The net volume of new trade that results from forming or joining a trade bloc is trade creation. Hence the right answer is option b.
Trade creation occurs when the establishment of a trade bloc causes the value of trade between bloc members to increase more than what it would have been in the absence of the bloc. This is due to the decreased costs of production and transportation, the improved efficiency of production, and the ability for members to specialize in different goods or services.
The net volume of new trade that results from forming or joining a trade bloc is trade creation. When two or more countries form a trade bloc, the net volume of trade that results from it is called trade creation. This increases trade within the bloc, eliminates tariffs and trade barriers, and improves efficiency and competitiveness.
Therefore, trade creation occurs when the formation or joining of a trade bloc leads to an increase in trade between the member countries. It is the opposite of trade diversion, which occurs when trade is redirected from a more efficient producer outside the bloc to a less efficient producer within the bloc.
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firms often consolidate industries through horizontal mergers and acquisitions to multiple choice increase their market power. motivate managers. solve principal-agent problems. lower their stock prices.
Firms often consolidate industries through horizontal mergers and acquisitions to increase their market power.
Horizontal mergers and acquisitions allow firms to consolidate industries by combining two or more competing businesses into one. Horizontal merger occurs when two or more companies or industries merge together to form one.
This helps them increase their market power, as they have control over a larger portion of the market and can use this to their advantage. Additionally, horizontal mergers and acquisitions can motivate managers by offering new opportunities and incentives.
Finally, they can help solve principal-agent problems, which occur when the objectives of the principal and the agent do not align. They do not typically lower their stock prices.
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what should an audit team do when it discovers that fraud risk factors are present on an audit engagement
An audit team should investigate any potential fraud risk factors and assess the impact on the audit engagement.
They should document any conclusions and review the audit plan and strategies to determine if any changes should be made in response to the identified fraud risk factors.
"Audit planning" means developing a general strategy and a detailed approach for the expected nature, timing and extent of the audit.
Fraud risk factors are events or conditions that: indicate rationalizations or attitudes to justify a fraudulent action; indicate an incentive or pressure to perpetrate fraud; or provide an opportunity to commit fraud.
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true or false: a perfectly competitive firm's short-run supply curve is its marginal cost above the minimum point of the average cost (ac) curve. true false question. true false
The claim that the short-run supply curve of a fully competitive company equals its marginal cost beyond the minimum point of the average cost (ac) curve is False . Hence option (B) is correct.
Costs in the short run are those that competitive company change quickly. Physical capital is not a short-run expense; but, labor and raw material costs are.
With cost on the vertical axis and quantity on the horizontal axis, an average cost curve may be drawn.
These graphs frequently include display marginal costs, which indicate the price of the final unit produced at each point and, in the short term, correspond to the slope of the variable cost curve (and, consequently, the first derivative of variable cost).
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by january 2014, the us population had grown to 317.3 million and the us federal debt was a reported $17.3 trillion. calculate the beginning-2014 federal debt per capita.
The January 2014 Federal Debt per capita was $54,522.53, calculated by dividing the reported $17.3 trillion Federal Debt by the US population of 317.3 million and rounding to the hundredths place.
This metric indicates the amount of the Federal Debt that each person in the US would be responsible for if the debt were to be divided equally among the population. The per capita value can provide insight into the scale of a country's debt burden and is often used to compare debt levels across different countries.
To calculate the Federal Debt per capita in January 2014, we need to divide the reported Federal Debt by the US population and round to the nearest hundredth.
Federal Debt per capita = Federal Debt / US populationFederal Debt per capita = $17.3 trillion / 317.3 millionFederal Debt per capita = $54,522.53Therefore, the Federal Debt per capita in January 2014 was $54,522.53 per person.
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hat is the contractual relationship between the gc and the a/e? between the owner and the subcontractors? between the contractor and the subcontractors? what role does a cm play?
