The policy presented is known as an infant industry policy. This is a protectionist measure used to shield a native industry from import competition while it grows and learns to withstand it.
This approach is based on the notion that the local market is like a baby that requires nursing and protection in order to develop and become robust enough to compete with international competitors. Measures like tariffs, import restrictions, subsidies, and other types of government assistance may be part of the temporary protection. The goal is to give domestic business a chance to establish itself on the market and eventually grow competitive enough to endure without government support. Yet detractors contend that such measures may result in inefficiency, a lack of innovation, and higher expenses.
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the following information is part of the budget preparation process: a. available resources b. budget scope c. budget format to be used d. b
The following information is part of the budget preparation process: available resources, budget scope, budget format to be used, and budgeted revenues and expenses.
What is Budget preparation?
Budget preparation is the procedure of developing financial plans for a company or organization. A budget is a financial plan that outlines a company's goals and objectives for a specific period, typically a year. It also incorporates strategies for achieving those goals and objectives, as well as a plan for using financial resources to attain those goals.
Available resources such as labor, supplies, and money, must be evaluated before being allocated to their respective areas.
The budget scope outlines the various functions that will be allocated resources. An organizational budget will include all of the various elements that the organization has budgeted for, as well as any additional needs or plans. This plan can include long-term goals as well as any short-term goals that the company has.
The budget format is the layout in which all of the data will be presented. Different organizations prefer different formats for their budgets, such as graphs, tables, and spreadsheets.
The budgeted revenues and expenses statement outlines the company's revenue and expenditure projections.
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according to the bcg matrix, products or businesses with a high market share in a high-growth market are classified as .
Answer:
Goods with a large market share and rapid market growth are stars. Dogs: A product with a small market share and slow market growth. Cash cows are goods with a large market share but little market growth.
Explanation:
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According to the BCG matrix, products or businesses with a high market share in a high-growth market are classified as a “Star”.
A “Star” has a high market share and a high growth rate. It is also referred to as a “Cash Cow” or “Cash Generator” since it is a profitable product or business.
Stars require heavy investment to keep up with the market growth, but they also generate high returns.
They are in a strong competitive position and often have above-average returns on their investments. Stars tend to generate a large portion of the company’s profits and should be monitored closely.
In order to maintain its status as a Star, a product or business must continue to invest in research and development, marketing, and sales.
The goal is to maintain the high market share and take advantage of the high-growth market. It is important to recognize that a Star can easily become a
Dog if the market growth slows or if the company fails to invest in the product or business.
The BCG matrix can help managers and businesses identify products or businesses that are likely to be profitable and need more investment.
It can also help identify which products or businesses are not profitable and should be phased out. This tool can help companies better manage their resources and make more informed decisions.
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which has the longest maturity at issuance? question 3 options: treasury bonds. treasury notes. treasury bills.
Treasury bonds has the longest maturity at issuance. The answer is OPTION A.
The term "long bond" is typically used to describe an issuer's offering with the longest available maturity. The long bond issued by the Treasury is among the most frequently traded bonds in the world and is regarded as one of the safest investments. Treasury bill.
Treasury bonds, the only government-issued securities with the longest maturities, are frequently referred to as long bonds because of this. This kind of security is given to investors with maturities of 30 years and has a very long term. These mature the most slowly, taking 10 years. They are sold in $1,000 increments and pay interest on a semi-annual basis, just like Treasury notes. The answer is OPTION A.
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calculate the present value of the cash flow considering an interest rate of 10% per year. is this cash flow a good investment? for the present value calculation, you must use gradient
The present value of the cash flow is FV / (1+0.10)^n.
To calculate the present value of a cash flow considering an interest rate of 10% per year, you must use the present value formula. The formula is PV = FV / (1+r)^n, where PV stands for present value, FV stands for future value, r is the rate of interest and n is the number of years. For this cash flow, the present value is FV / (1+0.10)^n.
Whether this cash flow is a good investment or not depends on the expected future cash flows. If the expected future cash flows are greater than the present value of the cash flow, then it is a good investment. Otherwise, if the expected future cash flows are lower than the present value of the cash flow, then it is not a good investment.
