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3 years ago

The inflation rate, as measured by CPI, should remain at or below _______% to achieve price stability.

Business

1 answer:

Sophie [7]3 years ago

3 0

Answer:

Explanation:

The average inflation rate for most countries is 2%. It is considered to be a healthy inflation rate, as inflation (a commonly referred negative issue) is normal in certain limits. It is important for inflation to remain healthy, as a higher inflation rate may imply a future inflation crisis coming.

This rate takes in account the <em>consumer price inde</em>x, which represents the average value of a consumer basket of goods and services.

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Nicholas bought land from Meredith for $150,000. Nicholas paid $50,000 cash and gave Meredith an 8% note for $100,000. The note

Tom [10]

Answer:

C. Nicholas is not required to recognize gross income, but must reduce his cost basis in the land to $130,000

Explanation:

3 0

3 years ago

Whenever the production of a good creates negative externalities, an unregulated market will result in:

sp2606 [1]

Answer:

Option (C) is correct.

Explanation:

In an unregulated market, negative externality results in a higher social marginal cost than the firm marginal cost because this market is not properly regulated by the government officials. Hence, these firms are not taking into account the effect of negative externalities in their cost.

We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

If proper action is not taken by the government, negative externality will result in a market inefficiencies.

6 0

3 years ago

When economists say that money serves as a store of value, they mean that it is :_______

timofeeve [1]

Answer:

a) a monetary unit for measuring and comparing the relative values of goods.

Explanation:

In the case when the economist said that money could be treated as the store of value so this means that it represent one of the functions of money which can be stored and retrieve later onwards

Also it is a monetary unit that could be used for measuring and also compared the goods value

Therefore the option a is correct

6 0

3 years ago

Which of the following is an example of a sunk cost?

coldgirl [10]

Answer:

The correct answer is option D.

Explanation:

Sunk costs can be defined as those costs which already been incurred and cannot be recovered anymore. These costs are excluded from business decision making.

It is can be referred to as a cost that is no longer relevant.

The $8 paid for a ticket, after the person starts watching the movie is a sunk cost as it cannot be recovered anymore.

Sunk costs are contrasted to relevant cost which is yet to be incurred in the future. Cost pf machinery, equipment, etc are examples of sunk cost.

3 0

3 years ago

The sea wharf restaurant would like to determine the best way to allocate a monthly advertising budget of $1000 between newspape

Andreas93 [3]

From what I understood in the problem, the total budget that covers all types of media is only $1,000 per month. For the allocation, each type of media would get at least 25% of the budget. If we infer on this information, there should only be 4 types of media, at least. This is because four 25% portions would equal to 100%. If it exceeds 25% for each of the four types, it would be over the $1000 budget. With that being said, it is also possible that there will be 3 or 2 types of media. Nevertheless, let's just stick to the least assumption of 25% for each of the 4 types.

If local newspaper advertising is one of the four types, then:

$1000(25%) = $250

It would get $250 from the overall budget.

5 0

3 years ago