Answer:
B. Straddling
Explanation:
Straddling is a management approach in which a firm seeks to match what a competitor is doing by adding new services, technologies, features to its current activities.
Straddling is a very risky management approach as any other firm that is not straddling can match a straddling company on every front. The risk always shows if the straddling firm has to trade-off(i.e: lose one quality to improve another or to make gains).
Cheers.
Assume the economy is operating at full employment. If the economy enters a sudden economic expansion, the quantity of money available in the economy will:_______.
Answer:
the qquantity of money available in the economy will increase because there will be more foreign investments plus now the economy will start exporting and will reduce its imports so the quantity of money will increase.
Answer:
Explanation:Economic expansion is of two types: actual and potential. Actual expansion means increase in the goods and the services produced in an economy due to which Gross domestic product/national income rises. Potential expansion means the growth in the potential production or increase in the resources of the economy. Economy expands due to the increase in aggregate demand or aggregate supply. As the economy is operating at full employment, meaning that resources are fully employed, the increase in Aggregate demand will only cause the prices to rise which will lead to an increase in the demand of money. As the money supply is normally held constant by the govt, and the money demand has risen, the quantity of the money in the economy will remain the same and the interest rate will rise. But if the aggregate supply also rises, this will also increase the potential of the economy along with the actual output in the economy, the quantity of money will increase. The increase in national income will increase the demand of money and as there are spare resources available, to maintain the interest rate and encourage growth, The govt will increase the money supply in the economy (given that expansion is the aim of the govt).
One important point to remember is that just because a difference between two treatment groups is found to be statistically significant, it does not mean that the difference has practical significance. To help, researchers use a finding's _____ to measure magnitude and reliability.
Answer:
Researchers use a finding's Effect size to measure magnitude and reliability.
Explanation:
Effect size is statistical method used by researchers to compare between variables that are statistically significant. It is used to determine the magnitude of the parameters and reliability of the treatment group.
If a restaurant offers a steak on the menu that costs $5 and sells for $14.95, the contribution margin is __________ for every steak sold.
Answer:
$9.95
Explanation:
Contribution Margin represents the difference between the variable cost of a product and the revenue derived from its sales. It shows the net amount contributed by sales to cover profits as well as fixed costs.
Contribution margin is calculated by subtracting Variable Cost from Sales
CM= Sales- Variable Cost.
Sales represent the revenue derived from selling a product and Variable Cost is the cost that can be directly traced or directly affects the manufacture of the product sold.
In the question:
Variable Cost- $5
Sales Revenu is $14.95
CM= $14.95 - $5 = $9.95
A food manufacturer hires people based on their technical qualifications, has a classical hierarchy of authority, and ensures all administrative acts are recorded in writing. What style of management does it practice?
Answer:
Bureaucratic Management
Explanation:
In a bureaucratic management form, the emphasis is laid upon technical skills and qualifications and follows long hierarchy wherein each level issues commands to the level below it.
Bureaucracy has often been criticized for the delay it causes in decision making process as every person is answerable to his superior and a decision has to pass several levels of hierarchy.
In the given case, the manufacturers hiring is based upon technical qualifications, a classical hierarchy of authority is followed and every act is recorded in writing which points towards more documentation, which is another limitation of bureaucracy.
Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price:___________
Answer: Price skimming.
Explanation:
Price skimming is a product price setting method in which, a new product's market entry price is set to be very high, and then gradually reduced with time to gain more price sensitive consumers in the market. The price skimming effectively works for a product that doesn't have much competition in the market.
The term for charging a high price for new and innovative products to consumers who are most willing and able to pay the high price is referred to as price skimming. This tactic is commonly used in industries like music and electronics, where high demand can justify initial high costs. However, price skimming grows less effective as competition increases and market demand levels out.
Explanation:Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is referred to as price skimming. Examples of such strategies can be seen in the music industry, where some bands with huge fan bases can set sky-high prices for their concert tickets. Similarly, innovative business leaders like Samsung's CEO believe in continuously creating innovative products that consumers want, and their new offerings may initially have high prices due to this added value proposition. However, the effectiveness of price skimming usually reduces in time as competitors catch up with similar offerings and market saturation begins to limit demand.
