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2 years ago

It is important for a good economic model to predict cause and effect so that it can?

1 answer:

3 0

The ability to forecast cause and effect is crucial for a solid economic model since it enables it to both explain past events and foresee potential future ones.

A model of the economy's importance

Its main goal is to describe and examine the prices and volume sold in a market that is competitive. In relation to price and other factors, the equations of the model define the level of supply and demand (for example, income).

What conclusions do economic models draw?

A simplified representation of reality, an economic model enables us to observe, comprehend, and forecast economic phenomena. A model's goal is to simplify a complex, real-world scenario so that only the most important elements remain.

To know more about economic model

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Kevin Bacon is thinking about buying an investment. The investment option that he is thinking about buying is a written pledge b

Lesechka [4]

Answer:

Kevin is thinking about purchasing a corporate bond

Explanation:

Corporate bonds are bonds issued by firms.

Firms have two major instruments to attract investments from individual investors like Kevin: stocks and bonds.

Stocks are ownership certificates, their values and payouts fluctuates.

Bonds are debt certificates. Issuing them means the firms are obliaged to pay the interests until maturity and the face value of the bond at maturity.

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3 years ago

A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m

Alja [10]

Answer:

$12,000

Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

= $12,000

Hence the total direct material cost of $12,000

4 0

3 years ago

You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00 % on your in

Ainat [17]

Answer:

Corporate Bonds and T-Bills will have return above 8%

Explanation:

given data

investments = 4

investment = 8 %

solution

first of all we get 95% confidence interval that is as

and here investment returns and standard deviation are attach so

95% confidence interval = Return - 2 × SD to Return + 2 × SD ................a

so here

we can see here as per table attach

here only Corporate Bonds and T-Bills will have return above 8%

8 0

3 years ago

Suppose People's bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $

vodka [1.7K]

Answer:

10.38%

Explanation:

The formula to compute the effective annual rate of the loan is shown below:

= (1 + nominal interest rate ÷ periods)^ number of period - 1

The nominal interest rate is shown below:

= $250 × 4 ÷ $10,000

= $1,000 ÷ $10,000

= 0.1

Now the effective annual rate is

= (1 + 0.1 ÷ 4)^4 - 1

= (1 + 0.025)^4 - 1

= 1.025^4 - 1

= 10.38%

Since the interest rate is measured on a quarterly basis, we know there are four quarters in a year and we do the same in the calculation part.

This is the answer but the same is not provided in the given options

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3 years ago

What detail will a purchase specification for milk usually include?

ahrayia [7]

Answer:

I would try C packing size.

8 0

3 years ago