As part of the New Deal, President Franklin Roosevelt created the Agricultural Adjustment Act to pay farmers to grow fewer crops so there would not be too many extra crops. What economic concept is this an example of?

price incentives

B.
opportunity costs

C.
specialization

D.
competition

Answers

Answer 1

Answer:

price incentives

Explanation:


Related Questions

explain
What are the factors that influence the Filipinos to
suffer more negative than positive traits?

Answers

The factors that influence the Filipinos to suffer more negative than positive traits are social factors, cultural factors, historical factors, Psychological Factors and environmental factors.


1. Social Factors: Social factors such as poverty, inequality, and discrimination can lead to negative traits such as low self-esteem, hopelessness, and apathy.

2. Cultural Factors: Cultural factors such as the emphasis on materialism, individualism, and competition can lead to negative traits such as greed, selfishness, and aggression.

3. Historical Factors: Historical factors such as colonization, oppression, and war can lead to negative traits such as trauma, mistrust, and resentment.

4. Psychological Factors: Psychological factors such as stress, anxiety, and depression can lead to negative traits such as negativity, pessimism, and withdrawal.

5. Environmental Factors: Environmental factors such as pollution, climate change, and natural disasters can lead to negative traits such as fear, helplessness, and anger.

Overall, these factors can all contribute to the development of negative traits in Filipinos. It is important to be aware of these factors and work to address them in order to promote positive traits and well-being.

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Given the demand and supply system:
Pb = 53 - 5 Qb & Pv = 3 + 2 Qv
With a specific tax of T^ = 4 , what is the buyer's tax burden ?
8: Given the demand and supply system:
Pb = 53 - 5 Qb & Pv = 3 + 2 Qv
With a specific tax of T^ = 4 , what is the seller's tax burden ?

Answers

Base on the demand and supply system, the buyer's tax burden is 6/7 and the seller's tax burden is 8/7.

The buyer's tax burden is the difference between the price paid by the buyer and the price without the tax. Similarly, the seller's tax burden is the difference between the price received by the seller and the price without the tax. To find the buyer's tax burden, we need to find the equilibrium price and quantity without the tax and then compare it to the equilibrium price and quantity with the tax.

Without the tax, the equilibrium price and quantity are found by setting the demand and supply equations equal to each other:

53 - 5 Qb = 3 + 2 Qv

Simplifying and solving for Q:

50 = 7 Q

Q = 50/7

Plugging this back into the demand equation to find the equilibrium price:

Pb = 53 - 5 (50/7)

Pb = 23/7

Now, with the specific tax of 4, the supply equation becomes:

Pv = 3 + 2 Qv + 4

Setting the demand and supply equations equal to each other again:

53 - 5 Qb = 7 + 2 Qv

Simplifying and solving for Q:

46 = 7 Q

Q = 46/7

Plugging this back into the demand equation to find the new equilibrium price:

Pb = 53 - 5 (46/7)

Pb = 29/7

The buyer's tax burden is the difference between the new equilibrium price and the original equilibrium price:

29/7 - 23/7 = 6/7

So the buyer's tax burden is 6/7.

Similarly, the seller's tax burden is the difference between the original equilibrium price and the new equilibrium price received by the seller:

23/7 - (29/7 - 4) = 23/7 - 15/7 = 8/7

So the seller's tax burden is 8/7.

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The legislation that requires the FDIC to deal with and
insolvent bank with the least costly method is the_________
A. Riegle-Neal Act.
B. FIRREA.
C. FDICIA.
D. Gramm-Leach-Bliley Act.

Answers

The legislation that requires the FDIC to deal with and insolvent bank with the least costly method is the FDICIA. The correct answer is C. FDICIA.

The FDICIA, or the Federal Deposit Insurance Corporation Improvement Act, was passed in 1991 and requires the FDIC to deal with an insolvent bank using the least costly method. This legislation was created in response to the savings and loan crisis of the 1980s, which resulted in the failure of many banks and the loss of billions of dollars for the FDIC. The FDICIA also includes provisions for prompt corrective action, risk-based deposit insurance premiums, and limits on brokered deposits.

The other options listed, the Riegle-Neal Act, FIRREA, and the Gramm-Leach-Bliley Act, are all pieces of legislation related to the banking industry, but they do not specifically address the requirement for the FDIC to deal with insolvent banks using the least costly method. Therefore the correct option is option C.

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(0)
9. An increase of the money supply should
A. shift short run aggregate supply to the right
B. shift long run aggregate supply to the right
C. shift aggregate demand to the right
D. shift aggregate demand to the left
10. During the Great Recession of 2008
A. both the price level and real GDP were rising
B. both unemployment and real GDP were rising
C. unemployment was rising and real GDP was falling
D. unemployment was falling and real GDP was rising
E. all of the above
12. In macroeconomics, the short run is defined as that period of time in which
The prices of the factors of production and/or the cost of production are constant
The prices of the factors of production and/or the cost of production are not constant
The price level is constant
The unemployment rate is constant
All of the above
13. According to the purchasing power effect, a decrease of the price level will
Increase the purchasing power of money and increase the aggregate quantity demanded of final goods and services.
Decrease the purchasing power of money and decrease the aggregate quantity demanded of final goods and services
Increase exports, decrease imports and increase the aggregate quantity demanded of final goods and services
Decrease exports, increase imports and decrease the aggregate quantity demanded of final goods and services.
None of the above.

