Answer:
(D) private goods.
Explanation:
Goods is a material that, in economic theory, satisfies people's wishes and provides usefulness. Goods and services are different. In economic theory all goods are considered material, but in reality such goods as information (or information) are non-material goods. For example, although Apple is a tangible asset among other commodities, news is related to non-material class goods and can only be perceived through tools such as Computer and Printing. Material goods such as apples differ from non-material goods as information in terms of the impossibility of a person to keep the other physically, while the former occupies a certain physical area. Intangible goods differ from services in the sense that they are transferable or sold. Price elasticity also differentiates the types of goods. Elastic goods are commodities where there are major changes in quantities due to small changes in the price and, therefore, relate to the family of substitute goods; For example, consumers will prefer to buy pencils, such as pencil shields. Intangible goods are few and no substitutes, such as racing tickets, artist's original work, and medical supplies such as insulin. Complementary goods are more elastic than substitutes. It depends on which commodity is substituting or complementary to other goods.
Private goods are both excludable and rival in consumption. Most goods in the economy are private goods. A private commodity or goods is a product to be purchased for consumption and prevents the consumption of another by one person. In other words, when there is competition between people for the sake of good, good is something special or private, and consuming good prevents one from consuming it.
Answer:
(a) $0 (b) 0% (c) 50% (d) -40% (e) 0.444 and 0.556 (f) -0.05
Explanation:
(a) Profit (in $) = (increase in price per share of Harley-Davidson * number of Harley-Davidson shares held) - (decrease in price per share of Yahoo * number of Yahoo shares held)
= $90 - $60 = $30 increase in Harley Davidson and $25 - $15 =$10 decrease in Yahoo
= ($30*100) - ($10*300) = $0
(b) return on portfolio = return/capital invested * 100 = $0/($60 * 100 + $25 * 300) = $0/$13500 = 0%
(c) return on investment in Harley = return/capital invested in Harley * 100 = $30*100/$60*1000 = $3000/$6000 = 50%
(d) return on investment in Yahoo = return/capital invested in Yahoo * 100 = -$10*300/$25*300 = -$3000/$7500 = - 40% (negative rate of return)
(e) Weighting at the beginning of year (in decimals)
Harley Davidson = $60 * 100 units/ total invested ($60 * 100 + $25 * 300)
= $6000/$13500 = 0.444
Yahoo = $25 * 300 units/ total invested
= $7500/$13500 = 0.556
(f) realized returns (as a decimal) of the portfolio = 0.444*50% + 0.556*-40%
= -0.0493728
= - 0.05 (to decimal places)
Answer:
$337.50
Explanation:
Given that
Three year insurance policy = $1,350
So, the insurance expense on an annual basis would be
= Three year insurance policy ÷ number of years
= $1,350 ÷ 3 years
= $450
For April 1 to December 31, the months is 9 months
So, for 9 months, it would be
= $450 × 9 months ÷ 12 months
= $337.50
We assume the premium is paid on April 1
Answer:
The correct answer is B that is gain of $1,000
Explanation:
The amount of gain or loss on the disposal of the fixed assets is computed as:
Amount of loss or gain = (Selling Price + Accumulated depreciation) - Cost of fixed assets
where
Selling Price is $27,500
Accumulated depreciation is $3,500
Cost of fixed assets is $30,000
Putting the values above:
= ($27,500 + $3,500) - $30,000
= $31,000 - $30,000
= $1,000
It is a gain of $1,000 on disposal of the fixed assets.
Answer:
0.794
Explanation:
Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.
Cross price elasticity of demand = percentage change in quantity demanded of good A / percentage change in price of good B
Midpoint change in quantity demanded = change in quantity demanded / average of both demands
change in quantity demanded = 3300 - 3000 = 300
average of both demands = (3300 + 3000 ) / 2 = 3150
300/3150 = 0.095238 = 9.5238%
Cross price elasticity = 9.5238% / 12% = 0.794
If cross price elasticity of demand is positive, it means that the goods are substitute goods.
If the cross-price elasticity is negative, it means that the goods are complementary goods.
