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3 years ago

Match each scenario with the economic concept it describes.

2 answers:

7 0

<span>B matches with 1, C matches with 2 and A matches with 3. A tariff is a tax or duty that gets paid when people are importing or exporting, so raising taxes on plastic imports to protect your country's industry is a tariff. Only allowing a certain amount of a substance to be imported introduces a quota. Dumping is where prices are kept lower than in the home market by foreign importers which removes local competition.</span>

dsp733 years ago

3 0

Answer:

Just took the test ^^ Thats correct!! Thanks #platofam

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Suppose consumers only hold checkable deposits. The demand for money for transactions by consumers is equal to Y*(0.3 - i), wher

Ksenya-84 [330]

Answer: 17.5%

Explanation:

The equilibrium will occur where the money demanded equals to the money supplied i.e Ms = Md

From the question, the supply of currency by the Central Bank = 40

Money Supply (Ms) = m × B

where m = Money multiplier = 2.5

Note that the money multiplier can also be equal to 1/rr in situations wherebt the consumers do not hold any currency.

rr = reserve ratio, = 0.4

B = monetary base = 40

Note that the monetary base here is 40.

Since reserve ratio = 0.4, therefore

m = 1/0.4 = 2.5

Therefore, Ms = m × B

= 2.5 × 40

= 100

Thus Money supply Ms = 100.

Money demand(Md) = Y(0.3 - i),

Y = income = 800

i = interest rate

Since (Md) = Y(0.3 - i),

Md = 800(0.3 - i)

Equate the equation for the money demand and money supply together.

Ms = Md

100 = 800(0.3 - i)

100 = 240 - 800i

800i = 240 - 100

800i = 140

i = 140/800

i= 0.175

= 17.5%

Therefore, the interest rate is 17.5%

5 0

3 years ago

1. A firm can lease a truck for 4 years at a cost of $30,000 annually. It can instead buy a truck at a cost of $80,000, with ann

Alexxx [7]

Answer:

The lease option is the better option.

Explanation:

We proceed as follows:

Step 1: Calculation of Lease Option NPV

Year = n Details CF ($) DF = 1/(1.1)^n PV ($)

1 Lease payment (30,000) 0.9091 (27,273)

2 Lease payment (30,000) 0.8264 (24,793)

3 Lease payment (30,000) 0.7513 (22,539)

4 Lease payment (30,000) 0.6830 (20,490)

Lease option NPV = (95,096)

Step 1: Calculation of Lease Option NPV Buy Option NPV

Year = n Details CF (CO) DF = 1/(1.1)^n PV

0 Purchase cost (80,000) 1.0000 (80,000)

1 Maintenance expenses (10,000) 0.9091 (9,091)

2 Maintenance expenses (10,000) 0.8264 (8,264)

3 Maintenance expenses (10,000) 0.7513 (7,513)

4 Maintenance expenses (10,000) 0.6830 (6,830)

4 Residual value 20,000 0.6830 13,660

Buy option NPV = (98,038)

Step 3: Calculation of equivalent annual annuity (EAA)

The equivalent annual annuity (EAA) for each option can be calculated as follows:

EAA = (r x NPV) / (1 - (1 + r)^-n )

Where:

EAA = equivalent annuity cash flow

NPV = net present value

r = discount rate per period

n = number of periods

Therefore, we have:

Lease option EAA = (0.1 × -95,096) / (1 - (1 + 0.1)^-4) = -30,000

Buy option EAA = (0.1 × 98,038) / (1 - (1 + 0.1)^-4) = -30,928

Since the lease option has a lower EAA of $30,000 in terms of cash outlay than the buy option of higher EAA of $30,928 in terms of cash outlay, the lease option is the better option.

6 0

3 years ago

Read 2 more answers

Chantel, a resident of Denver, Colorado, decided to open up her own fine jewelry store. To do so, she used her life savings and

Irina-Kira [14]

Answer:

C) elastic

Explanation:

Usually the price elasticity of demand for luxury products is very elastic, that means that for every 1% that the product increases its price, its quantity demanded will decrease in a higher proportion (more than 1%).

In this case, since Chantel increased the price of her rose gold bracelets, her sales decreased. We are not told how much they decreased, but we can assume by the type of product that the decrease was severe.

3 0

3 years ago

Trade diversion happens when... Instead of importing from most efficient country, a Country import goods from nation within a Pr

Mariana [72]

Answer: Option (A) is correct.

Explanation:

There are two terms in international economics; Trade creation and Trade diversion.

When some countries engaged in a particular economic integration then they have to agree upon various tariff rates. Trade diversion means that an economic integration or a free trade area diverts the trade from the most productive or efficient producer outside the economic integration towards the less productive or efficient producer inside the free trade area.

Types of economic integration:

(1) Preferential trade agreement

(2) Free trade agreement

(3) Custom unions

(4) Common Market

(5) Economic Union

7 0

3 years ago

The development of Logistics and supply chain started in the 1960s with the development of the physical distribution concept.

seropon [69]

Answer: True

Explanation:

A supply chain is the network that exist between a company and the company's suppliers to produce and also distribute a particular product. It should be noted that this network consist of different people, activities, resources and information. It is also the steps that are taken before the goods reach the consumer.

The development of logistics and supply chain began in the 1960s with the development of the physical distribution concept. It should be noted that the initial focus on the physical distribution was logical and in the 1980s, the logistics concept grew in several organizations.

3 0

3 years ago