Answer:
B.) Employer A will employ more capital than Employer B.
Explanation:
Answer:
The answer is B.
Explanation:
In the telecom industry, the threat of new entrants is most likely low. Why? - Because:
1. High brand loyalty meaning that the existing customers are unlikely to switch to any competitors be it existing or potential. This will discourage any new entrant.
2. High economies of scale. They are enjoying low cost of inputs with high outputs. New entrants will find it difficult initially to produce at low cost. This will also discourage new entrants.
Also, the presence of strong network effects and proprietary technology among the existing firms will deter new entrants.
Answer: D
Explanation:
Behavioral economics studies the impact of cognitive, psychological, cultural, emotional and social factors on individuals economic decisions. Behavioral economics is concerned with the extent of rationality of individuals, firms and governments. The study includes how market choices are made and the components that propel public choices.
Behavioral economics is important because it gives us an idea about how the mind of humans work. The greater the supply of a particular good, the more we use the good, the less we appreciate it. There are oceans of water and we always get water easily but there are fewer diamonds embedded and hidden in rocks which are not cheap and readily available.
Answer and Explanation:
The computation is shown below:
1. Nominal exchange rate is
= (Real exchange rate) × (foreign price level ÷ domestic price level)
= 10 × (4 ÷ 8)
= 5
2. Change in Nominal exchange rate is
Change in Nominal exchange rate = (real exchange rate change ) + foreign inflation - domestic inflation
= 10 + 4 - 6
= 8%
3.) foreign inflation rate
= Change in Nominal exchange rate - real exchange rate change + domestic inflation
= 5 - 8 + 3
= 0%
We simply applied the above formulas
Answer:
The answer is C.
Explanation:
Reducing tax rate according to supply - side policy creates demand pull inflation.
Demand pull inflation is a situation whereby people have more buying power due to the availability of cash thereby leading to high demand and consequentially leading to an increase in the price of goods and services by suppliers.
That is the process where demand outplays supply due to the high purchasing power thereby causing price to increase which is the demand pull inflation effect.
