Answer:
INCOME EFFECT
Explanation:
Income Effect means change in real income/ purchasing power due to change in price, income staying same.
- Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
- Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.
Eg: Income, price of a consumer = Rs100, Rs10 respectively.
Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).
Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.
Answer:
E. Invest in mutual funds.
Explanation:
Individual investors tend to have relatively small portfolios and are usually unable to realize economies of size. The best strategy is to pool funds with other small investors and allow professional managers to invest the funds. Here, a fund manager is hired to invest the cash the investors have contributed, and the fund manager's goal depends on the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk.
Answer:
1. WCG agrees with its cell plan competitors to raise prices for all customers - Sherman Antitrust Act
2. WCG colludes with another company to stop offering family plan discounts - Sherman Antitrust Act
3. WCG decides to advertise a new plan that is 75 percent off the regular plan, even though it is only 20 percent less - Wheeler-Lea Act
4. WCG promises retail consumers a "wholesale" rate, even though it is the same price as always - Wheeler-Lea Act
5. WCG wants to attract more women to its plans and starts offering female consumers 30 percent off their bill - Robinson-Patman Act
6. WCG offers a discount to teenage males in an effort to get customers from its more trendy competitor - Robinson-Patman Act
Answer:
The interest revenue on note receivable that will be recognized at maturity is $1700.
Explanation:
The note is a three months note. So, the interest that will be charged on the note for the period the note was outstanding, i.e. three months from June to August. The rate that is given is an annual rate. Thus, the interest on note for three months period will be,
Interest revenue on note = 68000 * 0.1 * 3/12
Interest revenue on note = $1700
