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damaskus [11]
2 years ago
15

Joe sold gold coins for $1,000 that he bought a year ago for $1,000. he says, "at least i didn't lose any money on my financial

investment." his economist friend points out that in effect he did lose money because he could have received a 3 percent return on the $1,000 if he had bought a bank certificate of deposit instead of the coins. the economist's analysis in this case incorporates the idea of
Business
2 answers:
solniwko [45]2 years ago
3 0
The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />
Anton [14]2 years ago
3 0

Answer:

The answer is Opportunity Cost.

Explanation:

Joe sold gold coins at the same price on which he bought them. In his opinion, he is at a break even point with no profit no loss situation. But his economist friend told him that he is at a loss because he could have earned 3% return on his investment if he had bought the bank certificates of deposits.  So this Joe missed an opportunity of earning 3% return on investment. So we can assume that Joe hold the gold coins at an opportunity cost of 3% return on investment.

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Question 1-12
storchak [24]

The change that would encourage GDP growth to slow is the automobile industry reduces hours for factory workers.

<h3>What would cause GDP growth to slow?</h3>

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

If the hours of work for factory workers is reduced, output would be reduced and this would slow GDP growth.

To learn more about GDP, please check: brainly.com/question/15225458

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5 0
1 year ago
Which of the following are sources of​ income-based payments that domestic residents make to​ foreigners? ​(Check all that apply
alina1380 [7]

Answer:

options (b),(c) and (e).

Explanation:

Okay let us take the options one after the other;

(a). People in Oregon send money to help cyclone victims in Bangladesh: this is WRONG because the question asked us to identify an INCOME-BASED payment and it is not.

(b). A resident of Maryland buys a car produced by Toyota in Japan: this is CORRECT. The person making the payment is a US resident making payment to a Japanese firm.

(c). Apple corporation pays a stock dividend to a resident of India: This is also CORRECT because Apple is a US based company making payment to Indian(a foreigner).

(d). A foreign exchange student from Paris comma France comma sends wine and cheese to her host family in Columbus comma Ohio : this WRONG because the student is also a foreigner.

(e). Orange Telecom comma a French company comma pays a stock dividend to a resident of Kansas City: this is CORRECT. Orange Telecom is a France company paying income to a foreigner (a U.S resident).

4 0
3 years ago
When and where were the first vending machines introduced in the united states?.
Svet_ta [14]
In 1888, Thomas Adams was the first person to build a vending machine that dispensed chewing gum. The gum, named Tutti-Frutti, was available around New York City subway stations.
5 0
2 years ago
What is it called when banks record which account gives up money and which account receives money when a customer writes a check
swat32

Answer:

Check Clearing

Explanation:

The process by which bank records which account gives up money is called check clearing. Check clearing is the process by which banks record whose account gives up money and whose account receives money when a customer writes a check. A bank holding company is a company that owns multiple banks.

4 0
3 years ago
Which of the following selections effectively use the "you" view.
-Dominant- [34]

Answer:

  • B. Thank you for your letter regarding your CRB2 home entertainment center.
  • D. You are invited to take advantage of our professional development workshops.

Explanation:

The ''you'' view refers to a style of writing where the sender intends to make sure that the focus is on the person receiving the correspondence.

By using the ''you'' view, the receiver becomes the subject of the correspondence such that the text and its contents and are directed at the receiver.

The correct options would be B and D because the options were directed strictly to the receiver and no one else.

4 0
3 years ago
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