1. revenue 2. income 3. graph 4. equity 5. balance sheet 6. income taxes
Answer:
B) diminishing marginal utility
Explanation:
The law of Diminishing marginal utility states that utility falls as consumption increases.
The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Because of diminishing marginal utility, consumption can be encouraged by reducing price.
As utility falls, consumers would be unwilling to buy more goods at the same price, therefore it would be reasonable to reduce price to encourage consumption.
Answer:
The correct answer is letter "B": unfavorably; increases.
Explanation:
As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to <em>increase </em>the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -<em>continuous increase in price due to continuous increase in demand</em>- appear decreases.
However, if people have fewer sources of debt, private investment decreases, causing an <em>unfavorable </em>panorama for financial institutions offering large portfolios of assets.
Answer: Option C
Explanation:
A. Assets with physical existence are called tangible assets.
B. There are several financial instruments that lacks physical substance but are not considered as intangible assets.
C. Intangible assets can be either long term or short term.
D. Only those intangible assets that have definite lives are amortized, others with indefinite life are not.
