All categories

3 years ago

Please list and explain the three principles that describe how the economy as a whole works.

Business

1 answer:

STatiana [176]3 years ago

6 0

Answer:

The standard of living from country to country is affected by their level of productivity. The more productive a Country is, the more goods and ser- vices they have available, etc.lnflation occurs when the government prints a surplus of money.There is a trade-off between inflation and unemployment. Increase in price can happen from higher demand, which in turn causes firms to higher more workers to produce more goods/services.

You might be interested in

After being introduced to a higher-priced washing machine, the customer expresses a desire to purchase a lower-priced item. when

horrorfan [7]

Based on the scenario above, when this happens, the customer is likely to be engaging or to have a traded down. The trading down is being defined as having the quality of the product to be reduced in means of being able for the price to be suited for its consumers.

3 0

3 years ago

One-year Treasury securities yield 4%. The market anticipates that 1-year from now 1-year Treasury securities will yield 2.1%. I

Lesechka [4]

Answer:

3.05%

Explanation:

According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.

Mathematically,

(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1

Here,

r2,0 is the rate of interest for 2 year treasury security from today

r1,0 is the rate of the interest for 1 year treasury security from today

r1,1 is the rate of the interest for 2 year treasury security from Year 1

By Putting Values, we have:

(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1

(1 + r2,0)^2 = 1.06184

By taking square-root on both sides, we have:

(1 + r2,0) = 1.0305

r2,0 = 3.05%

8 0

4 years ago

(Problem 1b.) Determine the amount of consumer surplus generated in the following situation. Alberto goes to the CD store hoping

Alenkinab [10]

Answer:

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Consumer surplus = willingness to pay - price

$30 - $30 = $0

Ihope my answer helps you

8 0

3 years ago

A company's return on assets (ROA) can be disaggregated to reveal which of the following: (Select all that apply)

Alenkinab [10]

Answer:

b. Asset Turnover &

d. Profit margin.

Explanation:

Return on asset (ROA) simply shows a percentage of how profitable companies assets are in generating the revenue. It is calculated as:

$= \frac{Net income}{Total assets}$

However, if we further break it down, we can write it as follows:

$= \frac{Net income}{Sales} * \frac{Sales}{Total Assets}$

Both formulas Represent the same things.

But, the ratio of Net income to Sales is known as the Profit margin- A degree to which company makes money. Here, we can see how the ROA can be broken down in terms of profit margin.

Also, the ratio of Sales to Total asset is know as the Asset Turnover- a measure of company's use assets in generating the sales.

Hence, we can say that the ROA can be dis aggregated to reveal the Asset Turnover and the Profit margin.

8 0

4 years ago

John Gates made $25,000 last year and paid $2,500 in taxes. What percentage of his income did John pay in taxes?

Katen [24]

Answer:

10%

Explanation:

The Percentage of tax that John pays on his income last year shall be calculated using the below mentioned formula

Percentage of taxes=taxes paid by John/total income of John last year

In the given question

tax paid by John=$2,500

total income of John last year=$25,000

Percentage of taxes=2,500/25,000=10%

8 0

3 years ago