Answer:
<em>A scientist discovers a chemical in certain rocks that kills bacteria when it is mixed with sterile water in a test tube. She cannot market extracts that contain this chemical as a dietary supplement, because it </em><em><u>does </u></em><em><u>not</u></em><em><u> </u></em><em><u>contain</u></em><em><u> </u></em><em><u>dietary</u></em><em><u> </u></em><em><u>ingredients</u></em><em><u>.</u></em>
Answer:
The correct answer is letter "B": Program.
Explanation:
A program collects the sets of ideas, projects, and plans companies come up with to pursue and accomplish their objectives. Programs tend to be reviewed periodically to verify if the progress of the goals is made according to what is expected or if there are delays to be adjusted.
Answer:
d
Explanation:
Nominal interest rate = real interest rate + inflation rate
6 - 2 = 4%
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
if inflation declined by 2 percent, it means purchasing power increased by 2%.
Total increase in purchasing power = 6 + 2 = 8
Answer:
Option (a) is correct.
Explanation:
Asymmetric information refers to the situation in which one of two parties involved in the transaction having more information than the other party.
It is evident that an asymmetric information is associated with all types of economic transaction. It is mostly associated with the insurance industry and banking industry.
In our case, banks have less information about the borrower's loan repaying capability and could make many loans to the people who will be the defaulters.
There are two problems arises from the asymmetric information:
(i) Moral hazard
(ii) Adverse selection