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multiple choice question a company has a margin of safety of 20%. if expected sales are $50,000, then break-even sales are: multiple choice question. $50,000 $10,000 $40,000 $20,000
The company needs to have break-even sales of c) $40,000 in order to make a profit.
Determine break-even salesA company's margin of safety is calculated by subtracting the break-even sales from the expected sales. In this case, the margin of safety is 20% ($50,000 expected sales - $40,000 break-even sales = 20%).
This means that the company needs to have break-even sales of $40,000 in order to make a profit.
The multiple choice options are therefore:
$50,000 (expected sales),
$10,000 (too low), $40,000
(break-even sales) and
$20,000 (too low).
The correct answer is therefore $40,000.
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a preferred stock with a face value of $25 is sold at 95% of its par value. if the annual dividend of the stock is $3, what is the required rate of return on this stock? answer in percent format. round to the nearest hundredth percent. do not include the percent sign in your answer. (i.e. if your answer were 1.23%, then type 1.23 without a % sign)
If the annual dividend of stock is $3, then the required rate of return is 12.63.
The required-rate of return for a preferred-stock is defined as the rate of return which the investors demand to invest in the stock.
If a preferred stock has a face value of $25 and
The stock is sold at 95% of its par value,
The market price of this stock can be written as;
⇒ Market Price = 95% × $25 = $23.75,
The annual dividend of stock is = $3, which is a fixed amount.
The required rate of return on stock can be calculated as :
⇒ Rate Of Return = Annual Dividend / Market Price ,
⇒ Rate Of Return = 3/23.75 ,
⇒ Rate Of Return = 0.1263 or 12.63%.
Therefore, the required rate of return on this stock is 12.63.
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Based on the W-2 form provided, what was the largest withholding? a) Medicare tax b) Federal income tax c) State income tax d) Social security tax
Based on the W-2 form provided, the largest withholding was Federal income tax. Here option B is the correct answer.
To determine the largest withholding on the provided W-2 form, we need to look at the amounts withheld for each of the taxes mentioned. The form shows that the employee had a total of $7,000 withheld for federal income tax, $4,340 withheld for Social Security tax, $1,015 withheld for Medicare tax, and $1,050 withheld for state income tax.
Based on these figures, the largest withholding was for federal income tax, which amounted to $7,000. This is significantly more than any of the other taxes. Social Security tax was the next largest withholding, totaling $4,340, followed by state income tax at $1,050, and Medicare tax at $1,015.
It's important to note that the amount of tax withheld from an employee's paycheck can depend on a variety of factors, such as the employee's income level and the number of exemptions claimed on their W-4 form. The amounts shown on this particular W-2 form are specific to this employee's situation and may not be representative of other employees or situations.
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which of the following is an advantage of external recruiting? group of answer choices the selection process is more rigorous than with internal hiring. current employees welcome the opportunity to learn new ideas from outsiders. the process motivates high performance from employees because they know they are competing with outside candidates as well as inside candidates for promotion. the new hire is not politically networked into the organization.
External recruiting is the employment of a candidate who is not already an employee of the organization to fill a vacant position.
What benefit does external hiring provide?External hiring benefits include a vast candidate pool, bringing diversity into the workplace, and boosting employee enthusiasm thanks to a new perspective. External hiring, however, may be more expensive and take longer to find the right applicant.
Which of the following isn't a benefit of using external hiring?Whether a candidate is hired through internal recruitment or external recruitment, good performance is rewarded. Hence, is not a benefit of external hiring.
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true or false: because of its importance, earnings per share is required to be disclosed on the face of the income statement.
"Because of its importance, earnings per share is required to be disclosed on the face of the income statement" is True as the Earnings per share (EPS) is an important measure of a company's financial performance.
EPS is calculated by dividing net income, or profit, by the total number of outstanding shares. EPS is required to be disclosed on the face of the income statement as per generally accepted accounting principles.
This ensures that all investors, whether current or prospective, can understand how profitable a company is by examining the company's income statement.
EPS gives investors a better picture of how the company is performing, which can lead to more informed investing decisions. The calculation of EPS is typically the last step in creating a company's income statement.