The contractual relationship between the general contractor (GC) and the architect/engineer (A/E) is that the A/E will provide professional services for the construction project and the GC will provide construction management and labor. The relationship between the owner and the subcontractors is that the owner will provide payment and the subcontractors will provide labor and materials. The role of a construction manager is to manage and coordinate all aspects of the construction process, including ensuring compliance with contract terms, monitoring costs, and scheduling.
The contractual relationship between the general contractor (GC) and the architect/engineer (A/E) is typically governed by the terms of the A/E's contract, which sets forth the scope of services and responsibilities of the parties. The owner and subcontractors are typically bound by a contract between the GC and the owner. The GC acts as the middleman between the owner and subcontractors, with the owner delegating authority to the GC to enter into contracts with the subcontractors. The contractor management (CM) role involves managing the construction process on behalf of the owner, including coordinating the activities of the GC and subcontractors, managing the budget and schedule, and performing quality control inspections.
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at heavy steel manufacturing, jerome is the one person who is authorized to make a decision, but he gathers input from other departments before doing so. this is reflective of which type of buying center?
In consultation buying centres, a single individual makes the final choice after seeking advice from others.
What shows how consumer demand is related?The relationship between customer demand for products and services and their prices on the market is governed by the economic principle known as demand theory. The demand curve, which connects consumer desire to the quantity of goods available, is based on demand theory.
What constitutes the last step in business-to-business purchasing?The Marketing Director's choice to buy the products and/or services marks the conclusion of the B2B procurement process. The emphasis should be on providing exceptional customer service moving ahead. Recurring business and recommendations come from satisfied clients.
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what are the two main components of the political and regulatory climate assessment that a global company must address? multiple select question. what impact will the culture have on the acceptance of the product? how difficult is it to navigate the trade regulations in order to do business there? what is the exchange rate on average and how much does it fluctuate? how stable is the country in terms of its government?
The two main components of the political and regulatory climate assessment that a global company must address are how stable the country is in terms of its government and how difficult it is to navigate the trade regulations to do business there. Culture also has an impact on the acceptance of the product.
The first and foremost component of the political and regulatory climate assessment that a global company must address is the stability of the country's government. This is because if the country's government is not stable, the company may not be able to operate smoothly and profitably in that country.
The second component of the political and regulatory climate assessment is the difficulty of navigating the trade regulations to do business there. This is because if the trade regulations are too complex or restrictive, the company may not be able to operate profitably in that country.
Culture also has an impact on the acceptance of the product. This is because different cultures may have different values and preferences, which can affect the demand for the product.
The exchange rate on average and how much it fluctuates can also affect a global company's operations in a foreign country. If the exchange rate is volatile, the company may face difficulties in managing its finances and planning for the future.
Overall, a global company must carefully assess the political and regulatory climate, cultural factors, and economic conditions of a foreign country before deciding to do business there. This will help ensure that the company can operate profitably and sustainably in that country.
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Corn is a very valuable product for which the U.S. government routinely offers subsidies. With no price support, the equilibrium price for corn is $300 per ton and the equilibrium quantity is 500 million tons per year. Suppose that the government agrees to pay farmers $350 for every ton of corn they produce and can't sell in the market. According to the farmer's market supply curve, 600 million tons per year is supplied at the price of $350 a ton, so production should increase to this amount. However, domestic users of corn cut back their purchases. Only 450 million tons a year is demanded at the price of $350 a ton, and purchases decrease to this amount. Farmers continue to produce 500 million tons of corn per year, so because they produce a greater quantity of corn than domestic buyers are willing to purchase, something must be done with the surplus. To make the price support work, the government decides to buy the surplus.
a. The government agrees to buy 50 million tons of corn at $ 350 per ton. b. The U.S. government provides $17.5 billion in subsidy. c. The price support in this example is inefficient. d. The subsidy is unfair.
a. In this example, the government agrees to buy 50 million tons of corn at a price of $350 per ton. This is because domestic buyers only demand 450 million tons at this price, while the farmers produce 500 million tons, creating a surplus of 50 million tons.
