The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />
Answer:
If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance.
Explanation:
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Answer:
4. The total market demand has not changed
the demand has been adjusted by a change in supply
Explanation:
Movement along a demand curve results from changes in the price of the product. Supply influences price change. Movement along a demand curve means the quantity demanded has increased or decreased due to a price change.
A total change in demand is when the quantity demanded changes at all prices. Changes in customers' preferences or a change in the prices of compliment or supplement products make the entire demand change.
A shift in the demand curve demonstrates a total chan
Answer:
True
Explanation:
The reason is that the opening inventory value of year 2 is the closing amount of the year 1. Its similar to the closing cash amount left in till at the end of year 1 is the opening amount at the year 2. So the opening inventory of year 2 is closing inventory of year 1. This means the closing inventory of year 1 has decreased by $10,000.
As we know that:
Cost of goods sold = Op. Inventory + Purchases - Cl. Inventory
This means if the closing amount increases the cost of goods decreases and in the given scenario the closing inventory of year 1 has been decreased which means that the cost of goods sold has increased which will decrease the profit. And if the profit decreases then:
Earning per share = Profit after tax (Decreased) / Number of share (Same)
As the profit has decreased the earning per share will also decrease.
