In building economic models , economists assume people
behave A. rationally B. greedily C. instinctively D.
irrationally
Answers
In building economic models, economists assume people behave rationally. The correct answer is option(a).
Economics is a social science that investigates how individuals, firms, governments, and other organizations manage scarce resources to meet their needs. Economics examines how people allocate resources among alternative uses. It aids in the understanding of the behavior of economic organizations and how they connect with each other. It also examines how markets function in determining prices and output, as well as how public policies impact these markets. The behavior of people is the subject matter of economics. The majority of economic models assume that people are rational.
Rationality refers to the behavior of individuals who are logical and consistent in their decision-making. When people make decisions, they often evaluate the costs and benefits of different alternatives. They select the option that provides the most benefits while incurring the least costs. This approach to decision-making, known as rational decision-making, is the basis for much of economic theory. According to this perspective, people make decisions based on their interests, seek to maximize their well-being and act as if they have access to all relevant information. Rational decision-making implies that people are aware of the options accessible to them and have the ability to evaluate them and make decisions based on that information. This rationality assumption has a long history in economics, dating back to Adam Smith, the founder of modern economics. Smith claimed that self-interested behavior, which is guided by rational decision-making, contributes to social welfare.
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Related Questions
What's is an example of decision making in college
Answers
Answer:
Choosing the correct program, using college resources, attending your classes, and doing well in assignments and exams.
If the Federal Open Market Committee engages in an open market purchase, it will shift the money _____ curve to the _____. demand; right demand; left supply; right supply; left
Answers
If the Federal Open Market Committee engages in an open market purchase, it will shift the money supply curve to the right.
When the Federal Open Market Committee engages in an open market purchase, it is conducting an expansionary monetary policy. The aim of expansionary policies is to increase the money supply in the economy.
When an expansionary monetary policy is conducted, there would be an increase in the supply of money in the economy. This would lead to a rightward shift of the money supply curve.
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Select the true statement about the concept of agency cost. An agency cost is a variable cost to an organization that has yet to be approved by the principal. An agency cost is a cost to an organization that is inversely related to the organization's assumption of risk. An agency cost is one that is incurred when bondholders raise the interest rate on a bond. An agency cost is one that is incurred when an agent's actions deviate from the principal's interests
Answers
The correct statement about the concept of agency cost is "An agency cost is one that is incurred when an agent's actions deviate from the principal's interests.
Agency cost is the cost incurred by an organization when an agent's actions deviate from the principal's interests. It refers to the conflicts of interest between the principal and the agent, which result in additional costs to the principal. The principal is the person or group that hires an agent to act on their behalf, while the agent is the person who performs the work on behalf of the principal. When an agent's actions deviate from the principal's interests, agency costs arise due to the potential harm to the principal's financial interests.
Agency costs are an important consideration for organizations when making decisions about their corporate governance structures. By minimizing the conflicts of interest between principals and agents, organizations can reduce their agency costs and improve their overall performance. In conclusion, the statement "An agency cost is one that is incurred when an agent's actions deviate from the principal's interests" is the true statement about the concept of agency cost.
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Agency cost in business refers to costs incurred when there's a divergence of interest between the principal (owner) and agent (management or employees); it doesn't directly entail fixed or variable costs or those incurred by insurance companies.
Explanation:The concept referred to as agency cost, is a type of cost a business incurs as a result of a divergence of interest between the 'principal' (e.g., the business owner or stockholder) and the 'agent' (e.g., the management or employees). In relation to the options given in the question, the true statement is: 'An agency cost is one that is incurred when an agent's actions deviate from the principal's interests.'
This could happen, for example, when a manager makes decisions that benefit him or herself at the expense of the shareholders, such as incurring unnecessary expenses or not making the best possible business decisions to increase personal gain. The concept of agency cost doesn't relate directly to fixed or variable costs, which are divided into costs a firm incur before producing output and costs that the firm incurs during production. Nor does it relate directly to insurance companies' costs, which involve administrative activities such as hiring workers, administering accounts, and processing insurance claims.
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The role of quality in limiting a firm's product liability is illustrated by all of the following except A) ensuring that contaminated products such as impure foods do not reach customers.
B) ensuring that products meet standards such as those of the Consumer Product Safety Act.
C) designing safe products to limit possible harm to consumers.
D) using processes that make products as safe or as durable as their design specifications call for.
E) making it easy for customers to complain about defective products.
Answers
Main answer: E) making it easy for customers to complain about defective products. The role of quality in limiting a firm's product liability is illustrated by all the options listed except for E) making it easy for customers to complain about defective products.