Answers

According to the purchasing power effect, a decrease in the price level will increase the purchasing power of money This leads to an increase in the aggregate quantity demanded of final goods and services.

9. C. shift aggregate demand to the right
An increase in the money supply typically leads to an increase in aggregate demand, as people have more money to spend on goods and services.

10. C. unemployment was rising and real GDP was falling
During the Great Recession of 2008, unemployment rates were rising as businesses were laying off workers, and real GDP was falling as overall economic activity was decreasing.

12. B. The prices of the factors of production and/or the cost of production are not constant
In macroeconomics, the short run is typically defined as the period of time in which the prices of the factors of production (such as labor and capital) and the cost of production are not constant, and can change in response to changes in economic conditions.

13. A. Increase the purchasing power of money and increase the aggregate quantity demanded of final goods and services.
According to the purchasing power effect, a decrease in the price level will increase the purchasing power of money, meaning that people can buy more goods and services with the same amount of money. This leads to an increase in the aggregate quantity demanded of final goods and services.

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Which main activities are driving inflation in botswana and what is being done

Answers

Inflation in Botswana is driven primarily by rising costs of food and fuel. Option A is correct.

Option A state that "Rising fuel prices, increasing prices for food and non-alcoholic beverages, and higher costs for housing and utilities. The government has implemented various measures to mitigate the impact of inflation, such as adjusting interest rates, increasing subsidies for fuel and food, and implementing policies to promote economic growth and job creation."

The Bank of Botswana has implemented a number of policies to tackle inflation, including cutting interest rates, controlling the money supply, and implementing fiscal stimulus packages. Additionally, the government has implemented various policies, such as reducing tariffs on imports and subsidies for agriculture, in order to help reduce the burden of rising prices.

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correct question should be:

Which main activities are driving inflation in botswana and what is being done

a. Rising fuel prices, increasing prices for food and non-alcoholic beverages, and higher costs for housing and utilities. The government has implemented various measures to mitigate the impact of inflation, such as adjusting interest rates, increasing subsidies for fuel and food, and implementing policies to promote economic growth and job creation.

b. Increasing costs of transportation and logistics, higher prices for luxury goods, and growing demand for imported products. The government is implementing policies to increase local production and reduce dependence on imports, as well as adjusting interest rates to manage inflation.

c. Fluctuations in global commodity prices, higher costs of raw materials for local industries, and rising wage demands from workers. The government is working with industry stakeholders to find ways to reduce production costs and improve efficiency, while also implementing policies to promote economic growth and job creation.

d. None of the above.

In
about 100 words, explain how the concepts of power, effects , and
jurisdiction are related to each other ?

Answers

The concepts of power, effects, and jurisdiction are closely related because they all deal with the ability of an entity to control and influence events and actions.

Power is the ability to control or influence the behavior of others, while effects are the outcomes or consequences of that power. Jurisdiction, on the other hand, is the legal authority or control over a specific geographic area or group of people. In other words, jurisdiction determines who has the power to make decisions and enforce laws within a certain area, and the effects of those decisions and laws are felt by the people within that jurisdiction. All three concepts are interconnected and play important roles in the functioning of governments, organizations, and societies.

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Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant, under the following situations.
1a. The economy is surprisingly strong, leading to an increase in the amount of checkable deposits.
1b. Banks expect an unusually large increase in withdrawals from checking deposit accounts in the future.
1c. The Fed raises the target federal funds rate.
1d. The Fed raises the interest rate on reserves above the current equilibrium federal funds rate.
1e. The Fed reduces reserve requirements.
1f. The Fed reduces reserve requirements and then offsets this action by conducting an open market sale of securities.

Answers

Based on the supply and demand analysis of the market for reserves, a. federal funds rate and borrowed reserves increases and nonborrowed reserves remains unchanged, b. federal funds rate and borrowed reserves increases and nonborrowed reserves remains unchanged, c. federal funds rate increases, borrowed reserves decreases and nonborrowed reserves remains unchanged, d. federal funds rate and borrowed reserves decreases and nonborrowed reserves, e. federal funds rate and borrowed reserves decreases, and nonborrowed reserves remain unchanged, and f. federal funds rate, borrowed reserves and nonborrowed reserves remain unchanged.

The supply and demand analysis of the market for reserves can help explain the effects of various economic situations on the federal funds rate, borrowed reserves, and nonborrowed reserves. Here is what happens under each of the situations listed.

Effects on federal funds rate, borrowed reserves, and nonborrowed reserves

1a. When the economy is surprisingly strong and there is an increase in the amount of checkable deposits, the demand for reserves increases. This leads to an increase in the federal funds rate and an increase in borrowed reserves, while nonborrowed reserves remain unchanged.

1b. When banks expect an unusually large increase in withdrawals from checking deposit accounts in the future, they will increase their demand for reserves to prepare for the withdrawals. This leads to an increase in the federal funds rate and an increase in borrowed reserves, while nonborrowed reserves remain unchanged.

1c. When the Fed raises the target federal funds rate, the supply of reserves decreases, leading to an increase in the federal funds rate and a decrease in borrowed reserves. Nonborrowed reserves remain unchanged.

1d. When the Fed raises the interest rate on reserves above the current equilibrium federal funds rate, the supply of reserves increases, leading to a decrease in the federal funds rate and a decrease in borrowed reserves. Nonborrowed reserves increase.

