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4 years ago

Economics may best be defined as the Multiple Choice

Business

1 answer:

AysviL [449]4 years ago

8 0

Answer:

2. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.

Explanation:

Economics is defined as a study of how a society uses its limited resources. It deals with consumption, distribution, and production of goods and services.

Economics tries to find ways that unlimited wants can be satisfied with limited resources. Theories postulated are focused on how to optimally use scarce resources for production of goods and services, how am individual or organisation can maximise it's utility of a product.

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On December 1, Milka Inc. borrows $500,000 from the bank. Interest of 6% is due in six months. On December 31, Milka recognizes

Leokris [45]

Milka's balance sheet reports: Interest payable for one month.

<h3>What is interest?</h3>

The fee you pay to borrow money or the fee you charge to lend money is called interest.

Some features of interest are-

The fee paid for the privilege of borrowing money is called interest, and it is often stated as an annual percentage rate (APR).
The compensation a lender or financial organization receives for giving out money is called interest.
The most common way to represent interest is as a yearly percentage of the loan amount.
The interest rate on the loan is known as this percentage.
For instance, if you put money in a savings account, a bank will provide you interest.

The three types of interest include -

simple (regular) interest: The daily interest rate, the principle, and the number of days between payments are multiplied to determine simple interest.
accrued interest: The amount of interest accrued on a loan or other financial obligation as of a certain date that has not yet been paid back.
compounding interest: The interest you earn on interest is known as compound interest. Simple math may be used to demonstrate this: If you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You'll have $110.25 after the second year is over.

To know more about the estimation of simple interest, here

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5 0

2 years ago

AARP is a powerful political interest group that also maintains a lucrative business providing health and life insurance to its

worty [1.4K]

Answer:

In simple word, The given case relates to the practice of saving the lobbying interest by the political groups using monetary transaction and rules. It is beneficial for such a lobby group to set up a non-profit company.

Community groups can gain financial security by establishing non-profit organisations inside the organization. AARP uses the money from its insurance company to fund its legislative activities.

7 0

3 years ago

Consumer surplus is represented by the area _____ the demand curve and _____ the price that the consumer pays.

leonid [27]

Answer:

under

above

Explanation:

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

Consumer surplus = willingness to pay – price of the good

For example, if the willingness to pay for a book is $100 and the price of the book is $50.

Please check the attached image for a diagram showing consumer surplus

Consumer surplus : $100 - $50 = $50

3 0

3 years ago

Determine whether the data set is a population or a sample. explain your reasoning. the age of each resident in an apartment bui

seraphim [82]

Answer D: population, because it is a collection of ages for all people in the apartment building

This will be a population because we are covering each and every resident in the building and here out universe is our apartment building and not all other apartment buildings in the city.

4 0

3 years ago

Consider three bonds with 6.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The sh

makvit [3.9K]

Answer:

a. What will be the price of each bond if their yields increase to 7.8%?

4 Years : $966,73 (see example)

8 Years : $942,09

30 Years : $885,26

b. What will be the price of each bond if their yields decrease to 5.8%?

4 Years : $1,034.81 (see example)

8 Years : $1,062.59

30 Years : $1,140.64

Explanation:

Principal Present Value = F / (1 + r)^t

Coupon Present Value = C x [1 - 1/(1 +r)^t] / r

This is an example for 4 years, 7,8%, to the others years only change "t".

The price of this bond it's $740,50 + $226,23 = $966,73

Present Value of Bonds $740,50 = $1,000/(1+0,0780)^4

Present Value of Coupons $226,23 = $68 (Coupon) x 3,33

3,33 = [1 - 1/(1+0,0780)^4 ]/ 0,0780

This is an example for 4 years, 5,8%, to the others years only change "t".

The price of this bond it's $798,10 + $236,71 = $1,034.81

Present Value of Bonds $798,10 = $1,000/(1+0,0580)^4

Present Value of Coupons $236,71 = $68 (Coupon) x 3,48

3,48 = [1 - 1/(1+0,0580)^4 ]/ 0,0580

6 0

3 years ago