Which economic action would be most influenced by a change to the
discount rate?
O A. An individual is deciding whether to spend money or invest it.
O B. A business is deciding whether to hire additional employees.
C. A bank is deciding whether to borrow money from the
government
O D. An investor is deciding whether to purchase treasury securities.
Answers
Answer:
C. A bank is deciding whether to borrow money from the
government
Explanation:
The discount rate is the interest rate at which the Federal Reserve charges commercial banks and other financial institutions for loans it advances to them. Through the Federal Reserve, the government issues credit facilities to banks to cater to immediate cash flow requirements. For example, if a bank can not meet the reserve requirement for the day, it can borrow from banks with excess requirements. If it can't find another bank to borrow from, it approaches the Fed.
The interest rate that the Fed charge is the discount rate. It is usually higher than the inter-bank rates. If the discount rate is reduced, commercial banks may consider borrowing from the government through the Fed.
Answer:
c
Explanation:
Related Questions
risk taking can be encouraged in an organization by:
Answers
Encouraging risk-taking within an organization is vital for innovation, growth, and adaptability in today's dynamic business landscape.
To foster a culture that supports risk-taking, organizations can implement the following strategies: Emphasize psychological safety: Create an environment where employees feel safe to share ideas and take calculated risks without fear of negative consequences. Encourage open dialogue, value diverse perspectives, and avoid blaming or punishing failures. Recognize and reward innovation: Establish recognition programs that celebrate and reward employees who take risks and generate innovative solutions. Recognizing and acknowledging their efforts will motivate others to follow suit.
Provide resources and support: Allocate resources such as time, budget, and expertise to support risk-taking initiatives. Offer training programs, mentorship, and coaching to develop employees' skills and increase their confidence in taking calculated risks. Lead by example: Encourage leaders and managers to take calculated risks themselves and share their experiences with the team. When employees see leaders embracing risk and learning from failures, it sets a positive example for the rest of the organization.
Foster a learning culture: Encourage continuous learning and growth by promoting experimentation, reflection, and knowledge sharing. Encourage employees to learn from both successful outcomes and failures, extracting valuable insights that can guide future risk-taking endeavors. By implementing these strategies, organizations can create an environment that not only encourages risk-taking but also enables individuals to thrive and contribute to the organization's long-term success.
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Personal Taxes $40
Social Security Contributions 15
Taxes on Production and Imports 20
Corporate Income Taxes 40
Transfer Payments 22
U.S. Exports 24
Undistributed Corporate Profits 35
Government Purchases 90
Gross Private Domestic Investment 75
U.S. Imports 22
Personal Consumption Expenditures 250
Consumption of Fixed Capital 25
Net Foreign Factor Income 10
Statistical Discrepancy 0
Refer to the accompanying data (all figures in billions of dollars). DI is:
a) $329.
b) $402.
c) $274.
d) $284.
Answers
The Distributable Income (also known as DI) according to the data provided is C. 274.
What is distributable income?Distributable income refers to the part of the income by an organization that is awarded to some recipients. It is obtained by first obtaining the taxable income, subtracting capital gains from this, and adding the tax exemption.
In the above table, the taxable income is: 260
The Capital gains are: 75
The tax exemption amounts to 89
So, the value of the distributable income is gotten by subtracting the value of 75 from 260 and adding the tax exemption of 89 to get the following:
260 - 75 + 89 = 274
Thus, DI is 274.
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For what purpose are goods and service produced in a socialist economy
Answers
Answer: The options are missing from the question,the options are;
A) Profits
B) Their usefulness
C) To create demands
D) To meet all consumer needs.
The correct answer to the question is option D
In a capitalist economy,goods and services are being produced for the sole aim of making profits and to accumulate capital, but when we talk about the SOCIALIST ECONOMY,it differs from the capitalist economy and the sole aim is different.
Socialist economy employs a technique known as usage value in the meeting of the needs and wants of the people, this prevents the over production or under production of goods and services based on their rewards and usage.
In socialist economy,goods are services are produced and those goods and services are made directly accessible to the people that is the masses. A scarce economic resources in a socialist economy are being utilized judiciously inorder to meet the needs of the consumers and make them satisfied in every way possible.
If you owned a Great Clips franchise, why might you
support Great Clips' sponsorship of NASCAR racing?
