Answer: Mental budgeting.
Explanation: This concept is very much in consistent with the concept of mental accounting. The concept of mental accounting says that a person has already classified the areas where he will be spending his income and each area has its own importance and is given particular amount to that. Contrary to this, however, the mental budgeting is the phenomenon which uses the same technique but in such a way that it calculates the amount to be spend on multiple areas beforehand and using the rational cognitive ability, imagine the possibility that if an area would be left without spending money on that, would that help him save or not.
Answer: Option (A) is correct.
Explanation:
Correct Option: Other assets can also be used to make transactions to buy goods and services.
M1 = Currency with public + check-able/Demand deposits + other deposits with RBI
It includes more than just currency with public because there are some other assets as well which are highly liquefied and helps people in buying goods and services.
Check able deposits is one of the component of M1, other than currency with public. People can withdraw these deposits at any point of time which people generally used make transactions for buying goods and services.
First we find out how many weeks are in 1 year:
1 year = 52.1429 weeks
Then we find out how many hours he worked in a year by multiplying the number of hours he worked by the number of weeks there are in a year:
40 hrs/week x 52.1429 hrs/year = 2,085.716 hrs
Finally we divide:
27,040 dollars/year by 2,085.716 hrs
Afterwards we get 12.964372906, or to make it simpler we would round and get 12.96 dollars/hour
So your answer is $12.96 per hour.
