<h2>
Both situations are examples of an economic problem.</h2>
Explanation:
Let us understand the term "economic problem"
Though the expectation of the people are endless, the "resources available" to satisfy the need is limited. This causes the "economic problem".
A student trying to decide how to spend his weekly allowance:
The need of student may be endless but still he is in a position to decide only based on the amount which he has to spend. He needs to prioritize the needs and then spend accordingly.
A country choosing to sacrifice some privacy to gain more security:
Under a compelled situation, the country has to sacrifice the privacy and then have to gain security. The loss due to negotiation of privacy is for sure and this leads to economic problem.
Answer: A) usage promotion
Explanation:
When a product is promoted based on what it can do or rather what it is used for, the perspective being used is called a usage promotion. The aim of this is to show the users the benefits of using the products so that they can buy it for that purpose.
The vegetables here are being shown to help a person achieve physical fitness and live a healthy life. The goal is therefore to entice people to buy vegetables so that they are healthy in life.
Answer:
The correct answer is: A
Explanation:
The velocity of money is a measurement of the rate at which money is exchanged in an economy. It is the number of times that money moves from one entity to another. The velocity of money is important for measuring the rate at which money in circulation is being used for purchasing goods and services.
Economies that exhibit a higher velocity of money relative to others tend to be more developed. The velocity of money is also known to fluctuate with business cycles.
Velocity of money formula:
Velocity of Money = GDP / Money Supply
According to the<em> </em><em>quantity theory of mone</em><em>y</em>, inflation occurs because there is too much money available to buy the same amount of goods and services produced in the economy. It relates the general price level, the total goods and services produced in a given period, the total money supply and the speed (velocity) at which money circulates in the economy in the following equation:
MV = PQ
M stands for money.
V stands for the velocity of money (or the rate at which people spend money).
P stands for the general price level.
Q stands for the quantity of goods and services produced.
If for some reason the money velocity declines rapidly, it can offset the increase in money supply and even lead to deflation instead of inflation.
When more transactions are being made throughout the economy, velocity increases and the economy is likely to expand. <u>The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.</u>