The other options (A, B, C, and D) demonstrate how quality measures can help prevent or minimize product liability issues.
Option A emphasizes the importance of ensuring that products, such as impure foods, are not contaminated and do not pose health risks to customers. Option B highlights the significance of adhering to product safety standards established by regulatory bodies like the Consumer Product Safety Act. Option C emphasizes the need for designing safe products that minimize potential harm to consumers. Option D focuses on using processes that ensure products are made as safe and durable as intended by their design specifications.
On the other hand, option E, making it easy for customers to complain about defective products, does not directly address the role of quality in limiting product liability. While customer complaints can help identify and address quality issues, the primary purpose of making it easy to complain is to address customer concerns and provide appropriate remedies, rather than specifically preventing or limiting product liability.
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Directions: For the following problems, compute (a) total installment price, (b) amount of finance charge, and (c) annual percentage rate. Use Figure 18.4 in your textbook as an example.
1. Cash price is $500. After ma price is $910, with a down payment of $100. Balance due in 24 equal payments of $40
Answers
The total installment price is sum of the cash price and the finance charge which comes to $960.
What is finance charge?A finance charge refers to cost of borrowing money from lender. It includes interest charges, fees, and other costs associated with a loan or credit account. When a borrower takes out a loan, the lender charges a fee for the use of the funds, and this fee is added to the amount owed. For credit accounts, finance charges are applied when a balance is carried over from month to month, and interest is charged on the outstanding balance. Finance charges can vary depending on the type of loan, the interest rate, the amount borrowed, and the repayment terms. It is important to understand the finance charges associated with a loan or credit account, as they can significantly impact the total cost of borrowing.
Total installment price = Cash price + Finance charge
Cash price = $500
Finance charge = Total amount paid − Cash price
Total amount paid = Monthly payment*Number of payments
Total amount paid = $40*24 = $960
Finance charge = $960 − $500 = $460
Total installment price = Cash price + Finance charge
Total installment price = $500+$460 = $960
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On 1/31/Y1, Bailey Company leased a new machine from Sussex Corp. The following data relate to the lease transaction at its inception:
Lease term 10 years
Annual rental payable at beginning of each lease year $50,000
Useful life of machine 15 years
Implicit interest rate 10%
Present value of an annuity of 1 in advance for 10 periods at 10% 6. 76
Present value of annuity of 1 in arrears for 10 periods at 10% 6. 15
Fair value of the machine $400,000
Depreciation method Straight line
The lease has no renewal option, the possession of the machine reverts to Sussex when the lease terminates, and the machine does have alternative uses. The first lease payment of $50,000 is paid at the inception of the lease. What amount does Sussex Corp. Report for depreciation expense in year 1?
Answers
Sussex Corp. will report a depreciation expense of $26,667 in year 1 for the leased machine. This amount is calculated using the straight-line depreciation method over the useful life of the machine.
In this lease transaction, Bailey Company is leasing a machine from Sussex Corp. for a lease term of 10 years. The annual rental payment of $50,000 is payable at the beginning of each lease year. The useful life of the machine is 15 years, and the implicit interest rate is 10%.
To determine the depreciation expense for Sussex Corp., we need to calculate the portion of the fair value of the machine that is allocated to the first year of the lease. Since the lease term is shorter than the useful life of the machine, we use the lease term as the basis for depreciation.
The fair value of the machine is $400,000, and the present value of an annuity of 1 in advance for 10 periods at 10% is 6.76. Therefore, the present value of the lease payments for the entire lease term is $50,000 x 6.76 = $338,000.
To calculate the annual depreciation expense, we divide the present value of the lease payments by the lease term. Thus, $338,000 / 10 years = $33,800.
However, since the first lease payment of $50,000 is paid at the inception of the lease, we subtract this payment from the calculated depreciation expense for year 1. Therefore, $33,800 - $50,000 = -$16,200.
Since the depreciation expense cannot be negative, we allocate the remaining balance evenly over the remaining lease term. So, -$16,200 / 9 years = -$1,800 per year.
To determine the actual depreciation expense for year 1, we subtract the negative amount from the annual rental payment: $50,000 - (-$1,800) = $51,800.
However, the depreciation expense cannot exceed the fair value of the machine. Therefore, the depreciation expense for year 1 is limited to the fair value of the machine: $51,800 (calculated) > $400,000 (fair value). Hence, Sussex Corp. will report a depreciation expense of $26,667 in year 1 for the leased machine.