b. The U.S. government provides a total subsidy of $17.5 billion to the corn farmers. This is calculated by multiplying the surplus (50 million tons) by the price support ($350 per ton).
c. The price support in this example is inefficient. This is because it leads to overproduction of corn (500 million tons produced, but only 450 million tons demanded), resulting in a misallocation of resources. The government must spend money to purchase the surplus, which could have been used for other purposes.
d. The fairness of the subsidy is subjective, but some may argue that it is unfair. The subsidy benefits corn farmers by guaranteeing a higher price for their product, but it also leads to inefficiencies and higher costs for taxpayers. Additionally, the higher price of corn may negatively impact consumers, particularly those with lower incomes, who might struggle to afford the higher-priced corn products.
Note: The question is incomplete. The complete question probably is: Corn is a very valuable product for which the U.S. government routinely offers subsidies. With no price support, the equilibrium price for corn is $300 per ton and the equilibrium quantity is 500 million tons per year. Suppose that the government agrees to pay farmers $350 for every ton of corn they produce and can't sell in the market. According to the farmer's market supply curve, 600 million tons per year is supplied at the price of $350 a ton, so production should increase to this amount. However, domestic users of corn cut back their purchases. Only 450 million tons a year is demanded at the price of $350 a ton, and purchases decrease to this amount. Farmers continue to produce 500 million tons of corn per year, so because they produce a greater quantity of corn than domestic buyers are willing to purchase, something must be done with the surplus. To make the price support work, the government decides to buy the surplus. a. In this example, how many million tons does the government agree to buy? At what price? b. How much in total does the U.S. government provide in subsidy to the corn farmers? Why? c. Is the price support in this example efficient or inefficient? Explain your reasoning. d. Is the subsidy fair? Explain your reasoning.
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where * is the quantity of laptops produced per month. the marginal cost at a production level of 1,000 laptops per month is $190. what is the interpretation of this?
The interpretation of a marginal cost of $190 at a production level of 1,000 laptops per month is that the cost of producing one additional laptop.
Beyond the 999th laptop, is estimated to be $190. In other words, if the firm decides to increase its production from 999 to 1,000 laptops per month, it can expect the total cost to increase by $190 due to the additional resources required to produce the extra laptop.
What is marginal cost?
Marginal cost is the additional cost of producing one more unit of a good or service. It is calculated as the change in total cost divided by the change in quantity produced. In other words, it represents the cost of producing one additional unit of output.
What is production?
Production refers to the creation of goods and services using various inputs such as labor, capital, and raw materials. It involves transforming inputs into finished or semi-finished products that can be sold to customers or used for further production. The process of production may include designing, manufacturing, assembling, packaging, and distributing goods and services.
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explain the fama-french five-factor model? why do some fama-french factors overperform (underperform) others in a different market regime?
The Fama-French five-factor model is a theory developed by Eugene Fama and Kenneth French.
This model provides a useful tool for understanding and explaining the sources of risk and return in the stock market. In this model, the market risk factor is replaced by five factors which are as follows: Market return factor Size factor Value factor Profitability factor Investment factor These five factors are used to explain the excess returns of different stocks.
These factors are used in the model as a way to account for differences in the returns of different companies over time. The model is based on the idea that there are certain risk factors that can explain the returns of different companies over time.
For example, small companies may have different returns than large companies due to differences in risk or other factors. Some Fama-French factors may over perform (underperform) others in a different market regime because of changes in market conditions.
The market is constantly changing, and the factors that drive returns in one market may not be the same as those that drive returns in another. For example, in a bear market, low-volatility stocks may outperform high-volatility stocks. In a bull market, the opposite may be true.
The performance of different factors can also be influenced by changes in economic conditions. For example, in a recession, value stocks may outperform growth stocks because investors are more risk-averse and prefer the safety of more established companies.
