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Brut [27]
3 years ago
8

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one cup of tea, one biscuit, a

nd one magazine. In year one, the basket costs $9.00. In year two, the price of the same basket is $8.00. From year one to year two, there is at an annual rate of . In year one, $72.00 will buy baskets, and in year two, $72.00 will buy baskets. This example illustrates that, as the price level falls, the value of money .
Business
1 answer:
dimulka [17.4K]3 years ago
6 0

Answer:

11.11%

8 Baskets and in year 2, 9 Baskets, the value of money will increases

Increases

Explanation:

The computation of the given question is shown below:-

Decrease at an Annual Rate = price of the same basket ÷ the basket costs - one year

= $8 ÷$ 9 - 1

= 0.1111

= 11.11%

In year one, $72.00 will buy  8 Baskets and in year 2, 9 Baskets, the value of money will increases.

The value of money is increasing.

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A country redesigned its tax policy so that the tax rate was reduced for individuals earning larger amounts of money. For exampl
storchak [24]

Answer: B. regressive taxation

Explanation:

Regressive taxation is a form of taxation where people who earn higher income pay a less percentage of income as tax while those who earn less income pay a higher percentage of income as tax.

Progressive taxation is a form of taxation where people who earn higher income pay a higher percentage of income as tax and those who earn less income pay a lower percentage of income as tax.

6 0
3 years ago
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melomori [17]
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7 0
3 years ago
Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?
Pepsi [2]

Answer: Option C

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While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

8 0
3 years ago
Gems Corp. is a leading jewelry brand that finds it hard to make as much profit as its competitors. In order to overcome this, t
Leni [432]

Answer: B - Internal Analysis

Explanation: Internal Analysis involves a company looking inwards to determine it's competencies, strength, weakness and advantages. Internal anaylsis usually incorporates a SWOT analysis.

A SWOT analysis is the analysis of the strength, weakness, opportunities and threats of the organisation.

An external analysis involves analysing the market place and economy to identify trends and put measures in place to take advantage of current trends to ensure profit maximization.

Competitior anaylsis involves analysising the competitions of an organisation to identify threats and opportunities so as to maximaise profit

Client advantage can arise from building a loyal customer base that always patronise the business or having a company been one of the few producers of a product.

In the case of Gems Corps, they looked inwards and made improvements to how the company is run.

Therefore,Gems Corps made use of Internal Analysis.

I hope my answer helps.

Goodluck

4 0
3 years ago
Margin of safety is computed as: a. Actual sales - Break-even sales. b. Contribution margin - Fixed costs. c. Break-even sales -
Vera_Pavlovna [14]

Answer:

A. Actual Sales - Break-even sales

Explanation:

In business studies, Margin of safety (MOS) is the difference between actual/projected/budgeted sales and the level of break even sales. It is calculated by subtracting break even sales from projected or budgeted sales.

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3 years ago
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