Answer: Worsen; benefits
Explanation:
Specific Automakers is signing a long term contract with the union who are the representative of workers.
Real wages should increase by = 2%
Expected inflation = 5%
Nominal wage increase = 7%
Actual inflation = 6%
Actual inflation is greater than expected inflation, so this would worsen the union and it is beneficial for the automakers because now real wage increase is only:
= Nominal wage - Actual inflation rate
= 7% - 6%
= 1%
This is an example of re-distributive cost of inflation.
The third function explains that money is a medium of exchange. It means that it is better to use the money used in the country itself to gain better service because it would provide better protection. Costumers would be more satisfied if the business would accept the money they have and it would be safer and mutually good for both if the customer would transact using the currency country's currency.
Source: https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money
The average cost tells a firm whether it can earn profits given the price market. The average cost will allow a firm to see what their cost of inventory is and compare it to similar goods within their inventory and on the market. This will also enable them to set a product price to be sold to a customer and make a profit.
Answer:
services are defined as:
C) the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
Explanation:
A service is a intangible activity that is provided to persons in order to satisfy a need. It is the contrary to a product because a product is tangible and is manufactured. However, services are not manufactured but they are provided to each specific client.
Examples or services are: medical services, education, lawyers advisory, internet connection, counselling, telemarketing.