Answer:
b. raised the price level, but decreased the value of gold in Cairo
Explanation:
In this case, its most likely that inflation would occur because there was a sudden influx of gold into the market thereby reducing the price level of goods because there will be an increase in demand, which if it exceeds supply will increase price. This would further reduce the value of gold in the market because of the unexpected arrival in the market.
Answer:
True
Explanation:
Cartel
It is important to define a cartel before explaining the question. A Cartel represents a group of firms that come together for making price and output decisions about their products.
Monopoly is one of the main reasons for the rise of Cartels. Cartel members are organisations in markets where there are very few firms and each firm has a significant share of the markets. An example of this is the Organisation of Petroleum Exporting Countries (OPEC).
The Petroleum market is monopolistic in the sense that a few countries are responsible for the crude oil and related products that are used by all countries around the world, hence, OPEC was formed to regulate the actions; production level and price of the Oil produced and processed for regulatory purposes.
Why it is difficult to maintain Cartel Agreements
It is difficult to maintain cartel agreements because individual members will always attempt to cheat and by-pass the agreement to produce beyond the agreed quota just to increase their share of the cartel's profits.
Individual members can always produce above their quota to take advantage of the large market and monopolistic situation to make more monopoly profit.
This difficulty is one of the reasons why there are few Cartels available and it is also why the OPEC has had difficulties monitoring the activities of its members over the years.
Answer:
Good Guy Foods
The amount that the firm needs to contribute to the fund, assuming that only the interest income is to be distributed is:
d. $1,724,138
Explanation:
a) Data and Calculations:
Distributable Trust Fund = $125,000
Rate of interest or return = 7.25%
The distributable trust fund is a product of total trust fund multiplied by the rate of return.
The total trust fund = $125,000/7.25%
= $125,000/0.0725
= $1,724,138
Check:
7.25% of $1,724,138 = $125,000
b) Good Guy Foods needs to contribute $1,724,138 in funds that will earn 7.25% annually and equal the scholarship amount of $125,000 annually.
I believe it's Social. Sorry if i'm wrong.