1e. When the Fed reduces reserve requirements, the demand for reserves decreases, leading to a decrease in the federal funds rate and a decrease in borrowed reserves. Nonborrowed reserves remain unchanged.

1f. When the Fed reduces reserve requirements and then offsets this action by conducting an open market sale of securities, the demand for reserves decreases but the supply of reserves also decreases. This leads to no change in the federal funds rate, borrowed reserves, or nonborrowed reserves.

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In what ways do economic realities like globalization, competitors and suppliers, the fall of financially stable organizations, increasing oil prices, economic trade agreements, the emergence of new markets, and the rise of China as a major economic player in the world affect the growth and development of nations?

Answers

Economic realities like globalization, competitors and suppliers, the fall of financially stable organizations, increasing oil prices, economic trade agreements, the emergence of new markets, and the rise of China as a major economic player in the world all affect the growth and development of nations in various ways.

What Are The Impacts Of Economic Realities On The Growth And Development Of Nations?

Here are the impacts of several economic realities on the growth and development of nations:

Globalization has led to increased competition among businesses, which can have both positive and negative effects on the growth and development of nations. Increased competition can lead to more innovation and economic growth, but it can also lead to the loss of jobs and economic instability.The fall of financially stable organizations can have a negative impact on the growth and development of nations, as it can lead to a loss of jobs and a decrease in economic activity.Increasing oil prices can also have a negative impact on the growth and development of nations, as it can lead to an increase in the cost of goods and services, which can lead to a decrease in economic activity.Economic trade agreements can have both positive and negative effects on the growth and development of nations. Trade agreements can lead to increased economic activity and growth, but they can also lead to a loss of jobs and economic instability.The emergence of new markets can have a positive impact on the growth and development of nations, as it can lead to an increase in economic activity and growth.The rise of China as a major economic player in the world can have both positive and negative effects on the growth and development of nations. China's economic growth can lead to increased economic activity and growth for other nations, but it can also lead to increased competition and economic instability.

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Marketing
Given the way people tweet about products and customer service, why do companies still use market research? Why not simply follow tweet volume and content to see if products and service are good? What other ways can companies do market research? What are the most important things companies need know from their research and why?
Why are company websites not good sources of market information?

Answers

Using social media platforms are used for marketing research to understand the target market but it does not provide in-depth and complete information. Companies can conduct marketing research through other methods such as customer surveys, focus groups, and analyzing sales data. The most important information needed from marketing research is identification of target market, their behaviors and preference, and response to various marketing strategies. Company websites are not good sources of market information as they are bias and restricted in information.

Marketing research is crucial for companies to understand their target market and make informed business decisions. While social media platforms can provide valuable insights into customer opinions, they do not provide a complete picture. Market research can involve surveys, focus groups, and other methods that provide more detailed and accurate information about customer preferences and behaviors.

In addition to social media, companies can conduct market research through methods such as customer surveys, focus groups, and analyzing sales data. These methods allow companies to gain a deeper understanding of their target market and make informed decisions about product development and marketing strategies.

The most important things companies need to know from their research include who their target market is, what their preferences and behaviors are, and how they respond to different marketing strategies. This information helps companies to develop products and services that meet customer needs, and to create effective marketing campaigns.

Company websites are not good sources of market information because they are biased and only provide information that the company wants to share. Market research should be conducted through unbiased sources to ensure accurate and reliable results.

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What did president George Washington do to secure the west

Answers

Answer:

Having the text of the Proclamation of 1754 read into the record as evidence.

Hope this helps! :D

Brainliest if possible!

Under the Ricardian model, when countries do not engage in
trade, they can only consume what they produce, so in order to
produce both goods what does it need to happen?

Answers

Under the Ricardian model, when countries do not engage in trade, they can only consume what they produce.

In order to produce both goods, each country needs to have a comparative advantage in the production of one of the goods. This means that they can produce one good at a lower opportunity cost than the other country. If each country specializes in the production of the good in which they have a comparative advantage, and then trades with the other country, both countries can consume both goods at a lower cost than if they tried to produce both goods themselves. This is the basis of the Ricardian model of trade and why trade is beneficial for both countries involved.

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Matching Match each term in Column A with its definition in
Column B.

Column A
1. corporation
2. stockholder
3. charter
4. S corporation
5. proxy
6. board of directors
7. limited liability
8. double taxation
9. franchise
10.
cooperative
Column B

a. a document that authorizes another to vote
one's stock
b. the people who control corporations
c. a business licensed by a government as an
individual and owned by its stockholders
d. a form of corporation for a small business
e. an individually owned business licensed to
operate as if it were part of a chain
a problem faced by corporations
f.
g. an owner of a corporation
h. the principal advantage of the corporation
i. a state-issued license to incorporate
j. business owned by its members

Answers

Matching Match each term in Column A with its definition in Column B.

1. corporation - a business licensed by a government as an

individual and owned by its stockholders  

2. stockholder -  an owner of a corporation

3. charter - a state-issued license to incorporate

4. S corporation -  a form of the corporation for a small business

5. proxy - a document that authorizes another to vote on one's stock

6. board of directors -  the people who control corporations

7. limited liability - the principal advantage of the corporation

9. franchise  - an individually owned business licensed to operate as if it were part of a chain a problem faced by corporations

10. cooperative - a business owned by its members

What is a dictionary entry?

A dictionary entry refers to the collection of information provided to understand the meaning of a word in a given context. This word of meaning will differ from context to context sometimes.

A corporation is a business organization where financial investments are made by stockholders in return for a portion of the organization's profits or ownership.

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ransitional dynamics in the Solow model are due to: Not yet answered Marked out of 10.00 P Flag Select one: O a. Constant returns to scale. O b. Total factor productivity. Oc. Diminishing returns to labour O d. Diminishing returns to capital

Answers

Transitional dynamics in the Solow model are due to: diminishing returns to capital (option d).

The Solow model, also known as the Solow-Swan model, is an economic model that explains long-run economic growth by examining the contributions of capital accumulation, labor, and technological progress. One of the key assumptions of the model is that there are diminishing returns to capital, meaning that as more capital is added to the economy, the additional output produced by each unit of capital decreases.

This assumption of diminishing returns to capital is what drives the transitional dynamics in the Solow model. In the short run, an increase in capital will lead to an increase in output, but as more capital is added, the marginal product of capital decreases and the economy will eventually reach a steady state where output growth is determined solely by the rate of technological progress.

Therefore, the correct answer to the question is (option d), diminishing returns to capital.

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Government
34. (a) In the caption of this cartoon, what does "convicted by the
media" mean? (b) How can this kind of conviction affect a trial?
35. What do you think the cartoonist feels about the right of a free
press versus the right to a fair trial?

Answers

34. In the caption of this cartoon,  "convicted by the media" means that media have already declared the person to be guilty of a criminal offense.

35. The cartoonist believe that the conflict between "free press vs. fair trial" is a fundamental inconsistency in the U.S. Constitution because the First Amendment of the Constitution expressly protects the right of free speech, and the Sixth Amendment calls for a swift trial by an impartial jury.

What is right of free press?

The essential tenet of freedom of the press or freedom of the media is that expression and communication through a variety of media, including written and electronic media, especially published information, should be seen as a right to be freely practised.

A democracy where the people are the government's ultimate arbiters depends on press freedom, which is safeguarded by the First Amendment. A free press serves as a watchdog that can look into and report on misconduct by the government.

Therefore, there is a contradiction between right to free press and right to free trail.

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subject : Macroeconomics
please help me with this a and b it important
a: If you wanted to compare the growth rate of two different economies and you saw both country A grew at a real rate of 5%, and country B grew at a nominal rate of 5%, would you conclude that country A and B both expanded production by 5% that year? Explain.
b: If the nominal rate of interest in 2020 was 4% and the inflation rate was 5%. In 2021 the real rate of interest was 1%, what you think will happen to the demand for buying a house or apartment in 2021. Explain.

Answers

 I would conclude that country A and B both expanded production by 5% that year. This is because the Growth rate of an economy can be measured in two ways: nominal growth rate and real growth rate.

a. Nominal growth rate measures the increase in the value of an economy's output without accounting for changes in the INFLATION RATE. On the other hand, real growth rate measures the increase in the value of an economy's output after accounting for changes in the inflation rate. Therefore, the real growth rate gives a more accurate picture of an economy's growth as it takes into account the changes in the value of money. In this case, country A grew at a real rate of 5%, which means that it expanded production by 5% after accounting for changes in the inflation rate. However, country B grew at a nominal rate of 5%, which means that it expanded production by 5% without accounting for changes in the inflation rate. Therefore, we cannot compare the growth rate of these two economies without knowing the inflation rate of country B.

b: If the nominal rate of interest in 2020 was 4% and the inflation rate was 5%, and in 2021 the real rate of interest was 1%, then the demand for buying a house or apartment in 2021 may decrease. This is because the real rate of interest is the nominal rate of interest minus the inflation rate. If the real rate of interest is positive, then it means that the cost of borrowing is higher than the rate of inflation, and people may be less likely to borrow money to buy a house or apartment. On the other hand, if the real rate of interest is negative, then it means that the cost of borrowing is lower than the rate of inflation, and people may be more likely to borrow money to buy a house or apartment. In this case, the real rate of interest in 2021 is 1%, which means that the cost of borrowing is higher than the rate of inflation. Therefore, the demand for buying a house or apartment in 2021 may decrease.

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QUESTION 13 Being the second oldest luxury brand that is still operating today, it's no surprise that Louis Vuitton has been one of the most valuable luxury brands in the world for decades. The story of Louis Vuitton started almost two centuries ago, when the founder was born in 1821 in a small village in the east of France, called Anchay. Louis Vuitton remains one of the most popular luxury brands in the world, and this will not change any time soon. LV has been known to create limited edition collections every season, and regularly collaborates with various artists and designers, creating even more unique items. Hollywood socialites like Selena Gomez and Emma Stone are brand ambassadors and the not so famous clamor to purchase and carry LV bags. The most recent best seller is the "Neverfill" tote featured below. The bag retails for #1,760. High ticket price? Yes. but women love this bag! Which specific social or personal/individual factor of consumer behavior might explain the decision to purchase a bag?

Answers

One specific social factor that might explain the decision to purchase a Louis Vuitton bag is the influence of celebrities and socialites, such as Selena Gomez and Emma Stone.

These celebrities are brand ambassadors and their endorsement of the brand can influence consumers to purchase the product in order to emulate their style or associate themselves with the brand.

