Lenders take into account your credit score, payment history, and therefore the current economic conditions once decisive interest rates. usually speaking, the upper your credit score, the less you'll be able to expect to pay in interest.
However loan-specific factors like compensation terms play a task too. The Federal Open Market Committee is the Federal Reserve's financial policymaking body, that determines short and variable interest rates.
This is the one biggest issue — and, of course, the upper your credit score, the better. Most lenders gauge trustiness victimization FICO scores. The Federal Reserve does not set mortgage rates. The Fed raises and cuts short interest rates in reaction to broad movements within the economy.
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select the statement below that is true of long run aggregate supply curves. there is a positive relationship between price level and rgdp. there is no relationship between price level and rgdp. there is a variable quantity of rgdp. changes in price level affect output.
Real GDP will rise in reaction to a drop in the price level.
Explain about the relationship between the price level and RGDP?The real wealth effect is based on the premise that it costs less money to purchase goods and services when prices are lower. You feel wealthy and the value of the money you have increased. Therefore, real GDP will rise in reaction to a drop in the price level.
Therefore, real GDP will rise in reaction to a drop in the price level. Formally speaking, this means that households are more likely to make larger purchases of goods and services when their assets are worth more in terms of their purchasing power.
Customers get wealthy and have access to more goods and services than they did previously. Therefore, the wealth impact offers one explanation for the downward-sloping demand curve's reflection of the inverse link between price level and real GDP.
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physical counts of inventory are never made with perpetual inventory systems. group startstrue or false
Physical counts of inventory are never made with perpetual inventory systems False.
The perpetual stock approach does now no longer try and hold counts of bodily merchandise. Perpetual stock structures are in evaluation to periodic stock structures, wherein reoccurring counts of merchandise are applied in record-keeping.
Perpetual structures provide businesses stock statistics that replace in actual time. Purchasing and making plans can rely upon the stock statistics to make selections concerning fabric purchases and paintings scheduling. The commercial enterprise isn't required to close down on the cease of every month to bodily matter the stock.
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What action can the government of country df take to encourage citizens to purchase homes?maintain corporate tax ratesraise income taxesraise property tax rateslower income taxes for homeowners.
Country DF can decrease income taxes for homeowners to encourage people to purchase homes.
What is income tax?A tax called an income tax is one that is levied against people or organizations (taxpayers) based on the income or profits they have made. Tax rates and taxable income are often multiplied to calculate income tax. Different taxpayer types and income types may have different tax rates. As the amount of taxable income rises, the tax rate might also (referred to as graduated or progressive tax rates). Corporate tax, which is often assessed at a flat rate, is a type of tax that is imposed on businesses. Individual income is frequently subject to progressive taxation, when the tax rate is raised for each additional unit of income. Local charitable groups are typically exempt from taxation.
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with a present value of $115,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 7.3%, compounded quarterly? (round your answer to the nearest cent.)
The size of the withdrawals that can be made at the end of each quarter for the next 10 years is $17,780.01.
What is withdrawal?
A withdrawal entails taking money out of a trust, pension, savings plan, or bank account. In some circumstances, requirements must be satisfied in order to withdraw money without incurring fees, and fees for early withdrawal typically apply when a provision of an investment contract has been broken. A withdrawal can be made in cash or in-kind, and it can be spread out over a time period throughout either fixed or variable quantities or all at once. In contrast to an in-kind withdrawal, which merely entails grabbing ahold of assets without transforming them to cash, a cash withdrawal necessitates converting the assets of an account, plan, retirement, or trust into cash, typically through a sale.
The size of the withdrawals that can be made at the end of each quarter for the next 10 years is $17,780.01.
This can be calculated using the formula:
FV = PV(1+r/n)^nt
Where FV is the future value, PV is the present value, r is the interest rate, n is the number of compounding periods per year, and t is the number of years.
In this case, FV=0 (because the withdrawals are equal to the present value), PV=115,000, r=7.3%, n=4 (quarterly compounding), and t=10.
Therefore, the size of the withdrawals is:
115,000 = PV(1+7.3/4)^(4*10)
Solving for PV, we get:
PV = 115,000/(1+7.3/4)^(4*10)
PV = $17,780.01
Therefore, the size of the withdrawals that can be made at the end of each quarter for the next 10 years is $17,780.01.
