<u>The correct answers are the following:</u>
<u>Microeconomics</u>
- The effect of a cigarette tax on the quantity of cigarettes sold
<u>Macroeconomics</u>
- The effect of federal government spending on the national unemployment rate
- The effect of an increase in the money supply on the rate of inflation
Microeconomics is defined as the study of the individual decisions reached by economic agents (households/individuals, firms and public sector entities) in the markets of products services and factors of production.
Macroeconomics is the study of the economy as a whole, using aggregate indicators that are the result of accummulating thousands or millions of the individual decisions studied in the micro approach, and which measure the behaviour of the whole economy of a certain country, region, or even the whole world (depending on the level of aggregation used!)
Answer:
The value of Ted stock is $2.43
Explanation:
Free cash flow From Year 1 to 5 = $200000
Cash Flow Year 6 = 200000*1.05
= $210000
This cash flow is expected to grow forever, so the terminal value can be caluclated at Year 5 of the above perptuity by Gordon Growth model
Terminal Cash FLow Value at Year 5 = 210000/(15% - 5%)
= $2100000
Present Value of above stream
= 200000*PVIFA(5 yr, 15%) + 2100000*PVIF(5 yr, 15%)
= $200000*3.352 + $2100000*0.497
= $1714100
Value of equity = Present Value of Firm - Value of debt
= $1714100 - $500000
= $1214100
Number of shares = 500000
Value per share = $1214100/500000
= $2.43
Therefore, The value of Ted stock is $2.43
Answer:
C. dividends per share of common stock, divided by market price per share of common stock
Explanation:
Dividend yield is the return of company's total dividend compared to its shared price.
A. This is known as the payout ratio and is expressed as dividends per share of common stock, divided by earnings per share.
B. This is known as earning per share of a company and is expressed as net income minus preferred dividends, divided by shares of common stock outstanding.
D. This is known as earning per share of a company if the company does not pay preferred dividends and is expressed as dividends on common stock, divided by shares of common stock outstanding.
<span>c. common resources are rival in consumption.
In the tragedy of the commons, William Forster Lloyd presented the example of a common resource being over used and destroyed because for any individual abusing the resource, they gained a benefit while the damage to the resource was paid by everyone.
So let's look at the available options and see what makes sense, or doesn't make sense.
a. people consider the value of resources in the future more than in the present.
* If this were true, the there wouldn't be a tragedy of the commons. So this is an incorrect answer.
b. markets do not account for the presence of property rights.
* The tragedy of the commons doesn't involve property rights. EVERYONE in the community is allowed to use the commons. The problem is irresponsible overuse of the common resource. So this is also an incorrect answer.
c. common resources are rival in consumption.
* This is the correct answer. The concept of Rivalry is where a common resource can not be simultaneous consumed by multiple users, or if the consumption of a resource decreases its utility to another consumer. In the tragedy, if one person grazes (consumes) more than their fair share, the commons gets over grazed and over time stops producing. Each person who's overgrazing does get a tangible short term benefit for doing so, but everyone has to pay the cost.
d. government does not efficiently allocate society's scarce resources.
* This is also a wrong answer. It's true that the commons could be regulated by the government, but then it would no longer be the commons.</span>
Answer:
Option A: retro
Explanation:
Difference factors influence consumers to buy certain things. These factors are used to segment consumers. The segmentation is done includes: behavioural, demographic, geographic and psychographic.
Baby boomers fall under the demographic segmentation under the age classification of generations (includes: seniors, baby boomers, generation X and generation Y( college age students).
Today's college age students compose the largest generation. The baby boomer generation is the second largest and over the last thirty years or so, has been a very attractive market for sellers. Retro (old) brands or products that companies "bring back" for a period of time we're aimed at baby boomers during the economic downturn. A perfect example is the Pepsi throwback and Mountain Dew throwback, which are made with cane sugar like they were "back in the good old days" instead of corn syrup.
Therefore, the option that best suits the question is option A, RETRO.