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in recent years, the average cost of making a sales call has declined. group of answer choices true false
In recent years, the average cost of making a sales call has declined. This statement is true. This trend is mainly due to advances in technology, which have lowered the cost of making calls and increased the efficiency of sales operations. The cost of making a sales call is influenced by a variety of factors, including the time and resources required to prepare and deliver the call, the cost of any materials used, and the cost of any follow-up activities that may be required.
In general, the cost of making a sales call has decreased due to the widespread adoption of new technologies, such as CRM (customer relationship management) software, which streamlines the sales process and reduces the need for manual data entry. In addition, many sales professionals are now using social media and email to connect with potential clients, which is often less expensive than traditional methods of communication.
While the cost of making a sales call has declined, it is important for businesses to continue to monitor and manage their sales costs. This can be done by implementing effective cost management strategies, such as reducing unnecessary expenses, optimizing the sales process, and leveraging technology to improve sales efficiency.
By doing so, businesses can maximize their sales results while minimizing their costs, which can help to increase their bottom line and improve their overall profitability.
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when interest rates are uncertain, the interest rate that will actually be in effect for a given period that begins at a later time is termed the
When interest rates are uncertain, the interest rate that will actually be in effect for a given period that begins at a later time is termed the forward rate.
What is a forward rate?A forward rate is the rate that is applied to a loan or investment that will commence in the future. The forward rate is defined as the interest rate in a contract for future delivery of a commodity, currency, or financial instrument.
A forward rate agreement is an agreement between two parties to trade a forward rate at a specified future date.The Forward Rate is a rate that is set for a future period of time. In contrast to the current spot rate, which is the price paid for an asset or a currency at the time of purchase, the forward rate is the rate that must be locked in for a future period.
For instance, if an individual wants to buy a car and expects interest rates to rise over the next few months, they may want to lock in the current rate by purchasing a forward rate for the car's future price.
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a leader who is focused on internal resources, systems, processes, and methods in order to achieve the organization's mission in the most effective way is engaged in what type of planning?
A leader who is focused on internal resources, systems, processes, and methods in order to achieve the organization's mission in the most effective way is engaged in what type of planning is called Operational planning.
Operational planning is the primary planning level of an organization, which is centered on day-to-day activities. Planning at this level entails a detailed strategy of how the organization will function in a specific period, usually a fiscal year, and how it will accomplish its short-term goals.
It outlines the steps and measures that need to be taken to reach the objectives set in the tactical plan, which is the plan for achieving the strategic plan's goals.
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How will a decrease in short-run aggregate supply (SRAS) caused by increased government regulation affect the equilibrium price level (PL), equilibrium output (Y∗) and the full employment level of output (Yf) in an economy?
A decrease in SRAS caused by increased government regulation will lead to an equilibrium price level (PL) increase and a decrease in equilibrium output (Y*) with no effect on the full employment level of output (Yf).
When government regulations increase, it imposes additional costs on businesses and reduces their ability to produce output. This reduction in production capacity decreases the short-run aggregate supply (SRAS), shifting the aggregate supply curve to the left. As a result, the equilibrium point moves along the aggregate demand curve towards a lower output level and higher price level, resulting in a decrease in equilibrium output (Y*) and an increase in equilibrium price level (PL).
However, the full employment level of output (Yf) remains unchanged since the decrease in SRAS is only a temporary deviation from the long-run equilibrium output level. In the long-run, the economy will adjust to the new equilibrium output level (Y*) through factors such as changes in technology and capital accumulation.
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the amount of output that a firm decides to sell has no effect on the market price in a competitive industry because:
The amount of output that a firm decides to sell has no effect on the market price in a competitive industry because, in a competitive market, the market price is determined by the supply and demand forces. Thus, the correct option is (B) The market price is determined by supply and demand forces.
What is a competitive industry?
A competitive industry refers to a market with various firms that produce and sell products that are very close substitutes to one another.
Due to the high level of competition between these firms, no single firm can influence the market price. As a result, the price is determined by supply and demand forces.
What is supply and demand?