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Under the utilitarian model of ethics, the following is true: a. Ethical decisions involve producing the best outcome for managers. b. The use of a cost-benefit analysis for alternative actions is undertaken. c. Corporate decisions must create the greatest amount of good for the least numbers.
Answer:
The answer is b) The use of a cost benefit analysis for alternative actions is undertaken.
Explanation:
The concept or idea behind the utilitarian model of ethics is that what is right should be separated from what is wrong by using the outcome of action as basis of judgement. The aim of the act should be the greatest good for the greatest number of people. In options A and C, the outcome benefits only a specified or particular group of people whereas option B, the use of cost-benefit analysis, which is one of the main areas that applies utilitarianism is businesses, best suits this ideology.
Answer:
Ethical decisions involve producing the best outcome for managers.
Explanation:
Under the utilitarian model of ethics, ethical decisions involve producing the best outcome for managers because because the concept of Utilitarianism holds that what is ethical is determined by focusing on outcomes. Hence it looks at consequences and believes that the most ethical choice is that which brings forth the greatest good for the greatest number.
In the light of the above meaning of utilitarianism, it is clear that it is not a cost-benefit analysis (which is the given option b) neither does it hold that what is ethical creates the greatest amount of good for the least numbers (option c) but for the greatest number.
Last year, 7,140 units were produced and 6,940 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:a. $4,400 less than under absorption costing.
b. $6,940 less than under absorption costing.
c. $6,940 greater than under absorption costing.
d. the same as absorption costing.
Answer:
$4,400 less than under absorption costing.
Explanation:
First the complete Question:
The Southern Corporation manufactures a single product and has the following cost structure:
Variable costs per unit:
Production $ 35
Selling and administrative $ 17
Fixed costs per year:
Production $ 157,080
Selling and administrative $ 128,810
Step 1: Calculate the Value of the Ending or Closing Inventory under variable costing
To do this subtract the closing inventory form the produced units and multiply it by the production variable cost per unit
= (7,140 - 6,940) x $35 = $7,000
Step 2: Use Absorption Costing to determine the Product Cost
a. Determine Fixed Production Cost per Unit
Fixed Cost/ total units produced
= $157,080 /7140 = $22
b. Calculate total cost per unit by adding the variable Production cost to the determined fixed production cost per unit
= $35 + $22 = $57
Step 3: Determine Closing Inventory of goods produced under absorption costing
= 7,140 - 6,940 = 200 Units
Multiply this by the total production cost determined
= 200 units x $57 = $11, 400
Step 4: Find the difference between the value of closing inventory determined in step 1 and the value of closing inventory determined by absorption costing in step 3
= $11, 400 - $7,000 = $4,400
This means that the ending inventory of finished goods under variable costing (step 1) is $4,400 less than the ending inventory under absorption costing (step 3)
A journal entry includes a debit to Salaries and Wages Expense of $5,000; a debit to Salaries and Wages Payable of $3,000; and a credit to Cash for $8,000. Which explains this entry?
Answer: The entry is a reflection cash payment of $8000 which is a reduction of liabilites of $3000 on salaries payable and an expense of $5000 incurred on salaries.
Explanation: The transaction coud be a typical scenario of a payment for salaries previously due provided for while also paying for the presently incurred salaries expense.
Ryan is going to rent a truck for one day. There are two companies he can choose from, and they have the following prices. Company A charges an initial fee of $72.50 and an additional 40 cents for every mile driven. Company B charges an initial fee of $25 and an additional 90 cents for every mile driven. For what mileages will Company A charge no more than Company B? Write your answer as an inequality, using m for the number of miles driven.
m≥95
Explanation:
Since, we have two option given.
forming the equation for Company A
As company A pay fixed (intercept) of $72.5. Moreover, with every one mile driven company A pays $0.4 (slope)
Using the equation
y=mx+c
where m is slope, and c is intercept.
In the case of company A. slope is $0.4, and intercept is $72.5.
charges= 0.4m+72.5
Forming the equation for company B
charges=0.9m+25
Now, as per the requirement of question we must find the value of m, where Company A will charge no more than company B
That means,
we have to find the value of m where charges from equation of company A should be less than or equal to charges from equation of company B
in other words,
0.4m+72.5 ≤ 0.9m+25
solving for m,
Step 1
72.5-25 ≤ 0.9m-0.4m
Step 2
47.5≤ 0.5m
Step 3
47.5/0.5≤ m
Step 4
95≤ m
in other words, m≥95
Which of the following is a capital budgeting technique that converts a project's cash flows using a more consistent reinvestment rate prior to applying the Internal Rate of Return, IRR, decision rule?A. discounted payback
B. net present value
C. modied internal rate of return
D. protability index
Answer:
c. modified internal rate of return
Explanation:
Modified internal rate of return ( MIRR ) -
The modified internal rate of return is used in order to rank the projects or the investment that are of unequal size.
