Answer:
The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.
Explanation:
Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.
Thus, <em>metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.</em>
Negative shocks reduce production and increase unemployment. Positive shocks increase production and reduce unemployment.
Unexpected change moving SRAS. A positive supply shock increases SRAS, whereas a negative supply shock decreases SRAS. A combination of slowing overall economic output (declining) and rising price levels (inflation). Stagnation occurs when SRAS decreases.
A negative supply shock leads to an increase in the natural rate of interest. If real interest rates are not adjusted, there will be excess demand in the labor market. t = 0 unless the real interest rate is adjusted. Then we move into an economy where the market is imperfect.
A supply shock is an unexpected event in which the supply of a product or commodity changes, causing a sudden change in price. A positive supply shock increases output and decreases prices, while a negative supply shock decreases output and increases prices.
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Answer:
$23,602
Explanation:
For computing the estimated total fixed cost, first we have to determine the variable cost per unit which is shown below:
Variable cost per unit = (High cost of sales - low cost of sales) ÷ (High units sold - low units sold)
= ($59,000 - $29,400) ÷ (2,200 units - 360 units)
= $29,600 ÷ 1,840 units
= $16,09
And, the fixed cost equal to
= High cost of sales - (High units sold × Variable cost per unit)
= $59,000 - (2,200 units × $16.09)
= $59,000 - $35,398
= $23,602
Answer:
Option (D) 1.29%
Explanation:
Data provided in the question:
Treasury bill returns over four years :
4%, 3%, 2%, and 5%
Now,
Average return = (4% + 3% + 2%+ 5%) ÷ 4
= 3.5%
Standard deviation = [ ∑(Return - Mean)² ] ÷ [ n -1 ]
= [ (4% - 3.5%)² + (3% - 3.5%)² + (2% - 3.5%)² + (5% - 3.5%)² ] ÷ [ 4 - 1 ]
= 3.87% ÷ 3
= 1.29%
Hence,
Option (D) 1.29%
Answer:
1. As the price level rises, the cost of borrowing money will <u>rise</u>, causing the quantity of output demanded to <u>fall</u>.
This phenomenon is known as the <u>Interest rate</u> effect.
When price levels rise, people will have to spend more on goods and services and hence save less. As they save less there'll be less loanable funds in the economy which will force interest rates (cost of borrowing) up. As there are less loans to give out and higher rates, people will borrow less and as a result will not demand as much because they can't afford it.
2. Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar to <u>rise</u> in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will therefore <u>fall</u>, and the number of foreign products purchased by domestic consumers and firms (imports) will <u>rise</u>. Net exports will therefore <u>fall</u>, causing the quantity of domestic output demanded to <u>fall</u>. This phenomenon is known as the <u>exchange rate</u> effect.
As interest rates rise in the Economy, it will make the country a more attractive place to invest for foreigners so they will demand more of the local currency. This will cause a rise in the value of the domestic currency. This will make the exports of the country more expensive so less people outside will buy it but it will also make foreign products seem cheaper so the local consumers will import more.
