Answer:
The answer is A) Rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
Explanation:
Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.
Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.
Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price, should show up and offer their cheaper services.
Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.
The answer is "employs resources to produce goods and services and distribute them among competing groups and individuals<span>"
Economics is a teaching that can enable us to answer these inquiries. Economics can really be characterized a couple of various ways: it's the investigation of shortage, the investigation of how individuals utilize assets or the investigation of basic leadership.
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Answer:
The new real interest rate is 15%
and the lender was hurt.
O 15%; lender
Explanation:
a) Data and Calculations:
Fixed nominal interest rate = 13%
Real interest rate for the bank's profit margin = 10%
Inflation rate = 3% (13% - 10%)
Unanticipated inflation rate = 7%
Nominal interest rate = 17% (10% + 7%)
But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.
Answer:
Explanation:
The journal entries are shown below:
On 1 June 2020
Accounts receivable A/c Dr $50,925
To Sales revenue $50,925
(Being goods are sold on credit)
On July 12 2020
Cash A/c Dr $50,925
To Accounts receivable A/c $50,925
(Being cash received is recorded)
The computation is shown below:
= Sales amount - discount
= $52,500 - $1,575
= $50,925
And, The discount = Sales amount × discount rate
= $52,500 × 3%
= $1,575
Answer:
D. The demand for artichokes will increase.
Explanation:
Demand is the willingness of a consumer to pay for the goods and services so purchase.
One of the major determinants of demand is expectation of change of price in the future. Others are price of related goods, income of consumers, tast and preference, and expectation of change of price in future.
When consumers speculate increase in price of certain commodity, then there would be increase in demand for such commodity now.
It therefore follows that consumers tends to follow market trend in terms of demand. They would demand for certain commodity in anticipation of price increase thereby leading to scarcity of such commodity in the market.
