Answer:
Explanation:
Rightly ignored a sunk cost since he cannot recover the money back and it really does not have any effect on the decision in the future
Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits
Explanation:
The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.
All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.
Money supply therefore remains the same.
Answer:
B. it ignores the firm's demand curve.
Explanation:
A: With the help of average cost pricing, the fixed cost can quickly estimate. Therefore, it cannot be the answer.
C: The average cost must consider the effect of variable cost. Therefore, it is also the wrong statement.
D: It is easy to estimate profit if there is an average cost pricing.
B: average-cost pricing always ignores the demand curve because it is a "U" shaped curve. Because after a certain level of product selling, the average cost is increasing. On the other hand, demand curve is such that if the price decreases, the quantity demanded increases. Therefore, it is a downward slopping curve. Hence, it is understood that, average-cost pricing ignores demand curve.
Answer:
The correct answer is: reduce; not as highly valued as others.
Explanation:
All the economic systems must provide people with the goods and services that they want and need. But it is also necessary to limit them from getting as much as they wish.
This is because providing as many goods and services as they want may lead to a reduction in efficiency. Economic efficiency is achieved when resources are allocated in such a way that there is no wastage and resources are allocated to most valued use.
If the economic systems do not restrict the production of goods and services as much as they want it may lead to the production of those goods and services that are not as highly valued as others. This will cause wastage of resources, thus reducing the economic efficiency of the system.
Answer:
I would prefer Asset B
Explanation:
A risk averse investor is the one who prefers lower amount of returns with known or specific risks instead of the higher amount of returns with unknown risks. So, from among the various level of risks, the investor will be preferring the alternative with the least interest.
So, in this case,
In Asset A: pay a return of $2,000 and at 20% of time and the $500 at 80% of time.
In Asset B: pay a return of $1,000 and at 50% of time and the $600 at 50% of time.
So, I would prefer, Asset B as it has low return but have a known risk that is of 50 -50.
