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iris [78.8K]
3 years ago
7

Dana has standard consumer preferences over two goods: hours spent watching football (W) and hours spent playing football (P). H

e is indifferent between the bundles: A=(2W,1P) and B=(1W,2P). He is offered a third bundle C=(1.5W,1.5P). Based on the preference assumptions, what might we say about Dana's preferences for C relative to A or B?A. Dana might prefer C to A, and C to B.B. Dana might prefer C to A, and A to B.C. Dana might prefer C to A, and B to C.D. Dana might prefer A to C, and B to C.E. Dana might be indifferent between C, A, and B.
Business
1 answer:
Aleks [24]3 years ago
4 0

Answer:

The correct option is Dana might be indifferent between C, A, and B.

Explanation:

Note: See the attached photo for the indifference curve showing points A, B and C.

The answer can be explained using an indifference curve.

An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.

In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.

Therefore, the correct option is Dana might be indifferent between C, A, and B.

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As a result of cash flow shortages, Washington Department Stores has fallen behind in payments to suppliers. Some suppliers are
xenn [34]

Answer:

The correct answer is letter "D": short-term financing.

Explanation:

Short-term financing allows companies to obtain capital for their <em>day-to-day operations</em>. The funds obtained are typically used for the transactions companies require during one period -one year, but the term for payment tends to be within six (6) to twenty-four (24) months. Under this scenario, the main purpose of firms is to keep their businesses up and running and obtain profits enough for the payment of the loan and reinvestment in the company.

7 0
3 years ago
Determine which are risks that discourage international investing and which are opportunities.
andrey2020 [161]

Answer:

<u>Opportunities</u>

Faster and more information

When information is bountiful and disseminated speedily, investors are more confident that the financial system is strong and will be more likely to invest.

Liquidity,

Investors love being able to change their assets to physical money as soon as possible. If this is hard in a country, they will not invest.

Change in government restrictions

When Government restrictions that limit opportunities are lifted, investors come in larger numbers to take advantage of these new opportunities.

<u>Risks </u>

Financial services outside of regulation

Investors would prefer that the law is able to protect their assets and so will shun opportunities outside regulation.

Hot money

If there is too much Hot money going in and out of the economy, investors will be worried that too much money could leave the country at the slightest change in interest rates.

Information gap

Information should be widely available. If it is usually concealed from international partners, this can damage portfolios.

Interrelated international capital market

Independent Capital markets are able to withstand problems going on in other capital markets. When a nation's capital market is too interrelated with others this is risky.

Reducing risk reduction

A nation acting to reduce measures that reduce risk is a red flag. Investors want the least risky asset for a certain amount of return.

3 0
3 years ago
2. You're interested in the proportion of students in your school who favor the elimination of a local curfew on teenagers. Assu
lara [203]

Answer: The minimum number of students you need if you want the margin of error to be 5% IS 278.

Explanation:

Cochran’s Sample Size Formula gives the minimum number of students as n= \frac{z^{2}pq }{e^{2} }

Where:

   e is the desired level of precision (i.e. the margin of error),

   p is the (estimated) proportion of the population which has the attribute in question and q is 1 – p.

The z-value  for 95% confidence interval is found to be 1.96 in a Z table.

Assuming that half of the teenagers favor the elimination of a curfew: this gives us maximum variability. So p = 0.5 and q=0.5.

Then n= (\frac{1.96^{2}*0.5*0.5 }{0.05^{2} } )

n= frac{0.9604}{0.0025} }

n= {384.16 }

Rounding up, n= \frac{385 }

But considering that 1000 is a small population,  we can modify the sample size we calculated above formula by using this equation:

s = \frac{n}{1 + \frac{n - 1}{N} }

Where s is the adjusted sample size, n is the original sample size we calculated and N is the population size.

s = \frac{385}{1 + \frac{385 - 1}{1000} }

s = \frac{385}{1 + \frac{384}{1000} }

s = 278

8 0
4 years ago
xyz's corporation has an investment in 20,000 shares of wallace company common stock with a cost of $872,000. these shares are u
Flura [38]

Answer:

XYZ's Corporation

The net effect of this property dividend on retained earnings is a reduction of:

= $388,000.

Explanation:

a) Data and Calculations:

Cost of investment in Wallace Company = $872,000

Property dividend declaration date = May 25

Property dividend distribution date = July 31

Property dividend date of record = June 15

Fair value per share of Wallace shares:

May 25 = $63

June 15 = $66

July 31 = $68

Amount of property dividend declared = $1,260,000 ($63 * 20,000)

Analysis of entries:

May 25:

Property dividend $872,000 Loss on Distribution $388,000 Property Dividend Payable $1,260,000

July 31:

Property Dividend Payable $1,260,000 Cash $1,260,000

5 0
3 years ago
Knowledge Check 01 Identify the simplifying assumptions usually made in net present value analysis. (You may select more than on
steposvetlana [31]

Answer:

All cash flows other than the initial investment occur at the end of periods.

All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate.

Explanation:

Net present value method: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

In the net present value, the yearly cash flows other than the initial investment is occur at the end of the period as all the yearly cash flows are discounted at the present value factor.

And, the discount rate is equal to the rate of return

So, these two statements are correct.

6 0
4 years ago
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