I think it is c I’m not sure
Answer:
a). M1=$808 billion
b). M2=1,068 billion
Explanation:
M1 is the money supply that is the most liquid and is or can be easily converted into cash. The formula for calculating M1 is;
M1=C+D+T+S
where;
M1=money supply
C=currency held outside banks
D=checkable deposits
T=traveler's checks
S=small-denomination time deposits
In our case;
M1=unknown
C=$354 billion
D=$250 billion
T=$4 billion
S=$200 billion
replacing;
M1=(354+250+4+200)=$808 billion
M1=$808 billion
M2 includes elements of M1 and additional money supply that are near liquid. The formula is;
M2=M1+savings deposit+mutual funds
where;
M1=$808 billion
savings=$100 billion
retail money market mutual funds=$160
replacing;
M2=(808+100+160)=1,068 billion
M2=1,068 billion
Answer:
The correct answer is letter "A": total value from trade in a market.
Explanation:
Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating <em>social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.</em>
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Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.
Answer:
b. value-based pricing
Explanation:
Value based pricing is a pricing strategy to set price of products based on value perceived by the purchaser. To have increased profit margin, business deduces the number of benefit the product provides to consumer. Then it establishes price which takes consideration of manufacturing cost, competitive price and consumer's willingness to pay price for the goods.
In the question mentioned IKEA not only provide functional benefit for the product but also quality, design, and services at low prices hence it is an instance of value based pricing.