The relationship between the amount of a product that producers are willing and able to sell and the amount that consumers are willing and able to buy is known as supply and demand.
Supply and demand influence the price of a product. The demand curve reflects how much customers will buy at various prices. The supply curve reflects how much producers will sell at various prices.
In conclusion, the amount of output that a firm decides to sell has no effect on the market price in a competitive industry because the market price is determined by the supply and demand forces.
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explain how division works with a dividend and remainder by describing the process in your own words.
Division is a basic arithmetic operation in which the dividend is divided by the divisor to obtain the quotient and the remainder. In mathematical notation, division is represented by the symbol ÷ or /, and the dividend, divisor, quotient, and remainder are represented by the letters a, b, q, and r, respectively.
The process of division involves dividing the dividend by the divisor, which results in a quotient and a remainder. The quotient is the result of dividing the dividend by the divisor, and the remainder is the amount left over after the division.
To perform the division, the divisor is first placed outside a long division symbol, and the dividend is placed inside the symbol. The dividend is then divided by the divisor, starting with the leftmost digit, and the quotient and remainder are calculated for each step.
The quotient is calculated by dividing the digit of the dividend by the divisor, and the remainder is calculated by subtracting the product of the divisor and the quotient from the digit of the dividend. This process is repeated for each digit of the dividend until all digits have been divided.
The final result of the division is the quotient and the remainder. The quotient represents the number of times the divisor can be divided into the dividend, and the remainder represents the amount left over after the division.
In conclusion, division is a fundamental mathematical operation that involves dividing the dividend by the divisor to obtain the quotient and the remainder. The process of division involves dividing the dividend by the divisor, starting with the leftmost digit, and calculating the quotient and remainder for each step.
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how long a product will last and how durable the product is are features and benefits related to the product's
The longevity and durability of a product are features and benefits related to the product's quality.
Quality is a key feature of a product that relates to how well it meets the needs and expectations of its users. Quality encompasses a range of characteristics, including durability, reliability, performance, and safety. How long a product will last and how durable it is are both important aspects of quality.
A product that is built to last and withstand wear and tear is typically seen as higher quality than a product that is likely to break or wear out quickly. In addition to being features of the product itself, longevity and durability can also be benefits that the product provides to its users. For example, a durable product may save the user money by not needing to be replaced as frequently, or may provide peace of mind by being less likely to break or malfunction.
Overall, the quality of a product is an important factor in its value and appeal to consumers. Products that are well-designed, well-made, and built to last are typically seen as higher quality and are more likely to meet the needs and expectations of their users.
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describe your specific planning process for your project and overall teaching goal in behavioral terms for your participants
The planning process is a set of steps that businesses, governments, and other organizations follow to reach their objectives. It includes identifying objectives, defining goals, developing strategies, and outlining the actions necessary to achieve them.
Step 1: Set Goals To begin, you must establish specific goals for your project or teaching goal in behavioral terms. Behavioral objectives are written to demonstrate what the student will learn as a result of the educational program. These objectives should be observable, measurable, and achievable.
Step 2: Identify Target Participants Once you've established your objectives, you'll need to identify the target participants for your educational program. You'll need to choose a group of individuals who are capable of achieving the objectives you've set.
Step 3: Choose the Behavioral Intervention Strategies Once you've identified your target audience, you must choose the most suitable behavioral intervention strategies for achieving your objectives. Behavioral intervention strategies must be tailored to the target audience.
Step 4: Define Evaluation Procedures Once you've chosen your behavioral intervention strategies, you must establish the procedures for evaluating your program's success. These procedures must include ways to measure the effectiveness of the program.
Step 5: Develop the Program Once you've completed your planning process, it's time to create the educational program itself. You must design an educational program that is consistent with the objectives you've set, the target audience you've identified, and the behavioral intervention strategies you've selected.
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the relationship showing spending at each level of real gross domestic product or real income is known as the
The relationship showing spending at each level of real gross domestic product or real income is known as the aggregate expenditure model.
What is the aggregate expenditure model?
The aggregate expenditure model (AE) is a macroeconomic model that analyzes the relationship between aggregate expenditures and the level of real GDP (gross domestic product).