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Helping others for free while gaining skills is
O A. a job
O B. working
O C. a career
O D. volunteering
Answers
Answer:
D. volunteering
Explanation:
When you volunteer your gain a skill so
The difference between the cost to make a good and the price is the: A. Elasticity Curve B. Profit C. Supply Curve D. Demand Margin
Answers
Answer:
B. Profit
Explanation:
I hope this helps :)
I need help it will determine my grade
Answers
1. Suzie’s Flowers purchases a wide variety of houseplants. One of Suzie's favorites, the large split leaf philodendron, costs $13.50 from the wholesaler and requires an additional $1.00 per plant to take care of and then package prior to sale. Suzie's normal markup on houseplants is 55%. What would be the retail selling price of a large split leaf philodendron?
2. A manufacturer sells a 3-person tent to its wholesalers for $59.95. Wholesalers take a markup on selling price of 15% and sell to retailers who take a markup on selling price of 45%. How much does this tent cost you?
Answers
Answer:
$22.475 and $99.96
Explanation:
1. Split-leaf philodendron, costs $13.50 and requires an additional $1.00 per plant to prepare for a sale. The total cost of the plant is $14.50 ($13.50 + $1.00)
If Suzie desires a 55% mark-up, the retail prices will be the cost price plus 55% of the cost.
The cost price of $14.50 is equal to 100%
the retail price will be 155% of $14.50
=155/100 x $14.50
=1.55 x $14.50
=$22.475
2. The manufacturer sells the tent for $59.95.
$59.95 is equivalent to 100%. If wholesalers mark-up is 15%, they will sell the tents to retailers at 115% of $59.95
=115/100 x $59.95
=1.15 x $59.95
=$68.94
Retailers mark up is 45% of $68.94. consumers buy the tents at 145% of $68.94
=145/100 x $68.94
=1.45 x $68.94
=$99.96
Place the steps to creating a budget in order:
Figure out your net income.
Make a list of fixed expenses
Make a list of variable expenses.
Adjust expenses as needed
Determine if you have enough income to cover all your expenses.
Answers
Answer:
1. Figure out your net income
2. Determine if you have enough income to cover all your expenses
3. make list of variable expense
4. make list of fixed expenses
5. adjust expense
done !
Are these true or false ????
Answers
Answer:
10. true
11. false
12.false
13.true
14.false
15.false
The roles of ___, ___, and ___ are critical for managers in nonprofit organizations.
Answers
The roles of spokesperson, leader, and resource allocator are critical for managers in non-profit organizations.
What are management's responsibilities in non-profit organizations?The four main areas of planning, organizing, leading, and controlling are how management gurus have divided up management's tasks. The management of nonprofits requires special attention to each area.
How are non-profit organizations run?The nonprofit industry, by definition, works toward humanitarian ends. Because they lack formal hierarchies and managerial structures, many nonprofit organizations are loosely structured and frequently volunteer-driven.
Which managers are critical to advancing innovation?Middle managers are essential for fostering innovation and empowering businesses to adapt quickly to changing conditions. a manager who is in charge of a certain project at work that brings together staff from different levels and functions of the company.
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Analyse the implications to Mr Flake’s business if: In May and June Mr Flake fell ill and he had to pay somebody else £1200 a month to run the business as well as himself? Answer: He received 6 more party bookings for September?
Answers
Answer:
1. Paying somebody else and himself represent cash outflow.
2. Party bookings represents forecasted cash inflow.
Explanation:
Remember, a cash flow shows where money is coming from into the accounts of a business and where money goes to from the accounts of the business. Inflows represent credit transactions into the business account, while the outflows represents debit transactions to external sources.
Thus, paying somebody else £1200 a month to run the business as well as himself (Mr Flake) both represents outflow of cash from his ice-cream business. But the 6 more party bookings for September represents cash inflows since he will be receiving a pay from the clients.
When would a debt instrument have an original issue discount (OID)?
Answers
A debt instrument would have an original issue discount (OID) when it is initially issued at a price lower than its face value or redemption value. This discount represents the difference between the purchase price and the face value, which the issuer effectively pays as interest to the investor over the life of the debt instrument.
A debt instrument would have an original issue discount (OID) if it is issued for less than its face value and the difference between the face value and the issue price is considered interest. This occurs when the interest rate on the debt instrument is lower than the prevailing market rate, resulting in a lower selling price. The OID is then amortized over the life of the debt instrument and reported as interest income for the holder of the debt instrument.
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Which statement assesses the impact of the consumer revolution in the 1750s and 1760s?
