B. False. More real-world, relevant and important ideas to keep in mind when shopping for shoes and clothes are the associated quality of the manufacturer, which could be a brand name. Also, of utmost importance is the overall quality of the product with relation to its cost. The size of the item is also important. Do not buy an overpriced item, that does not fit properly and is made of cheap materials that quickly break.
Answer:
c) relatively high variable costs
Explanation:
Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.
A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.
And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs
Operating leverage is calculated as
Contribution /Earnings before interest and Tax
Answer:
Explanation:
Using Fisher equation <u><em>(Which is estimating the financial mathematics and economics relationship among real interest rates nominal interest rates under inflation.) </em></u>which goes like this
where
Inflation = (1+0.08) / (1+0.06) - 1 = 1.88% (Could be approximated as 2%)
D
This is shown because when a item in demand is needed it becomes price and thus becomes lower of supply and gains value
Answer:
When labor productivity is high.
Explanation:
According to neoclassical economic theory, real wages are equal to the marginal product of labor (MLP). The marginal product of labor is the extra output produced by one extra unit of labor (one extra worker).
If the MPL is high, this means that workers are very productive, and therefore, are paid a high real wage accordingly.
This is why countries with high labor productivity like the U.S. or Switzerland also have very high real wages.
