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Kazeer [188]
3 years ago
12

The purchasing power of the dollar would fall by 20% if the price index rises by:A. 44 percentB. 12.5 percentC. 25 percentD. 10

percent
Business
1 answer:
Afina-wow [57]3 years ago
7 0

Answer:

correct answer is C. 25 percent

Explanation:

solution

we relate purchasing power to the purchasing of product by consumer to investor for the prosperity of economy

so we consider here price index that is  = 100

and it is rise to =  125

so that  purchasing power will be decrease by  x to the \frac{100x}{125}

and money value will be lead to %change as

money value  = \frac{x-\frac{100x}{125} }{x}    .................1

money value  = 1 - 0.8

money value  = 0.2

money value  = 20%

so we can say that when we buy with 20% than purchase power will be fall as 25% increase in the price

so correct answer is C. 25 percent

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Answer:

The correct answer is option c.

Explanation:

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In other words, the marginal product of inputs will go on declining with each additional unit of input employed. As a result after reaching a certain point, the marginal product starts to decline.

7 0
3 years ago
An authorization to start a business issued by the local government is a _____. fringe benefit zoning law business license liabi
Rina8888 [55]

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5 0
3 years ago
Four months ago, you purchased 1,300 shares of lakeside bank stock for $23.32 a share. you have received dividend payments equal
Marina CMI [18]
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7 0
3 years ago
Frederickson Office Supplies recently reported $10,000 of sales, $7,250 of operating costs other than depreciation, and $1,250 o
stich3 [128]

Answer:

c. $900

Explanation:

The computation of the earnings before taxes (EBT) is shown below:

= Sales - operating costs other than depreciation - depreciation expense - outstanding bonds × interest rate

= $10,000 - $7,250 - $1,250 - $8,000 × 7.5%

= $10,000 - $7,250 - $1,250 - $600

= $900

We ignored the state income tax rate of 25% and the rest of the items would be taken for the computation part

6 0
3 years ago
Consider the following: Alex is one of the leading widget producers in the country. His total costs amount to $10,000, total fix
Lilit [14]

Answer:

The correct answer is 20 units.

Explanation:

According to the scenario, the given data are as follows:

Total cost = $10,000

Total fixed cost = $2,000

Average variable cost = $400

So, Total variable cost = Total cost - Total fixed cost

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So, we can calculate the total number of widgets producing by using following formula:

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= $8,000 ÷ $400

= 20 units

6 0
4 years ago
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