Answer:
D. asymmetric information.
Explanation:
Owners of defective used cars have more information about the condition of their vehicles than potential buyers of those used cars. This is an example of an asymmetric information.
An asymmetric information can be defined as a situation wherein there's an imperfect flow of information or knowledge between the buyer and the seller of a product; sellers having more knowledge than the buyer of a product.
Answer:
(A) less
Explanation:
Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.
Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.
This means, $100,000 today will have the same value as $103,000 one year later.
Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.
Answer:
C) Third
Explanation:
The first meal gives you 4 units of utility for every dollar spent (= 100 utility / $25).
The second meal gives you 5 units of utility for every dollar spent (= 10 utility / $2).
The third meal gives you 10 units of utility for every dollar spent (= 50 / $5). We should choose the meal that provides us with the greatest utility per dollar.
Answer:
- Income = $10,000
- Adjusted Gross Income (AGI) Deduction = $0
- Claim $10,000 as itemized deduction due to expenses
Explanation:
The activity being a hubby does not exempt it from tax so the $10,000 will be included as income for tax purposes and there will be no deduction for this from the AGI.
She can however, claim her expenses as itemized deductions. There is no tax on interest payment so expenses deducted are:
= 4,000 + 6,500 - 500
= $10,000
Answer:
In the given year, American population grew by 4% while China's population grew by 1.2%.
Explanation:
The present problem establishes that in one year the populations of China and the United States both increased by 12 million people. But both countries have different populations: China has a population of 1 billion inhabitants, while the United States has 300 million.
To determine the percentage of population increase in each country, we must perform cross multiplications:
-U.S:
300 = 100
12 = X
(12 x 100) / 300 = X
1,200 / 300 = X
4 = X
The United States grew by population 4% in the year.
-China:
1,000 = 100
12 = X
(12 x 100) / 1,000 = X
1,200 / 1,000 = X
1.2 = X
China grew by population 1.2% in the same period of time.
