Answer:
negative consumption externality.
Explanation:
A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.
On the other hand, a positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.
In this scenario, your neighbor enjoys seeing the grass in his yard grow wild and free, a practice with which you disagree because it poses a danger on the people around as snakes and other poisonous animals may breed or live there.
Hence, this is an example of a negative consumption externality because it's the potential of causing you harm or endangering your life.
Answer:
Inventory TurnOver 8.35
Days outstanding 43.71
Average days outstanding 21.86
Explanation:
Inventory TO 8.35
This means the inventory is being sold 8.35 times during the year
Days on Inventory 43.71
The entire inventory is being replaced every 43.71 days
If we assume the batch is sold uniformly over those days
then the haverage wil lbe half of the days outstading:
43.71 / 2 = 21,855 = 21.86
Answer:
CPI in 2020 =142.7
CPI in 2019 = 100
Explanation:
Inflation is the increase in the general price level. Inflation erodes the value of money.
<em>Consumer Price Index(CPI ): This is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.</em>
The increase in the CPI is taken to be the rate of inflation. For example, the CPI rose to 1.09 from 1.00, this implies an inflation rate of 9% within the time period in focus.
The CPI =
The price of a basket of goods in a current year ÷ Divided by the price of a basket of goods in a base year
The consumer price
CPI in 2019 = (1000× $2) + (100× $50) + ( 500× $$0.10)= 7050
CPI in 2020= (1000× $2.50) + (100× $75) + ( 500× $$0.12)=10,060
CPI in 2020 = 10,060/7050× 100 =142.7
CPI in 2019 = 100
CPI in 2020 =142.7
CPI in 2019 = 100
Note , we assume the CPI for 2019 is 100, since we were not provided with data to compute the price of a basket of good in 2018
Answer:
Present value of the bonds 935.82
Explanation:
We have to calculate the present value of the coupon interest service
and the face value redeem at maturity.
C = 1000 x 0.8 = 80
rate = 9%
time = 10
PV = 513.41262
Face Value = 1000
rate = 0.09
PV = 422.410807
<u>Present value of the bonds </u>
annuity PV + face PV = market price
513.41262 + 422.410807 = 935.823427 = 935.82 market value
