3. (01.02 MC)

Business cycles consists of four phases: expansion, recession, contraction, and recovery. True or false?

xxTIMURxx [149]

Answer: false

Explanation: The four phases of business cycle are as follows :-

1. Expansion

It's the initial step. There's an increase in jobs, profits, output, and revenues whenever the expansion happens. Usually individuals pay on time for their loans.

2. Peak

The second phase is a peak once, having exceeded the maximum rate of growth, the economic situation hits a nab. Prices have reached their maximum level, and leading indicators have stopped growing.

3. Recession

These would be stagnation phases. Throughout a recession, joblessness is rising, the output is slowing down, revenues are beginning to fall due to a fall in demand, and earnings are stagnating or declining.

4. Depression

Although unemployment is rising and productivity is plummeting, economic development keeps falling.

5. Trough

This period marks the end of the depression, leading an economy into the next step.

6. Recovery

The economy is beginning to turn still at this point. Cheap prices are contributing to such an increase in demand, jobs and development, and borrowers are beginning to expand their lending coffers. This phase signals the end of a period of the business cycle.

8 0

3 years ago

Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating

Ierofanga [76]

Answer:

1. Time value of money.

2. Future value.

3. Amortized loan.

4. Annual percentage rate.

5. Annuity due.

6. Amortization schedule.

7. Discounting.

8. Opportunity cost of funds.

9. Perpetuity.

10. Ordinary annuity.

11. A

Explanation:

1. Time value of money: concept that maintains that the owner of a cash flow will value it differently, depending on when it occur.

2. Future value: the amount to which an individual cash flow or series of cash payments or receipt will grow over a period of time when earning interest at a given rate of interest.

3. Amortized loan: a type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal.

4. Annual percentage rate: an interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed.

5. Annuity due: A series of equal cash flows that occur at the end of each of the equally rate spaced intervals (such as daily, monthly, quarterly, and so on)

6. Amortization schedule: a table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components.

7. Discounting: a process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.

8. Opportunity cost of funds: a rate that represents the return on an investor's best available alternative investment of equal risk.

9. Perpetuity: a series of equal (constant) cash flows (receipts or payments) that are schedule expected to continue forever.

10. Ordinary annuity: a series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).

11. PMT x (1-(1/ (1 + r)/r) x (1 +r): an equation that can be used to solve for the present value of an annuity due. It is known as Present Value of an Annuity.

6 0

4 years ago

After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice.

Nadusha1986 [10]

Answer:

The correct answer is letter "D": marginal utility is positive for the 4th slice and negative for the 5th slice.

Explanation:

Marginal Utility refers to the additional benefit or satisfaction gained from consuming one more unit of a good or service. In economics, something has utility if it satisfies any consumer wants or needs whether for usefulness or pleasure. It is a subjective term.

If the marginal utility is positive, consumers would want to acquire more of the good or service but if negative they will stop consuming it. Thus, the marginal utility for the 4th pizza slice is positive but the marginal utility for the 5th slice is negative.

3 0

3 years ago

Manuel, who works for a multinational company, is often put in teams consisting of people from different cultures. Manuel finds

Vinvika [58]

Answer:

Individualism

Explanation:

As it is mentioned in the question that Manuel finds difficult to do the work in a team as he comes from his personal brand i.e building so his culture represents the individualism as he does not work as a team he wants to work individually as he is not comfortable or he has reserve nature i.e he does not open up with easily.

Hence, in the given case, the correct option is Individualism

8 0

4 years ago

The Technical Services Department of Wichita State University leased a photocopy machine for $2,000 per month plus $0.04 per cop

Kitty [74]

Answer:

Allocated overhead= $266.66

Explanation:

The fixed machine cost would be allocated using an overhead absorption rate

OAR = Budgeted overhead for the period /Budgeted copies

= 2000/30,000

= $0.0667 per copy

Allocated overhead = OAR × actual copies produced

Allocated Overhead for Accounting department

= $0.0667 × 4,000

= $266.66

7 0

3 years ago

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