Bragmore should lend his spare pair of goggles to his primary competitor Aprince and should play fair.
<u>Explanation:</u>
Winning is very important in a competition but more than winning what matters more is playing fair and playing hard to compete with your competitors where every one is given equal chances to show their strength and capabilities.
Even though not giving goggles to his primary competitor will increase the chance of Bragmore to win the race easily and he will win the cash prize but that would not be a fair fight. So he should fight giving equal opportunities to his competitor also and give his spare goggles to his competitor.
The groups that are not considered as losers are:
- <span>Flexible-Income Receivers
Because the amount of money that they would take will be depend on the price of product/service that exist in the market.
- </span><span>Debtors
During the inflation, the value of their receivables will increase which make them take more profit during the process.</span>
Answer:
B. Negative, Negligible
Explanation:
Interest Rate is negatively related to Investment. Higher Interest Rate increases cost of investment, lower interest rate reduces cost of investment.
However, Investment in a particular sector/ industry is also defined by: Concentration of that sector in entire investment outlay & Income Elasticity of the sector's commodity demand. Implicatively, a sector with huge concentration of investment outlay & products with high income elasticity will have more Interest rate sensitive Investment and vice versa.
Construction Industry being very capital intensive has higher investment magnitude & also more Income Elastic demand. So, impact of higher interest rate will impact this industry more.
Necessity goods Industries are less capital intensive , investment concentrated & also have less Income Elastic Demand. So, impact of higher interest rate will impact this industry less.
<em>(Demand's Income Elasticity is the responsiveness of a good's demand to change in Income. It is more in luxurious goods, less in necessity goods)</em>
Answer:
c) Without additional information, we cannot be certain whose portfolio beta is greater.
Explanation:
When comparing portfolios of the same security composition but different weights we need to know the beta of each security in order to make a valid comparism between the two securities.
Beta is defined as a measure of the volatility of a security compared to the whole market. It considers the systemic risk and the expected returns from a security or portfolio.
In determining beta we compare against a particular benchmark.
Since more information is not given on the securities and their weights in the two portfolios we cannot determine which one has a higher beta.
Answer:
Marginal opportunity cost is the number of units of good 1 that are sacrificed for producing an additional unit of other good.
A) If we increase the production of butter from 1 to 2 then Guns production decreases from 36 to 26. Thus opportunity cost of second unit of butter is 10 guns.
B) Total opportunity cost of 2nd unit of butter = 18 guns
C) marginal opportunity cost of producing the third unit of butter = 12 Guns
D) Total opportunity cost of third unit of butter = 30 Guns