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Facing and resolving ethical dilemmas is challenging. However, ethical guidelines, combined with self-examination, can help you identify key issues and choose the correct ethical path. When presented with ethically ambiguous situations, which of the following questions can help you make good decisions? a. Is the action you are considering legal? b. Is the action you are considering cost-effective? c. Is the action you are considering plausibly deniable?
Facing and resolving ethical dilemma is challenging. When presented with ethically ambiguous situations, this question can help you make good decisions: Is the action you are considering legal? (A)
Ethical dilemma is a condition when a decison maker is stucked between 2 possible options and neither of which is absolutely acceptable from an ethical perspective.
To overcome the ethical dilemma faced, a decision maker could follow the following approach:
Refute the paradox (dilemma) Value theory approachFind alternative solutionsRefute the paradox or dilemma by elilminating the existence of dilemma based on the logical thinking. A decision maker must be carefully analyzed the situation and do some reevaluation to the dilemma present.
Value theory approach helps a decision maker to choose the alternative that offers the greater good and the lesser evil. A decision maker should make a comparation between each options and compare both their good and bad sides.
Find alternative solutions by reconsidering the problem. A decision maker could find a new and probably better solution if he looks the problem from different point of view. Option from third trusted or professional party could also help to broaden the point of view a decisoin maker has to the problem.
Based on the questions we have from the case, we could implement all the 3 theories in the option A.
By asking whether our action is considering legal, we are eliminating some dilemmas by making a border between the right and wrong actions from law point of view. This question at the same time implicates the Value Theory Approach by clearly evaluate the existence options' values. If we find that the options we have is considered as illegal, we could implement the third approach by finding other alternative solutions to address the problems we have.
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the producer or supplier will bear more of the burden of a tax than the consumer if demand is which of the following? elastic greater than supply perfectly inelastic inelastic
If demand is more inelastic than supply, consumers bear most of the tax burden, and if supply is more inelastic than demand, sellers bear most of the tax burden.
The more elastic the demand curve, the more likely that consumers will reduce the quantity demanded instead of paying higher prices.
A purchaser is a person or a set who intends to order, or makes use of purchased items, products, or services frequently for personal, social, family, household and comparable needs, who isn't always directly associated with entrepreneurial or commercial enterprise activities. The time period maximum usually refers to someone who purchases items and offerings for personal use.
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thornton company makes three products in its factory: plastic cups, plastic tablecloths, and plastic bottles. the expected overhead costs for the next fiscal year include the following.
The allocated amount for cups is $1,40,400, tablecloths is $2,21,400 and for bottles it is $3,32,100
Rent, electricity, company permits, accounting fees, advertising charges, and payroll are all examples of overhead costs. While direct costs, like those for raw materials or packaging supplies, are directly related to the good or service you offer, these costs are fairly predictable and constant. Your direct costs will rise proportionately as your sales do.
Particulars Allocation Rate Hours Allocated Amount
Cups $270 520 $1,40,400
Tablecloth $270 820 $2,21,400
Bottles $270 1,230 $3,32,100
Total 2,570 $6,93,900
The Allocation rate = Allocated Amount / Hours
=> $6,93,900 / 2570
$270
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suppose the economy produces real gdp of $60 billion when unemployment is at its natural rate. use the purple points (diamond symbol) to plot the economy's long-run aggregate supply (lras) curve on the graph.
By using the purple points (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve on the graph, then, the vertical line will be placed on the graph intersecting at (50, 0).
What is a long-run aggregate supply curve?In economics, a long-run aggregate supply curve means the vertical line at the economy's natural rate of output. The natural rate of output means the level of output consistent with the economy's natural unemployment rate, that is, it is the level of real GDP that the economy gravitates toward in the long run.
Furthermore, the long-run aggregate supply curve is seen as vertical at the natural rate of output because the price level has no bearing on the economy's long-run level of real output. Hence, supposing the economy produces real gdp of $60 billion when unemployment is at its natural rate, hence, the vertical line will be placed on the graph intersecting at (50, 0).
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discuss the 18th amendment prohibiting alcohol sales in the united states. approximately when was national prohibition in effect? describe some of the beliefs that led to the passage of prohibition, some of its effects, and some reasons leading to its repeal.