The assumption involved is that the positive flow of cash are again invested to the firm and the initial outlays are financed during the firm's financing cost , is referred to as the MIRR.
MIRR is very accurate in comparison to the traditional internal rate of return (IRR) and gives the profit and cost of the project with more accuracy.
Hence , from the given information of the question,
The correct option is c. modified internal rate of return .
The Modified Internal Rate of Return (MIRR) is the capital budgeting technique that adjusts project cash flows using a consistent reinvestment rate before applying the IRR decision rule. It provides a more accurate reflection of project returns by adjusting interim cash flows using a reinvestment rate that differs from the project's IRR.
Explanation:The capital budgeting technique that converts a project's cash flows using a more consistent reinvestment rate prior to applying the Internal Rate of Return, IRR, the decision rule is C. Modified Internal Rate of Return (MIRR).
MIRR is a refinement of the traditional IRR technique and it adjusts the cash flow of a project to estimate a more accurate and realistic rate of return. This is done by assuming a reinvestment rate for the interim cash flows that differ from the project's IRR, providing a more true reflection of the project's real cost and value.
By contrast, other options like Net Present Value (NPV), Profitability Index, and Discounted Payback, do not adjust for this factor in the calculation of project returns.
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One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock. The result of this calculation is more commonly referred to as:________.
Answer:
Market Capitalization
Explanation:
One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock. The result of this calculation is more commonly referred to as market capitalization.
Market capitalization refers to the total market value of a firms shares. it is the cumulative value of the outstanding shares a publicly quoted company (a company that trades its shares in the stock exchange).
The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle.
Which of the following statements is most likely true of StoreAll Inc. in this scenario?
A. It has a competitive advantage in the industry.B. It has a competitive disadvantage in the industry.C. It has competitive parity with other firms in the industry.D. It has formed a strategic alliance with other firms in the industry.
Answer:
A. It has a competitive advantage in the industry
Explanation:
Competitive advantage is a condition where one company has an advantage of making or producing the same product for lesser costs or other benefits.
There are two main types of competitive advantages . One is the external and the other is the internal. The external factors include the advantages of sale over other industries or market pricing or other marketing strategies. the internal factors include the lower costs or high standard production etc.
Larimer Corporation prepares its financial statements in accordance with IFRS. Larimer acquired equipment by issuing 5,000 shares of its common stock. How should this transaction be reported on the statement of cash flows?
Answer:
It should be reported in the notes to the financial statements as a noncash transaction
Explanation:
At December 31, 2014, before any year-end adjustments, Janus Company's Prepaid Insurance account had a balance of $2,800. It was determined that $1,200 of the Prepaid Insurance had expired. The adjusted balance for Prepaid Insurance for the year would be:
$1,600. ( T/F)
Answer:
The adjusted balance of prepaid insurance is $ 1,600 and the statement is true.
Explanation:
A prepayment refers to payments made for which the benefit is to be received in the future. Common examples of prepayments are prepaid rent and prepaid insurance.
An adjustment is made at the end of an accounting period to reduce the prepaid balance to reflect the unused portion of benefit.
In the given question, $ 1,200 value of prepaid insurance had expired hence it is reduced from the pre adjusted balance of prepaid insurance.
During the month of June, Carney & Whitley Inc. had cost of goods manufactured of $123,200, direct materials cost of $57,200, direct labor cost of $40,700, and manufacturing overhead cost of $28,600. The work in process balance on June 30 was equal to $11,000. What was the work in process balance on June 1?a.$13,000b.$7,700c.$115,000d.$10,000
Answer:
b) $ 7.700
Explanation:
The total inputs during the month were:
Direct materials $ 57,200
Direct Labor $ 40,700
Manufacturing Overhead $ 28,600
Total input for June $ 126,500
of which WIP Closing June 30 $( 11,000)
Cost of Goods manufactured ----------------
from June input $ 115,500 (1)
Since the total Cost of Goods
manufactured is $ 123,200 (2)
so the opening Work in
process is (2)-(1) $ 7,700
If a video game manufacturer required its resellers to stock a line of games based on the financially-disappointing movie War of the Worlds in order to carry games based on the popular TV show Survivor, it would be an example of_______
Answer:
bundling a slow mover with a fast moving product.