Additionally, one personal/individual factor that might explain the decision to purchase a Louis Vuitton bag is the desire for exclusivity and uniqueness. As mentioned, Louis Vuitton regularly creates limited edition collections and collaborates with artists and designers to create unique items. This can appeal to consumers who value exclusivity and want to own a product that is not widely available.

Overall, the decision to purchase a Louis Vuitton bag can be influenced by both social and personal/individual factors, including the influence of celebrities and the desire for exclusivity and uniqueness.

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A group of doctors is considering opening a private clinic. If the medical demand is high (i.e., there is a favorable market for the clinic), there is a net profit of $4,000,000. If the market is not favorable, there is a loss of $800,000. Another option for the group of doctors is to go into partnership with a hospital. Under this scenario, there is a net profit of $1,500,000 if the market is favorable and a loss of $200,000 if the market is not favorable. Of course, they can decide not to proceed at all and do not incur any cost.
a. What is the best decision under the maximax criterion? (3 points)
b. What is the best decision under the maximin criterion? (3 points)
c. What is the best decision under the minimax regret criterion? (3 points)
d. Identify the range of the probability of the unfavorable market such that the doctors will consider partnering with a hospital when the expected value criterion is used. (5 points)
e. Suppose there is a 40% chance that the market will be favorable. What is the optimal decision of the doctors? If there exists a perfect forecast that can predict the status of market with 100% accuracy, what will be the maximal price that doctors are willing to pay to get this perfect forecast? (6 points)

Answers

a. Under the maximax criterion, the best decision for the group of doctors is to open a private clinic, as it has the highest net profit of $4,000,000.


b. Under the maximin criterion, the best decision for the group of doctors is to partner with a hospital .


c. Under the minimax regret criterion, the best decision for the group of doctors is to partner with a hospital.


d. The range of the probability of the unfavorable market that would make the doctors consider partnering with a hospital when using the expected value criterion is greater than or equal to 0.50.


e. With a 40% chance that the market will be favorable, the optimal decision of the doctors is to open a private clinic.

If there is a perfect forecast that can predict the status of the market with 100% accuracy, the maximal price that doctors are willing to pay for this perfect forecast is the difference between the net profits of the two options ($2,500,000).

The maximax criterion is a decision-making principle that is used to select the best possible option among a set of alternatives.

It is based on the assumption that decision-makers want to achieve the best possible outcome, and thus choose the option that has the highest possible maximum payoff.

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A discount interest loan is a loan arrangement where the interest and any other related charges are calculated at the time the loan is closed. Suppose a one-year loan is stated as $12,000 and the interest rate is 12%. The borrower then pays $1,440 interest up front, thereby receiving net funds of $10,560 and repaying $12,000 in a year. What is the effective interest rate on this one-year loan?

Answers

The effective interest rate on this one-year loan is 25.71%. This is calculated by dividing the total interest paid ($1,440) by the net funds received ($10,560) and multiplying by 100 to get the percentage.

The reason the effective interest rate is higher than the stated interest rate of 12% is because the interest is paid up front, reducing the amount of money the borrower has to use for the year. In other words, the borrower is paying $1,440 for the use of $10,560 for one year, which is a higher cost than if the interest were spread out over the year. The effective interest rate takes into account the total cost of borrowing the money, including any fees or charges, and is a more accurate measure of the loan's cost than the stated interest rate.

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‘As the number of assets, n, in a portfolio gets large the contribution to the portfolio variance of the individual asset variances approaches zero but the contribution of the asset covariance terms approaches the average covariance, i.e. the individual risk of assets can be diversified away but the risk caused by asset covariance cannot’. Explain this statement in order to demonstrate how the relationship between assets in a portfolio affects the portfolio risk.

Answers

As the number of assets, n, in a portfolio gets large the contribution to the portfolio variance of the individual asset variances approaches zero but the contribution of the asset covariance terms approaches the average covariance, This statement is explaining the concept of diversification and how it affects the risk of a portfolio.

Diversification is the practice of spreading investments across different assets to reduce risk. As the number of assets in a portfolio increases, the individual risk of each asset becomes less significant and the contribution to the portfolio variance approaches zero.

However, the risk caused by asset covariance, or the relationship between the assets, cannot be diversified away and becomes the main contributor to the portfolio risk.

In other words, as the number of assets in a portfolio increases, the individual risk of each asset becomes less important and the relationship between the assets becomes more important in determining the overall risk of the portfolio. This is why it is important to consider the correlation between assets when building a portfolio, as assets with a high positive correlation will have a greater impact on the portfolio risk than assets with a low or negative correlation.
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4. [This is a separate question. Do not use data from Part IV, Q1] Suppose the economy is characterized by the following behavioral equations: (12 marks) C = Co+cYD YD=YT I= bo+b, Y Government spending and taxes are constant. Note that investment now increases with output. (1) Solve for equilibrium output (2) What is the value of the multiplier? How does the relation between investment and output affect the value of the multiplier? For the multiplier to be positive, what condition must (c) + b) satisfy? (3) Suppose that the parameter bo, sometimes called business confidence, increases. How will equilibrium output be affected? Will investment change by more or less than the change in bo? Why? What will happen to national saving?

