Answer:
The income elasticity of demand for Good G is 1.17
Explanation:
Income elasticity of demand = % change in quantity demanded ÷ % change in income
% change in quantity demanded = (1200-800)/1200 × 100 = 400/1200 × 100 = 33.33%
% change in income = (3600-2800)/2800 × 100 = 800/2800 × 100 = 28.57%
Income elasticity of demand for Good G = 33.33% ÷ 28.57% = 1.17
Answer:
a. benchmarking
Explanation:
Benchmarking is a management strategy that a business uses to measure productivity, or set goals based on the industry's best practices. An organization applies the benchmarking approach to evaluate its quality, processes and procedures, and performance against that of other firms. An organization uses the benchmarking report to improve its operating and product standards.
Benchmarking can be internal or external. Internal benchmarking involves comparisons between teams, departments, or individuals within an organization. External benchmarking is where a firm gauge its critical operations against those of its competitors or other similar companies.
Answer:
Return on investment ≈ 29%
Explanation:
<em><u>using excel function </u></em>
Determine :
Rate = 7% / 12 = 0.0058
Nper value = 30 years * 12 = 360
PV = -$150,000
∴ PMT value = $997.95
next : calculate the outstanding balance 15 years later
= ( 997.95 / 0.00583 ) * ( 1 - ( 1 / ( 1 + 0.00583 )^15*12 ))
= 171174.96 * 0.6489
= $ 111,075.43
<u>Considering the opportunity to refinance </u>
Rate = 6% /12 = 0.005
Nper = 15 * 12 = 180
Pv = - $111,075.43
∴ PMT = 937.32
the monthly saved up payment = PMT 1 - PMT 2
= 997.95 - 937.32 = $60.63
Finally
Rate of return on investment
= 2500 = 60.63 * 
hence Rate of return ≈ 29 %
attached below is a screenshot of the excel function used for question 2 and it can be used for question 1 as well just change the values
Answer:
b. buildings and machines used in the production process
Explanation:
In economics, capital is one of the four factors of production. It refers to the assets used in the production of other goods and services. These assets include buildings, plants, and machinery used in manufacturing, and are not part of the output. Capital includes financial assets needed in facilitating the production process.
In finance and accounting, capital will refer to money or cash equivalents. In economics, capital is not limited to finances only. It includes all the assets used to create wealth. Minerals, equipment, and intangible assets such as copyrights and patents are considered as capital.
