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mr Goodwill [35]
3 years ago
11

The market for factors of production connects spending by firms to household income.

Business
1 answer:
Semmy [17]3 years ago
5 0

The given statement " The market for factors of production connects spending by firms to household income " is TRUE

Explanation:

When goods and services markets were the only businesses open, corporations would ultimately have everything they wanted in a single business, consumers would have all the finished products and industry would end.

The word "factors of production" refers to everything a manufacturer uses to make a final product.

Types of production factors are labour (work was carried out by people), equipment (machinery for the processing of products), land and so on.

Job markets are the most widely contested type of a factor market, but it should be noted that output factors can take many forms.

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You have your choice of two investment accounts. Investment A is a 9-year annuity that features end-of-month $2,180 payments and
PtichkaEL [24]

Answer:

Hence, $ 145548.77 should be invested in B today for it to be worth as much as investment A 9 years from now.

Explanation:

Future value of investment A

=2180*(((1+(8%/12))^(9*12)-1)/(8%/12))

=343196.39

How much money would you need to invest in B today

=343196.39/(1+10%)^9

=145548.77

5 0
3 years ago
Helpful in assessing the risk of lending to investors for particular projects, which of the following calculations measures the
Degger [83]

Answer:

C. Financial risk ratios

Explanation:

Financial risk ratios are calculated to measure the financial risk of the company. It measure the financial capability of an entity. For lending purpose the lender has to ensure that is the borrower able to repay the borrowed amount and interest on it. The lender need to estimate the capability of the borrower for payment of loan back. These ratio care Debt to capital ratio, Coverage ratio etc.  

7 0
3 years ago
Read 2 more answers
If the marginal propensity to consume is 0.80, what is the total implied increase in economic spending activity from a governmen
Rzqust [24]

\$500 is the total implied increase in economic spending activity from a government stimulus of \$100 billion

<u>Explanation: </u>

The median product preference tests the increase in expenditure due to changes in availability.

In increasing government expenditure, total economic investment would be increased by the scale of the budget multiplier. In other terms, the expenditure equation indicates how much GDP can increase as government expenditure increases.

The spending multiplier can be expressed as \frac{1}{1-M P C} \text { or } \frac{1}{M P S}

\text { Increase in GDP }=\frac{1}{1-M P C} \times \Delta G=\frac{1}{1-0.8} \times 100=\$ 500

So, the total implied increase in economic spending is \$ 500

In economics, marginal propensity to consume (MPC) is the proportion of an aggregate raise in pay that consumer spends on the consumption of services and goods, as opposed to saving it.

7 0
3 years ago
Read 2 more answers
Which of the following is an example of specialization?(APEX)
sasho [114]

Answer:

B. Pediatrics

Explanation:

Specialization means focusing on one or a few areas of study, work, or production. A business or an individual concrete on the field where they have a comparative advantage. Specialization increases efficiency as the individual become experts in a particular area. As experts, their productivity increase as they use few resources to achieve a high standard of performance.

Pediatric is a specialized branch of medicine that caters to children. A pediatrician is an expert doctor focusing on treating children, which is specialization.  A hospital, a general practitioner, and an organization are broad terms that don't point a specific line of activity.

4 0
3 years ago
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Each of two stocks, A and B, are expected to pay a dividend of $5 in the upcoming year. The expected growth rate of dividends is
salantis [7]

Answer:

a

Explanation:

Intrinsic  value can be determined using the constant dividend growth model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

Stock A = $5/ (0.11 - 0.1) = $500

Stock B = $5/ (0.2 - 0.1) = 50

Intrinsic value of A is greater than that of B

3 0
3 years ago
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