The 18th Amendment talks about prohibition of alcoholic beverages in production, transport and sale of alcohol was considered as Illegal.
How does it determine it ?
By the late 1800 many religious groups considered alcohol as a threat During the 19th century its usage increased leading to activism to cure the perceived problems.It ultimately led to alcohol prohibition.Finally in 1920 when congress ratified the 18th amendment which prohibited the alcohol sales.But the effect was very different leading to rise in crimes organized crime.In 1933 ,widespread of public disillusionment led congress to ratify the 21st amendment which repealed prohibition.Effects of prohibition:
Significant reduction of alcohol consumption among general public.The industrialization within the alcoholic beverages was reversed.Calls for repealing of Prohibition:
It led to public disillusionment.In 1932 the Democratic party's platform included a plank for the repeal of prohibition.In 1933 congress led to 21st amendment to the constitution, which repealed both the 18th amendment.To know more about Alcohol from the given link
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Monopoly profit will _____ when a monopolist goes from single-price monopoly to perfect price discrimination. Remain the same increase decrease initially increase and then return to its original level.
Monopoly profit will decrease when the monopolist goes from the single-price monopoly to the perfect price discrimination.
What is a Monopoly?According to Irving Fisher, a market with "lack of competition" results in a situation where one person or business is the only supplier of a specific good or service. This contrasts with a monopsony, which refers to a single entity's dominance of a market to buy a good or service, and with oligopoly and duopoly, which consist of a small number of vendors controlling a market. Monopolies are thus defined by a lack of viable substitute products, a lack of economic competition to provide the good or service, and the potential for a high monopoly price considerably above the seller's marginal cost that results in a high monopoly profit. In a tiny industry, a small company could nevertheless be able to increase costs.
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a new project would require an immediate increase in raw materials in the amount of $1,000. the firm expects that accounts payable will automatically increase $800. how much must the firm expect its investment in net working capital to change if they accept this project?
+$200
The Networking Capital if the new project is accepted
NWC= Current assets - current liabilities
An increase in raw materials is a current asset = $1000
An increase in accounts payable is a current liability= $800
Therefore NWC = $1,000 - $800
=$200
What is networking capital?
The difference between a company's current assets—such as cash, accounts receivable/unpaid invoices from customers, and inventories of raw materials and completed goods—and its current liabilities—such as debts and accounts payable—is known as working capital, sometimes known as net working capital (NWC).
The difference between a company's current assets and current liabilities is what is known as net working capital. When a corporation has a positive net working capital, it suggests they have enough money to meet its current obligations or needs.
Net working capital = current assets (less cash) – current liabilities (less debt)
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in B2B marketing, companies often communicate via specialized web portals. which of the following are among the advantages of using these portals?
streamlined procurement
reduced paperwork
simplified negotiations
Reduced paperwork is among the advantages of using these portals. Marketing to business buyers is done through a variety of strategies known as B2B marketing.
Its objective is to raise conversion rates, lead acceptance by sales, and lead quality. Learn essential B2B marketing tactics to support expansion with your current clients. An oil and gas producer is the target market strategies for the marketing and sales efforts of an industrial pump manufacturer. An office space buildout for a legal practise is being marketed and contracted for by a commercial construction company. rather than between businesses and consumers, the exchange of goods, services, or information between enterprises (B2C).
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All of the following are treated as assets of the parent for financial aid, except?
A. 529 Savings Plan.
B. Prepaid Tuition.
C. Coverdell ESA.
D. UGMA.
Except for UGMA, all of the following are considered parent assets for the purposes of financial aid. Thus option (D) is correct
What is financial?Financial refers to or concerns money. The corporation is having financial issues, according to the financial advisors to the government. Synonyms include budgeting, business, and economics. additional words for financial
Financial aid is money given to students to help with the cost of attending college or a trade school. Scholarships, loans, work-study programs, and grants all contribute to the affordability of a college education. 1,667 qualified students will receive awards from the California Student Aid Commission (CSAC) totaling up to $4,500 per academic year, $2,250 per semester, and $1,500 per quarter.
Therefore, Thus option (D) is correct
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Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?
Taxes
As per the concept of ownership, the cost that is not covered in the ownership cost is Taxes.
Ownership
in the economic terms, ownership refers the state or fact of legal possession and control over property, which may be any asset, tangible or intangible.
