Answer:
In this section, we are going to take a closer look at what is behind the demand curve and the behavior of consumers. How does a consumer decide to spend his/her income on the many different things that he/she wants, i.e., food, clothing, housing, entertainment? We assume that the goal of the consumer is to maximize his/her level of satisfaction or joy, constrained by his/her income.
Economists use the term utility as a measure of satisfaction, joy, or happiness. How much satisfaction does a person gain from eating a pizza or watching a movie? Measuring utility is based solely on the preferences of the individual and has nothing to do with the price of the good. Let’s do an experiment in utility.
Step 01: Get some of your favorite candy, pastries, or cookies.
Step 02: Take a bite and evaluate, on a scale from 0 to 100 (with 100 being the greatest utility), the level of utility from that bite. Record the marginal utility of that bite (i.e., how much you get from that one additional bite).
Step 03: Repeat step 02. It is important to be consistent with each unit consumed, i.e., the same size and no drinking milk or water part way though. When you run out of candy or your marginal utility goes to zero you can stop.
Law of Diminishing Marginal Utility
Answer:
Performance-reward
Explanation:
With reference to the expectancy theory, when pay is based on factors other than performance, such as seniority, the <u>Performance-reward</u> relationship tends to be weak.
Expectancy theory: It is theory of motivation which advocate that employee should rewarded on the basis of performance and reward should be higher and known to the employee earlier, which motivate to perform well and put more effort in the task given as they know what would be the reward. The reward could be vacation, day off, salary hike, etc. The reward structure should also be clear with defined goal and transparent evaluation. Tenure of the employee should not be the major factor for pay hike, as it weaken the performance of employee.
Answer:
$13,805 million
Explanation:
The calculation of free cash flow is computed by applying the following formula
Free cash flow = EBIT(1 - t) - Net Capital Expenditure - Net operating working capital
where,
EBIT(1 - t) is $16,300 million
Net capital expenditure is $2,445 million
And, the net operating working capital is $50 million
Now putting the items values to the formula
So, the free cash flow is
= $16,300 million - $2,445 million - $50 million
= $13,805 million
Basically we applied the above formula to find out the free cash flow
Answer:
True.
Explanation:
Currency board is aimed at pegging a countrie's currency. Management of monetary authorities make decisions on valuation of a countrie's currency. When local currency is pegged to a foreign currency, there will be an equal amount of the currency held in the reserves.
The control board now allows for unlimited exchanged between the pegged local currency and the foreign currency in the reserves.
