Answer:
A. your friend most likely should not be quite so excited because the extremely high cost of living in New York City means his real salary increase will be less than he imagined.
Explanation:
Here are the options to this question :
A. your friend most likely should not be quite so excited because the extremely high cost of living in New York City means his real salary increase will be less than he imagined.
B. your friend has no reason to be excited because higher pay implies more job responsibilities and more working hours.
C. your friend has every reason to be excited because he will be getting paid 120% of what he used to be paid.
D. your friend has reason to be excited because in a bigger city he will have more things to do and his higher salary will allow him to spend on those activities.
Cost of living in a big town is higher than living in a small town. Even though the nominal income of my friend has increased, the real income might not have increased due to the high cost of living in a big city.
Nominal income is the money income being earned. My friend's nominal income would increase from $50,000 to $60,000 if he takes the new job.
Real income is the purchasing power of income
The answer is productivity. The productivity is an financial measure of output per unit of input. Inputs comprise labor and capital even though output is classically measured in revenues and other gross domestic manufactured goods constituents such as business inventories. Productivity methods may be look at cooperatively cross-ways the whole economy or watched industry by industry to inspect tendencies in labor growth, wage levels and technological development.<span />
Answer:
Letter of credit
Explanation:
A letter of credit is a written guarantee from a buyer's bank to the seller, assuring them of payments from the buyer. Should the buyer fail to honor the payments, the bank commits itself to pay. The letter of credit guarantees the seller that upon meeting some pre- defined conditions, the bank would release to them a specified amount, in the stated currency.
Letters of credit are most suited for international trade. The nature of foreign trade is that buyers and sellers do not know each other and operate under different laws. A letter of credit assures each party that the other will fulfill their obligation. The issuing bank will charge for providing the letter of credit services.
