Answer:
The correct answer is Allocative efficiency.
Explanation:
Although there are different evaluation standards for the concept of allocation efficiency, the basic principle states that, in any economic system, the different options in the allocation of resources will produce both "winners" and "losers" in relation to the choice being evaluated. The principles of rational choice theory, individual maximization, utilitarianism and market theory assume, in addition, that the results for both winners and losers can be identified, compared and measured.
From these basic premises, the objective of maximizing the efficiency in the allocation can be defined according to some neutral principle in which some options are considered “objectively better than others”. For example, an economist might say that a change in policy increases the efficiency of allocation, as long as those who benefit from the change (winners) earn more than the losers lose.
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Answer and Explanation:
The computation is shown below:
Contribution Margin for Bat
= $50 - $50
= $0
Contribution Margin for Gloves = $100 - $80
= $20
Now
Overall Contribution Margin = (0 ×70%) + ($20 × 30%)
= $0 + $6
= $6
Now
A. Break even sales = Fixed cost ÷ contribution margin
= $57,000 ÷ $6
= 9,500
B.Baseball bats = 9,500 × 70% =6,650
Baseball Gloves = 9,500 × 30% = 2,850
The available options are:
A. I and III
B. I and IV
C. II and III
D. II and IV
Answer:
C. II and III
Explanation:
IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.
However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.
Hence the true statements are:
II When interest rates rise, the price of the tranche rises
III When interest rates fall, the price of the tranche falls
Answer:
Saving = $200
Investment = $100
Explanation:
Given;
Gross Domestic Production = $1000
Consumption = $600
Taxes = $100
Government spending = $200
Find:
Saving and investment
Computation:
Saving = Gross Domestic Production - Consumption - Government spending
Saving = 1,000 - 600 - 200
Saving = $200
Investment = Saving - Taxes
Investment = 200 - 100
Investment = $100
Answer:
The algebraic formulation of the constraint is 4X+2Y ≤ 100
Explanation:
The algebraic formulation of the constraint is shown below:
Given that
The number of hours taken per unit of x is 4 hours
And the number of hours taken per unit of x is 2 hours
And, the maximum hours available is 100
Now based on the above information
The algebraic formulation of the constraint is
= 4X+2Y ≤ 100
hence, the same is to be considered
