Answer:
B. Business risk
Explanation:
Business risk is any risk a business or organisation faces that might reduce its profits. Business risk is specific to the company. Business risk can be diversified. E.g. changing tastes, likes and dislikes, strikes etc
Market risk is any risk a business or organisation faces that is as a result of the performance of the overall financial market the company operates in. Market risk cannot be diversified.
Opportunity cost is the cost of foregoing other options when one option is chosen over other options.
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Answer:
The lower than expected inflation would benefit the union and not benefit Friendly Airlines.
B. Variable inflation is associated with high transaction costs
Explanation:
Inflation is a persistent rise in the general price levels.
It was expected that inflation would increase by 3% and because of that expectation, wages were increased by 5%.
As it turns out, inflation only increased by 2%. If employers were aware that inflation would increase by only 2%, the increase in income would have been 4%.
As a result of this, the company ends up paying more to workers and workers and up earning more. So, the union benefits while the airline is at a disadvantage.
Because of the uncertainty of inflation, the union dedicates high amount of resources to monitor its movements. This shows that there is a high cost associated with the uncertainty of inflation.
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Answer:
Please find the detailed answer as follows:
Explanation:
We use
a) AD = C + I + G + NX
AD = 60 + 0.9(Y – 10 – 0.1Y) + 34 + 25 + 30 – 20 – 0.05Y
AD = 120 + 0.76Y
b) Y* = 500
c) T = 60
d) budget surplus (T - G) = (60 - 25) = 35
e) Trade deficit = X - M = 30 - 45 = -15.
Answer:
The correct answers are all of the above options
Explanation:
Trade is the term which is defined as the activity of exchanging, buying or selling the goods and the services among the countries, people, families, nations.
It offers the variety or range of the products which could be sold in the market in order to earn or gain profit so that could benefit the business or themselves.
So, it could be better off when applies to the trade and interactions among the families, nations and states within US.