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3 years ago

What groups are hurt by inflation?

Business

1 answer:

mrs_skeptik [129]3 years ago

5 0

Answer:

Groups hurt by inflation: Fixed Salary Earners and Pensioners, Creditors and Savers.

Explanation:

Inflation refers to a quantitative measure of a rate at which a basket of selected goods and services’ average price level in an economy up rises over some time period. Inflation is indicative of a rise in general price level wherein a single currency unit buys less than what it did formerly. Expressed in percentage, inflation is indicative of a decline in the national currency’s purchasing power.

GROUPS HURT BY INFLATION 

Fixed Salary Earners: Their real income is eroded by inflation.

Creditors: When loan is repaid, its purchasing power is reduced.

Savers: This group is most hurt since the official nominal interest of the bank cannot resist the real rate of interest (inflation rate).

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What is one of the benefits of the current pattern of global trade?

Harlamova29_29 [7]

Answer:

The correct answer is A. One of the benefits of the current pattern of global trade is that consumers pay lower prices for goods and services.

Explanation:

Today, globalization has expanded international markets, interconnecting nations and their economies through free trade agreements, tariff elimination agreements and even through the transfer of companies from developed countries to peripheral countries, generating work in these nations and lowering production costs that allow reducing prices. All this allows consumers to access goods and services at a much lower cost than they previously accessed, thus reducing the amount they dedicate to consumption and thus increasing the performance of their wages, even allowing poverty reduction and a greater quality of life for people.

6 0

3 years ago

Read 2 more answers

Drag the tiles to the correct boxes to complete the pairs.

bulgar [2K]

Factor market: A market where firms buy services related to production.

Product market: A market where finished goods and services are traded.

Monetary Policy: Federal governments way to influence the economy through taxes.

The last one which I can’t see: Federal reserves tool to influence the money supply in the economy.

:D

3 0

3 years ago

Which of the following statements about the percentage of coverage of a health insurance policy is TRUE?

Katarina [22]

The true statements here are:

A. and B.

Explanation:

In a policy that is for medical or in general converge of insurance it is usual business practice to get the percentage of coverage be the total amount of a medical expense that your insurance will pay before your deductible is met.

This means that the amount that is agreeable to pay by the insurance company is paid first and then the amount you put in is used.

With 80/20 plan of insurance, your insurance is deemed to be paying 80% and you pay 20%.

This plan relies on the fact that there is usually no need for the use of that much money from the side of the firm.

5 0

3 years ago

Mike has a linear production possibilities frontier that shows maximum production of trucks or computers of 10 million each. Deb

user100 [1]

Answer:

Mike has a comparative advantage in the production of computers.

Explanation:

Mike's opportunity cost of producing trucks instead of computers = 10 / 10 = 1.

Mike's opportunity cost of producing computers instead of trucks is 10 / 10 = 1.

Debra's opportunity cost of producing trucks instead of computers = 3 / 9 = 0.333.

Debra's opportunity cost of producing computers instead of trucks = 9 / 3 = 3.

Mike's opportunity cost of producing computers instead of trucks is 1, while Debra's is 3. Therefore, Mike has a comparative advantage in the production of computers.

3 0

3 years ago

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this pro

xenn [34]

Answer:

Financial disadvantage from dropping = $(182,000)

Explanation:

A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.

In a shut down decision , the following relevant cash flows should be considered:

1. Lost contribution from the product to be shut down

2. Savings in fixed directly attributable to the product under consideration.

So, we will apply these principles as follows:

Lost contribution from the product to be shut down:

(942,000-415,000) (527,000)

Savings from fixed direct fixed cost:

(217,000+128,000) 345,000

Net loss contribution (182,000)

Financial disadvantage from dropping = $(182,000)

5 0

3 years ago