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WARRIOR [948]
3 years ago
11

Your grandmother tells you a dollar doesn't go as far as it used to. She says the " purchasing power" of a dollar is much less t

han it used to be. Explain what she means. Try to use and explainterms like inflation and deflation
Business
1 answer:
Harrizon [31]3 years ago
4 0

Answer:

See below

Explanation:

My grandmother is referring to the effect of inflation on the currency. Economist defines inflation as the general but gradual increase of prices in the economy over time. As a country experiences economic growth, prices of goods and services tend to increase. The government monitors the increase in prices using tools like the consumer price index (CPI). The resultant figure from the CPI is the inflation rate.

The government desires to keep the inflation rate at a predetermined optimal level. Should the economy grow at a fast pace, the inflation rate will probably rise. The government will respond with measures to control the growth and maintain stable prices.

An increase in prices means that the dollar will buy fewer goods and services than it could previously. A high inflation rate means prices are increasing at a fast pace. The dollar will buy fewer goods, which translates to dollar weakening.

Deflation is the opposite of inflation. It means a general decrease in price in the economy. During deflation times, the dollar gains strengths. It buys more goods and services than in the previous season.

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A farmer realizes that he is not getting fair price from the agents who buy produce from him and sell it to the markets. As such
Jobisdone [24]

Answer:

The answer is: A) Forward vertical integration (FVI)

Explanation:

FVI takes place when a company expands its business activities to take direct control of the distribution of their products.

The question is a textbook example of FVI. A company decides to sell their products directly to their customers bypassing the middlemen.

Internet sales are giving several companies this opportunity. For instance, every once in a while I get promotions directly from the Coca Cola Company offering me direct discounts on their products. Of course some type of courier or logistics company is needed, but the sale is made directly from the distributor bypassing the grocery store. A more common example is people buying their cars directly in the manufacturers website. In Germany, car vending machines are located right next to the factories. You buy online and you pick your car like a soda can, only on a huge scale.

8 0
3 years ago
Clam gulch is a very popular clamming beach in alaska. on good low tides, clammers can easily gather 60 clams (the state limit).
Ahat [919]

The way economists would probably explain the wastage of this clam resource is by saying that clams are free goods and are therefore subject to the tragedy of the commons effect. The tragedy of the commons effect is a theory in economics, postulated by the Victorian economist William Forster Lloyd.


The tragedy of the commons effect describes a condition within a shared-resource system where each user act freely according to their own self-interest, but their collective actions ends in the depletion or spoilage of that resource, thus having a negative impact on the common good of all users. In this case, commons is taken to refer to the clam resources.

6 0
2 years ago
Which education and qualifications are especially useful for Lodging careers? Check all that apply. Activity-planning skills foo
shtirl [24]

Answer:

physical strength

professional appearance

hospiltality certifacation

attention to detail

5 0
3 years ago
Read 2 more answers
Rachel McGovern bought a 10-year bond for $921.77 seven years ago. The bond pays a coupon of 15 percent semiannually. Today, the
trasher [3.6K]

Answer:

17%

Explanation:

Purchase price of bond = $921.77

Years investment held = n = 7

Coupon rate = C = 15%

Frequency of payment = m = 2

Annual coupon = $1,000 × (0.15/2) = $75.00

Realized Yield = i

Selling price of bond = PB = $961.22

The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.

5 0
3 years ago
Logan, an employee of Argon Industries, earned a salary of $60,000 in year 2. In addition, the following two transactions betwee
Mariana [72]

Answer:

$88,000

Explanation:

Calculation to determine What amount of compensation should Argon report in Logan's Form W-2 for year 2

First step is to determine the bargain element

Bargain Element=$25 per share-$10per share

Bargain Element=$15 per share

Now let determine the amount of compensation

Using this formula

Compensation=Salary earned+Taded stock+(Shares of publicly traded stock*Bargain element)

Let plug in the formula

Compensation=$60,000+$13,000+($100 shares*$15 per share)

Compensation=$60,000+$13,000+$15,000

Compensation=$88,000

Therefore the amount of compensation that Argon should report in Logan's Form W-2 for year 2 $88,000

8 0
3 years ago
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