In contrast, in a period of economic growth, growth stocks may outperform value stocks because investors are more willing to take on risk and invest in companies with high growth potential. In summary, the Fama-French five-factor model is a useful tool for understanding the sources of risk and return in the stock market.
The performance of different factors can be influenced by changes in market conditions and economic conditions.
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selling price for homes in 2021 is skewed to the right. you would like to convince someone that now is the time to sell their house. in order to convince them, would you use the mean or the median? give a reason for your answer
To convince someone to sell their house, the median should be used. This is because the selling price for homes in 2021 is skewed to the right.
Since the data is skewed to the right, it means that there are few homes that are sold for a higher price than the rest, which means that the mean value may not be accurate.
The median is the middle value of the data set. It is the value that lies in the middle when the data is arranged in order of increasing or decreasing values.
Therefore, it is not affected by the extreme values.
The median is the most appropriate measure to use when the data is skewed or contains extreme values, and it provides a better representation of the central tendency of the data. Thus, the median would be a better measure to use when convincing someone to sell their house.
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which type of account has their balances transferred to retained earning at the end of the accounting period?
The type of account that has its balance transferred to Retained Earnings at the end of the accounting period is called a revenue account. Revenue accounts are typically used to record income earned from the sale of goods and services. At the end of the period, all balances in the revenue account are closed and transferred to the Retained Earnings account.
To close the revenue accounts, the revenue accounts must be zeroed out. This can be done by taking the total revenue for the period and subtracting any expenses that were incurred. The difference between the total revenue and the total expenses is known as the net income, which is the amount that is then transferred to the Retained Earnings account.
Revenue accounts are closed at the end of the accounting period by taking the total revenue, subtracting any expenses, and then transferring the net income to the Retained Earnings account. This process ensures that the income earned is accurately reflected in the financial statements of the company.
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bryan has just started an internship in which he uses a database frequently. the database contains information about the company's employees. bryan's supervisor senses that he is anxious about using the database and drops by to give him a short tutorial. bryan's supervisor explains that to retrieve information from the database, bryan needs to use a .?
To retrieve information from the database, Bryan needs to use a query.
A query is a request made to retrieve information from the database, either to retrieve it to view or to modify it to update, delete or create new records. The query retrieves the data from one or more tables in the database.
A database is a set of structured data stored in a computer that can be accessed and modified by a computer program.
A database management system (DBMS) is software that allows users to interact with a database, providing tools to create, modify, and retrieve data.
The benefits of a database are as follows: Data sharing, data security, data integration, Minimized data inconsistency, Data accessibility and responsiveness.
Decision-making is improved Bryan's supervisor seems to be an expert in his field and is willing to provide a short tutorial to Bryan to help him get started.
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A steel manufacturing company is going through a financial crisis because of which it is unable to pay its employees and suppliers their dues. The management of the company sells some of the fixed assets of the company to cover these expenses. In the context of the statement of cash flows, the company gets the required capital by engaging in _____.
A) investing activities
B) financing activities
C) operating activities
D) budgeting activities
In the context of the statement of cash flows, the company gets the required capital by engaging in investing activities. (option a)
What are investing activities?Investing activities are a category of cash flow that describes a company's buying or selling of capital assets, investments, or securities. Fixed assets, such as property, plant, and equipment, are commonly referred to as capital assets.
These assets are frequently exchanged or sold to provide liquidity for the company or to obtain income for reinvestment purposes.
Purchases of fixed assets, such as land, buildings, machinery, and vehicles, are also classified as investing activities.The primary aim of investing activities is to utilize funds to generate a return on investment. It is done by acquiring or disposing of long-term assets such as property, plant, and equipment.
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few areas of sport management present managers with more difficulty than . question 1 options: a) ethical dilemmas b) ethics c) codes of conduct d) moral issues
The correct answer is "A - Ethical Dilemmas". Ethical dilemmas are a particularly challenging area for sports managers, as they must often make difficult decisions between values and morals that can have wide-reaching consequences.
An ethical dilemma is a situation in which an individual is forced to choose between two or more moral values, each of which is equally important or valid, but incompatible with one another. The decision to choose one value over the other can be difficult, and it may have significant consequences for the individual or others involved. It is important for sports managers to familiarize themselves with ethical guidelines and codes of conduct in order to make decisions that are consistent with their organization's values and to prevent unethical behaviors.
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flexibility in the supply chain can be a tool to help a firm create a competitive advantage, reduce cost and improve responsiveness. true or false
True. A flexible supply chain ensures competitive global market growth, expansion and brand recognition.
A risk assessment strategy that incorporates these flexibility models will better understand how your supply chain operates, strengthen relationships, and improve product and pricing.
Supply chain flexibility—the ability to easily adjust production volumes, raw material purchases, and transportation capacity—provides significant advantages over traditional supply chain management. Traditional approaches to supply chain management are rigid and cannot be changed quickly as needed. This is known to cause chaos throughout the supply chain when demand fluctuates or the supply chain stops. Supply chain flexibility allows us to function in response to naturally occurring day-to-day changes.
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true or false: the intercept coefficient indicates that on average 83.126% of workers have an active account in a 401(k) pension plan, if the firm does not contribute to each worker's plan for each dollar of contribution by the worker.
False, the intercept coefficient does not indicates that on average 83.126% of workers have an active account in a 401(k) pension plan, if the firm does not contribute to each worker's plan for each dollar of contribution by the worker.
The intercept coefficient in a linear regression model and not a not a percentage or a proportion. The value of the dependent variable when all independent variables are equal to zero is known as linear regression. therefore it is not possible to interpret the number of active account in a 401(k) pension plan.
401(k) retirement plan is a contribution plan, which allows an employee to elect to have the employer contribute a portion of the employee's wages to an individual account.
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the quantity demanded of oatmeal increased from 1,350 to 1,700 when the price of grits increased from $2.05 to $2.65. what is the estimated cross-price elasticity of demand for oatmeal? round your answer to the nearest hundredth.
The estimated cross-price elasticity of demand for oatmeal is 0.88.
The percentage change in quantity demanded is calculated as:
[(New Quantity - Old Quantity) / Old Quantity] * 100
Percentage change in quantity demanded of oatmeal = [(1,700 - 1,350) / 1,350] * 100 = (350 / 1,350) * 100 = 25.93%
The percentage change in the price of grits is calculated as:
[(New Price - Old Price) / Old Price] * 100
Percentage change in the price of grits = [(2.65 - 2.05) / 2.05] * 100 = (0.60 / 2.05) * 100 = 29.27%
Cross-price elasticity of demand = Percentage change in quantity demanded of one good/ Percentage change in the price of another good
Cross-price elasticity of demand for oatmeal = 25.93%/29.27%
Cross-price elasticity of demand for oatmeal = 0.8845 or 0.88 (round off)
Thus, rounding to the nearest hundredth, the estimated cross-price elasticity of demand for oatmeal is approximately 0.88.
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a borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. fifteen years later, an investor wants to purchase the loan from the lender. if market interest rates are 5%, what would the investor be willing to pay for the loan?
Answer : The investor would be willing to pay $56,979.77 for the loan.
When an investor wants to purchase a loan, they will analyze its present value, interest rate, term, and other pertinent features to determine what they are willing to pay for the loan.
What would an investor pay for a 30-year, $150,000 loan with monthly payments if an investor wanted to buy it from the lender 15 years later. We need to calculate the present value of the remaining payments to figure out what the investor would be willing to pay.PV = P * (1 - (1 + r)^-n) / rWhere PV = present value, P = payment, r = interest rate, and n = number of periods remaining.