Answers
Considering the scenario described above, the reason I would support Great Clips' sponsorship of NASCAR racing is that "it would promote my Great Clips franchise."
This is because the Great Clips' sponsorship of NASCAR racing would certainly increase the popularity of Great Clips products and services across the nations and worldwide wide.
This is based on the fact NASCAR racing sport is a popular sport that people across the country and the globe at the large watch.
And the increase in popularity of the Great Clips brand would certainly give my Great Clips franchise more popularity, thereby generating more customers.
In turn, that would equate to more profit for me.
Hence, in this case, it is concluded that the Great Clips' sponsorship of NASCAR racing is a good marketing opportunity to embrace.
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What is a balance transfer fee?
A. A fee you pay when your monthly payment is late
B. A fee for charging more than your credit limit
C. A fee you pay when you use your credit card to get cash from an
ATM
O D. A fee charged when you transfer the balance from one card to
another
Answers
Answer:
A balance transfer fee is a charge imposed by a lender to transfer existing debt over from another institution.
Explanation:
A market with negative externalities will tend to _____ compared to a market producing the socially optimal output.
Answers
A market with negative externalities will tend to overproduce and sell at lower price compared to a market producing the socially optimal output.
Overproduction, or oversupply, means you have got an excessive amount of of some thing than is important to fulfill the demand of your marketplace. The resulting glut ends in decrease prices and probably unsold items. That, in flip, results in the price of manufacturing – such as the value of exertions – increasing significantly.
The choice for longer than important manufacturing runs or product batch sizes because of lengthy setup times. Ordering extra substances than necessary, just in case. awaiting disrupted production flows. Unbalanced manufacturing ranges, cells, or departments
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all small indusrties are highly labor intensive true /false given reason
Answers
Answer:
FALSE.
Explanation:
Not ALL small industries are highly labor-intensive. If you start a small industry, it could become highly labor-intensive as a result of insufficient staffing, inventory, and other factors.
TIP: Never use "ALL", "ALWAYS", "NEVER", etc...words like this turn arguments false.
How do you songwriters earn money from their songs
Answers
Answer:
Good question I think its because people buy there albums and
Explanation:
Answer:
they receive royalties
Explanation:
an accountant’s objective of a review of the financial statements of a nonissuer (nonpublic company) is to provide what type of assurance?
Answers
Option c is correct. The auditor's goal when auditing the financial statements of non-issuers (unlisted companies) is not to provide assurance.
A warranty is a financial protection that provides compensation for certain events. A warranty is similar to insurance, but the terms are often used interchangeably.
However, assurance implies coverage for a limited period of time, while insurance is intended for permanent coverage for a longer period or until death. This exam may also apply to verification services provided by accountants and other professionals. A warranty is a financial protection that provides compensation for certain events.
Unlike insurance, which covers risks for a specific policy period, insurance covers a longer period, often in perpetuity, until the insured's death, such as tragedy. B. I have life insurance.
Guarantee may also refer to professional services provided by accountants, attorneys, and other professionals, collectively referred to as guarantee services.
Warranty services help organizations mitigate risk and identify problem areas. Negative assurance assumes correctness in the absence of negative results.
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The complete question is:
An accountant’s objective of a review of the financial statements of a nonissuer (nonpublic company) is to provide what type of assurance?
a. Absolute assurance
b. Limited assurance
c. No assurance
d. Reasonable assurance
Which is a characteristic of the parasympathetic division of the ANS?A. Postganglionic fibers are generally long.B. PNS ganglia are located near the vertebral column.C. Preganglionic fibers are generally short.D. The location of PNS ganglia is typically intramural.
Answers
C. Preganglionic fibers are generally short. The correct characteristic of the parasympathetic division of the autonomic nervous system (ANS) is: In the parasympathetic division of the ANS,
the preganglionic fibers, which extend from the central nervous system (CNS) to the ganglia, tend to be short. These fibers synapse with postganglionic neurons in ganglia that are typically located close to or within the target organs or tissues. This proximity allows for a more localized and specific control of physiological functions.
Contrastingly, in the sympathetic division of the ANS, which is responsible for the fight-or-flight response, the preganglionic fibers are generally long. They extend from the CNS to sympathetic ganglia, which are located closer to the vertebral column, enabling a widespread and generalized response throughout the body.
