Answer:
The slope of the consumer's budget constraint is -PA/PB.
Explanation:
The quantity of good A (Q A) is plotted along the horizontal axis, the quantity of good B (Q B) is plotted along the vertical axis.
The price of good A is PA, the price of good B is PB and the consumer's income is I.
The budget line represents the maximum possible bundles of two goods that a consumer can afford by spending his total income. The slope of the budget line will be the ratio of the prices of two goods. It represents the quantity of a good that the consumer needs to sacrifice to increase the consumption of the other good.
So the slope of the budget constraint will be -PA/PB.
Answer:
d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.
Explanation:
Nominal interest rate = real interest rate + inflation rate
Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.
If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.
The nominal interest rate is 6 %
Inflation rate = nominal interest rate - real interest rate
= 6% - 5% = 1%
I hope my answer helps you.
Answer:
The correct answer is letter "A": Costs and revenues in engineering decisions accrue over periods of years.
Explanation:
Engineering Economics is a field that allows managers to make decisions effectively thanks to the application of engineering techniques to economics. Those approaches are mainly associates with cost allocation determining if a company is assigning expenses efficiently at the point of being able to save money after conducting its operations given a determined period.
An annual rate of return is the amount of loss or gain made through an investment in a yaear based on the percentage of intial investment.
In this case, since the quarterly divident is $1, in one year it would be:
$1 x 4 = $4
So, the annual rate of return would be $4 / $80 x 100% = 2%
Answer:
semiannual 1.42%
yearly 2.85%
Explanation:
Those are annual rate so we need to determinate the 6-month rate
The annual rate times the semiannual rate will be equal to the 18 months rate
r = 0.01416296 = 1.42%
If we want to express it annually:
1.0142^2 - 1 = r = 2.85%
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