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3 years ago

_____ can be useful in analyzing how a choice affects a particular market and shapes the economic system as a whole.

Business

1 answer:

ololo11 [35]3 years ago

7 0

Answer:

A. Opportunity Cost

Explanation:

Choice affecting an economic system, market can be studied by : Macro Economics which studies Economy as 'a whole'.

On contrary, Microeconomics studies individual units of economy & marginal analysis is a tool used frequently in it. And ,Normative Economics reflects subjective non verifiable statements about how economy 'should be'.

So , all of three are not apt to analyse the above statement.

However, Opportunity Cost reflects cost of next best alternative sacrifised while making an economic choice. So ,it is useful to analyse 'choice' affecting an economic system, market. Eg :Opportunity cost is an important tool used in determining comparative advantage of a country in producing a good based on its opportunity cost (other good sacrifised to produce it).

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The weather report says that a devastating and unexpected freeze is expected to hit Florida tonight during the peak of the citru

NeX [460]

Answer:

A. drop immediately.

Explanation:

In an efficient market it is assumed that assets within it will consistently reflect all information that affects that asset. Thearket is very responsive to new information and adjusts accordingly.

If the weather report says that a devastating and unexpected freeze is expected to hit Florida tonight during the peak of the citrus harvest, there will be an immediate drip in the price of Orange's stock.

A later news that is positive will cause a rise in price of the stock.

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3 years ago

What happens in one sector of the economy often affects other sectors of the economy?

RUDIKE [14]

I believe that this is a true or false question. In my opinion, the answer would be true. Sine when one sector changes the whole economy would be affected and all sectors are affected as well. Hope this answers the question. Have a nice day.

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4 years ago

Direct Materials Purchases Budget

dimaraw [331]

Answer:

Since there is not enough room here, I prepared an excel spreadsheet

Explanation:

Download pdf

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3 years ago

Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the small

bija089 [108]

Answer:

a. A Ba1 corporate bond 2 (not investment grade)

b. A ten-year BBB- corporate bond with a YTM of 7% 3 (medium risk but still investment grade)

c. A secured loan from Argosy Gaming, which is a B- rated firm 4 (less risky since it is backed by a collateral)

d. A senior subordinated bond from Argosy Gaming 1 (highest risk)

Explanation:

There are two major bond rating agencies in the US: Moody's and Standard & Poor's.

Their rankings are very similar, although the letters vary a little:

AAA: safest

AA: low risk

A: low risk

BBB: medium risk

BB: a little bit more riskier

B: risky

CCC: very high risk

CC: even riskier

C: riskiest

D: junk, in default

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3 years ago

The SP Corporation makes 49,000 motors to be used in the production of its sewing machines. The average cost per motor at this l

Lerok [7]

Answer:

Savings in additional cost as result of making $154,350.00

Explanation:

The relevant costs for this decision would be the variable cost of production and the external cost of purchase.

Unit variable cost of internal production

= 10.80 + 9.80 + 4.10 = $24.7

Variable cost of making ( $24.7 × 49,000) = 1,210,300.00

Variable cost of Buying ($27.85 × 49,000) = 1,364,650.00

Savings in additional cost as result of making  154,350.00

Note that the fixed cost is irrelevant for the purpose of the make or buy decision . This is so because they would be incurred either way. Hence, they are not to be considered for the analysis

3 0

3 years ago