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3 years ago

What is opportunity cost

Business

2 answers:

Natasha_Volkova [10]3 years ago

8 0

Answer:

the loss of other alternatives when one alternative is chosen.

Explanation:

the loss of other alternatives when one alternative is chosen.

Vlad [161]3 years ago

5 0

Answer:

Opportunity cost is the loss or the benefit that could have been enjoyed if the alternative choice was chosen.

Explanation:

As a representation of the relationship between scarcity and choice, the objective of opportunity cost is to ensure efficient use of scarce resources. It incorporates all associated costs of a decision, both explicit and implicit. Opportunity cost also includes the utility or economic benefit an individual lost, it is indeed more than the monetary payment or actions taken. As an example, to go for a walk may not have any financial costs imbedded to it. Yet, the opportunity forgone is the time spent walking which could have been used instead for other purposes such as earning an income.

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Say the marginal tax rate is 20 percent and that government expenditures do not also that the economy is at potential output and

Readme [11.4K]

Solution and Explanation:

a) The deficit is structural deficit, not cyclical deficit

b) Structural deficit is $450 billion

Revenue less than outlays; the GDP = Potential GDP

cyclical - during a recession , Structural - normal times

This is the budget deficit at potential GDP

Structural deficit = Total Government deficit - Cyclical Deficit

Government expenditures do not change with output

c) the deficit is both structural and cyclical

200 billion below potential; at potential output it will be 200 billion higher

Cyclical deficit = $200 billion

Structural = 450 - 200 = 250

d) Cyclical surplus = $350 billion

Structural deficit = $100 billion

e) Structural as normal stabilization policies will not remove a structural deficit

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3 years ago

A speaker says, "because the japanese make the best stereo sound systems in the world, you should consider buying a japanese-mad

Advocard [28]

The speaker is using the fallacy of building on an unproven assumption. The speaker has made the assumption that the Japanese make the best stereo sound systems in the world. This is merely his/her opinion, and is not a proven fact. Thus, when the speaker bases another argument on that assumption, he has used a fallacy in reasoning.

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3 years ago

What's pricing strategy

Sedaia [141]

Answer:

A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.

Explanation:

A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy

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3 years ago

Read 2 more answers

Goods Guys Foods established a trust fund that provides $125,000 in scholarships each year for needy students. The trust fund ea

antiseptic1488 [7]

Answer:

$1,724.138

Explanation:

Given:

Payment received each year = $125,000

Rate of return = 7.25 % = 0.0725

Present value = ?

Computation of Present value:

Present value = Payment received each year / Rate of return

= $125,000 / 0.0725

= $1724137.93

Present value = $1724137.93

Present value = $1,724,138 (approx)

Therefore, firm have to contribute $1,724.138

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3 years ago

Suppose that political upheaval in argentina has sparked rampant inflation. a. explain how this unexpected inflation would impac

ankoles [38]

All consumers including banks, even retirees, are directly impacted by inflation in terms of their income, savings, and spending.

How Inflation affects retirees?

When determining whether to boost the qualified retirement plan contribution limits or the monthly Social Security benefits, the federal government utilizes inflation as a baseline.
Pensions, on the other hand, may or may not increase in value with inflation, and private businesses frequently have internal guidelines for how and when to make cost-of-living adjustments.
The main worry for retirees is how inflation would influence their ability to spend their money on essentials like healthcare, travel, and recreation, all of which are expected to be more expensive during inflationary periods.
To guard against rising prices, retirees can diversify their sources of income, manage their savings, and make prudent spending decisions.

How will inflation impact banks?

Central banks, including the Federal Reserve, may raise interest rates in an effort to reduce inflation if it is rising while the economy is expanding. Consumer borrowing may slow down as a result of higher interest rates as they take out fewer loans.

Learn more about Inflation with the help of the given link:

brainly.com/question/28190771

#SPJ4

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2 years ago