Interest earned on a savings account is ____

Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue.

BigorU [14]

Answer: Micro; Macro; Macro; Micro.

Explanation:

Economics is divided into two main segments which are microeconomics and macroeconomics. It should be noted that microeconomics deals with study of individuals and the firms while macroeconomics studies the while economy and looks at decisions that are made by governments and countries.

a. The effect of higher cigarette taxes on the quantity of cigarettes sold.

This is a microeconomic issue as one entity is being discussed which is cigarette and the issue is related to just one particular industry.

b. The effect of higher income taxes on the total amount of consumer spending.

This is a macroeconomic issue as taxes affects the whole economy. The whole nation is affected by this decision.

c. The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries.

This is a macroeconomic issue as it relates to different countries.

d. The reasons for low rates of profit in the airline industry.

This is a microeconomic issue as the issue affects just the airline industry.

5 0

4 years ago

esse Pinkman is thinking about trading cars. He estimates he will still have to borrow $31,000 to pay for his new car. How larg

MA_775_DIABLO [31]

Answer:

Jesse's monthly car loan payment has to be $2,716.75.

Explanation:

Jesse's monthly car loan payment can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or amount to borrow = $31,000

P = Monthly car loan payment = ?

r = Monthly interest rate = APR / Number of months in a year = 9.4% / 12 = 0.094 / 12 = 0.00783333333333333

n = Number of months = Number of year * Number of months in a year = 1 * 12 = 12

Substitute the values into equation (1) and solve for P, we have:

$31,000 = P * ((1 - (1 / (1 + 0.00783333333333333))^12) / 0.00783333333333333)

$31,000 = P * 11.4106954292971

P = $31,000 / 11.4106954292971 = $2,716.75

Therefore, Jesse's monthly car loan payment has to be $2,716.75.

8 0

4 years ago

The envelope system is especially helpful for expenses like:.

Kruka [31]

The envelope system is usually helpful for items that tend to bust your budget. Things like gas, groceries and bills.

6 0

3 years ago

Production Budget Pasadena Candle Inc. projected sales of 64,000 candles for January. The estimated January 1 inventory is 2,600

icang [17]

Answer:

Production budget:

Projected sales= 64,000

Ending inventory= 7,000

Beginning inventory= (2,600)

Total= 68,400 units

Explanation:

Giving the following information:

Pasadena Candle Inc. projected sales of 64,000 candles for January. The estimated January 1 inventory is 2,600 units, and the desired January 31 inventory is 7,000 units.

Production budget= projected sales + ending inventory - beginning inventory

Production budget:

Projected sales= 64,000

Ending inventory= 7,000

Beginning inventory= (2,600)

Total= 68,400 units

3 0

3 years ago

Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25

Sergio039 [100]

Answer: Option A

Explanation:

From the question, the demand given is 250,000

For Option A,

Fixed cost = $25000

Variable cost = $0.1 per candle

Total cost = Fixed cost + Variable cost

Total cost = $25000 + ($0.1 × 250,000)

= $25,000 + $25,000

= $50,000

For Option B,

Fixed cost = $10000,

Variable cost = $0.5 per candle

Total cost = Fixed cost + Variable cost

Total cost = $10000 + ($0.5 × 250,000)

= $10,000 + $125,000

= $135,000

Therefore, the board should select option A as the total cost is cheaper than option B.

6 0

3 years ago

Interest earned on a savings account is _____.