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svet-max [94.6K]
3 years ago
9

Economists assume we are all making the most reasonable decisions with our resources, but how do you explain people paying $40,0

00 for a "Hermes Birkin Bag" or $2000 for "Kanye West's Sneakers"?
Business
1 answer:
Musya8 [376]3 years ago
6 0
As not everybody can afford designer items, those who can, typically buy such items to increase their self-esteem, and/or view it as an accomplishment. Also, many will do so in a way to view themselves in a higher class than others.
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The expected rate of return for a stock whose next dividend is "DIV1", that has a required rate of return "r" and expects to gro
Tema [17]

Answer:

The correct answer is r=(DIV1/P0)+g

Explanation:

The expected rate of return for a stock is usually the dividend yield  added to capital gains yield.

Dividend yield is the percentage of the share's price that the company pays to shareholders as dividends and the formula is the dividends divided by the share price, hence in this scenario it DIV1/PO

On other hand,capital gains yield is the percentage increase of the share price over time. In other words, the share price growth rate,which is a market expectation of the company's performance.The g given in the question depicted this.

Without mincing words,the expected rate of return on the stock is dividends yield(DIV1/P0) plus the capital gains yield(g)

6 0
3 years ago
In the Income-Expenditures model, it is assumed that investment is independent of the level of (current) income. This is:
____ [38]

Answer:

I'm not sure what this question is about, but the concept of the income expenditures model and its components is the following:

In the income (or aggregate) expenditures model, its author (Keynes) established certain assumptions in order to analyze how the economy works as a whole. His assumptions included that investment, government spending and net exports were all independent from income level.

When the economy is at equilibrium, total expenditures (GDP) = income level = consumption + government + investment + net exports

Another important assumptions are:

  • marginal propensity to consume (MPC) + marginal propensity to save (MPS) = 1
  • consumption = autonomous consumption + [MPC x (total income level - taxes)]

Savings = investment increase when disposable income increases or real GDP increases.

This model is used to explain the relationship between labor and production levels, and how they are affected by the economy's total expenditures. By increasing expenditures, the demand for labor and products/services will increase.

4 0
3 years ago
What is the first step in developing research-based business reports?
tatyana61 [14]

Answer: The first step in developing research-based business reports is identifying what decision makers want to accomplish.

Explanation: The establishment of the objective to be achieved is fundamental because it is what will guide the development of the commercial report.

6 0
4 years ago
A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is comp
KonstantinChe [14]

A ________ brings buyers and sellers together and facilitates transactions, typically charging a fee after a transaction is completed.

A) Cash-and-carry wholesaler

B) Broker

C) Retailer

D) Wholesaler

E) Commission merchant

Answer- B) Broker

6 0
2 years ago
When Tom had the satellite dish placed on the roof of his house, the installer dislodged and made no attempt to replace a half d
guapka [62]

Answer: irate

Explanation: In simple words, irate refers to the complainers who share their negative opinion about an organisation within a small group. They usually complain so that others could benefit from their review.

In the given case, Tom is complaining about the lousy service from his friends but not to any third party. Also, he is doing so with the intention of awaring others.

Hence from the above we can conclude that Tom is an irate kind of complainer.

7 0
3 years ago
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