Therefore, option C is the correct characteristic of the parasympathetic division of the ANS.
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Who heads each of the branches of federal reserve banks and looks after their functioning?
Answers
Answer: The chair of the board, governors of the federal reserve system is the chief of the federal reserve which is the central banking system of the United States.
Answer:
Board of Governors
Explanation:
Discuss two goals to set before you start making an investment 
Answers
Two goals to set before making an investment include:
Short-term goalsLong - term goals What kind of goals should be set ?A short -term investment goal could be to accumulate money for a particular intent, such as settling a down payment for a house, taking an excursion, or acquiring an important item.
On the other hand, a broader long-term investment goal might be to save up for retirement or a remote fiscal aspiration. To attain this objective, the investor may place precedence on investments having a lengthy timespan and a possible greater yield, including stocks, mutual funds, or exchange-traded funds (ETFs).
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Which of the following is true of House's path-goal theory?
A. It suggests that managers cannot adopt different leadership styles in different situations.
B. It suggests that rewards should be used as a measure of approval for past performances, rather than as motivators.
C. It treats the situation within which leadership occurs as irrelevant when studying effective leaders.
D. It suggests using coercive power to ensure high performance and goal attainment.
E. It suggests that subordinates need to be motivated depending on their nature and that of their work.
Answers
E. It suggests that subordinates need to be motivated depending on their nature and that of their work.
House's path-goal theory of leadership suggests that leaders should adopt different leadership styles based on the characteristics of their subordinates and the nature of their work. The theory emphasizes the importance of leaders' behavior in clarifying paths to achieve goals and removing obstacles to ensure subordinates' success and satisfaction.
According to the theory, leaders should provide support, guidance, and motivation to subordinates in a way that aligns with their individual needs and the requirements of their tasks.
Option A is incorrect because House's path-goal theory recognizes the importance of adapting leadership styles to different situations and subordinates. Option B is incorrect because the theory acknowledges that rewards can serve as motivators and should be used to reinforce desired behaviors.
Option C is incorrect because House's theory emphasizes the significance of the situational context in understanding effective leadership. Option D is incorrect because the theory promotes supportive leadership behaviors rather than coercive power.
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The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter
Answers
The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as
$4.3055
This is further explained below.
What is the APR interest rate?Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.
The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.
Interest rate APR = 12%
Average balance = ((200*5)+(350*15)+(150*10))/30
Average balance = $258.33
Average balance*APR/12
Finance charge =\(\frac{258.33*20 \%}{12 }\)
Finance charge = $4.3055
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Luke is going to school to get a degree in Veterinary Medicine. He wants to work in an animal hospital after he graduates. Which of the following job options would be most beneficial to Luke’s career while he is going to school? a. Babysit after school b. Work at a fast food restaurant c. Volunteer at a social service agency d. Work an entry level position at a veterinary clinic Please select the best answer from the choices provided A B C D
Answers
Answer:
D. Work an entry level position at a veterinary clinic
Explanation:
To become a veterinarian, get into vet school, get a job as a veterinarian, etc. You need experience. In this case, if he works a position at a veterinary clinic, he would be getting experience of what its like. He could be doing a job such as simply taking the dogs for a walk, and that would still be considered experience! So the answer would be D.
I also relate to this question a bit since I plan on going to vet school after I graduate. Hope this helps :)
Answer:
D
Explanation:
EDG 2021
Which one of the following is not a reason why a company decides to enter foreign markets?
O To gain access to more buyers for the company's products/services
O To achieve lower costs and thereby become more cost competitive
O To further exploit the company's competitively valuable resources and capabilities
O To spread business risk across a wider geographic market area
O To build the profit sanctuaries necessary to wage guerilla offensives against global challengers endeavoring to invade the company's home market
Answers
The option "O To build the profit sanctuaries necessary to wage guerrilla offensives against global challengers endeavoring to invade the company's home market" is not a typical reason why a company decides to enter foreign markets.
The primary reasons for a company to enter foreign markets typically include:
To gain access to more buyers for the company's products/services.
To achieve lower costs and become more cost competitive.
To further exploit the company's competitively valuable resources and capabilities.
To spread business risk across a wider geographic market area.
The mentioned reason about building profit sanctuaries and waging guerrilla offensives against global challengers is not a common motivation for entering foreign markets. Instead, companies often expand globally to tap into new market opportunities, access resources, increase market share, and diversify their operations.
