Answer:
True.
Explanation:
The statement is “True” because the Philip curve is the curve that exhibits the relationship between the inflation or price level and unemployment. If inflation rises, then unemployment falls. If inflation falls, then unemployment rises. This happens because there is a negative relationship between inflation and unemployment. However in the long run the Philip curve is a verticle line parallel to the inflation axis and that shows there is no trade-off. Thus the option A is correct.
Answer:
4.76%
Explanation:
The requirement in this question is determining the discount rate which gives the same present value in both cases since discount rates discount future cash flows to present value terms.
PV of a pertuity=annual cash flow/discount rate
PV of a pertuity=$17,000/r
PV of ordinary annuity=annual cash flow*(1-(1+r)^-n/r
PV of ordinary annuity=$30,000*(1-(1+r)^-18/r
$17,000/r=$30,000*(1-(1+r)^-18/r
multiply boths side by r
17000=30,000*(1-(1+r)^-18
divide both sides by 30000
17000/30000=1-(1+r)^-18
0.566666667=1-(1+r)^-18
by rearraging the equation we have the below
(1+r)^-18=1-0.566666667
(1+r)^-18=0.433333333
divide indices on both sides by -18
1+r=(0.433333333)^(1/-18)
1+r=1.047554315
r=1.047554315-1
r=4.76%
Answer:
C. Higher prices but lower total revenue from marijuana sales.
Explanation:
The above scenario totally explains inelastic demand. Inelastic demand is when the buyer’s demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
When the price increases, people will still purchase roughly the same amount of the good or service as they did prior to the increase because their needs stay the same. A similar situation exists when there is a decrease in price demand will not increase substantially because consumers only have a limited need for the product.
Answer:
Home owner’s insurance: most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance. The costs for such a policy would be $500 deductible.
Medical Insurance: For a four person household with a family income of $75,000 in Virginia would be approximately $600 a month. This would not include supplementary insurance.
Automobile insurance: To insure to cars up to $50,000 in damages each, would cost $1,200 a year, paid every 6 months. This assuming that only 2 people in the household have driver’s licenses.
Explanation:
This was the sample answer given
Answer:
Dr Cash $310,400
Dr Factoring expense$9,600
Cr Account receivable $320,000
Explanation:
Preparation of the journal entry to record the sale of the receivables on Morales Company's books.
Dr Cash $310,400
($320,000-$9,600)
Dr Factoring expense$9,600
($320,000*3%)
Cr Account receivable $320,000
(Being to record the sale of the receivables on Morales Company's books
