Answer:
$12,000
Explanation:
The reason is that the 10% of the amount $120,000 is $12,000 which is the rate of return which the Montana Furniture Mart has earned due to the sales of the furniture, so the amount that must be debited as interest income at the end of year would be:
Dr Interest Income $12000
Cr Cash or Bank Accout $12,000
Answer:
True
Explanation:
Opportunity cost refers to the benefits foregone of a non chosen alternative when an alternative is chosen.
Going to college represents opportunity cost in the form of money incurred specifically for pursuing studies and also the lost opportunity in the form of income foregone which could've been earned had the student worked somewhere.
Thus, dropping out of college would involve the opportunity cost in the form of money spent exclusively for study as well as the money which could've been earned had the individual preferred working.
Hence, the given statement is true.
Answer and Explanation:
Classical Theory:
Classical theory states that the economy is free flowing and that there should be no outside intervention. It states that the prices and wages move up and down freely. During good times the prices and wages tend to increase and during bad times or recession the prices and wages are adjusted accordingly to downwards.
Another vital information pertaining to classical theory is that it states: economy is always at full employment level of output. Which means that the aggregate supply curve is vertical and this implies that the increase in aggregate demand or a decrease in aggregate demand will lead to increase or decrease respectively. However, the output will remain same in the economy when it comes to the classical approach.
<em><u>Market demand is the total quantity demanded across all consumers in a market for a given good. Aggregate demand is the total demand for all goods and services in an economy.</u></em>
A firm can use anchoring to influence consumer choices so as to increase sales by marking a low "sale price" on a product, which makes the regular price appear to be a bargain.
The right answer for this question is option C.
<u>Explanation:</u>
Anchoring is a conduct predisposition in which the utilization of a mental benchmark conveys an excessively high weight in a market member's basic leadership process. The idea is a piece of the field of social money, which examines how feelings and different unessential elements impact monetary decisions.
With regards to contributing, one outcome of securing is that market members with a tying down inclination will in general hold speculations that have lost worth since they have tied down their reasonable worth gauge to the first value as opposed to essentials.
Thus, showcase members accept more serious hazard by holding the interest in the expectation the security will come back to its price tag. Market members are frequently mindful that their grapple is defective and endeavor to make changes in accordance with reflect consequent data and examination.
In any case, these modifications regularly produce results that mirror the predisposition of the first stays.