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Land and buildings are classified as _____ property, while items such as machinery, equipment, and furnishings are classified as tangible, personal property.
Answers
Land and buildings are classified as real property, while items such as machinery, equipment, and furnishings are classified as tangible personal property.
Real property refers to physical assets that are permanently attached to the land, such as buildings, land, and fixtures. Real property can also include natural resources such as minerals, crops, and water rights. Real property is typically bought and sold through real estate transactions and is subject to a range of laws and regulations governing land use and development. Tangible personal property, on the other hand, refers to movable assets that are not attached to the land, such as machinery, equipment, and furnishings. These items can be bought and sold through a range of transactions, such as auctions, private sales, and online marketplaces. Tangible personal property is typically subject to a different set of laws and regulations than real property, and its value can fluctuate based on a range of factors, such as market demand and depreciation.
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Carlos and Keisha have a monthly income of $25,000. They have monthly expenditures that total $30,000. What is TRUE about their cash flow?
A. They have a $5,000 surplus.
B. They have a $5,000 deficit.
C. They have a positive cash flow.
D. They have extra money that they could use for investments.
THE CORRECT ANSWER IS B. THEY HAVE A $5,000 DEFICIT.
i got it right on the test, i hope this helps :))
Answers
Answer:
B. They have a $5,000 deficit
Explanation:
The relationship between Income and Expenditure is that Income less expenditure gives us the Profit for the business. Therefore, Income ($25,000) less Expenditure ($30,000) gives a deficit of $5000.
Answer: They have a $5,000 deficit.
Which one of the following careers is the most highly resistant to economic change?
1. Video Game Designers
2. Funeral Attendants
3. Fashion Designers
4. Airline Pilots
Answers
Answer:
2. Funeral Attendants
Explanation:
The demand for funeral attendants is relatively constant and not heavily impacted by economic change, as death is a natural occurrence that happens regardless of economic conditions. Funeral attendants provide a necessary service for families and communities. While other careers such as video game designers, fashion designers, and airline pilots can be affected by changes in technology, consumer preferences and travel restrictions, the services of funeral attendants are less likely to be impacted by economic fluctuations.
Draw a demand and supply graph for each of the following questions. For each question, start by drawing a correctly labeled graph of the market for cookies in equilibrium. Your starting graphs should each have correctly labeled axes and demand and supply curves. Label the equilibrium price and quantity as p1 and p2 on the axes of each of the starting graphs.
Show the effect on the equilibrium price and quantity in the market for cookies if the price of milk increases. Determine which curve is affected by the change in the price of milk and whether it increases or decreases. On your graph, draw a new curve indicating the shift—either to the right or the left. Label the new equilibrium price and quantity as p2 and q2.
Show the effect on the equilibrium price and quantity in the market for cookies if the price of flour decreases. Determine which curve is affected by the change in the price of flour and whether it increases or decreases. On your graph, draw a new curve indicating the shift—either to the right or the left. Label the new equilibrium price and quantity as p2 and q2.
Answers
The demand and supply graphs for each of the following scenarios described are attached accordingly. See related conceptual definitions below.
What are the concepts related to the graphs?Milk is used in the preparation of cookies. When the price of milk rises, so will the cost of producing cookies. The supply curve swings to the left and narrows. The equilibrium price rises from p1 to p2, while the quantity falls from q1 to q2.
Flour is used in the preparation of cookies. When the price of flour falls, so will the cost of producing cookies. The supply curve moves to the right and rises. The equilibrium price falls from p1 to p2, while the quantity rises from q1 to q2.
The above interactions are reactions to the Laws of Demand and Supply:
The law of supply and demand combines two basic underlying ideas that describe how price changes impact the supply and demand for a resource, commodity, or product. As the price ups, supply follows it while demand nosedives. In contrast, when prices fall, supply tightens while demand expands.
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The record date for a company's cash dividend is thursday, october 7. what is the latest date a customer may purchase the stock for regular-way settlement in order to receive this dividend?
Answers
A customer may purchase the stock for regular-way settlement in order to receive this dividend on Wednesday, October 6.
A cash dividend is when a company pays investors out of its profits in the form of cash (checks or wire transfers). This transfers economic value from the company to its shareholders instead of the company using money to operate.
