Answer:
The correct answer is letter "C": average person in the economy.
Explanation:
The Gross Domestic Product (GDP) measures the level of output of a country given a certain period -by quarter and year, usually. It considers <em>government expenditures, private investments, consumer spending, </em>and <em>net exports </em>(exports minus imports).
The GDP per capita represents the GDP per person and is calculated by dividing the GDP by the population of a country. GDP per capita represents an approximate of the expenses of an individual. Smaller richer countries such as Luxembourg or Switzerland tend to have higher GDP per capita.
Answer:
A. Rent Payable
Explanation:
Rent Payable refers to an expense which is certain and is to be paid in future. It represents a debt in the sense that it is an obligation which is required to be met in the near future.
The journal entry for rent payable is recorded as follows,
Rent A/C Dr.
To Rent Payable A/C
(Being rent payable recorded)
Rent Payable A/C is a liability while rent is an expense. Expenses are debited and liabilities are credited so as to recognize them.
Answer:
C. Yes. If repair rates are higher for planes that have been resold, this would be an indication of a lemons problem
Explanation:
Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.
Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.
Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.
Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.
Answer:
The calculations are shown below:
Explanation:
The calculations are shown below:
a. The expected rate of return is
Return = Risk free return + Beta × (Market return - risk free return)
= 5% + 1.9 × (11.20% - 5%)
= 5% + 11.78%
= 16.78%
b. Now the alpha is
Alpha = Actual rate of return - Expected rate of return
= 9.2% - 16.78%
= - 7.58%
c. No , the CAPM is not valid as the expected rate of return is more than the actual rate of return
Answer:
both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
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
Let assume that the price before the sale and after the sale is $1000 and $800. The willingness to pay of customer A is $1500 and for customer b is $900
consumer surplus of customer A before sale = 1500 - 1000 = 500
consumer surplus of customer A after sale = 1500 - 800 = 700
consumer surplus of customer B before sale = 0
consumer surplus of customer B after sale = 900 - 800 = 100
consumer surplus of both customers increase
