Answer:
Opportunity costs are defined as the additional costs or benefits lost from choosing one activity or investment over another alternative. It is a relative concept because you cannot be 100% sure that the other investments or activities would have yielded a specific gain.
For example, when you calculate the economic cost of starting your own business, you consider your current salary as an opportunity cost. But what happens if you get fired (or the company closes), your opportunity cost would have been $0? Or how can you exactly measure your future salaries? Maybe in a couple of years you get promoted to manager, or maybe not?
The same applies to economies, since the opportunity cost of producing certain tradable goods is not always fixed, it might decrease or increase due to productivity or efficiency changes. But in order to calculate or determine we must include the most probable option.
In microeconomics, a strictly convex production possibilities frontier function must include a combination of both goods. In strict convexity, the second derivative f''(x) ˃ 0, so the PFF curve cannot be straight, it must have a slope.
When we calculate the opportunity costs of PPF, we usually try to determine which product has the lowest opportunity cost, but that is not an interior solution because both goods are not being produced (the curve is not strictly convex). On a strictly convex curve, as you approach the extremes the opportunity cost of producing one good is high, but on the center the opportunity cost is much lower.
When banks spend (or loan) money, the money supply increases and when interest / loan payments are received, the money supply declines. TRUE
A bank is a financial organization that accepts deposits from the public and creates a call for deposit at the same time as concurrently making loans. Lending sports can be directly accomplished by means of the financial institution or in a roundabout way through capital markets.
Industrial banks offer numerous offerings like amassing cheques, bills of alternate, remitting money from one place to some other location, and many others. industrial banks are of three kinds' i.e. public quarter banks, private area banks, and foreign banks.
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Answer:
$100
Explanation:
The present value of a cash flow can be found by discounting the cash flow at the annual interest rate.
The formula for finding present value can be found in the attached image.
The present value can be calculated using a financial calculator.
Cash flow in year one = 0
Cash flow in year two = $121
Discount rate = 10%
Present value = $100
I hope my answer helps you
The assessed value of their new home is $46,750.
<h3>Assessed value</h3>
Using this formula
Assessed value=Appraisal amount× Assessment ratio
Where:
Appraisal amount=-$187,000
Assessment ratio=25%
Let plug in the formula
Assessed value=$187,000 × 0.25
Assessed value = $46,750
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When someone pays back a loan quickly it is called a sudden payoff. This question is question every consumer asks in order to decide if he/she should take a loan or not. The best for your financial state is to pay your loan the sooner you can. The reason is: you save money when you pay a loan off early and y<span>ou are financially stronger when your debt is paid.</span>