A. American colonies sold less and less to England.
B. Wealth inequality decreased as a result.
C. American colonies incurred a trade deficit.
D. Farm prices dropped precipitously.
Answers
The statement that assesses the impact of the consumer revolution in the 1750s and 1760s is C, which states that American colonies incurred a trade deficit.
The consumer revolution in the 1750s and 1760s was a period of increased consumerism, where people were buying more goods and services than ever before. This led to an increase in demand for goods, which resulted in increased imports from other countries. The American colonies were heavily dependent on trade with England, and as a result of the consumer revolution, they incurred a trade deficit as they were importing more goods than they were exporting.
The impact of the consumer revolution on the American colonies was significant, as it led to a change in the economic landscape. While the increase in demand for goods created opportunities for merchants and manufacturers, it also highlighted the economic dependence of the colonies on England. The trade deficit incurred as a result of the consumer revolution meant that the colonies were not able to sustain themselves economically and were reliant on England for trade and support. This created tensions that eventually led to the American Revolution.
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make a list of things that should be considered while managing a factory or an industry
plz say correct answer not stipude answer
Answers
Get Prototypes Sorted First
Form Positive Working Relationships
Sorting the Premises
Bankrolling the Business
Understand the Legalities
In which situation would a person pay a higher property tax than he or she did the year before?
A. The value of the person's home increased.
B. The number of dependents the person had increased.
C. The salary the person earned increased
D. The amount the person spent on electronics increased.
Answers
A person would pay a higher property tax than he or she did the year before when A. the value of the person's home increased.
What is property tax?Property tax is an ad valorem tax levied on real estate, such as a building or a residential home, that is owned by an individual or another legal body, such as a corporation.
It is an ad valorem tax because it is based on the assessed value of the property.
As a result, the higher the value of a property compared to the year before, the higher the property tax.
Therefore, a person would pay a higher property tax than he or she did the year before when the value of the person's home increased.
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Please help. 10 points
Answers
If real estate prices tumble such that wealth declines by $160and the wealth effect is such that a $10 change in wealth produce a $3 change in consumption at each level of income then consumption will fall by $48 at every level of income (0.3*$160 = 48).
How to explain the informationThis implies consumption equals $568 (616-48) at the income level of $680. Consumption was originally $616 at this income level and the decline in wealth results in a fall in consumption of $48.
To find the new level of savings after the decline in wealth we subtract the NEW level of consumption (=568) from disposable income (=$680), which equals $112 (= $680- $568). The household increases savings to offset the decline in wealth.
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How do you determine what happens to productivity when a product's inputs change? *
Answers
How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
what is the most important function of food packaging?
Answers
Answer:
protection
Explanation:
to keep food safe and protected from any damage or outside influences.
Answer:
Product protection is the most important function of packaging. Protection means the establishment of a barrier between the contained product and the environment that competes with man for the product.
When you order a sweater from an l.l.bean mail-order catalog, what type of marketing channel are you and the company using?
A. Cash and carry marketing channel
B. Intensive distribution channel
C. Selective distribution channel
D. Indirect marketing channel
E. Direct marketing channel function.
Answers
(E) Direct marketing channel function type of marketing channel are you and the company using.
What is Direct marketing?The act of presenting an offer directly to a target client and providing them with a way to respond immediately is known as direct marketing. It is sometimes referred to as direct response marketing among practitioners. Advertising, in contrast, is a form of mass messaging. Toll-free phone numbers, reply cards, envelope-mailable reply forms, websites, and email addresses are all examples of response methods. The CAN-SPAM Act mandates that customers in the United States be given the option to opt-out due to the ubiquity of direct marketing and the unwanted nature of some communications. Based on vendor-defined criteria, such as the average income for a specific ZIP code, purchase history, and inclusion on other lists, intended targets are chosen from wider groups.
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What is Helena Fogarty doing to build brand equity for Mi Ola?
Answers
Answer:
she is using social media to build brand equity.
Explanation:
Helena Fogarty is using social media as an advertising resource due to the fact that more and more people will see it since social media is a big platform. she is also using this to her advantage as she can get feed back in order to make adjustments to her products.Helena Fogarty is using social media to build brand equity for Mi Ola.
Brand equity simply means the value premium that a business or company generates from a product with a recognizable name.
It should be noted that brand equity is also known as the brand worth of a company. It's the social value of a brand name. Helena Fogarty is using social media to build brand equity for Mi Ola. One can advertise its product on social media and create awareness. This will help improve sales and revenue.
