The best answer to the question is (B) services are intangible activities.
Unlike products, services are intangible activities, which makes it difficult for potential customers to know whether a service would be good or not before purchase. It’s very easy for customers to feel like they can’t tell the quality of service prior to transaction – which is a challenge that a service provider would face and needs to manage.
Answer:
This is due to compound interest on the credit card bills.
Explanation:
Credit card debt of $10,000 is repaid when its due. The bank lends the credit card amount and then charges interest on the debt amount. The compound interest is added to the debt amount and then future value of the debt is greater than the present value.
Dividend discount model (DDM) is used in valuing stocks of a company with basing on the value of the future net present dividends. It rests on the assumption that the stock's worth is equivalent to future dividends including discounted values of the present. Corporation valuation models on the other hand, is for loan qualifications, setting prices upon selling one's company.
Answer:
change; over-estimates
Explanation:
Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.
Answer:
A) Teeveeland has a comparative advantage in producing televisions.
Explanation:
If Teeveeland has a comparative advantage in producing televisions, then the price of televisions in Teeveeland should be cheaper than the world price. The world price is the average price of a good traded in international markets, in this case televisions.
International trade is based on comparative advantages, since countries export the goods that is can produce more efficiently (they have a comparative advantage in their production) and they trade for goods that they cannot produce efficiently. So if Teeveeland has a comparative advantage in producing televisions, it should start to sell them to the rest of the world.