her were the crisp sounds of nature
awakening Cupped in both hands, perched on her knees was a warm mug of coffee.
Which of the following can the reader infer from the passage above?
O Travelers sleep throughout the journey.
O The ride is for airplane passengers to see the sky.
O Travelers lose their sense of the outside world.
Answer:
Travelers lose their sense of the outside world.
Explanation:
Study Island
1. Which is an example of fiscal policy?
A. preventing unions from going on strike
B. raising taxes in order to cover a budge deficit
C. Restricting the amount of money that banks can lend
D. increasing the level of minimum wage
2. Which is an example of fiscal policy?
A. decreasing the interest rates on loans charged to car companies
B. deploying troops to help citizens cope with natural disaster
C. going into debt to buy a large number of vehicles
D. limiting the number of foreign cars that can be sold in the United Stats
Answer:
A. decreasing the interest rates on loans charged to car companies
Opportunity cost is best described by which of the following statements?
Choose 1 answer:
Choose 1 answer:
(Choice A)
The value of the next best option given up when making a decision
(Choice B)
The tradeoffs faced when choosing how to use a scarce resource
(Choice C)
The price to a consumer of a good or service
(Choice D)
The cost a buyer sees for something they want
(Choice E, Checked)
The monetary cost of any economic transaction
Answer:
The value of the next best option given up when making a decision.
Explanation: In Opportunity cost means what we give up to get it.
The worth of the next best choice foregone during decision-making. As a result, choice (A) is the right reaction.
What is opportunity cost?The value or gain that is given up in return for engaging in a certain activity as opposed to engaging in a different activity is known as the opportunity cost in microeconomic theory.
To put it another way, it means that by deciding on one path of action (like making an investment), you are giving up the opportunity to choose an other course of action. The best activity is regarded as the one that produces the maximum return among all others, after deducting opportunity costs.
The objective of opportunity cost, which illustrates the relationship between scarcity and choice, is to ensure efficient use of scarce resources. It accounts for all direct and indirect costs associated with decisions.
Hence, option (A) is accurate.
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