Given,
Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material.
Here we need to find in which of the following is not an ownership cost listed in the text.
According to the definition of ownership, the owner is the one who own the object. So, the owner ship cost will include maintenance and processing cost.
But the tax is the amount that is paid by the person who can use the service or good and it has been paid to the government.
So, it is not included in the ownership cost.
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mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. in addition, he incurs a loss of $50,000 from an investment in a passive activity acquired three years ago.
Mike, an attorney, makes $200,000 from his legal business and $245,000 ($200,000 active revenue + $45,000 portfolio earnings) in interest and dividends during the year.
What exactly does your interest mean?The things you enjoy and the things you enjoy learning about make up your interests is intriguing. It keeps your interest and piques your curiosity when something is interesting: Nothing very intriguing was discussed.
How does the example of interest operate?A borrower can either earn or pay a specific amount of interest on a loan depending on the rate. An interest charge worth $6 ($100 X 0.06) would be incurred on a $100 loan with a nominal interest rate if 6%, for example. The interest rate remains constant even as the loan's size increases. The borrower would still make 6% payments even if the debt was raised to $1,000.
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Designate the following as either from job order or process operations.
a. Custom orders - Job Order operations
b. Mass production -Process operations
Job Order activities include custom orders.
Process operations refer to mass production.
What is process operation?The continuous flow approach of mass production is known as process operations, sometimes known as process manufacturing or process production. In other words, this is a conveyor belt system that quickly and uniformly creates standardized, similar things.
Because the same step is repeated frequently and quickly in order to make similar goods, each of these stages is regarded as a component of a process production line.
To mass-create identical products, process procedures are frequently fully automated. To cut production costs, almost all major manufacturers—from pharmaceutical firms to oil refineries—use this method of production.
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a team that is brought together for a specific purpose and that disbands when the task is complete is called a(n) .
A committee is a team that is formed for a specific purpose and separates once it is complete.
A committee is a group of individuals chosen for a particular task and is usually made up of members from a larger group. A committee's main responsibility is to support the effective operation of the organization. The majority of the time, a committee's main concerns are with information dissemination and helping the leadership make decisions by giving them the knowledge they require.
The effectiveness or failure of the committee will be determined by each member's participation and contribution. The committee will be successful if its members participate, get involved, and inspire others to do the same. Enthusiasm spreads easily.
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A sport fan who is enticed into buying a ticket to a game by a game promotion had his consumer behavior affected by. market behavior of the sport firm.
A sport fan who is enticed into buying a ticket to a game by a game promotion had his consumer behavior affected by market behavior of the sport firm.
Consumer behavior refers to the study of how people, groups, and organizations choose, acquire, utilize, and discard products, services, concepts, or experience to fulfill their needs and desires. Understanding consumer behavior is crucial if you want to know what drives consumers' purchasing decisions and why.
Marketers may close the merchandise gap and decide which products are necessary as well as which ones aren't any anymore in demand through understanding how customers choose products. Furthermore, it aids advertisers in deciding how best to display their goods such that consumers are most affected.
A firm who is able to understand the consumer behavior can serve them with products and services accordingly and it will help him in earning huge revenue.
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What are transnational corporations give 10 examples?.
Apple, Microsoft, Nestlé, Shell, Nike, Amazon, Walmart, Sony are transnational corporations.
A transnational corporation is a business that manages income and assets across multiple nations, engages in foreign ventures, or produces goods or services on a global scale. A business that conducts business in at least two nations is known as a transnational corporation (TNC).
The organization is hierarchical, with centers of production located abroad and the headquarters and research and development (R&D) frequently found in the nation of origin.
Therefore, global economic processes that strengthen production relations and expand the geography of production are what give rise to transnational firms. They deepen the connections between global competition and economic globalization.
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Income-maintenance laws were enacted to provide employees and their families with income security in case of death, disability, unemployment, or retirement.
True
The services in Function 600 (Income Security) keep Americans safe and healthy.
Explain about the Income security?
Income security divided into six categories: housing support, nutrition assistance, unemployment compensation, general retirement and disability insurance, and federal employee retirement and disability (including military retirement).
The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), school lunch, school breakfast, and other child nutrition programs, child care assistance, refugee support, and low-income home energy assistance are additional significant economic security programs.
