Answer: $112.08
Explanation:
Given that,
Life insurance policy = $240,000
Cost = $210
Amount to be paid by company to old lady if she survives (A):
= $240,000 - $210
= $239,790
Probability that she survives (P1) = 0.999592
Probability that she doesn't survives (P2) = 1 - 0.999592
= 0.000408
Expected value of this policy for the insurance company:
= (P1 × cost of policy) - (P2 × A)
= 0.999592 × $210 - 0.000408 × $239,790
= $209.91432 - $97.83432
= $112.08
Answer:
This question is incomplete, here are the missing answers:
<em>a. medium of exchange</em>
<em>b. unit of account</em>
<em>c. backed by a precious metal</em>
<em>d. store of value</em>
<u>The answer is </u><u>c.</u>
Explanation:
Money has three general functions (characteristics):
- <em>medium of exchange</em> - Mainly created as the substitute of barter, money has the elementary use as an intermediary when exchanging goods or services.
- <em>unit of account</em> - In order to compare the value of certain goods and services, it is essential to measure them. This is where money applies as unit of account.
- <em>store of value </em>- Given that the money is stable (purchasing power and limited inflation), it is a general option for storing value. That means it can always be easily exchanged into goods or services, no matter the time.
According to basic elimination, <u>c. is the correct answer</u>. Also, it is also known that <em>backing money with gold</em> or silver reserves is an old practice which is irrelevant for most currencies nowadays. Today, the government is backing up the value of its currency. Such money is called <em>fiat money</em>.
If data indicates the economy is in recession and members of Congress are working to pass legislation to encourage economic growth, then recognition of change in the economy has almost certainly occurred. Recognition of change in the economy involves massive capital migration from one industrial sector to another, from one community to another, and even from one nation to another.
Answer:
The correct answer is option d.
Explanation:
Gasoline prices increase dramatically in a month. Lola commutes 100 miles to work each weekday.
For a few months, she tries to reduce expenses on gasoline but driving less on weekends. Within a year she moved to place only 10 miles away from her workplace.
We see that in response to an increase in the price of Gasoline, the quantity demanded of gasoline by Lola is adjusting over time. The demand is getting more price elastic with the passage of time as a consumer is adjusting to price change and finding new ways to reduce expenses.
This example shows how the time horizon determines the price elasticity of demand.
Answer:
Josh engaged in d. negative reinforcement
Explanation:
