The risk that technological development may accelerate quickly, leading to the production of so many new cost drivers and value drivers that enterprises using focused strategies lack the resources, is not included in the hazards of a focused strategy based on low cost or distinctiveness.
What is a focused strategy?
A focused strategy is a business strategy that involves concentrating resources on a narrow segment of the market in order to gain a competitive advantage. This strategy involves concentrating on one particular product or service, or a small number of products or services, to gain a greater understanding of customer needs and preferences in that area. A company using a focused strategy will focus on a specific set of customers, and will tailor their products or services to meet the needs of that particular market segment. This strategy can be useful when trying to differentiate yourself from competitors, as well as reduce costs by narrowing the scope of operations and targeting a particular market segment.
So, The correct option is a.
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Correct Question: The risks of a focused strategy based on either low-cost or differentiation do not include which of the following?
a. The risk that technological change will rapidly accelerate, resulting in the creation of so many new cost drivers and value drivers that firms employing focused strategies lack the resources and capabilities to compete effectively with firms employing the other three generic competitive strategies
b. The potential for segment growth to slow to such a small rate that a focuser's prospects for future sales and profit gains become unacceptably dim
c. The chance that competitors outside the niche will find effective ways to match the focused firm's capabilities in serving the target niche
d. The potential for the segment to become so attractive that it is soon inundated with competitors, intensifying rivalry and splintering segment profits
e. The potential for the preferences and needs of niche members to shift over time towards the same product attributes and capabilities desired by buyers in the mainstream portion of the market.
Big City Financial is allowing stockholders to purchase more shares of stock at prices below the existing market value. This is an attempt to avoid a hostile takeover by a corporate raider. Which of the following methods is being used by Big City Financial to evade the takeover
The stock that all of a company's shareholders now own is referred to as shares outstanding.
What stock refers to issued stock that is currently held by stockholders?These consist of restricted shares owned by company officers and insiders as well as share blocks held by institutional investors.
The term "issued shares" refers to the total stock of an organization's equity shares held by customers, employees, and insiders. Unlike outstanding shares, treasury shares—stock that a business buys back from shareholders—are included in issued shares. In order to determine important measures for a company, including its market capitalization, profits per share (EPS), and cash flow per share, the number of outstanding shares is taken into account (CFPS).
The number of outstanding shares of a firm is not constant and is subject to rapid changes throughout time. The stock that all of a company's shareholders now own is referred to as shares outstanding.
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Freya wants to use her debit card to purchase a $135 tablet computer. What must Freya consider before using her debit card
As a result, Freya does not need to check her account's interest rate before making the purchase. She doesn't have to make sure she can pay the bills every month because they won't be needed.
What kinds of credit are available to borrowers?Credit can be divided into three categories: open credit, revolving credit, and installment credit There is a distinct structure for borrowing and repaying each of these.
Freya must take into account the following before using her debit card to purchase the $135 tablet computer:
A. She needs to make sure that her bank account has at least $135 available for the purchase.
C. She needs to make sure that her account has any scheduled automatic payments.
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Full Question = Freya wants to use her debit card to purchase a $135 tablet computer. What must Freya consider before using her debit card? Check all that apply. She must be sure there is at least $135 in her bank account for the purchase. She must check the interest rate on the debit card. She must check to see if any automatic payments are scheduled for her account. She must check her credit history. She must make sure she will be able to make the monthly payments.
The asset demand for money is almost closely related to money functioning as a:
a. unit of account
b. medium of exchange
c. store of value
d. measure of value
e. all of the above
The demand for money as an asset is almost directly correlated with its use as: medium of exchange
Any physical object or verifiable document that is commonly accepted as payment for goods and services as well as the settlement of debts, including tax liabilities, in a specific nation or socioeconomic context is referred to be money. Money serves as a method of commerce, a unit of account, a store of value, and, on occasion, a standard for postponed payment. These are its four primary objectives. Since almost all modern monetary systems are based on unbacked fiat money that has no inherent value as a commodity, money historically has been an emergent market phenomena. Being accepted as a means of payment for "all" uses inside the nation's boundaries is a need for being recognized as legal currency by a governing body or regulatory body.