Answers

Equilibrium output is Y = (Co - cT + bo + G) / (1 - (c + b)), multiplier is 1 / (1 - (c + b)). For multiplier to be positive, (c + b) must be < 1, if bo increases, equilibrium output will increase and investment will change by less than the change in bo and National saving will increase.

(1) The equilibrium output can be found by setting the aggregate demand equal to the aggregate supply. The aggregate demand is C + I + G and the aggregate supply is Y. So we have:

Y = C + I + G

Substituting the given equations into this equation, we get:

Y = Co + cYD + bo + bY + G Y = Co + c(YT) + bo + bY + G Y = Co + c(Y - T) + bo + bY + G Y = Co + cY - cT + bo + bY + G Y = Co + (c + b)Y - cT + bo + G

Rearranging the equation to solve for Y, we get:

Y - (c + b)Y = Co - cT + bo + G Y(1 - (c + b)) = Co - cT + bo + G Y = (Co - cT + bo + G) / (1 - (c + b))

This is the equilibrium output.

(2) The value of the multiplier is 1 / (1 - (c + b)). The relation between investment and output affects the value of the multiplier because the value of b is included in the multiplier.

If b is positive, then the multiplier will be larger, meaning that a change in autonomous spending will have a larger impact on equilibrium output. For the multiplier to be positive, the condition (c + b) must be less than 1.

(3) If the parameter bo increases, then the equilibrium output will increase. This is because bo is included in the numerator of the equation for equilibrium output, so an increase in bo will increase the value of the numerator and therefore increase the value of Y.

Investment will change by less than the change in bo because the value of b is less than 1, so the change in investment will be b times the change in bo. National saving will increase because an increase in equilibrium output will increase national income, which will increase national saving.

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5-4. Your company is considering purchasing a contract for managing its data and communication system. The contract requires a $10,000 initiation fee (at time 0) and have annual costs that begin (in year 1) at $5,000 and increase by $500 per year. What is the equivalent annual cost over a 5-year period assuming an MARR of 8%? Answer: $8,428 5-5. (This problem is taken from Park, Problem 6.32, with slight edits.) An electric automobile has a purchase price of $30,000. The automobile is estimated to have a life of 10 years and to be used for 20,000 miles per year. Every three years, a new set of batteries will have to be purchased at a cost of $4,000. (The $4,000 cost of the batteries is a net value with the old batteries traded in for the new ones.) Annual maintenance of the vehicle is estimated to cost $1,000. The cost of recharging the batteries is estimated at $0.015 per mile. The salvage value of the batteries and the vehicle at the end of 10 years is estimated to be $3,000. Assuming an MARR of 7%, what is the cost per mile to own and operate this vehicle based on these estimates? Answer: $0.33/mile 5-6. Consider the cash flows depicted in Table 5-6 relating to two machines. (The positive values in years 1-5 represent savings from the machines. The negative values in year 0 represent the initial costs of the machines.) Assume that the machines will be used 2,000 hours per year. What are the equivalent annual net savings per hour associated with each machine, assuming an interest rate of 10%? Which machine should be chosen? Table 5.6 Cash Flows for Problem 5-6 n 0 1 2 3 4 5 Machine A -$50,000 $20,000 $18,000 $16,000 $14,000 $12,000 Machine B $40,000 $18,000 $16,000 $14,000 $12,000 $10,350

Answers

The equivalent annual cost (EAC) of a contract is the amount of money that is required to be paid each year in order to cover the total cost of the contract over its entire duration. The EAC can be calculated using the following formula:

EAC = (P * i) / (1 - (1 + i)^-n)

Where P is the present value of the contract, i is the interest rate, and n is the number of years in the contract.

For the first question, the present value of the contract is $10,000 + ($5,000 * 5) + ($500 * 4) = $35,000. The interest rate is 8% and the number of years is 5. Plugging these values into the formula gives:

EAC = ($35,000 * 0.08) / (1 - (1 + 0.08)^-5) = $8,428

For the second question, the present value of the contract is $30,000 + ($4,000 * 3) + ($1,000 * 10) + ($0.015 * 20,000 * 10) - $3,000 = $58,000. The interest rate is 7% and the number of years is 10. Plugging these values into the formula gives:

EAC = ($58,000 * 0.07) / (1 - (1 + 0.07)^-10) = $8,360

The cost per mile is $8,360 / 20,000 = $0.33/mile

For the third question, the present value of Machine A is $50,000 and the present value of Machine B is $40,000. The interest rate is 10% and the number of years is 5. Plugging these values into the formula gives:

EAC for Machine A = ($50,000 * 0.10) / (1 - (1 + 0.10)^-5) = $12,990
EAC for Machine B = ($40,000 * 0.10) / (1 - (1 + 0.10)^-5) = $10,392

The equivalent annual net savings per hour for Machine A is ($12,990 / 2,000) = $6.49/hour and for Machine B is ($10,392 / 2,000) = $5.20/hour. Based on these calculations, Machine B should be chosen because it has a lower equivalent annual net savings per hour.

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1.7. Suggest THREE ways in which Grade 12 learners could deal with the consequences
of the negative feelings that may come as a result of the transition from school to
post-school destination. In your answer, also indicate how each suggestion could assist
them to be well adapted.

Answers

The three ways in which Grade 12 learners could deal with the consequences of the negative feelings that may come as a result of the transition from school to post-school destination; seek support from a mentor or counselor, focus on personal growth and development, and enlisting the help of family and friends.