Explanation:
One of the most effective ways in which a manufacturer or a retail store can get rid of slow movers (products with low sales level) is by bundling them with some fast moving product (products with high sales level). Usually slow movers are added as a promotion with a steep discount, but it is better to recoup some money than nothing.
When manufacturers bundle slow movers with a fast moving product they do this because the retailers need the fast moving product (high demand) or their sales will decrease. Video game retailers really want the games about the Survivor show and they will probably be willing to buy a small amount of no good War of the Worlds game in order to get them. They might also use the same sales strategy and bundle the War of the Worlds game with some other slow mover game and make a 2 for 1 sale.
The central theme of the concept of _____ is that all of an organization's promotional elements and marketing activities reach out consistently and in a unified manner with its customers.
Answer: Integrated marketing communication
Explanation:
The integrated marketing communication is one of the type of organizational promotional method where we using the different types of medium for communicating with the audience about the new products produced by an organization in the market.
The main objective of the IMC ( Integrated marketing communication) is that it helps in boost the profits and the sales of the company.
By using this method we can easily communicate with the audience or consumers about the products and the services.
According to the question, the IMC is the concept that include all the marketing activities in more unified manner with the consumers in the market.
Therefore, Integrated marketing communication is the correct answer.
Integrated Marketing Communications (IMC) is a strategic marketing approach that ensures consistency in all of an organization's promotional and marketing activities, reinforcing a cohesive brand message and image.
The central theme of the concept mentioned in the question is Integrated Marketing Communications (IMC). This strategic approach to marketing ensures that all of an organization's promotional elements, such as advertising, the marketing mix, and other marketing activities, consistently and cohesively communicate the brand's message to its customers. The theme of a brand is relayed through various means: the message content, the product itself, the visual aspects such as color choices, layout design, and graphic elements. The aim is to create a consistent brand image across all platforms.
In achieving IMC, the consistency of the core message is key. It must be articulated across all social media platforms, through the marketing mix's composition of price, promotional activities, location, and sales channels, and during direct customer interactions. By maintaining a consistent brand "feel" or personality, customers receive the same brand experience regardless of the point of contact, which can improve brand loyalty and overall marketing effectiveness.
______ is an increase in the price level, while ______ is an increase in the price of one good in comparison to other goods and services.
Answer:
Inflation and Relative Price Increase
Explanation:
Inflation represents an increase in all prices or wages which results in a drop or reduction in money's purchasing power. Of course, the drop in the purchasing power of money is as a result of the inability to use the same amount of money used in a previous period to purchase the same quantity of goods in the current period as a result of a general shift in prices.
A Relative Price Increase on the other hand, unlike inflation is not a general price increase as a result in change of monetary policies, it represents changes in the price of individual goods as response to the flows of demand and supply of different goods in teh economy. An increase in the relative price of goods for instance could be as a result of demand greater than supply while a decrease is the vice versa of teh phenomenon.
Inflation is a monetary policy effect, while relative price increase is a market (demand and supply) caused effect on goods and services.
During the current year, Blossom Construction trades an old crane that has a book value of $122,400 (original cost $190,400 less accumulated depreciation $68,000) for a new crane from Blue Manufacturing Co.
Answer:
The journal entry would be
New Equipment (crane) $ 122,400 Dr
Depreciation Expense (old crane) $ 68,000 Dr
Old Equipment $ 190,400 Cr
As the price of the new equipment is not given the profit or loss cannot be estimated. the whole amount less depreciation is transferred to new equipment account. if depreciation is treated separately and not set off against the equipment the entry would be under the accrual basis of accounting
New Equipment (crane) $ 122,400 Dr
Depreciation Expense (old crane) $ 68,000 Dr
Old Equipment $ 122,400 Cr
Accumulated Depreciation $ 68,000 Cr
Which of the following is NOT an example of a public that is part of a company's marketing environment?
