Answer:
$245.09
Explanation:
A service contract for a video projection system costs $90 a year. You expect to use the system for three years.
Instead of buying the service contract, the future value of these annual amounts after three years if you earn 5 percent on your savings will be:
PV
Ordinary Annuity
=C×[ ((1−(1+i) ^−n
) / i ]
where
n = number of years = 3
i = interest rate = 5%
Present Value of the annuity = 90 x [ ((1 - (1+0.05)^-3) / 0.05] = $245.09
The crowding-out effect implies that restrictive fiscal policy will reduce real interest rates.
<u>Option: D</u>
<u>Explanation:</u>
The crowding out effect is the circumstances where greater interest rates consequences gives output of a decline in private investment expenditure so as to dampen the initial rise in overall investment expenditure. Authorities often embraces a restrictive fiscal-policy approach and raises spending to stimulate economic activity. This contributes to interest-rate rises. Higher interest rates have a impact on private investment choices. A high magnitude of the crowding-out impact can also result in lower economic revenue.
Answer:
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Explanation:
The basic theory illustrated in (Figure) is that, because of the existence of fixed costs in most production processes, in the first stages of production and subsequent sale of the products, the company will realize a loss. For example, assume that in an extreme case the company has fixed costs of ?20,000, a sales price of ?400 per unit and variable costs of ?250 per unit, and it sells no units. It would realize a loss of ?20,000 (the fixed costs) since it recognized no revenue or variable costs. This loss explains why the company’s cost graph recognized costs (in this example, ?20,000) even though there were no sales. If it subsequently sells units, the loss would be reduced by ?150 (the contribution margin) for each unit sold. This relationship will be continued until we reach the break-even point, where total revenue equals total costs. Once we reach the break-even point for each unit sold the company will realize an increase in profits of ?150.
For each additional unit sold, the loss typically is lessened until it reaches the break-even point. At this stage, the company is theoretically realizing neither a profit nor a loss. After the next sale beyond the break-even point, the company will begin to make a profit, and the profit will continue to increase as more units are sold. While there are exceptions and complications that could be incorporated, these are the general guidelines for break-even analysis.
As you can imagine, the concept of the break-even point applies to every business endeavor—manufacturing, retail, and service. Because of its universal applicability, it is a critical concept to managers, business owners, and accountants. When a company first starts out, it is important for the owners to know when their sales will be sufficient
Answer:
The correct answers are:
A) The effects of the Internet on the pricing of used cars. (Microeconomics)
B) The effect of government regulation on a monopolist's production decisions
. (Microeconomics)
C) The effects of government tax policy on long-term economic growth. (Macroeconomics)
Explanation:
The field of economics is usually broken down into two broad categories: Microeconomics and Macroeconomics. The goal of all economics is to analyze the production and consumption of finite resources like oil, wheat, capital or even labor. Microeconomics observes these issues from an individual or business perspective. Macroeconomics looks at the issues from the perspective of the country as a whole, and the policies affecting the economy. Thus:
A) The effects of the Internet on the pricing of used cars. (Microeconomics)
B) The effect of government regulation on a monopolist's production decisions. (Microeconomics)
C) The effects of government tax policy on long-term economic growth (Macroeconomics)
Answer:
Option A Individuals have the skill set necessary to successfully complete the project
Explanation:
The evaluation method doesn't matters, the rewards doen't matters, the acknowledgment of responsibilities also don't matters if the team members are not capable to achieve the set objective. This is the most important part of the team formation and after that the resources availability is very important. So the right answer is Option A.