Answer: True
Explanation:
Beef surplus in the market simply means that there's excess of beef in the market. In this case, the quantity supplied for beef is more than the quantity that the consumers demand, which means that the price at which beef is sold is more than the equilibrium price.
Due to thus reason, the government must mandate lower prices as this will help in increasing the quantity demanded of beef, reduce quantity supplied and hence, the surplus will be curtailed.
Answer: Decreasing returns to scale
Explanation: In simple words, decreasing returns to scale can be defined as the situation in which for every increase in 1 unit of output one has to invest more than 1 one unit of input.
In decreasing returns to scale the cost of production increases with level of production made.
Hence the right answer is option A.
Answer: borrowing.
When you have money you have to decide whether you want to spend/invest it or save for future spending. If you save it is because you can earn interests and increase the value of your money.
Yet, you have a third option to consider. You can borrow money. Whether it is better to borrow money to spend today is a financial issue, and the convenience will depend on the cost of that money (the interests that you have to pay to the bank) and the benefits of using it.
We can actually deduce here that when building the Complete 2nd Order Model, one can do all except: C. Create an interaction between age and each of the levels of job satisfaction.
<h3>What is Complete Second Order Model?</h3>
The complete second degree (order) model is actually known to be a polynomial model that includes the linear terms, second degree terms and the interaction term.
The options that complete the question are:
A. Create a curvilinear term for job satisfaction
B. Create an interaction between unemployment rate and age
C. Create an interaction between age and each of the levels of job satisfaction
D. Create a curvilinear term for age.
Thus, options C is the one that wouldn't be carried out in the Complete Second Order Model.
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Answer:
The statement that is not correct is:
- <u><em>B) A purchase of equipment is classified as a cash outflow from investing activitites.</em></u>
Explanation:
<u><em>A) Paying dividends to investors creates a cash outflow from financing activities. </em></u>
This is correct.
The financing cash flow or cash flow generated by financing activities is the cash flow that involves transactions with the banks (only the long term debt) or stake holders: financing debt, equity, and dividend.
Issuing equity of debt is a cash inflow: increases the cash of the company.
Paying dividends, such as repurchasing debt or equity are cash outlfow: decreases the cash of the company.
<u><em>B) A purchase of equipment is classified as a cash outflow from investing activities.</em></u>
<u><em></em></u>
This is not correct.
The operating cash flow is the cash that involves the operations of the company: sales (revenue), trade receivables, operating investement in building and equipments used for the operation, purchases from suppliers (inventory).
When you purchase an equipment it diminishes the cash or impact an operating account; thus, a purchase of equipment is classified as a cash ouflow from operating activities, not from investing activities.
