Answer:
D. only A and B of the above are true.
- A. the market is inefficient.
- B. an unexploited profit opportunity exists.
Explanation:
In simple words, this question is asking why the optimal return or best possible return of an investment is actually higher than the real market return. Generally this can be explained by opportunity costs and profits, or maybe even market inefficiencies caused by external factors (e.g. taxes).
In economics, efficient companies operating in competitive markets will always have 0 economic profit in the long run, that means that the company has maximized its accounting profits and there is no other alternative investment that can provide the same returns.
The same concept applies here, when you maximize your potential returns, it means that there is no other security or investment should yield the same returns. If your returns are actually, it only means that you are missing an opportunity profit (by investing in some other security) or some type of market inefficiency or external factor has decreased the actual return of your investment.
Answer:
The correct answer is the option C: Baby Boomer.
Explanation:
To begin with, the term<em> ''baby boomer''</em> refers to the demographic cohort regarding the generation of people born in the period called ''baby boom'', that occured in some was after the Second World War and comprehends the years between 1946 until 1964. Moreover, the main characteristic of this period was that around 76 million babies were born in America and that an excessive consumerism began to spread.
To continue, the action that Christie advocates is very common to a person of the baby boom generation due to the fact that those people born and grew in times that there was no internet and therefore they tend to give no importance to the online ads and stuff like that.
Answer:
A. $55,125 favorable
Explanation:
The direct materials quantity variance is given by the difference between actual quantity used in production and the standard quantity valued at the standard cost.
Actual quantity used in production = 9,900 pounds
Standard quantity for actual units produced = 16,200 pounds
Standard cost per pound =$8.75.
The direct materials quantity variance is:
Since the company used a lesser quantity than the expected (standard) quantity, the balance is favorable.
Therefore, the answer is A. $55,125 favorable.
Answer:
production of different types will compete for limited resources.
Explanation:
The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.
The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.
An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.
Answer: Option D
Explanation: In economics, inflation means the increase in the general price level of goods in an economy and the decrease in the value of money. This process occurs over a period of time.
In a scenario of inflation the purchasing power of the consumers decreases leading to a decrease in demand. Inflation could be controlled but is unavoidable and hence every economy faces some level of inflation every time.
Hence from the above we can conclude that the correct option is D.
