Answer:
The computer's OS is a well-known example of system software. Widely used operating systems include Microsoft Windows, Mac OS and Linux.
Answer:
AC Problems : Incurred even at 0 output level, much varying & deviant from cash flows
VC Problems : Doesn't include fixed cost, incomplete expenditure, incomplete financial (accounting) statements.
Explanation:
Average Cost is the cost per unit off output.
Problems with AC as a performance measure :
- It includes all (fixed & variable cost) average. So, including fixed cost, it is not zero even at zero output level.
- It's variance analysis during production & cost phases is very complicated.
- It's result are deviant as evident from cash flows.
Variable Cost is the cost incurred on variable factors of production.
Problems with VC as a performance measure :
- It doesn't include fixed cost. So, it is not a correct measure of complete total expenditure.
- Fixed costs are huge. No financial inclusion of them makes accounting information unreliable (for legal purposes)
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Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.
Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.
The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.
Explanation:
The various types of shocks that will be caused are:
- A leftward shift in the AD curve - Negative demand shock.
- A leftward shift in the SRAS curve - Negative supply shock.
- A rightward shift in the SRAS curve - Positive supply shock.
- A positive shift that leads to a higher aggregate price level. - Positive demand shock.
- A rightward shift in the AD curve - Positive demand shock.
- A negative shift that leads to a lower aggregate price level - Negative demand shock.
- Stagflation - Negative supply shock.
- A negative shift that leads to a higher aggregate price level - Negative supply shock.
- A positive shift that leads to a lower aggregate price level - Positive supply shock.
<h3>What causes shocks in the economy?</h3>
When there is a change in the components of demand or supply, there will be a shift in the Aggregate Demand and Supply Curves to show that either demand or supply has changed as a result.
For instance, if there is a weaker harvest for a crop, there will be a leftward shift in the SRAS curve which would lead to a negative supply shock.
In conclusion, supply and demand are prone to shocks.
Find out more on Stagflation at brainly.com/question/23113698.
