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3 years ago

Does the richest person in the world face the problem of scarcity?

1 answer:

4 0

Answer:Yes, because even if you have money you will never be able to satisfy all of your wants and must therefore make choices.

Explanation:

Economists say our "want " exceeds our "have" nomatter what the state of economy we find ourselves in but what we want always exceed what we have.

We may accumulate the greatest riches of this world but still we may even desire and want to buy another planet hypothetically speaking.

We are always craving for more than what we have no matter how large or huge what we have is but still our hearts yearns for more than that.

The more wealth we accumulate the more our desires increase because we keep wanting the next thing that is better than what we already have.

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Sydney wins a prize. She has a choice of receiving a payment of $160,000 immediately or of receiving a deferred perpetuity with

Mamont248 [21]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

She has a choice of receiving a payment of $160,000 immediately or of receiving deferred perpetuity with $10,000 annual payments, the first payment occurring in exactly four years.

A) i= 5%

First, we need to determine the value of the perpetuity four years from now.

Perpetuity= 10,000/0.05= 200,000

Now, we can calculate the present value:

PV= 200,000/(1.05^4)= $164,540.50

B) i= 6%

Perpetuity= 10,000/0.06= $166,666.67

PV= $166,666.67/1.06^4= $132,015.61

C) She should consider her necessities of cash and the value of the products she can purchase now.

5 0

3 years ago

Which of the following contradicts the proposition that the stock market is weakly efficient?A. Over 25% of mutual funds outperf

Arisa [49]

Answer:

The correct answer is letter "C": Every January, the stock market earns above-normal returns.

Explanation:

Inside the Efficient Market Hypothesis or EMH, we can find the term "weak from efficiency" that states past price action do not influence the current stock price or it is not useful in order to predict future price movements. According to the same concept, the use of technical analysis or the suggestions of financial advisers is useless.

In that sense, option letter "C" indicates that <em>every January the stock market earns an above-normal return</em>, which clearly reflects that there is a repeated pattern in the stocks affecting their price during that specific month, something impossible to take place according to what "weak from efficiency" establishes.

5 0

3 years ago

The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?

zhuklara [117]

Answer:

The stick price theory helps to explain the upward sloping shape of the aggregate supply curve.

Explanation:

The price tends to be sticky for a number of reasons.

Firms will need to incur menu costs if they constantly change prices
Frequent change in prices may annoy the customers
The wage rates remain the same even after change in price because the wages are based on contracts

The short-run aggregate supply curve is upward sloping because of the stickiness of price, there is a positive and direct relationship between output and price. Due to the high expected price level in the short run, the firms will expect the input prices to rise along with an increase in the product price.

To counter the increase in inputs price, the product price is kept high. The higher price provides motivation to produce more. That's why the short-run aggregate supply curve is upward sloping.

7 0

3 years ago

(Table: Optimal Choice of Milk and Honey) Look at the table Optimal Choice of Milk and Honey. The price of milk is $2 per gallon

raketka [301]

Since you provide no table, me nor anyone else would not be able to find out his total utility

But if he spends all his income on honey, the most he can buy is :

$16 / 4$ = 4 Jars

That leave either option 1 or option 4 as the answer

4 0

3 years ago

Theâ€‹ after-tax cost of debt is higher than theâ€‹ before-tax cost of debt. True or False

olasank [31]

Answer:

False

Explanation:

The after cost of debt is always lower than the before tax cost of debt. For example, a company borrows $1,000,000 and pays 7% interest per year. This results in $70,000 in interest expense before taxes = $1,000,000 x 7% = $70,000.

The after tax cost of the debt = $1,000,000 x 7% x (1 - tax rate) = $1,000,000 x 7% x (1 - 21%) = $1,000,000 x 7% x 0.79 = $55,300

5 0

3 years ago

Does the richest person in the world face the problem of​ scarcity?

Does the richest person in the world face the problem of scarcity?