It represents the relationship between the total spending on goods and services produced in a country and the total output of goods and services that are produced in the country.
The model explains how an economy's aggregate expenditures (AE) affect the level of national income or gross domestic product (GDP).
It shows that the equilibrium level of real GDP is determined by the intersection of the aggregate expenditure line and the 45-degree line. The AE model assumes that the economy's price level is constant in the short run.
The components of aggregate expenditure are consumption (C), investment (I), government spending (G), and net exports (NX).
AE = C + I + G + NX
The components of aggregate expenditure are explained below:
Consumption (C) is the largest component of aggregate expenditure in most countries. It refers to spending on goods and services by households.
Investment (I) refers to spending by businesses on new machinery, equipment, and buildings.
Government spending (G) refers to the purchase of goods and services by the government.
Net exports (NX) are the difference between exports (X) and imports (M).
The formula for GDP is:
GDP = C + I + G + NX
Where:
GDP is the gross domestic product
C is the consumption
I is the investment
G is the government spending
NX is the net exports
The relationship between the spending at each level of real GDP or real income is known as the aggregate expenditure model, and the components of aggregate expenditure are consumption (C), investment (I), government spending (G), and net exports (NX).
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a company will have to pay a $50,000 liability in 4 years. how much must be deposited now into a bank account earning 8% compounded semiannually to fully fund the future payment?
The amount that must be deposited now into a bank account earning 8% compounded semiannually to fully fund the future payment of a company will have to pay a $50,000 liability in 4 years is $36,470.69.
The formula used to solve for the present value of the liability is the future value formula.FV = PV(1 + r/n)^(nt)FV represents the future value, PV represents the present value, r represents the interest rate, n represents the number of compounding periods per year, and t represents the time in years.
FV represents the future value, r represents the interest rate, n represents the number of compounding periods per year, and t represents the time in years.The given liability amount is $50,000, and the interest rate is 8%. Since the interest is compounded semiannually, the compounding period is 2, and the time to maturity is 4 years.
Therefore, substituting the values into the formula, the present value of the liability is calculated as;PV = FV/(1 + r/n)^(nt)PV = 50000/(1 + 0.08/2)^(2*4)PV = 36,470.69.Therefore, the amount that must be deposited now into a bank account earning 8% compounded semiannually to fully fund the future payment is $36,470.69.
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good internal accounting control requires that the person handling cash should also make any related journal entries so that responsibility for cash can be assigned to one person. true
false
Answer:
True.
Explanation:
Good internal accounting control requires that the person handling cash should also make any related journal entries so that responsibility for cash can be assigned to one person. This helps to prevent the possibility of fraud or errors, as well as to ensure that there is accountability and transparency in the handling of cash.
at the point of equilibrium shown in the graph, how many slices of pizza will the pizzeria supply, and at what price?
400 slices at prize of $2.50
At the point of equilibrium shown in the graph, the pizzeria will supply 400 slices of pizza at a price of $2.50.What is Equilibrium?Equilibrium is the point at which the supply of a good meets the demand for it. This means that the quantity demanded of a good is equal to the quantity supplied at the equilibrium price. The equilibrium price and quantity are determined by the intersection of the supply and demand curves.Supply and demand curves can be used to represent a market. A market is any system or platform where buyers and sellers interact with each other. In this context, buyers represent the demand, and sellers represent the supply of goods or services.What is Supply?Supply is the total amount of a good or service that a firm is willing and able to produce and sell at a given price. This is because, as the price of a good increases, the quantity supplied of that good increases as well. This is because firms are more willing to produce and sell goods that are more profitable.What is Price?Price is the amount of money that is charged for a good or service. In general, prices are determined by the interaction of supply and demand. When the quantity supplied of a good is greater than the quantity demanded, the price of that good will fall. When the quantity demanded of a good is greater than the quantity supplied, the price of that good will rise.
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which of the following is not an example of an internal recruiting source? question 3 options: internal job postings employee referrals nominations former/current expatriates
Internal job postings is not an example of an internal recruiting source.
