Answer:
1. False
2. True
3. False
4. False
5. True
6. True
Explanation:
1. False: Investment spending is spending on financial assets like stocks and bonds.
2. True: Transfer payments are not counted in the calculation of GDP.
3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.
4. False: An economy is not at full employment unless there is no unemployment.
5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.
Answer:
Fair price of the insurance policy is $62,500.
Explanation:
We have given that an investment that will pay you and your heirs $5000
So the annual cash flow = $5,000
It is given that you can earn 8 % annually on your money
Required rate of return = 8%
We have to find the fair price for the investment
Price of this annuity 
Fair price for the investment is $62,500.
Answer:
The correct answer is letter "C": Likely to fluctuate when sales change.
Explanation:
Interest Expense is the cost of borrowing money. Usually, interest is paid on a credit card for some form of debt through a bank loan, mortgage, credit line or outstanding balance. The amount charged is equal to the interest rate times the outstanding balance. Interest payments are reported on an income statement as non-operating expenses.
<em>Sales changes do not influence the interest expense.</em>
Marginal Cost is the correct answer
(1) c. Offers a negative-sounding apology
(2) c. Fails to offer a clear explanation
Explanation:
At the closing part of the letter, a negative sounding apology can demoralize the employees.
Hubert should have offered a well-informed explanation without sounding negative.
The letter can be re-written as follows:
Date: May 10
To: All Employees
From: Anne Leller Manager, Classic Car Restoration Inc.
Subject: Three Shelby Mustangs
You all have to work overtime next week because we must have the three 1965 Shelby Mustangs ready for Bruce Willis, one of our best clients.
We need to make sure to use all original engine parts and add a top-of-the-line clear coat on all three cars.
Additionally, the client purchased the original radios for each car, so we should install those too.
I apologize for any inconvenience, unfortunately, I am unwilling to make exceptions to this request at this point of time. However, you will surely receive an additional bonus for working overtime along with your salary.
