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Anettt [7]
3 years ago
7

If the economy is operating at a point inside the frontier, it is likely: ​

Business
1 answer:
Luden [163]3 years ago
7 0

Answer:

Resources are not effectively utilised

Explanation:

Production possibility frontier (PPF) represents the resources a society can use. If the resources are utilised effectively the economy will operate outside the frontiers. Similarly, if the economy is not utilising the resources efficiently the economy will operate under frontier. This generally happens in recession and depression. In the state of recession and depression, society is unable to use all the resources which lead to low production and output.

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5 0
2 years ago
P. Daves Inc's stock is currently sells for $45 per share. The stock's dividend is projected to increase at a constant rate of 4
Svetllana [295]

Answer:

The price of the stock six years from now will be $56.94

Explanation:

To calculate the price of a stock that pays a dividend which grows at a constant rate forever, we use the constant growth model of DDM. The current price of stock using the constant growth model is calculated as follows,

P0 = D1 / r - g

As, we don't know the D1, that is dividend expected for the next year, we will calculate it first,

45 = D1 /  (0.12 - 0.04)

45 * (0.12-0.04)  =  D1

45 * (0.08) = D1

3.6 = D1

We use the D1 to calculate the price today. Thus, we will use D7 to calculate the price six years from now.

D7 = D1 * (1+g)^6

P6 = 3.6 * (1+0.04)^6  /  (0.12 - 0.04)

P6 = $56.939 rounded off to $56.94

8 0
3 years ago
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What is an exchange rate? A. How much bonds are worth when they're exchanged with cash B. How much dollars are worth when they a
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Hello!
The answer is

C. How much a currency is worth when it's exchanged with another country's currency.

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6 0
3 years ago
Consumers judge the benefits the product delivers against the ______________ necessary to obtain it
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Consumers judge the benefits the product delivers against the ______________ necessary to obtain it

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