Internal recruiting refers to a method of filling vacant positions within an organization by looking to existing employees first. This method can involve word-of-mouth referrals, formal nominations, and a variety of other activities. In contrast, internal job postings involve the organization advertising vacant positions to its existing employees. The organization can use emails, intranets, and other internal communications systems to communicate the details of the job and the qualifications required.
Internal recruiting is beneficial because it can improve employee morale, reduce recruitment costs, and speed up the recruitment process. Additionally, internal recruitment can also increase the diversity of the organization’s workforce. However, there are also drawbacks to this method such as a lack of exposure to new ideas, limited access to qualified candidates, and a decreased ability to find the best candidate for the job.
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when organizational members are not strongly committed to a shared system of values, beliefs, and routines, organizational is/are weak.
Organizational culture is weak when members are not firmly committed to a set of guiding principles, norms, and practises.
What values, beliefs, and attitudes do the people in the organisation share?The underlying ideologies, presumptions, values, and social norms that shape an organization's particular social and psychological environment are known as its organisational culture.
What does it mean when a system of shared values, assumptions, and beliefs demonstrates to employees what is acceptable and unacceptable behaviour?A system of shared presumptions, attitudes, and beliefs inside an organisation serves as a guide for employees regarding what constitutes acceptable and unacceptable behaviour (Chatman & Eunyoung, 2003; Kerr & Slocum Jr., 2005). These principles have a significant impact on both employee behaviour and company effectiveness.
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a country's currency that strengthened relative to another country's currency by more than that justified by the differential in inflation is said to be in terms of ppp. overvalued over compensating undervalued under compensating
Answer: The answer is overvalued
Explanation: I had th esame question on my assignment today that we went over
Determine the interest payment for the following three bonds (Assume a $1,000 par value.) (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places):
4 ½ percent coupon corporate bond (paid semiannually) $
5.15 percent coupon Treasury note $
Corporate zero coupon bond maturing in 15 years $
The interest payment for the following three bonds are: $17.50, $21.25, $0
3 ½ percent coupon corporate bond (paid semiannually):The interest payment for this bond would be ½ × 0.035 × $1,000 = $17.50. This means that the bondholder will receive $17.50 in interest payments per year (paid twice a year).
4.25 percent coupon Treasury note:The interest payment for this bond would be ½ × 0.0425 × $1,000 = $21.25. This means that the bondholder will receive $21.25 in interest payments per year (paid twice a year).
Corporate zero coupon bond maturing in ten years:The interest payment for this bond would be 0.00 × $1,000 = $0. This means that the bondholder will not receive any interest payments until the bond matures, at which point they will receive the face value of the bond ($1,000).
The three bonds and their respective interest payment that are to be determined are as follows:
3 ½ percent coupon corporate bond (paid semiannually):½ × 0.035 × $1,000 = $17.504.25
4.25 percent coupon Treasury note:½ × 0.0425 × $1,000 = $21.25
Corporate zero coupon bond maturing in ten years:0.00 × $1,000 = $0.00
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how do positive externalities affect demand curves? multiple choice question. demand curves become vertical lines. demand curves shift to the right. demand curves shift to the left. demand curves become horizontal lines.
Positive externalities can cause demand curves to shift to the right. This means that at each given price, there is a higher quantity demanded than what was initially predicted by the demand curve.
This is because positive externalities create additional benefits for consumers that make the good more desirable. Positive externalities can cause the demand curve to shift to the right. When there are positive externalities, the benefits of a good or service extend beyond the direct buyer and seller. As a result, the social benefits of consuming the good or service are greater than the private benefits, and the demand curve shifts to the right to reflect this additional benefit. The shift in the demand curve indicates that consumers are willing to pay a higher price and buy more of the good or service at every price level. Therefore, the correct answer is: demand curves shift to the right.
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a schedule management plan includes information which describes the format and frequency of schedule reports required for the project. true false
A schedule management plan includes information which describes the format and frequency of schedule reports required for the project. This statement is TRUE.
What is a Schedule Management Plan?The Schedule Management Plan is a document that outlines how the project schedule will be developed, monitored, and managed. It's a subsidiary management plan to the Project Management Plan, which is the main planning document for a project.
