Liabilities and owner's equity
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The sale and purchase of government securities by the Fed would leave reserves unchanged.
<h3>
What is the effect of the purchase and sale of government securities?</h3>
The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.
One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.
Change in reserve = ( value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)
($500 / 0.2) - (500 / 0.2) = 0
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Answer:
Confirmation bias.
Explanation:
Confirmation bias is defined as the tendency for an individual to recall and favour information that confirms one's previous beliefs or hypothesis. It is a form of cognitive bias.
In the given example Joe only accepted information that would confirm his belief that there are fewer cars on the road (that is his commute is now shorter).
He however rejected the information that he now works the night shift, a period when traffic is low.
Being paid on commission means that a person is paid a percentage of the sales that he or she makes. When people are paid totally on commission, they are not receiving a salary<span> or an hourly rate, but rather are paid only according to the sales dollars they bring in. This has both advantages and disadvantages.
Not making sales would make dealing with finances difficult</span>
To Maximize the Profit the Firm should Decrease its production.
<h3><u>What are perfectly competitive firms?</u></h3>
- A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. If a perfectly competitive firm attempts to charge even a tiny amount more than the market price, it will be unable to make any sales.
- Agricultural markets are examples of nearly perfect competition as well. Imagine shopping at your local farmers' market: there are numerous farmers, selling the same fruits, vegetables and herbs. You can easily find out the prices for the goods, but they are usually all about the same.
The three primary characteristics of perfect competition are
- no company holds a substantial market share,
- the industry output is standardized, and
- there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.
Therefore, to uphold its position in the market the firm should decrease
its production.
To know more about perfectly competitive firms, click the given links.
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