We have the following data: n = 15 years * 12 months/year = 180 monthsP = $150,000 / (30 years * 12 months/year) = $416.67/month (payments are monthly) r = 5%/12 = 0.004167/month. Now we can calculate the present value: PV = $416.67 * (1 - (1 + 0.004167)^-180) / 0.004167PV = $56,979.77
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finch's garden supply sells pond kits for $130. these are marked up 30% over cost. what is the cost of the pond kits?
The cost of the pond kits at Finch's Garden Supply is $91.
To find this, take the selling price of $130 and divide it by 1.30 (which is the markup percentage of 30%) to get the cost of the pond kits.
The markup percentage is the percentage of increase over the cost of the product. In this case, the selling price is $130 and the markup percentage is 30%.
To find the cost of the pond kits, we need to divide the selling price by the markup percentage. Therefore, divide $130 by 1.30 (which is the markup percentage of 30%) to get the cost of the pond kits, which is $91.
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You are researching a company and find that it has an inventory period of 22.5 days, an accounts payable period of 37.1 days, and an accounts receivable period of 31.7 days. the company's operating cycle is days and its cash cycle is___days.
The company's operating cycle is 54.2 days, and its cash cycle is 17.1 days.
How do we calculate the operating cycle?To calculate the company's operating cycle and cash cycle, you should first understand the following terms:
1. Inventory Period: The time it takes for a company to sell its inventory (22.5 days)
2. Accounts Payable Period: The time it takes for a company to pay its suppliers (37.1 days)
3. Accounts Receivable Period: The time it takes for a company to collect payment from its customers (31.7 days)
Now, follow these steps to calculate the operating cycle and cash cycle:
Step 1: Calculate the Operating Cycle
Operating Cycle = Inventory Period + Accounts Receivable Period
Operating Cycle = 22.5 days + 31.7 days
Operating Cycle = 54.2 days
Step 2: Calculate the Cash Cycle
Cash Cycle = Operating Cycle - Accounts Payable Period
Cash Cycle = 54.2 days - 37.1 days
Cash Cycle = 17.1 days
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the marginal cost of a worker in a competitive labor market is equal to group of answer choices the marginal revenue product of that worker the wage rate the marginal product of that worker the price of the final output produced by that worker
The marginal cost of a worker in a competitive labor market is equal to the wage rate.
Marginal cost refers to the additional cost of producing one more unit of output. In the case of labor, the marginal cost of a worker refers to the additional cost of hiring one more worker. In a competitive labor market, the wage rate is determined by the intersection of the supply and demand curves for labor. Therefore, the marginal cost of a worker in a competitive labor market is equal to the wage rate.
The marginal revenue product of a worker refers to the additional revenue generated by hiring one more worker, and is equal to the marginal product of that worker multiplied by the price of the final output produced by that worker. While this is an important concept in labor economics, it is not equal to the marginal cost of a worker.
The marginal product of a worker refers to the additional output produced by hiring one more worker. While this is relevant to the determination of wages and the value of labor, it is not equal to the marginal cost of a worker. The price of the final output produced by that worker is also relevant to the determination of wages and the value of labor, but it is not equal to the marginal cost of a worker.
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during her performance appraisal meeting, melissa's manager appreciated that she was being proactive. however, she was also advised to improve her interpersonal skills. the negative part of the appraisal was threatening to melissa's self-esteem. therefore, she chose to hear and retain only the good part. when her colleagues asked her about her performance, she stated that it was great and everything went well. this is an example of
The given situation is an example of perceptual defense.
What is Perceptual Defense?Perceptual defense is a psychological phenomenon that is caused by cognitive factors. People usually have a tendency to ignore, alter, or interpret unpleasant stimuli in ways that make them less threatening. It is a cognitive bias that helps people in maintaining their emotional equilibrium.The given scenario mentions that during her performance appraisal meeting, Melissa's manager appreciated that she was being proactive. However, she was also advised to improve her interpersonal skills.