This plan is intended to help project managers establish the project's schedule management approach, as well as define how project schedule performance will be tracked and evaluated.
The Schedule Management Plan is typically created by the project manager and includes the following information:
Schedule Development ProcessSchedule Control ProcessSchedule Change Control ProcessSchedule Reporting ProcedureSchedule Tools and TechniquesSchedule Roles and ResponsibilitiesWhat is a Schedule Report?A schedule report is a document that contains information on the project's schedule performance. It includes a comparison of the actual work completed to date and the work scheduled to be completed, as well as any variances discovered.
A schedule report also includes a summary of the work that is planned for the next period, as well as an analysis of the current schedule's health.
A schedule report is used by project managers to track and control the project's schedule performance, as well as to communicate project progress to stakeholders.
ConclusionIn conclusion, a schedule management plan includes information that describes the format and frequency of schedule reports required for the project. It is a key element in the development and management of a project schedule.
The schedule management plan helps project managers establish the project's schedule management approach, as well as define how project schedule performance will be tracked and evaluated.
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what will happen to the apartment market in kansas city if the city government decides to set the price for three-bedroom apartments below the market equilibrium price in an attempt to make apartment living more affordable for local families?
If the city government of Kansas City decides to set the price of three-bedroom apartments below the market equilibrium price in an attempt to make apartment living more affordable for local families, it would lead to a surplus of apartments in the market.
The market equilibrium price refers to the price of an apartment where the quantity demanded and quantity supplied is equal. If the government decides to set the price of three-bedroom apartments below the market equilibrium price, it would result in an excess demand for apartments or a shortage of apartments since more families would be interested in renting these apartments at a cheaper price. However, since the government has set the price below the market equilibrium price, it would lead to a surplus of apartments, meaning there would be more apartments available than the demand for it.
This situation would result in a shift in the apartment market, with apartment owners reducing their prices to attract tenants since they have more competition from other apartment owners in the market. The surplus would lead to a fall in prices, which would mean more families would be able to rent a three-bedroom apartment at an affordable price. Consequently, it would reduce the demand for cheaper housing options like two-bedroom apartments or smaller apartments.Since the supply of three-bedroom apartments is high, and the demand is low due to the surplus, the prices would continue to fall until it reaches a new equilibrium price.
Therefore, if the city government decides to set the price of three-bedroom apartments below the market equilibrium price in an attempt to make apartment living more affordable for local families, it would lead to a surplus of apartments in the market.
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true or false? we can determine the standard of living of the average person in a country by knowing the level of gdp.
True. Gross Domestic Product (GDP) is a measure of a country’s economic output, and is an indicator of the standard of living for its citizens.
GDP measures all goods and services produced by a country, and when taken in per capita terms, can provide an estimate of the economic welfare of its people. The higher the GDP, the higher the standard of living for the average person. This means that citizens have access to more resources, such as healthcare, food, education, and housing.
However, GDP is not the only factor that influences the standard of living in a country, as other social and political factors, such as political stability and access to resources, can also play a role.
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according to the textbook what is the difference between variable and flexible pricing? does the demand for the item being sold affect either of these strategies?
The difference between variable and flexible pricing according to the textbook is that variable pricing is the practice of setting different prices for the same goods or services based on various factors like time, customer demand, or availability. On the other hand, flexible pricing is the practice of using different pricing models to offer products or services to customers.
Both of these strategies have their advantages and disadvantages, but their suitability depends on the business model and the market demand. The demand for the item being sold can affect both of these strategies. In the case of variable pricing, the demand for the item being sold has a significant effect on the pricing strategy, as the price is set according to the demand level. For example, if there is a high demand for a particular product or service, the price can be set higher to reflect the high demand.
On the other hand, if the demand is low, the price can be set lower to increase sales and revenue.In the case of flexible pricing, the demand for the item being sold can also affect the pricing strategy, as different pricing models can be used to offer the product or service to customers. For example, if the demand is high, a higher pricing model can be used to offer the product or service to customers. On the other hand, if the demand is low, a lower pricing model can be used to offer the product or service to customers.
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