The marginal benefit from the activity is equal to the marginal cost
Answer:
b.$ 66
Explanation:
The question requires that Summit requires a return on sales of 25 %. To achieve that the cost of goods sold should be 75 %.
if the revised selling price is $ 88
the target cost price would be ( $ 88 * 75 %) % 66
Answer:
Efficient market school.
Explanation:
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
<em>Hence, according to the efficient market school it would be a waste of time investing in exchange rate forecasting services because all the information about an asset or security is already factored into their prices and as a result of the randomness of the market. </em>
Answer 1: The Correct answer is C) the average prices of goods and services decreased between last year and this year.
CPI stands for consumer Price Index. Also known as the 'basket' the index is developed by national governments to monitor the prices of basic goods and services used by the population.
This has to include basic items that the majority of population uses every day e.g. milk, chicken, electricity etc.
In this case, the CPI had decreased from 91.0 to 90.0 which means the prices fell.
Answer 2: The correct answer is A) 3.6%
The formula to calculate unemployment rate is:
No. of unemployed ÷ No. of Working People x 100
In this case, it was 9 million divided by 250 million x 100
3.6% unemployment rate is actually very less for an economy and is an indicator that the economy is doing well and creating enough jobs for most people. A high unemployment rate signals a worsening economy.