Cash dividends primarily affect the cash and equity accounts. There is no separate balance sheet account after the dividend is paid. However, after the declaration of dividends and before the actual payment, the company records its liability to shareholders in the dividend payment account.
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Sorting customers by their physical and social characteristics is called ______ segmentation.
Answers
Sorting customers by their physical and social characteristics is called demographic segmentation.
In economic and business, Demographic segmentation generally can be defined as a precise form of audience identification based on data points. The data point that usually used to precise form of audience are like age, gender, marital status, family size, income, education, race, occupation, nationality, and also religion. Each of variable or also criteria is called as a variable of demographic segmentation. Beside that, there are three main criteria of demographic segmentation, there are birth, migration, and aging.
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Which of these arrangements could be either an easement or a license?
a. ability to restrict building on a parcel of land for 100 years.
b. ability to harvest trees on a parcel of land.
c. ability to drive on a parcel of land.
d. ability to hunt on a parcel of land
Answers
An easement is a non-possessory right that allows someone to use another person's property for a specific purpose.
The landowner grants permission for the neighbor to drive on the land, with the agreement recorded in the land registry and the right being granted permanently or for a specified period, it would be classified as an easement.
It is a permanent right that transfers with the ownership of the land and is recorded with the local land registry office. On the other hand, a license is a revocable permission to enter or use someone else's property, which can be terminated by the property owner.
In the context of driving on a parcel of land, whether it qualifies as an easement or a license depends on the specific terms and duration of the agreement. If the landowner grants permission to a neighbor to use the land for driving purposes, without the arrangement being recorded or having a permanent or fixed period, it would be considered a license.
Among the options provided, the ability to drive on a parcel of land is the arrangement that could potentially be either an easement or a license, depending on the specific terms, recording, and permanence of the right granted.
It is important to consider the details and legal aspects of the arrangement to determine whether it falls under an easement or a license.
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Consumer behavior is the way that forces shape people's
A. goods and services
B. place and time utility
C. culture and society
D. activities related to buying
Answers
Answer:
D. activities related to buying
Explanation:
Consumer behavior study how individuals and organizations select the goods and services they opt to buy. It tries to understand consumers' motivation, psychology, and behavior as they select preferred goods and services. Consumer behavior is broad and complex. Some of the answers it seeks are
1. How consumers think and choose between various options
2. The behavior of consumers while shopping
3. How the environment (peers, culture, media, social media) influence social media
Assuming that you a consultant in the oil & gas industry/sector and have been asked to give a report to a key player, provide your thoughts and strategic recommendations regarding the independent oil & gas companies' proactiveness in key areas like products supply & marketing, revenue generation and technologies/research & development.
Answers
As a consultant in the oil & gas industry, your report should address the proactiveness of independent oil & gas companies in key areas such as products supply & marketing, revenue generation, and technologies/research & development. Here are some thoughts and strategic recommendations to consider:
1. Products supply & marketing:
- Independent oil & gas companies should focus on diversifying their product portfolio to cater to changing market demands and trends.
- They should proactively monitor and analyze market conditions to identify potential opportunities for expansion or new product development.
- Investing in effective marketing strategies, including digital platforms, can help them reach a wider customer base and create brand awareness.
2. Revenue generation:
- Independent oil & gas companies should explore different revenue streams beyond traditional oil and gas production.
- Diversifying into renewable energy sources, such as wind or solar power, can help them tap into the growing market for sustainable energy solutions.
- Strategic partnerships with other companies in related industries, such as petrochemicals or refining, can provide additional revenue opportunities.
3. Technologies/research & development:
- Embracing technological advancements and innovation is crucial for independent oil & gas companies to stay competitive.
- Investing in research and development can lead to the discovery of new extraction methods, improving operational efficiency and reducing costs.
- Collaborating with universities, research institutions, and technology companies can facilitate the exchange of knowledge and accelerate technological advancements.
It is important to note that these recommendations should be tailored to the specific circumstances and goals of the key player you are reporting to. Additionally, the oil & gas industry is constantly evolving, so staying updated with industry trends and regulations is vital for long-term success.