In order to help guard employees and their families from financial loss in the event that the employee is incapacitated or passes away, as well as to promote future financial stability, the Board of Pensions distributes income security benefits.
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a company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy and is unable to pay the pension amount. which of the following statements is true in the given scenario?
Maintains a solvency fund to pay benefits if a company goes bankrupt and cannot pay its retiree benefits.
Unlike defined contribution plans in defined benefit plans the employer, not the employee bears all the planning and investment risks. Benefits can be paid in monthly installments like an annuity or in one lump sum. In a defined benefit plan an employer promises an employee a pension upon retirement.
In a defined benefit plan the employer, not the employee bears the greatest risk. Defined contribution plans offer valuable tax benefits. Where these include pre-tax contributions that reduce the employee's taxable income and potential employer tax credits or after-tax loss contributions that provide the employee with tax-free income after retirement.
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You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $58,000. You have a $75,000 coverage limit per person for bodily injury. How much will the insurance company pay?.
The insurance company will pay $58,000.
Since you have a coverage of $75000 so the insurance company could cover $58000 out of it to compensate the injured person.
Insurance coverage- Insurance coverage is the amount of risk or liability that is covered by insurance services for an individual or entity. An insurer provides insurance coverage, such as auto insurance, life insurance, or more exotic forms, such as hole-in-one insurance, in the event of unforeseen events.
Most financial experts recommend four types of insurance: life, health, auto, and long-term disability.
The amount of risk, liability, or potential loss that insurance protects is referred to as insurance coverage. It assists individuals in recovering from financial losses caused by incidents such as car accidents, property damage, or unexpected health issues.
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Laser surgery is becoming increasingly accepted, and the prices for the surgery are dropping. As a policymaker, how would you decide when surgical intervention for myopia, hyperopia, and astigmatism is a right for all those covered under federal insurance?.
As a policymaker, The way that i can be able to decide when surgical intervention for myopia, hyperopia, and astigmatism is a right for all those covered under federal insurance is by weighing the pros and cons of the factors above, If the advantages are more than the disadvantages and also if the disadvantages is minimal, i will be able to approve it.
Which surgery is best for astigmatism?LASIK is the first surgical line of defense when it comes to treating astigmatism. This is due to the fact that LASIK has the fastest recovery period and is beneficial for a wide range of patients.
Note that Myopia, hyperopia, astigmatism, and presbyopia are just a few of the refractive errors that can be surgically corrected through the ophthalmological speciality known as refractive surgery. Its goal is for patients to no longer need glasses or contact lenses, increasing their quality of life in the process.
Hence, The cornea, which is the transparent, spherical portion of the front of the eye, can become astigmatic when it has an irregular curve. When close-up things are out of focus, it is known as hyperopia. Myopia is the condition in which distant objects appear blurry.
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the perpetual inventory system is also known as what type of review system? multiple choice interval periodic continuous estimated scheduled
The level of inventory and the cost of goods sold are measured by the periodic inventory system through periodic physical counts. The perpetual system automatically makes adjustments to inventory balances whenever a product is received or sold.
What does "perpetual inventory" mean?
In order to ensure that the book inventory accurately depicts the actual stock, perpetual inventory is a continuous accounting practice that records inventory changes in real time without the need for physical inventory.
What kind of company makes use of a perpetual inventory system?
Businesses that have a greater number of inventory units and simply do not have the time to manually count them typically use the perpetual inventory system. The perpetual inventory accounting method is typically used by grocery stores, for instance.
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Tanner Manufacturing is developing an activity-based costing system to improve overhead cost allocation. One of the first steps in developing the system is to classify the costs of performing production activities into activity cost pools.
Classify the cost of each activity in the following list into unit-, batch-, product-, or facility-level cost pools:
The costs of performing production activities into activity cost pool is Plant security Facility
Product Wages of employees transporting units of labor between workstations
Unit —- Ordering supplies for a certain sort of product —-Factory-wide electricity unit
batch --- A manager in charge of a product line's salary at a facility Commissions on labeling and Packaging Unit
Product or facility level: Product Supply Unit Engineering Product Design
Activity based costing :Activity-based costing (ABC) is a way of allocating overhead and indirect expenses to products and services, such as wages and utilities. The ABC cost accounting system is built on activities, which are defined as any occurrence, unit of work, or job that has a clear aim. Activity-based costing is a method of costing that detects activities in an organization and allocates the cost of each activity to all products and services based on their actual consumption. As a result, as compared to traditional costing, this approach allocates greater indirect costs to direct expenses.