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Who makes the decisions in a mixed market economy?
In a mixed market economy, the decisions are made by both the government and the private sector.
What is the government?
The government is an organization of individuals who have been elected to represent and serve the needs of the public. It is responsible for creating and enforcing laws, providing services and programs to the public, and promoting the general welfare of the population. Governments may be local, state, national, or international, and they can be divided into various branches, such as legislative, executive, and judicial. Governmental responsibilities can include public education, infrastructure, health care, public safety, environmental regulation, taxation, and economic development. Governments are essential to a functioning society, as they are responsible for protecting the rights and freedoms of citizens and providing a system of laws and regulations to ensure fairness and justice.
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The JB Shop paid $1,990 in interest and $1,850 in dividends last year. The times interest earned ratio is 2.2 and the depreciation expense is $520. What is the value of the cash coverage ratio
The value of the cash coverage ratio is 2.46.
EBIT = 2.2 × $1,990 = $4,378
Cash coverage ratio = ($4,378 + $520)/$1,990 = 2.46
A coverage ratio, extensively, is a metric supposed to measure a company's ability to carry its debt and meet its financial duties, including interest bills or dividends. The better the coverage ratio, the less complicated it needs to be to make interest payments on its debt or pay dividends. The trend of coverage ratios over the years is also studied by way of analysts and traders to envision the exchange in an employer's monetary role.
Coverage ratios are available in several pieces of paperwork and can be used to assist pick out companies in a potentially troubled economic situation, even though low ratios aren't always a demonstration that an organization is in a monetary problem. Many elements cross into figuring out those ratios and a deeper dive into an organization's financial statements are often endorsed to check an enterprise's health.
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Paloma is a 16-year-old who babysits for a local family on an occasional basis. During a calendar year, she earned $1,250 in babysitting wages. What is true about Paloma's wages
She received $1,250 from babysitting jobs in a year. The FLSA does not apply to Paloma since she does not make enough money to qualify as a domestic employee.
The Fair Labor Standards Act (FLSA), a piece of civil legislation, establishes minimum wages, eligibility for overtime pay, record-keeping requirements, and child labor laws that are applicable to full- and part-time employees of the private sector as well as of the federal, state, and foreign governments.
The Human Resource Office of each organization uses standards established by the US Department of Labor to calculate the Work Period Designation (WPD) for each employee.
FLSA guidelines provide that in order to qualify for overtime pay, employees must receive overtime compensation and be considered to be on the clock. Workers are either classed as pure or nonexempt under the FLSA.
Only companies engaged in interstate commerce or with monthly sales of $500,000 or more are liable to the FLSA. Since Paloma's annual salary is less than $500,000 ($1,250), she is exempt from the FLSA's requirements.
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What is an example of indirect quotation?
A source that has been quoted and cited in another source is referred to as an indirect quote. As an illustration, if you were reading this Michele Kane piece and wanted to use the quotation from Amy Saltzman (highlighted), that would be an instance of an indirect quote.
What do you mean by indirect quote?
An concept or fact that is borrowed from another source and then used in another piece of writing is known as an indirect quote (or indirect quotation). The idea or information is expressed by the student in his own words, but it is from an original source.This indicates that, regardless of where the speaker is located—in the United States or elsewhere—the dollar serves as the base currency. An illustration of a direct quote in U.S. dollars would be to say $1.17 Canadian for every U.S. dollar, as opposed to the indirect quote of 85.5 U.S. cents for every C$1.To know more about indirect quote here
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Connor wishes to refinance his mortgage and pay off his credit cards without using any personal funds. He owes $75,000 on his first mortgage, $10,000 on his second mortgage, and $3,000 in credit card debt. What would his appraisal value need to be if his closing costs are $4,000 and he qualifies for an 80% LTV
If Connor's closing costs are $4,000 and he gets approved for an 80% LTV, his appraisal value would be worth a total of $115,000 in total.
What does appraised value actually mean?Your home's appraised value is the value given to it by a licensed real estate appraiser in order to make sure that your financial lender is not extending an unduly large loan. Simply divide the total of the two mortgages, credit cards, and closing costs by the Loan-to-Value (LTV) that Connor wishes to refinance to arrive at this conclusion.
Calculation of the aggregate sums of the two mortgages, credit card debt, and closing costs
$10,000 + $75,000 + $4,000 + $92,000 + $3,000
LTV = $92,000/ 0.8=$115,000
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. PJ can afford an $800 monthly mortgage payment. If the current mortgage rates are 4.75% and he wishes to have a 30-year mortgage, what is the maximum amount he can afford to borrow
PJ has the maximum financial means to borrow up to $153,360.
Given a specific rate of return, or discount rate, the present value of an annuity is the current value of the future payments from an annuity. The present value of the annuity decreases as the discount rate increases.
Use the standard annuity present value formula.
The equation is:
PV = PMT {[1- (1+ r / k) ^ (-kn)] / (r/k)}
PMT monthly equals 800
R = 4.75% of the interest rate, or 0.0475
K / monthly compounded = 12
Time / N = 30 years
Present Value = 800 x [1- (1+0.0475 / 12)⁽⁻¹²ˣ³⁰⁾/ (0.0475 / 12)]
Therefore, Present Value = 153,360.32 or 153,360
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What are the 3 types of budgeting?
Surplus, Balanced, and Deficit Budgets are the three types of yearly government budgets based on estimates.
A budget is a spending plan that takes income and expenses into account. In other words, it's a projection of how much cash you'll have coming in and going out over a given period of time, like a month or a year.
A budget helps maintain financial stability. By keeping track of expenditures and adhering to a plan, a budget makes it easier to save for significant expenses like a car or home. Additionally, it makes it simpler to build an emergency savings and make on-time bill payments. A person's financial status, both now and in the future, is generally improved by having a budget.
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Christmas Tree Park, and Lumber Value enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Christmas Tree Park to Lumber Value. Under the Statute of Frauds, this contract is enforceable by
Under the Statute of Frauds, this contract is enforceable by none of the choices.
What Is the Statute of Frauds?A legal principle known as the statute of frauds mandates that some kinds of contracts be in writing. Land sales, deals involving items costing more than $500, and agreements lasting a year or longer are some of the contracts that are most frequently subject to the statute of frauds.
The statute of frauds is designed to stop fraud and other types of harm. Evidentiary and cautionary are common terms used to characterize these goals. The statute of frauds serves an evidential purpose by offering proof that a valid, binding contract is in place. Each party should be more focused, serious, and thoughtful when transacting as a result of the statute of fraud's cautionary purpose.
The statute of frauds was predominantly established in the United States as common law, or unwritten law. In most states, it has since been institutionalized by statutes. The defendant may bring up the statute of frauds as a defense in a breach of contract dispute if it is relevant because it is the plaintiff who has the burden of proof. It is the burden of the plaintiff to prove that a legal contract actually existed.
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What are the three 3 common budgeting mistakes to avoid?
The most common budgeting errors to avoid are underestimating expenditures, missing to include all of your spending, being overly restrictive, and forgetting to include savings. Thankfully, they can all be avoided.
The secret to managing your money effectively so you can pay for expenditures, accumulate savings, and stay out of debt is to create a budget you can stick to.
However, despite the fact that a budget is fundamentally just a plan for how you'll spend your money, the word "budget" sometimes conjures images of self-deprivation or worrying about money. Designing a rigid budget with big goals—only to burn out after a month—is a common obstacle to good budgeting.
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Which of the following statements regarding non periodic distributions from an annuity contract prior to the annuity start date, issued after August 13, 1982, is true ?
A) A nonperiodic distribution is prorated equally between a tax-free return of principal and a taxable interest payment.
B) A nonperiodic distribution is taxed under the exclusion ratio rules.
C) A nonperiodic distribution is taxed first as a taxable interest payment until the interest payments are completely exhausted, and then as a tax-free return of principal.