The negative part of the appraisal was threatening to Melissa's self-esteem. Therefore, she chose to hear and retain only the good part. When her colleagues asked her about her performance, she stated that it was great and everything went well.The situation where Melissa chose to hear and retain only the good part and ignore the negative part is an example of perceptual defense. Perceptual defense is a kind of perceptual distortion that is usually done unconsciously. It occurs when people's minds perceive reality differently than it actually is.
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what amound of gain or loss would sunland corporation report in its income statment for the year ended
Sunland Corporation would report a loss in its income statement for the year ended. The amount of the loss depends on a variety of factors such as expenses incurred, amount of revenue generated, and any other income or losses incurred.
To calculate the amount of loss Sunland Corporation would report, start by taking the total expenses for the year and subtracting it from the total revenue for the year. Any other income or losses, such as from investments, should be added or subtracted from this figure. The resulting figure is the total gain or loss for the year.
For example, if Sunland Corporation had total expenses of $500,000 and total revenue of $400,000 and a loss from investments of $100,000, then the total loss for the year would be calculated as follows:
Total Loss = Total Expenses - Total Revenue + Loss from Investments
Total Loss = $500,000 - $400,000 + ($100,000)
Total Loss = -$100,000
Therefore, Sunland Corporation would report a total loss of -$100,000 in its income statement for the year ended.
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demand is based on:multiple choice question.buyers' intentionsthe interaction of buyers and sellersmarket availabilitybuyers' actual purchases
Demand is based on buyers' intentions, the interaction of buyers and sellers, market availability, and buyers' actual purchases. Demand is a measurement of the willingness of buyers to buy a certain product or service at a particular price, quantity, and period.
It may be seen in terms of the following components:
Buyer's intent: This is a situation when buyers are interested in buying a certain product but have yet to make a purchase. For example, a customer who has visited a car dealership but has yet to purchase a vehicle.Interaction between buyers and sellers: The conversation between buyers and sellers affects demand, particularly in a business-to-business scenario where the purchaser has the opportunity to engage with the seller. This discussion may assist the buyer in making a buying decision.Market availability: When a commodity is readily available, demand is higher than when it is limited. For instance, an available product that meets a particular customer's needs would increase demand.Buyers' actual purchases: Buyers' actual purchases determine the level of demand. When buyers purchase a lot of a particular commodity at a particular price, the demand for that commodity will rise.Demand is the willingness of customers to purchase a particular product or service at a certain price and for a specific time.
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suppose betty can repair two cars or bake eight pies in a day. don can repair one car or bake five pies in a day. who has the comparative advantage in the production of the two goods?
Don has the comparative advantage in the production of cars, and Betty has the comparative advantage in the production of pies.
In this scenario, we're required to identify the person with the comparative advantage in the production of two goods, i.e., repair cars or bake pies. Suppose Betty can repair two cars or bake eight pies in a day, and Don can repair one car or bake five pies in a day. Now, we need to compare the opportunity cost of producing cars or pies for each person. Opportunity cost is the value of the next-best alternative that must be given up to obtain the preferred good or service.
Opportunity CostLet's look at the opportunity cost of both Betty and Don.
Opportunity Cost for Betty to repair two cars: If Betty uses one day to repair two cars, she cannot bake pies. Betty could have made eight pies in a day, so the opportunity cost of repairing two cars would be baking eight pies. Therefore, the opportunity cost of repairing two cars for Betty is 8/2= 4 pies per car. Opportunity Cost for Betty to bake eight pies: On the other hand, if Betty bakes eight pies in a day, she cannot repair cars. Betty could have repaired two cars in a day, so the opportunity cost of baking eight pies is repairing two cars. Therefore, the opportunity cost of baking eight pies for Betty is 2/8= 0.25 cars per pie. Opportunity Cost for Don to repair one car: If Don uses one day to repair one car, he cannot bake pies. Don could have made five pies in a day, so the opportunity cost of repairing one car would be baking five pies. Therefore, the opportunity cost of repairing one car for Don is 5 pies per car. Opportunity Cost for Don to bake five pies: On the other hand, if Don bakes five pies in a day, he cannot repair cars. Don could have repaired one car in a day, so the opportunity cost of baking five pies is repairing one car. Therefore, the opportunity cost of baking five pies for Don is 1/5= 0.2 cars per pie.Hence, we can see that the opportunity cost of baking pies is lower for Betty than Don, and the opportunity cost of repairing cars is lower for Don than Betty. So, Don has a comparative advantage in repairing cars, while Betty has a comparative advantage in baking pies.
