Allocator- Price thus serves the function of allocator. First, it allocates goods and services among those who are willing and able to buy them. (As we noted in Chapter 1, the answer to the economic question “For whom to produce?” depends primarily on prices.) Second, price allocates financial resources (sales revenue) among producers according to how well they satisfy customers’ needs. Third, price helps customers to allocate their own financial resources among various want-satisfying products.
Answer:
5) In 2018, DDT was the most widely used agricultural pesticide in the US
Explanation:
DDT (dichloro-diphenyl-trichloroethane) was a synthetic agricultural insecticide that was banned in 1972. It was extremely dangerous and poisonous to both humans and animals (insects also but that was its function). It had been used as an insecticide since 1939, and for many years it was one of the most widely used pesticides.
Answer:
Is the best method of analyzing mutually exclusive projects.
Explanation:
Net present value is equal to the present value of all the future cash flows of a project, less the initial outlay of project.
Net present value analysis simply concluded about a project to be worth doing when it finds the present value of future cash flows greater than the initial investment and vice versa.
We just have to see which is higher, the present value of future cash flows or the initial investment.
It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.
Answer:
B) 9.75 percent
Explanation:
Christina's net gains with this operation was:
- $148 in dividends
- 200 shares x ($70.25 - $62.30) = 200 x $7.95 = $1,590
total gain = $148 + $1,590 = $1,738
Christina invested 200 x $62.30 = $12,460
her nominal rate of return = $1,738 / $12,460 = 13.95%
if the inflation rate was 4.2%, then her real rate of return = 13.95% - 4.2% = 9.75%
Answer:
C. income from operations for the year and only a loss on the disposal of the component's assets.
Explanation:
Income from discontinued operations is a line item of a company below Income from Continuing Operations and before Net Income on an income statement. It represents the after-tax gain or loss on the sale of a component of the business. It also shows the after-tax effect of the operations of the discontinued component for the period.
The amount that the company would report as income from discontinued operations is (ignore tax effects) <u>income from operations for the year and only a loss on the disposal of the component's assets.</u>
