Answer:
6.22%
Explanation:
Price of sandwich four years ago, Present value = $5.49
Price of sandwich, Future value = $6.99
It is given that the inflation has been assumed to be constant over these four years.
Inflation rate refers to the rate at which prices of the good increases from the previous level. In a simple language, if there is a rise in the price of the goods then this economy is experiencing a inflation.
Inflation rate:
= 1.0622487 - 1
= 0.0622487 or 6.22%
Therefore, the inflation rate is 6.22%
Answer:
Water freight is a very important method of transportation and is the second cheapest (railroad is the cheapest). Huge volumes can be shipped at relatively low prices which is extremely important for raw materials and commodities.
The problem with water freight is that it is relatively slow though. Another problem that water freight faces is that it is cheap for medium and long distances, but uneconomical for short ones.
A great impediment for the technological progress of water freight is that most ports are obsolete and have not been updated in many years. Updating them is very expensive and many of them are public ports which doesn't help either.
Most new carrier ships (which are very high tech) are probably too big to fit into most US ports, so even if a carrier company invests huge amounts of money in them, where will they them? Technological progress must start with the ports, then water carriers should improve.
Another problem is that regulation is very loose in the US, especially regarding maritime ports.
C. The adjusting entry for accrued interest on a note receivable would include a credit to interest revenue
Answer:
Given these facts, which state would you expect the price of prostitution services to be higher? Why?
- Since the risks associated to prostitution are higher in New Jersey, we could assume that the price for these services will be higher there. The supply curve of prostitution shift to the left, increasing the price and decreasing the quantity.
Which state would have the higher amount of services consumed (adjusted for population differences)? Why? What are the underlying economic issues of this market?
- Since the price is higher in New Jersey, the quantity demanded will be lower. Also, the risks associated to consuming the service will shift the demand curve to the left, reducing the quantity.