A) financial
B) media
C) government
D) citizen-action
E) marketing department
Marketing department is not an example of the public which forms part of the marketing environment because it is an internal affairs of the organization.
Marketing environment refers to those environment which constitute the internal and external factors that influence an marketing activities of an organization.
The Internal factors which forms marketing environment includes factors like Marketing department, Company Culture, Company image, Goodwill, Marketing Strategy etc
The External factors which forms marketing environment includes factors like customer action, technological advancements, social force, economic force, competitive forces.
Therefore, the Option E. is not an example of the public which forms part of the marketing environment because it is an internal affairs of the organization.
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Final answer:
The E. marketing department is not an example of a public that is part of a company's marketing environment, unlike financial, media, government, and citizen-action groups.
Explanation:
The correct answer to the question of which of the following is NOT an example of a public that is part of a company's marketing environment is the marketing department. The marketing department is an internal part of a company, whereas the other entities listed - financial, media, government, and citizen-action groups - represent external groups that a company interacts with in its external marketing environment.
The marketing department is an internal part of a company, not an external public like financial, media, government, or citizen-action groups. These external groups can influence or be influenced by a company's marketing strategies.
When the director/manager allows employees to guide themselves toward the goal, then a(n) _______ leadership style is being used.
Answer:
Free Rein Style
Explanation:
leadership can be described as research area that encomposses the ability of an organisation or an individual to lead a team, individuals or entire organisations.
Free rein style is the most suitable.
Trey owns 250 shares of common stock in a toy-store company, which means he owns a percentage of the company. With this ownership, he also acquires the right to ___________
Answer:
See answers below
Explanation:
Common stock ownership grants its holders the right to the following.
right to receive a dividend when declared by the company. A dividend is a part of the profit for a given year that the management of a company has deemed fit for payment to the shareholders of the companyright to attend and vote in a meeting of the stockholders/shareholdersright of first refusal when the company wishes to raise additional capital. This means shareholders must be offered the option of providing the additional capital needed by the company first, before the option to raise outside capital can be taken.In 2013, selected automobiles had an average cost of $15,500. The average cost of those same automobiles is now $17,205. What was the rate of increase for these automobiles between the two time periods?
Answer:
11%
Explanation:
Average cost of automobiles in 2013 = $15,500
Average cost of automobiles now = $17,205
Change in average cost = $17,205 - $15,500
= $1,705
Rate of increase in cost is the ratio between the increase and the average cost before the increase.
Rate of increase = ($1,705/$15,500) × 100%
= 11%
The rate of increase for these automobiles between the two time periods is 11%.
In 1980 the Depository Institutions Deregulation and Monetary Control Act loosened many government controls, including the elimination of interest-rate _________ on savings and time deposits.
Answer: Ceiling
Explanation:
The interest rate ceiling is one of the type of contractual provision that helps in outline the all the transaction related to the interest rate.
The interest rate ceiling is basically refers to the maximum rate of the interest that are permitted on the specific transaction that helps in providing all the contractual loan terms.
According to the given question, the Monetary control act including the eliminating of the interest rate ceiling for the time deposits and on savings.
Therefore, Ceiling is the correct answer.
In 2011, the value of the GDP deflator is 113. (Enter your response rounded to the nearest whole number.) In 2012, the value of the GDP deflator is 119. (Enter your response rounded to the nearest whole number.)
Answer:
2011 = 113
2012 = 119
Explanation:
The computation is shown below:
GDP deflator = (Nominal GDP) ÷ (Real GDP) × 100
For 2011, it would be
= ($13,495 billion) ÷ ($11,919 billion) × 100
= 113
For 2012, it would be
= ($14,241 billion) ÷ ($12,007 billion) × 100
= 119
In order to find out the GDP deflator, we divided the Nominal GDP by the Real GDP
The GDP deflator is a price index that measures inflation or deflation in an economy by comparing Nominal GDP and Real GDP. It is calculated by dividing Nominal GDP by Real GDP and multiplying by 100.
Explanation:The GDP deflator is a price index that measures inflation or deflation in an economy. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100. For example, if the Nominal GDP is $100,000 and the Real GDP is $45,000, then the GDP deflator will be 222. This means that prices have increased by 122% since the base year.