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Describing Projected Growth for Accountants
Answers
The projected growth for accountants is expected to be steady in the coming years.
According to the Bureau of Labor Statistics, the employment of accountants and auditors is projected to grow 6 percent from 2018 to 2028, which is about as fast as the average for all occupations.
There are several factors contributing to this projected growth. One major factor is the increasing complexity of tax laws and regulations, which creates a higher demand for skilled accountants to help individuals and businesses navigate the tax landscape. Additionally, the globalization of business has led to an increase in demand for accountants who are well-versed in international accounting standards and can help companies navigate the complexities of cross-border transactions. Finally, the growth of technology has created new opportunities for accountants who are skilled in data analysis and can provide insights into financial data to help businesses make better decisions.
This growth can be attributed to globalization, a growing economy, and an increasingly complex tax and regulatory environment, leading to increased demand for accounting services.
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What are some sites or locations in the problem domain of a restaurant?
-Seating area
-Kitchen
-Restrooms
-Office
-Refrigerator/Freezer
-Delivery Vehicle(s)
-Counter
-Entry
Answers
Some of the key sites or locations in the problem domain of a restaurant include the seating area, the kitchen, restrooms, the office, the refrigerator/freezer, the delivery vehicles, the counter, and the entry.
Problem domain refers to the specific area or domain of the user's business need or problem that is within the scope of the system. Few key sites or locations in the problem domain of a restaurant include:
the seating area, where customers sit and eat their meals; the kitchen, where food is prepared;
the restrooms, which are used by both customers and employees;
the office, where administrative tasks are performed;
the refrigerator/freezer, where food is stored;
the delivery vehicle(s), which are used to transport food to customers;
the counter, where customers place their orders and pay for their meals; and
the entry, where customers enter and exit the restaurant.
Each of these sites plays an important role in the operation of a restaurant, and understanding how they work together is essential for success in the restaurant industry.
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1(a). (TRUE or FALSE?) If projects A & B are mutually exclusive and their NPVs are less than zero, accept both projects.
1(b). (TRUE or FALSE?) Internal rate of return method shows how many years take to recoup the initial investment.
1(c). (TRUE or FALSE?) Any time you consider investing in a project, you will not actually receive the IRR unless you can reinvest the project’s intervening cash flows at the IRR.
Answers
The correct answer is-
1(a). FALSE. If projects A & B are mutually exclusive and their NPVs are less than zero, accept both projects.
1(b). FALSE. Internal rate of return method shows how many years take to recoup the initial investment.
1(c). TRUE. Any time you consider investing in a project, you will not actually receive the IRR unless you can reinvest the project’s intervening cash flows at the IRR.
1(a). FALSE. If projects A & B are mutually exclusive and their net present values (NPVs) are less than zero, it would not be advisable to accept both projects. When projects are mutually exclusive, it means that choosing one project automatically excludes the other. In such cases, it is generally recommended to accept the project with the higher positive NPV or reject both projects if their NPVs are negative. Accepting both projects with negative NPVs would likely result in a net loss for the company.
1(b). FALSE. The internal rate of return (IRR) method does not directly show how many years it takes to recoup the initial investment. The IRR is the discount rate at which the present value of the project's cash inflows equals the present value of its cash outflows, resulting in an NPV of zero. It represents the rate of return generated by the project over its entire duration. While it is related to the payback period (the time it takes to recover the initial investment), the IRR does not provide a direct measure of the payback period.
1(c). TRUE. Any time you consider investing in a project, the actual realization of the internal rate of return (IRR) depends on the ability to reinvest the project's intervening cash flows at the IRR. The IRR represents the rate of return that equates the present value of the project's cash inflows with the present value of its cash outflows. If the intervening cash flows can be reinvested at the IRR, then the project will achieve the calculated IRR. However, if the company cannot reinvest the cash flows at the IRR, the actual realized rate of return may differ from the IRR.
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7. Ethics are.........
a. Inherited.
b. Lawless.
C. Deliberate.
d. Abstract.
Answers
Answer: Either a or c for me Not 100 percent sure on this one sorry
Explanation:
3. Which of the following is a liability?
a) buildings
b) accounts receivable
c) loan from J. Henry
d) equipment
Answers
Answer:
buildings
Explanation:
Because if you own buildings you have to take care of them and you make sure you have them clean make sure nothing is wrong if a person complains find the problem and make it better and a loan will put you in a lot of debt to that person instead of making your own money.
Disadvantages of choosing a job that is extremely popular or in demand
Answers
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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