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Effective organizational design means that firms must have ________ that are consistent with their strategy.
A. designs and plans
B. organizational structures and designs
C. adopters and designs
D. adopters and plans
Effective organizational design means that firms must have A. designs and plans that are consistent with their strategy.
The Oxford Dictionary defines approach as: “A plan of action designed to gain a protracted-time period or average intention” “The art of planning and directing standard military operations and movements in a conflict or war”
A strategy refers to an business enterprise's lengthy-time period goals and the way it plans to reach them. In other phrases, it suggests the direction to achieve the defined vision. A tactic refers back to the specific actions taken to attain the set dreams in line with the strategy.
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When companies redefine their technology or competency in general terms, the goal is to de-ink the technology from the current specific products and Identify more general applications True or False
True, When companies redefine their technology or competency in general terms, the goal is to delink the technology from the current specific products and Identity more general applications.
What does the word "redefine" mean?
Reformulate. have to reassess their terms: to review or reexamine especially with a view to changing.
What is an illustration of redefinition?
If a task was to "create a new toothbrush," for example, a creative person may rephrase it as "discover a better technique to clean teeth." Then, by minimizing the notion of the stereotypical toothbrush, he or she could look for solutions. "Functional fixedness" is the reverse of redefinition.Learn more about redefining
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suppose that flu shots create a positive externality equal to $12 per shot. further suppose that the government offers a $5 per-shot subsidy to producers. what is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced?
The relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced will be higher than the socially optimal quantity of flu shots produced.
What is the socially optimal quantity?Socially optimal quantity is the level of production or consumption that maximizes the net benefit to society as a whole. This optimal level of production or consumption is determined by weighing the costs and benefits of increased or decreased production or consumption.
The equilibrium quantity of flu shots produced will be higher than the socially optimal quantity of flu shots produced. This is because the subsidy creates a financial incentive for producers to produce more flu shots than what would be socially optimal (the quantity of flu shots that would generate the most benefit to society). Therefore, the equilibrium quantity of flu shots produced will be greater than the socially optimal quantity of flu shots produced, as producers are incentivized to produce more flu shots than what would be considered socially optimal.
It can be concluded that, the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced will be higher than the socially optimal quantity of flu shots produced.
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What are the 6 important steps in setting business goals?.
Important steps in setting business goals are:
Business Goals Should Be Specific. Your Goals Should be Measurable. Set Attainable Goals for Your Business. Make Your Goals Relevant. Goals Should Be Time Sensitive. Write Goals Down in an Action Plan.What is business goals?A business aim is a destination, feat, or objective the corporation hopes to reach in the short- or long-term. Business objectives can be aspirational or motivating and can steer a company in the direction of a certain goal, like better customer service.
You can determine the path your firm should take by setting business goals. Writing your goals in an active, assertive manner is essential because it affects how you see them. Make sure your goals are SMART in order to make them achievable (specific, measurable, achievable, relevant and time-bound).
Setting goals is crucial to managing a successful organization. They can help you maintain a clear direction, inspire workers, and establish goals for your company to strive for.
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which of the following are true according to the keynesian economic view?
Decrease in the government-spending component of aggregate demand will not affect real GDP for very long.
Even a severe decrease in citizens' expectations of future income will not affect long-run economic output.
Nominal prices matter to the long-run economy
Prices are perfectly flexible.
The true statements according to the Keynesian economic view is that Nominal prices matter to the long-run economy. Option C
What is the Keynesian economic view?The numerous macroeconomic theories and models of how aggregate demand significantly affects economic production and inflation are known as Keynesian economics. According to the Keynesian perspective, the level of overall demand need not match the economy's capacity for production.
Keynesians contend that because prices are somewhat rigid, changes in any aspect of spending, whether government, investment, or consumer spending, affect output. For instance, output will rise if government expenditure rises while all other spending factors stay the same.
The greater employment levels promoted by Keynesian economics are one of the model's many advantages, among its many disadvantages. As firms reduce the number of their workforces, employment declines and unemployment rates rise during recessionary times.
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