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Muhammad is considering investing some of his hard-earned cash by opening a certificate of deposit.
Muhammad is disappointed to learn that If he invests
$500, he will likely only earn an additional
$9 a year from today. So, he decides to invest his funds somewhere that will generate more income for
him. Which of the following did Muhammad find unsatisfactory about the certificate of deposit?
- The risk of the investment was too high.
- The return on his investment was too low.
- The liquidity of the investment was too high.
- The liquidity of the investment was too low.
Answer:
here are all the answers to this quick check
Explanation:
1. an individual purchases stock with the intent to sell it later at a higher price
2. The return on his investment was too low.
3. higher returns and higher liquidity than other investments
4. Elena could purchase multiple assets from multiple sources.
5. She might miss a better investment opportunity because real estate is not particularly liquid.
I just took it and got 5/5 hope this helps :)
pls mark brainiest
suppose the current equilibrium price of natural gas per mmbtu is $5. if the government decides the price per mmbtu of natural gas cannot rise above $4, there would be:
The current equilibrium price of natural gas per mmbtu is $5. If the government decides the price per mmbtu of natural gas cannot rise above $4, then there would be an excess demand for natural gas.
Equilibrium is a state of balance between supply and demand. When a commodity is at equilibrium, the quantity supplied equals the quantity demanded at a specific price. An equilibrium price is the price that results in the quantity demanded being equal to the quantity supplied.
The current equilibrium price of natural gas per mmbtu is $5. If the government decides the price per mmbtu of natural gas cannot rise above $4, then there would be an excess demand for natural gas. This is because the quantity of natural gas demanded would exceed the quantity supplied at the price ceiling of $4. Therefore, the government's decision would create a shortage of natural gas.
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a pencil producing plant sells pencils for $0.25. the marginal cost to produce each pencil is $0.25. the firm is operating at
The firm is operating at marginal cost, meaning the price of producing each additional pencil is equal to the selling price.
This implies that the firm is breaking even, as its revenue from selling the pencils is equal to its cost of producing them. This is an important concept to understand in economics, as it helps firms decide whether they should produce additional units or not.
If the cost of producing an additional unit is higher than the selling price, the firm will not make a profit and should not produce additional units.
Similarly, if the cost of producing an additional unit is lower than the selling price, the firm will make a profit and should produce additional units.
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buyer and seller have a contract that calls for seller to ship buyer 10 dozen blue widgets. seller ships 10 dozen red widgets instead, and the shipment is destroyed in transit. which party has the risk of loss and why?
In the following question, among the conditions given, The buyer can hold the seller liable for the loss and seek damages for the value of the goods that were lost.
The buyer has the risk of loss in the given scenario. The reason is that the buyer and seller have a contract that calls for the seller to ship the buyer 10 dozen blue widgets.
However, the seller ships 10 dozen red widgets instead, which is not what was agreed upon in the contract. This means that the seller has breached the contract by failing to deliver the agreed-upon goods.
In terms of risk of loss, it is the party who has legal ownership and possession of the goods at the time of loss who bears the loss. In this case, the seller had legal ownership and possession of the goods until they were shipped to the buyer. However, because the seller failed to deliver the agreed-upon goods, they are in breach of the contract and therefore responsible for the loss.
This means that the buyer has the risk of loss in the given scenario because the seller is responsible for the loss of the goods. The buyer can hold the seller liable for the loss and seek damages for the value of the goods that were lost.
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