Under market organization, individuals can communicate their preferences to other decision makers directly, through communication, but not indirectly, through their choice of whom to transact with.
1. True
2. False
Under market organization, individuals can communicate their preferences indirectly through their choice of whom to transact with.
Explanation:False
Under market organization, individuals can communicate their preferences indirectly through their choice of whom to transact with. In a market economy, individuals have the freedom to choose with whom they want to engage in transactions, whether buying or selling goods or services. This choice reflects their preferences and can influence the decisions of other market participants.
For example, if consumers prefer eco-friendly products, they may choose to buy from businesses that prioritize environmental sustainability. This choice sends a signal to other businesses, encouraging them to adopt more sustainable practices to attract customers.
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Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent inform the customer of this change, and he accepts it. What must the agent do now?
A) If the change would affect the premium, the agent must have the customer sign a statement acknowledging the change
B) The agent should ask the customer to sign a statement acknowledging that he is aware of the change
C) Nothing. After the explanation, the agent is not legally bound to do anything else
D) The agent must notify the beneficiary of the change in policy
Answer:
B, The agent should ask the customer to sign a statement acknowledging that he is aware of the change.
Explanation:
Just like in any contract, when there is a change in the details of the contract, it is mandatory that both parties are notified and that there is a document and signature confirming the acknowledgement of the changes.
So also in the case of this policy, the agent has to notify the customer of changes made to his policy and ensure the customer signs an acknowledgement of the change to avoid a breach of contract. When a customer is ignorant of a change to his policy, he can file a lawsuit against his agent and insurer depending on who is at fault.
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Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Customaria, a nation with a pure traditional economy (an economy molded largely by custom or religion).
Which of the following would you include in your report as weaknesses of Customaria's economy? Check all that apply:
_ There is little cooperation, relative to other economies.
_ The participants in the economy are slow to adopt new beneficial technologies due to previous customs.
_ People express more dissatisfaction with their lives than those in other economies.
_ Occupational choices can be restricted.
Final answer:
The weaknesses of Customaria's pure traditional economy include the slow adoption of new technologies due to customs and restricted occupational choices. Traditional economies often feature strong cooperation, and while dissatisfaction can occur, it is not an inherent economic weakness.
Explanation:
When examining the weaknesses of Customaria's economy, which is a nation with a pure traditional economy, there are several factors to consider. Traditional economies often show resistance to change, which leads to certain weaknesses:
The participants in the economy are slow to adopt new beneficial technologies due to previous customs, hindering progress and development.Occupational choices can be restricted because jobs tend to be determined by family tradition rather than individual choice or economic demand.However, the statement regarding little cooperation is not typically a weakness of traditional economies, as these economies are often characterized by strong communal ties and cooperation. Additionally, while people in traditional economies may sometimes express dissatisfaction, this is not inherently a weakness of the economic system itself but rather a subjective measure that can vary widely within any economy.
The correct options are 1, 2, 3, and 4. Customaria's economy faces weaknesses such as low cooperation, slow adoption of beneficial technologies due to customs, higher dissatisfaction among its people, and restricted occupational choices.
Each of these points represents a significant challenge for Customaria's traditional economy:
1. Little Cooperation: In a traditional economy, the lack of cooperation can hinder economic growth and development. Cooperation is essential for trade, innovation, and the division of labor, all of which are crucial for a dynamic and resilient economy. Without cooperation, the economy may struggle to adapt to changes or to take advantage of new opportunities.
2. Slow Adoption of Technology: Traditional economies often rely on long-standing customs and practices, which can lead to resistance to change. This resistance can result in a slow adoption of new technologies that could otherwise improve productivity and efficiency. The reluctance to embrace beneficial technologies can put Customaria at a competitive disadvantage compared to economies that are more open to innovation.
3. Dissatisfaction Among People: If people in Customaria express more dissatisfaction with their lives, this could indicate a lower quality of life compared to other economies. Such dissatisfaction might stem from limited economic opportunities, lower standards of living, or a lack of personal freedoms, including the freedom to choose one's occupation or lifestyle. High levels of dissatisfaction can lead to social unrest and can be a barrier to attracting investment and talent.
4. Restricted Occupational Choices: When occupational choices are restricted, individuals may not be able to pursue careers that align with their skills, interests, or the market's needs. This can lead to inefficiencies in the labor market and can prevent the economy from reaching its full potential. It can also lead to brain drain if talented individuals leave Customaria in search of better opportunities elsewhere.
