The economics concepts of income effect and substitution effect express changes in the market and how these changes impact consumption patterns for consumer goods and services. The income effect expresses the impact of increased purchasing power on consumption, while the substitution effect describes how consumption is impacted by changing relative prices. Different goods and services experience these changes in different ways. Some products, called inferior goods, generally decrease in consumption whenever incomes increase. Consumer spending and consumption of normal goods typically increases with higher purchasing power, in contrast with inferior goods.
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Answer: B) employee’s compensation.
The income approach to measure gross domestic product or GDP starts with the income earned (wages plus plus rents plus interest plus profits) from the production of goods and services.
Based on the income-based method of calculating GDP, income or wages earned by Joe and Michelle for being partners can be categorized under B) employee’s compensation.
Answer:
life insurance net payment cost index
Explanation:
The accidental death benefit is referred to as a payment due to the sole beneficiary of an accidental death insurance policy. The accidental death benefit mostly is an amount paid which adds to the standard benefit payable if
and only if the insured died of natural causes e.g old age, earthquake or tsunami etc.
Depending on the issuer of the policy, the accidental death benefit may extend up to a year after the initial accident occurred, so long as the accident led to the insured's death.
Answer:
A. specialization.
Explanation:
Specialization refers to dividing the job in different tasks and assigning a person to perform each one which makes that each person becomes an expert in the specific area. This could help to increase productivity, especially in manufacturing. This is the process the Miller family uses because they have divided the tasks and assigned each of them to a person.
Answer:
10.60%
Explanation:
First, we calcualte the returns and then solve for the rate like a normal compounding:
<u>returns:</u>
annual coupon payment. 1,000 face value x $ 13.68 = $ 136.80
sales price: 913.73
<u>total:</u> 136.8 x 6 + 913.73 = 820.80 + 913.73 =
<em />
<u>cost: </u> 947.68
to record the effective rate of return:
![\sqrt[6]{\frac{1,734.5}{947.68}} -1 = r_e](https://tex.z-dn.net/?f=%5Csqrt%5B6%5D%7B%5Cfrac%7B1%2C734.5%7D%7B947.68%7D%7D%20-1%20%3D%20r_e)
<u>effective rate of return:</u> 0.105992287 = 10.60%
