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2 years ago

Match the terms with their corresponding descriptions.

Business

1 answer:

Oxana [17]2 years ago

4 0

Answer:

a. Menu cost.

b. Nominal wage of confusion.

c. Real shock.

d. Solow Growth Rate

e. Business Fluctuations.

Explanation:

a. Menu cost: Firms' costs associated with changing their prices.

b. Nominal wage of confusion: When workers respond, not to the purchasing power of their wage, but to the face value of their wage or salary.

c. Real shock: An event that changes the existing productivity and therefore changes the extent to which economic growth occurs.

d. Solow Growth Rate: Given flexible prices and the existing factors of production, a measure of how much the economy grows.

The Solow Growth Model, developed by Robert Solow, a Nobel Prize winning economist. It was the first neoclassical growth model which was was built upon the Keynesian Harrod-Domar model. The modern theory of economic growth is given by the Solow Model.

The equation below gives us the change in capital stock per worker with population growth at rate n;

Δk = sf(k) – (δ + n)k.

Where k: capital stock per worker in period t

s: savings rate

δ: rate of depreciation of capital

n: labor or number of workers

sf(k): savings per capita multiplied by a fraction of income saved.

e. Business Fluctuations: Variations in the growth rate from the long-run rate of economic growth real shock business fluctuations.

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_____ is a situation in which a country does not trade with other countries. the _____ is the ratio at which a country can tra

elena55 [62]

Answer:

Question 1:<u> Autarky</u> is a situation in which a country does not trade with other countries. The <u>terms of trade</u> is the ratio at which a country can trade its exports for imports from other countries.

Question 2: The correct options for question 2 is d. all of the above

Explanation Answer 1

Autakry is a theoretical economic condition in which a country is self-sufficient. In such a scenario, it won't require the need to trade with other countries. The terms of trade are a ratio which depicts the average trade made for a particular country i.e average for both the imports and exports.

Explanation Answer 2

In reality, countries have to trade. They might lack important resources, such as oil or even food. They might also need to trade raw materials that might be required for export products.

Sometimes, it might even better to move the production of a product, from one country to another, simply because it might be cheaper.

Hence, in question 2, all of the options are correct.

Explanation:

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3 years ago

Identifying advantage of working in teams

Ann [662]

Greatings,

First advantage is that you are not lonely :)

Second advantage is if something goes wrong it can be someone else mistake.

Third advantage is that team members do together research and each member pin most significant results.

Forth advantage is that when working in team new ideas and routes to solutions emerge faster and better.

Fifth advantage is you can get in argument and see that you are not smartest person in universe.

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3 years ago

Read 2 more answers

The A. J. Croft Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coup

o-na [289]

Answer:

current market value = $800000, WACC = 7.5%
new WACC = 7.38%, Total value of firm = $ 813,008.13
stock price per share = $62.00
4750 shares

Explanation:

1) Calculate AJC's current total market value and weighted average cost of capital

current market value = value of equity + value of debt

= ( 10000 * $60 ) + $200000

= $800000

Weighted average cost of capital = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )

= (75% * 8.8% ) + (25% * 6% * 0.6 ) = 7.5%

2) what would be AJC's new WACC and total value

WACC = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )

= ( 60% * 9.5% ) + ( 40% * 7% * 0.6 ) = 7.38%

Total value of the firm =

= ( Cash flow after tax / WACC )

= (( 100000 * ( 1-40%)) / 7.38%

= 100000 * 0.6 / 7.38% = $ 813,008.13

3) Calculate the new stock price per share

new stock price = ( value of equity + change in debt ) / original number of outstanding shares

value of equity = weight of equity * firm value

change in debt =( weight of debt * firm value ) - initial debt value

Hence new stock price =

( 50% *$820000) + (( 50% * $820000)- $200000)) / 10000

= $62.00

4) calculate how many shares AJC would repurchase in the recapitalization

= original shares - Remaining shares

= 10000 - 5250 = 4750 shares

while ;

Remaining shares = value of equity / stock price = $336000 / $64 = 5250

original shares = 10000

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2 years ago

A __________ item is something that is purchased without much thought before the purchase.

mixas84 [53]

A convenience item is something that is purchased without much thought before the purchase.

Ads are called out if they are displayed for a short time without reaching the awareness threshold. subliminal. ---- is a subtle phenomenon that uses colors and fonts to influence how your message feels.

Customization and tailoring of service delivery to individual customer needs. The service should be less variable than the product. "Product" is a general term used to describe both goods and services.

Subliminal messages are visual or auditory stimuli imperceptible to the conscious mind, often inserted into television commercials or other media such as songs purchased.

Learn more about convenience items at

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1 year ago

Economists consider both explicit and implicit costs when measuring economic profit

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