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Nostrana [21]
3 years ago
12

It is important for a good economic model to predict cause and effect so that it can: explain events that have occurred and help

anticipate future events. be used to predict all future events. be used to change the direction of causality. fit the real world perfectly.
Business
2 answers:
natka813 [3]3 years ago
6 0

Answer: Explain events that have occurred and help anticipate future events.

Explanation:

A good Economic model should be able to explain a phenomenon as well as proffer solutions to it and help anticipate the future.

It is normally said that for one to know where they are going, they need to know where they have been.

Without an Economic theory that explains what has happened and what must be done, humanity will stumble from one bad decision to another when dealing with Economic problems.

Imagine if there were no models to like the Economic Lifecycle to predict or at least to offer solutions to times the Economy goes through a Depression. Or imagine if the Central Bank (FED) didn't know what to do to help the Economy. Or if the US government didn't know when to impose more taxes or less.

Economic models NEED to explain events and predict the future.

liraira [26]3 years ago
5 0

Answer:

Yes it is

Explanation:

Because Prediction of cause and effect is important for the good economic model. If the economic model observe the cause and effect relationship, then it can be helpful to anticipate from the similar situation in future. For example, recession is causes recession. If the economic model observe it, then it can be helpful to control recession if t occurs in future.

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Does​ Firm A have a dominant strategy? The dominant strategy for Firm A is a low price. No, there is no dominant strategy for Fi
ollegr [7]

Answer:

Explanation:

I will give a basic hint to understanding this problem

Prevailing technique or what is best known as "Dominant Strategy" is an activity profile that is best for a specific player review of what different players are picking. for this situation there is no prevailing procedure for any player on the grounds that there is no single activity profile that expands the result for any player.

So we can say from this observations that the following is valid;

  • A doesn't have a dominant strategy

  • B doesn't have a dominant strategy

There are two Nash equilibria for this situation. Both the organizations are charging a low cost and both the organizations are charging a significant expense.

As such they can augment their benefit given what the adversary is doing.

I hope this explains the observation seen.

cheers I hope this helps

3 0
3 years ago
Transfer Pricing
dusya [7]

Answer:

Pembroke= $105,000

Multinomah= $120,000

Explanation:

Giving the following information:

The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.

The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.

Pembroke= 15,000*(82 - 75)= $105,000

Multinomah= 15,000*(90 - 82)= $120,000

3 0
3 years ago
Commonwealth Delivery is the world's leading express-distribution company. In addition to the world's largest fleet of all cargo
krek1111 [17]

Answer:

Part a

Debit : Profit and loss $0

Debit : Cash $15,100

Debit : Accumulated depreciation $35,900

Credit : Cost $ 51,000

Part b

Debit : Profit and loss $2,200

Debit : Cash $15,100

Debit : Accumulated depreciation $35,900

Credit : Cost $ 51,000

Part c

Debit : Cash $15,100

Debit : Accumulated depreciation $35,900

Credit : Cost $ 51,000

Debit : Profit and loss $2,200

Explanation:

the journal entry for the disposal of the truck  are shown

4 0
3 years ago
Tp-7 on gasoline powered boats, when should the blower be operated?
gayaneshka [121]
The answer is: <span>, the blower should be operated after refueling and before starting the engine
In a boat, the blower's function is to safely remove the residual from the fuel that is used to move the boat.
If we do not start the blower properly, there is a chance that our boat could explode while in the middle of operation.</span>
5 0
3 years ago
A bond is issued at a discount when a​ bond's stated interest rate is​ ________. A. more than the effective interest rate B. equ
kiruha [24]

Answer: C. Less than Market Interest rate

Explanation: When the interest rate on a bonds issued by an organization is lesser than the prevailing interest rate being offered in the market at a certain time on Bank deposits, loans or other interest bearing funds, organization tends to issue discounts on bonds in scenarios like this and as such bonds are being issued or traded at prices lower or below it's face value in other to encourage investors and bridge the interest gap between the bond rate and the market rate.

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