Answer:
Gringotts Bank real interest rate = 20% - 25% = -5%
Explanation:
real interest rate = nominal interest rate - inflation rate
the inflation rate between year 1 and year 2 = [(CPI year 2 - CPI year 1) / CPI year 1] x 100 = [(150 - 120) / 120] x 100 = (30 / 120) x 100 = 0.25 x 100 = 25%
Gringotts Bank real interest rate = 20% - 25% = -5%
since the interest rate is negative, that means that Gringott Bank is actually losing money by lending it at 20% since the inflation rate is much higher.
Answer:
B. Cost per thousand persons reached
Explanation:
When selecting a media vehicle, a media planner calculates the total cost of using a particular medium at the cost per thousand persons reached. This refers to a marketing term stating the amount of money that it would cost to reach 1000 people with their advertisement on any given social media platform in order to make people aware of their product or service.
When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at every level of production, then the production possibility frontier is Linear.
Opportunity costs address the potential advantages that an individual, financial backer, or business passes up while picking one option over another. Since opportunity costs are inconspicuous by definition, they can be barely noticeable.
Opportunity Costs= Absolute Income - Monetary Benefit.
The Production Possibility Frontier (PPF) is a bend on a chart that shows the potential amounts that can be delivered for two items if both rely on a similarly limited asset for their production. The PPF is additionally alluded to as the creation probability bend.
To learn more about Production Possibility Frontier is linear.
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Answer:
It will increase price for consumers, as well as cost for airlines (due to increased demand & supply)
Explanation:
Markets are at equilibrium when market demand = market supply.
If federal government imposes more safety measures on airlines & consumers. Cost for airlines rise due to increased security expenditures, so supply decreases (shifts leftwards). Customers might feel safer amidst more personal & organisational security measures, so demand increases (shifts rightwards).
Both these factors lead to increase price for consumers, as well as cost for airlines
Answer:
The government sets pollution standards using regulations
Explanation:
For the government of a country to effectively reduce pollution by industries present in it's nation, pollution standards needs to be put in place with the use of laws/regulations backing them.
For example in the question, the government can make set a pollution standard that the industry must not go beyond 6 units of pollution otherwise a fine would be charged for defaulting. This would persuade the industry to reduce their pollution rate.