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Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift cards are redeemed within one year. Gift cards totaling $1,300 were presented for redemption during 2021 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January. Required: 1. Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually). 2. Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet. 3. What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2021
Answers
1- Journal Entries: a. November 2021: Cash (or Accounts Receivable) $5,200 Gift Card Liability $5,200
b. December 2021: Cash (or Accounts Receivable) $2,100 Sales Revenue $2,000 Sales Tax Payable $80 Gift Card Liability $1,300
Gift Card Breakage Revenue $100 ($1,300 x 20%)
In November 2021, the restaurant received $5,200 in cash (or accounts receivable) from the sale of gift cards. This results in a liability for the restaurant as the gift cards are redeemable for meals within two years of the purchase date. In December 2021, customers presented gift cards with a total value of $1,300 to pay for meals that cost $2,100. Since the meals were sold in December, the restaurant collected 4% sales tax on the meals ($2,100 x 4% = $80). The $2,000 ($2,100 - $80) received from the customers is recorded as sales revenue, and the sales tax collected is recorded as a liability until remitted in January. The liability for the unredeemed gift cards at the end of the year is $1,300 ($5,200 - $2,100) and is recorded as a liability. The restaurant also recognizes $100 of breakage revenue ($1,300 x 20%) since experience within the industry indicates that 80% of gift cards are redeemed within one year.
2- Liability for Gift Cards:
The liability for gift cards to be reported on the December 31, 2021, balance sheet is $1,300.
3- Classification of Liabilities:
The liability for gift cards should be classified as current liabilities on the December 31, 2021, balance sheet since they are expected to be redeemed within one year.
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A fan base is, in most ways, quite similar to a customer base.
A. False
B. True
Answers
During your second year of internship, a client reveals that he is thinking of proposing. You have worked with this client for a year and agree he is ready. However, which of the following would be a good suggestion?
starting family counseling
starting premarital counseling
starting to stop counseling
starting individual counseling
Answers
As a therapist undergoing internship, when a client is about to propose, then, a premarital counseling should be started.
Premarital counseling is a counseling organized for intending couples. The intending couples undergo counseling session in order to be aware of what awaits them in marriage.It also helps intending couples know the kind of topics to discuss during their courtship ranging from financing the home, method of resolving conflicts, number of children and so many other important topics.Therefore, as a therapist, you should suggest premarital counseling for such client having it in mind to propose.
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1.
What is demand? Law of demand?
2.
What are the factors that affect demand?
3.
What is elasticity of demand?
4.
What are substitutes, /Complements, normal/inferior goods
5. Substitution effect
6. Factors that effect elasticity
7. Factors that shift the demand curve?
8.
Be able to determine total revenue and elasticity.
Answers
1. Demand refers to the quantity of a good or service that consumers are willing and able to purchase at a given price.
The law of demand states that as the price of a good or service increases, the quantity demanded will decrease, and as the price decreases, the quantity demanded will increase.
2. There are several factors that affect demand, including consumer income, consumer tastes and preferences, the price of related goods, the availability of substitutes, and changes in population or demographics.
3. Elasticity of demand refers to the responsiveness of quantity demanded to changes in price. When demand is elastic, a small change in price results in a large change in quantity demanded, whereas when demand is inelastic, a change in price results in a relatively small change in quantity demanded.
4. Substitutes are goods or services that can be used in place of one another, such as Coke and Pepsi. Complements are goods or services that are used together, such as hot dogs and buns. Normal goods are goods for which demand increases as income increases, while inferior goods are goods for which demand decreases as income increases.
5. The substitution effect is the change in quantity demanded that results from a change in relative prices, holding real income constant.
6. Factors that affect elasticity include the availability of substitutes, the degree of necessity or luxury of the good, the time frame for adjustment, and the proportion of income spent on the good.
7. Factors that shift the demand curve include changes in consumer income, changes in tastes and preferences, changes in the price of related goods, changes in population or demographics, and changes in consumer expectations.
8. Total revenue is the price of a good or service multiplied by the quantity sold. The elasticity of demand determines how changes in price affect total revenue. When demand is elastic, a decrease in price will increase total revenue, while an increase in price will decrease total revenue. When demand is inelastic, a decrease in price will decrease total revenue, while an increase in price will increase total revenue.
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How does a command economy answer the three economic questions?
(1) what to produce, (2) how to produce, and (3) for whom to produce.
Answers
Answer:
key terms in purest from a market economy answers the three economic questions by allocating resources and goods through markets where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
Answer:
is it (3) for whom to produce.
Explanation: