Answer: Option (D) is correct.
Explanation:
An economic signal is a type of information on a particular good, product or activity which helps people in making economically correct decisions.
All the options are showing economic signal in some way:
(a) There is a fall in the demand for floppy disks and CDs which shows that there is a trend change.
(b) High unemployment rate in U.S will lead to a decision to employ more number of people.
(c) This increases the demand for houses.
(d) There is a indication about the future prices of toilet paper that it will not change much in the future.
Answer:
The false statement is letter "A": The effect of compounding is great over short time periods, but then it begins to decline as the horizon grows.
Explanation:
Interest on interest or Compound Interest is the money accrued out of an interest rate plus all the interest earned accumulated on a certain period of time. The compound interest can be calculated on a daily, monthly or yearly basis. If the frequency of the compound interest is set in shorter periods of time, it will be more beneficial for the investor.
In that sense, option letter "A" is false since interest on interest does not decline over time but increases.
The answer is true and not false
Answer:
Option E is correct
The price of the sandwich to maintain the same level of profit should be increased by 10%.
Explanation:
Let us assume the prices of condiments, meats and vegetables are all $100 each before the increment. After the the increment, each of them will cost:
100×(1+10%)= $110
The total cost of supplies before the inflation= 100×3= $300
The total of supplies after the increment = 110×3= $330
The rate of inflation = (330/300-1) × 100 =10%
The price of the sandwich to maintain the same level of profit should be increased by 10%