In summary, these weaknesses highlight the challenges that Customaria faces due to its adherence to traditional practices and customs. Addressing these issues would require careful consideration of how to maintain cultural values while fostering economic growth and improving the well-being of its citizens.
Kara was out jogging and, despite being tired, decided too run one more mile. Based on her actions, economists would conclude that Kara decided that the marginal cost of running one more mile would outweigh the benefit of the additional mile. decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile. must be an avid runner. was not very tired, so the marginal cost of the extra mile was very low.
Answer:
decided that the marginal benefit of running one more mile would outweigh the cost of the additional mile.
Explanation:
Kara's marginal cost of running that extra mile was probably being extremely tired, with some muscle pain, etc., while the marginal benefits of running that extra mile probably included losing some extra weight, improve cardiovascular fitness, strengthen her muscles, etc.
When she decided to keep on running despite being already tired, she probably believed that the marginal benefits generated by running that extra mile outweigh the marginal costs of doing so.
The same happens to any company that decides to sell their products only if the price (benefit) is higher than their costs.
Answer:
The marginal benefit of running one more mile would outweigh the cost of the additional mile
Explanation:
Marginal Cost and Marginal Benefit
Marginal cost and marginal benefit represent the way the value or the cost of an action, a service or product changes. Marginal cost and marginal benefit in production is such that a consumer considers the marginal benefit of a product to him while a manufacturer considers the marginal cost.
This then determines the actions or decisions of the consumer to buy the product, take the action or patronise the service, and it also determines the pricing and marketing decision of a manufacturer
Marginal benefit which can also be called maximum benefit has the tendency to however decrease as consumption or action decreases until it comes to a point where the consumer sees that the cost of the action outweighs the benefit and then stops the action.
The more marginal benefit one considers is derivable from a thing, the more action the individual is willing to take to acquire that thing. The more marginal benefit which also mean the maximum benefit a person seems to derive from an action, the more of that action the individual is willing to take.
In the case of Kara, she decides to run one more mile despite the tiredness because of the realisation that there is still a maximum benefit that outweighs the tiredness she is feeling.
Ross wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed 3% rate of return. However, he would like to earn a higher return. Ross should keep in mind that to earn a higher return on his money he:____________a. will have to invest overseas.b. should invest in a business that has a very stable and predictable rate of return.c. will probably have to accept a higher level of risk.d. will probably have to engage in illegal activities.
Answer:
(C) will probably have to accept a higher level of risk
Explanation:
Investing usually involve a trade-off between risk and return. Thus, relative to the guaranteed 3% rate of return offered by his bank, he will need to accept a higher level of risk to earn a higher return on his money.
Option A is incorrect because investing overseas may not earn a higher return, especially if the investment is in an oversea sovereign asset. Option B is incorrect because investing in a business with a very stable and predictable rate of return will likely yield a lower or similar rate of return as the bank savings account due to its low level of risk. Option D is incorrect as engaging in illegal activities does not necessarily guarantee a higher rate of return on a consistent basis.
Final answer:
To earn a higher return, Ross must accept a higher level of risk, which comes with a wealth of outcomes that can fluctuate in value. Higher returns have historically been associated with stocks due to their volatility, while a savings account offers lower, more stable returns.
Explanation:
Ross wants to invest some money he just inherited and is considering options beyond the bank's savings account offering a 3% rate of return. Seeking higher returns, Ross should keep in mind that to earn a higher return on his money he will probably have to accept a higher level of risk. This is because, generally, the potential for higher returns comes with a greater chance that the investment could perform below expectations or possibly lose value. Investments with higher returns, such as stocks, typically exhibit more volatility than a savings account and can fluctuate significantly in value.
When considering different investment options, analyzing in terms of expected rate of return, risk, and investment liquidity is crucial. The expected rate of return refers to the average return anticipated over time. Meanwhile, risk indicates the uncertainty that the actual return will deviate from the expected return.
Despite common fears, high risk does not guarantee low returns; it signifies a wider range of possible outcomes, from very low to possibly high. Moreover, reliable potential borrowers and the terms of the loan or investment, such as interest rate and repayment schedules, will affect both the risk level and the potential return.