Answer:
B. make the consumer equally happy.
Explanation:
An indifference curve can be defined as the graphical representation of two products (commodities) that gives a customer equal utility and satisfaction and as such making him or her indifferent about them as they are equally happy.
Hence, an indifference curve shows the various bundles of goods that make the consumer equally happy.
Answer:
The correct answer is D
Explanation:
Consumer cost is the cost which is described as the price of the product and also encompasses the cost of the purchase, post use cost and the use costs.
The cost or expense of the purchase comprise or involve the cost of information gathering, searching the product regarding or in relation to the product as well as the cost of obtaining or acquiring the information.
Therefore, they are considering the price and also the license fees, insurance, finance charges and maintenance. So, all of the factors states the consumer cost.
<span>This is an example of modified life policy. In modified life cycle, the premium differs at different stages of life. In the initial period, the person is fit and healthy and hence the premiums are low while at the later stage, a person develops various kinds of diseases and hence accordingly the premiums are increased at a later stage to compensate for that.</span>
Great question!
Fiat money deries it's value from law or regulation. However representative money derives its value either from a claim on a commodity (gold for example).
However sometimes representative money means it has value higher than what it is made of, ie if you melt it down it is worth less than before it is melted down. In this sense fiat money is a type of representative money
Answer:
Risk Premium is 10%
Explanation:
Government treasuries represent risk free rate of return.
[tex]Risk Premium=R_{m}-R_{f}/tex] ,
where, [tex]R_{f} = Risk\ Free\ Rate\ Of\ Return/[tex]
[tex]R_{m} = Market\ Rate\ Of\ Return/[tex]
Risk Premium = 15 - 5 = 10%
Risk Premium is defined as return earned on market portfolio in excess of rate of return earned on risk free assets such as government treasury bonds.
So, Risk Premium refers to the compensation an investor expects to earn for assuming higher risk by investing in market portfolio instead of investing his money in risk free class of assets.