What do you mean by Consequences?

The consequence is the effect, result, or outcome of a thing which was occurred earlier.

Students in grade 12 can concentrate on their personal development and growth rather than lingering on their negative emotions. They have the ability to set and work toward their own goals. Students in grade 12 can gain a lot by asking for help from someone who has gone through the same thing or who can offer direction and advice.

Therefore, Focus on personal growth and development, seek support from a mentor or counselor, and enlist the help of family and friends.

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1. Sharon is interested in learning about the returns to schooling. She finds a dataset with information on earnings, education, gender, age, experience and quarter and year of birth collected from a random sample of individuals. She uses this data to estimate the following Mincer earnings regression using ordinary least squares: Log Y = a + b*S + c*female + d* experience + h*experience2+u Where S is the individual's years of schooling; female takes the value of 1 if the individual is female and O if female. Experience is in years. The Table below provides the coefficients and standard errors that she obtained. Coefficient Std error a 6.561 2.650 b 0.074 0.025 -0.121 0.041 d 0.075 0.033 h -0.021 0.013 с a) Sharon shows you this table and asks for your help in interpreting the coefficients. From this table, what is the magnitude of the OLS estimate of the return to an additional year of schooling? Is this statistically significant at the 5% level of significance? Note that the critical value for the t-distribution for a two- sided test with 5% level of significance is 1.96. (10 marks) b) Sharon thinks that this is the true return to schooling. Is she correct? Explain your answer. (20 marks) c) Sharon learns that individuals in this data started school on the January after their 6th birthdays. They were also obliged to stay in school until their 16th birthdays. Could Sharon use this to obtain the true return to schooling? Explain your answer. (30 marks)

Answers

a) From the table, the magnitude of the OLS estimate of the return to an additional year of schooling is 0.074. This is statistically significant at the 5% level of significance because the coefficient of 0.074 is greater than the critical value of 1.96.

b) No, she is not correct. This OLS estimate is based on a sample of individuals and does not necessarily reflect the true return to schooling for the entire population. Further analysis, such as looking at the distribution of returns across the population, would be needed to determine the true return to schooling.

c) No, Sharon cannot use this to obtain the true return to schooling. Even if individuals are obliged to stay in school until their 16th birthdays, there are still other factors that can influence their return to schooling, such as the quality of the school and their individual characteristics.

This means that the data cannot accurately reflect the true return to schooling. The OLS estimate of the return to an additional year of schooling is 0.074. This is the coefficient on the variable S in the regression equation.

This coefficient is statistically significant at the 5% level of significance because the absolute value of the t-statistic is greater than the critical value of 1.96. The t-statistic is calculated as the coefficient divided by the standard error, which is 0.074/0.025 = 2.96. Since 2.96 > 1.96, we can conclude that the coefficient is statistically significant at the 5% level of significance.


It is not correct to say that this is the true return to schooling because there may be other factors that affect earnings that are not included in the regression equation.

For example, ability and motivation may also affect earnings, but these factors are not included in the regression equation. Therefore, the estimate of the return to schooling may be biased if these factors are correlated with schooling.

It is possible to use the information about the start and end of schooling to obtain the true return to schooling. One approach would be to use an instrumental variable (IV) approach, where the start and end of schooling are used as instruments for the years of schooling.

This approach would help to control for the endogeneity of schooling, which may be correlated with other factors that affect earnings. By using the start and end of schooling as instruments, we can obtain a more accurate estimate of the true return to schooling.

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Instead of cultural triumph what must christians expect to experience during the time between

Answers

Instead of cultural triumph christians expect to experience suffering and persecution during the time between salvation and judgement. As it may undermine Christians' faith in God, the presence of suffering and wickedness is crucial.

Christians anticipate suffering and persecution during the interim period between salvation and judgment, not societal triumph. Christians contend that since sin prevents individuals from experiencing a right connection with God, they must be saved from it. Fortunate indeed when folks receive insults, persecution, as well as baseless allegations of all kinds cos of eachother , celebrate  because ones recompense in paradise will be great. As it may undermine Christians' faith in God, the presence of suffering and wickedness is crucial.

Complete question-

Instead of cultural triumph, what must Christians expect to experience during the time between salvation and judgement?

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Briefly note any major conflict episodes in Thailand since 1970.
Report the number of battle deaths since 1970 as recorded in the
WDI.

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Thailand has experienced several major conflict episodes since 1970, including the Communist Insurgency (1965-1983), the Southern Insurgency (2004-present), and the 2010 Thai political protests.

The Communist Insurgency was a long-running conflict between the Thai government and the Communist Party of Thailand (CPT), which sought to overthrow the government and establish a communist state. The conflict resulted in thousands of deaths on both sides, with estimates ranging from 3,000 to 12,000.

The Southern Insurgency is an ongoing conflict in the southern provinces of Thailand, which have a predominantly Muslim population. The conflict began in 2004 and has resulted in the deaths of over 6,500 people.

The 2010 Thai political protests were a series of demonstrations by the United Front for Democracy Against Dictatorship (UDD) against the government of Prime Minister Abhisit Vejjajiva. The protests turned violent and resulted in the deaths of 91 people.

According to the World Development Indicators (WDI), Thailand has recorded a total of 8,539 battle deaths since 1970. This number includes deaths from all of the aforementioned conflicts.

