1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
laiz [17]
3 years ago
14

Match the scenarios with the economic concepts they illustrate.

Business
2 answers:
Wittaler [7]3 years ago
7 0
1.income
2.substitution
3.positive
4.negative
Jet001 [13]3 years ago
6 0

1. The rising price of gold causes people to buy silver jewelry instead.

<u>substitution effect</u>

The substitution effect refers to the economic understanding that as costs rise — or income decreases — customers will supplant increasingly costly things with less exorbitant options. Then again, as the abundance of people builds, the inverse will in general be valid, as lower-estimated or second rate items are shunned for increasingly costly, higher-quality merchandise and ventures, known as the income effect. Although valuable to a few organizations like markdown retailers, the substitution impact is commonly exceptionally negative inside an economy, as it limits buyer and maker decision.  


2. When the price of chicken increases, families reduce their chicken intake substantially.

<u>income effect</u>


The income effect alludes to the adjustment in the interest for an item or administration caused by an adjustment in customers' extra cash, which is the bit of someone's pay that is accessible for spending on superfluous items or sparing. The term may likewise allude to the impact on genuine salary when there is an adjustment in the cost of a decent or benefit – which additionally influences the measure of discretionary cashflow – the impact can be positive or negative.  


3. A new factory in a village provides livelihoods for the villagers.

<u>positive externality</u>


A positive externality is an advantage that is delighted in by an outsider because of a financial exchange. Outsiders incorporate any individual, association, property proprietor, or asset that is in a roundabout way influenced. While people who profit by constructive externalities without paying are viewed as free-riders, it might be in light of a legitimate concern for society to urge free-riders to expend products which create significant outside advantages.  


4. A new factory in a village causes noise pollution.

<u>negative externality </u>


A negative externality is a cost that is endured by an outsider because of a financial exchange. In an exchange, the maker and purchaser are the first and second gatherings, and outsiders incorporate any individual, association, property proprietor, or asset that is in a roundabout way influenced. Externalities are additionally alluded to as overflow impacts, and a negative externality is likewise alluded to as an outside expense.

You might be interested in
A bank has $8,000 in deposits and $6,000 in loans. it has loaned out all it can given the reserve requirement. it follows that t
True [87]
<span>The reserve requirement, which is also referred to as the cash reserve ratio, is 25 percent. This is calculated by subtracting the $6,000 loaned out from the bank's $8,000 in deposits, yielding a reserve of $2,000. The reserve requirement is calculated by dividing $2,000 by $8,000.</span>
4 0
3 years ago
State the purpose of footing the total column in the​ client's accounts receivable trial​ balance, tracing individual customer n
Pani-rosa [81]
No se y ni me importa
7 0
3 years ago
A wealth gap is an economic difference between
kirill115 [55]

Answer:

classes

Explanation:

"The term “wealth gap” refers to the gap in wealth between two groups such as rich and poor people."

6 0
3 years ago
Siebel Incorporated, a non-publicly traded company, has 2009 after-tax earnings of $25 million, which are expected to grow at 6
Readme [11.4K]

Answer:

Answer of each requirement is given seperatly below.

a What is the value of Siebel using the DCF method?

Value under DCF = CF * (1+growth rate)/ (WAAC" -Growth rate)

Putting values (assuming after tax earning is all in cash)

Value of SI = 25 (1+6%)/ 20%-6% = 189 million dollars

 

"WAAC calculation

Here WAAC is equal to cost of equity (ke) as company is debt free.

so

Ke = risk free rate + beta (risk premium)

    = 5 + 2.5 (6) = 20%

b What is the value using the comparable recent transactions method?

Based on recent tansaction the value of siebel incorporated will be               calculated as shown below

 Value of SI = Profit afte * 10 = 25 * 10 = 250 million dollars

Publicly-traded Rand Technology, a direct competitor of Siebel's sale is taken as bench mark.

c What would be the value of the firm if we combine the results of both methods?

By combining value of both value technique we get 189 + 250 = 439 million dollars.

8 0
3 years ago
Malcolm Industries recently hired a large number of workers for the company's new construction factory in Colorado. During the h
Arturiano [62]

The complete question should have been:

Malcolm Industries recently hired a large number of workers for the company's new construction factory in Colorado. During the hiring process, the management made a clear effort to recruit physically strong individuals because the work at the factory involves manual labor. The jobs need to be performed by individuals who have the energy and physical stamina to work for long hours. Which of the following surface-level characteristics did the company most likely concentrate on when selecting the new workers?

A.) Age

B.) Values

C.) Beliefs

D.) Religion

E.) Personality

Answer: Age.

Explanation:

Malcolm Industries made use of Age as the Surface Level Characteristic that determined who would be employed. A surface level characteristics can be defined as differences that individuals possesses that easily be identified when they are seen.

8 0
3 years ago
Other questions:
  • Substitution and income effects of a change in price of a good may be used to explain the:
    8·1 answer
  • In appellate procedures, each party files a(n) _____ that contains a short description of a case, a factual summary, legal point
    9·1 answer
  • A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local produce
    15·1 answer
  • An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,100,
    11·1 answer
  • All of the following are accurate statements EXCEPT: A. Retirement can be gradual. B. Retirement can be sudden. C. Retirement la
    11·1 answer
  • The current account includes __________. a. the export and import of goods and services. b. all purchases and sales of assets su
    15·1 answer
  • Any point inside a production possibilities curve indicates: Select one: a. unemployment and/or inefficiency. b. that the law of
    5·1 answer
  • Who is down for a Amazon card trade for steam gift card
    8·2 answers
  • it is often said that the poor are economically vulnerable and thus are the ones most affected by recession. Why is it so?​
    14·1 answer
  • In managing production worker compensation and expenditures for best practice training, the overriding objective of company mana
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!