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Which is one source that scientists use to reconstruct past climate conditions?

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One source that scientists use to reconstruct past  climate is ice cores. Ice cores are long cylinders of ice that are drilled from ice sheets or glaciers in polar regions, and they contain layers of snow and ice that have accumulated over hundreds of thousands of years.

How do scientists use ice cores

By analyzing the chemical composition of the ice and the air bubbles trapped within it, scientists can reconstruct past climate conditions, such as temperature, atmospheric gases (including greenhouse gases), and volcanic activity. Ice cores can also provide information about the history of the Earth's magnetic field, solar radiation, and cosmic ray activity.

Ice cores are an important tool for studying past climate change, as they allow scientists to look back much further in time than other sources of climate data, such as tree rings or sediment cores. They provide a high-resolution record of past climate conditions that can be used to validate climate models and improve our understanding of how the Earth's climate system works.

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describe what you observe in the water inside the beaker and above the level of water

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You will observe clean water inside the beaker and meniscus above the level of the water.

If we talk about water inside the beaker, if no particles and discoloration depending upon the concentration of water the water will be still and undisturbed, it will be observed as a clear and pure liquid. And talking about the above level of the water there would be a visible meniscus. This means there can be an interface between the glass and air above the water level. The size of the meniscus will be directly dependent upon the surface tension of the water and the material of the container (glass).  And if we put any material on the level of the water surface it will easily be visible on the surface.

Thus, we observe clean water inside the beaker and meniscus above the level of the water.

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If the water inside the beaker is at room temperature and pressure, one might notice that it appears to be still and motionless.

If you hold the beaker up to a strong sunlight, the water may – an open and colourless. If the bottle is not filled up to the top, one may notice the presence of air above the water level.

The air above the water level can be seen as a gap or space between the water's surface and the beaker's top. When the beaker is subjected to heat, the air just above water may have seemed to rise and expand as the temperature and pressure rise.

Finally, observing water on the inside of a beaker and above its level can reveal information about its properties and behaviour, such as transparency, colour, and interrelations with air and temperature.

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Winners and Losers in the USA (5 points)
a. Who benefit in the USA when the USA imports goods from China? Clearly explain and give at least one example (3 points)
b. Who loses in the USA when the USA imports goods from China? Clearly explain and give at least one example (2 points)
2. Some suggest the USA should limit its trade with China in order to stop the loss of US jobs to China? Is this argument valid? Why and why not? Clearly explain ( 5 points)

Answers

1. a. The consumers in the USA when the USA imports goods from China due to lower price. b. The producers and workers in the USA lose when the USA imports goods from China due to competition. 2. The arguments of limiting USA trade with China is not valid as limiting trade would result in higher prices for US consumers, decreased global economic growth, and initiate retaliation from China.

a. The consumers in the USA benefit when the USA imports goods from China because they are able to purchase goods at a lower price than they would be able to if the goods were produced domestically. For example, if the USA imports toys from China, the consumers in the USA can purchase the toys at a lower price than if the toys were produced in the USA. This is because China has lower labor costs and can produce goods at a lower cost than the USA.

b. The producers and workers in the USA lose when the USA imports goods from China. Produces are not able to compete with the lower prices of the imported goods. Workers may lose jobs when importing goods from China due to lower labor costs in China. For example, if the USA imports toys from China, the producers and workers in the USA who make toys will lose because they cannot compete with the lower prices of the imported toys. This can lead to job losses and business closures in the USA.

2. The argument that the USA should limit its trade with China in order to stop the loss of US jobs to China is not valid because limiting trade with China would also lead to higher prices for consumers in the USA due to a reduced supply of goods. This would lead to a decrease in consumer spending and could potentially lead to job losses in other industries.  

It would also decrease global economic growth due to less cross-border investment. In addition, limiting trade with China could lead to retaliation from China, which could further hurt the US economy. It is important to find a balance between protecting US jobs and keeping prices low for consumers.

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Using the IS-LM-FE model of a closed economy, explain the effect
of a temporary decrease in labour productivity on GDP,
the real interest rate, and the price level.

Answers

Using the IS-LM-FE model of a closed economy, a temporary decrease in labor productivity would lead to a decrease in GDP, an increase in the real interest rate, and a decrease in the price level.

The IS-LM-FE model of a closed economy helps us understand the relationship between interest rate, income and prices. In this model, a temporary decrease in labour productivity will lead to a decreased GDP, an increased real interest rate, and a decreased price level.

1. First, a decrease in labor productivity would lead to a decrease in output, which would decrease GDP. This is because labor productivity is a key determinant of output, and a decrease in productivity would mean that less output is produced for a given amount of labor.

2. Second, a decrease in labor productivity would lead to an increase in the real interest rate. This is because a decrease in productivity would lead to a decrease in investment demand, which would decrease the demand for loanable funds. As a result, the real interest rate would increase to clear the loanable funds market.

3. Finally, a decrease in labor productivity would lead to a decrease in the price level. This is because a decrease in productivity would lead to a decrease in aggregate demand, which would put downward pressure on the price level. As a result, the price level would decrease to clear the goods market.

In summary, a temporary decrease in labor productivity would lead to a decrease in GDP, an increase in the real interest rate, and a decrease in the price level.

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What is the least place for physical weathering

Answers

Answer:

a cold dry climate will produce the lowest rate of weathering

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