D) A nonperiodic distribution is first considered a tax-free return of principal and then a taxable interest payment.
A non periodic distribution is first considered a tax-free return of principal and then a taxable interest payment is true.
In nonperiodic distributions, the withholding tax is only applied to taxable payouts that are received in cash. The withholding requirement is meant to deter workers from taking early distributions from their retirement accounts. Instead, periodic disbursements would be made monthly or yearly.
Unless the beneficiary chooses to have no taxes withheld, nonperiodic distributions sent directly to an employee may be subject to a 10% early withdrawal penalty and any unpaid withholding tax.
Individual retirement account (IRA) transfers or rollovers, systematic withdrawals, and mandatory minimum distributions are not considered nonperiodic distributions (RMDs).
For some qualified expenses, such as buying a first home, a nonperiodic distribution may also be taken out without incurring any penalties.
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Sadiya, who owns a dance studio, consistently reminds her employees that dance lessons are a luxury for customers, so they should be both informative and fun. By making these statements, Sadiya is
Multiple Choice
telling a narrative based on true events, which emphasizes a particular value.
physically manifesting her organization’s core beliefs.
exhibiting the values and norms of the local community.
explicitly stating values and norms preferred by her organization.
Sadiya is explicitly stating values and norms preferred by her organization. A professional dancing studio will have a dance floor that has been especially designed.
A dancer's ankles and knees may experience shock while dancing on concrete, which could result in injury. A decent dance organization floor will be "sprung," or cushioned, on the bottom and will have a specific vinyl mat on top that is frequently referred to as "marley." For many, it's the availability of studio in various dance genres at any age or level. Others see it as having a welcoming environment where they can practise new skills, gain confidence, and have fun all at once. One of the most renowned dance schools in the world is the Juilliard School of Dance in New York, USA.
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Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a firm's total fixed cost is $200 and its total variable cost is $600. If the price of the product is $5 per unity and the firm produces at its optimal level, the firm will earn an economic profit equal to
The firm will have no profit as it is facing downfall of $- 300 and will shut down if the same goes on.
Profit maximizing firms always produce where marginal revenue equals marginal cost so the firm produces a quantity of 100, the firms price is
P=5
we can now solve for profit. Profit is defined as
Pr=Total Revenue-Total Cost.
Total Revenue is equal to Price*Quantity
so we have TR=(5)*(100),
now we need to calculate total cost
TC= Total Fixed Cost+Total Variable Cost
so TC=200+600
which gives us the profit equation
Pr=500-800=-300.
The firm is suffering economic losses of $300
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The sales charge on a fund with a Net Asset Value of $9.50 and a Public Offering Price of $10.00 is:
The greatest overall "front-end load" or sales fee that might be tacked on to the acquisition of mechanical fund shares. This compensation reimburses a financial expert for their services.
Why is $1 NAV important?The primary safety element of the money market funds is a stable negative asset value (NAV). Because it consistently maintains a $1.00 value, a stable NAV suggests that the likelihood of the fund squandering principal or "breaking a buck" is reduced.
How do you factor in NAV and sales fee when calculating pop?The POP is the total of the sales fee and net asset value that an owner must pay in order to invest. Navi + Scs = POP is the equation used to calculate the POP. The net asset value of the mutual fund is multiplied by the sales charge to arrive at the POP, the public offering price.
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The cost object(s) of the activity-based costing method is(are):
A) The unit of product.
B) The production departments of the company.
C) The production activities of the company.
D) The production activities in the first stage and the unit of product in the second stage.
E) The unit of product in the first stage and the production activities in the second stage.
The correct answer to the given question about cost objects is option D) The production activities in the first stage and the unit of product in the second stage.
A cost object is something for which a cost has been compiled. This could be a product, product line, service, project, client, distribution method, or activity, for instance. In activity-based costing analyses, cost objects are used as the center of cost accumulations. A thorough examination of cost objects is also helpful for controlling costs across the board of a business. One of the main reporting targets in a managerial accounting system is cost objects. A cost object is something to which costs are attributed, and the term is most commonly used in cost accounting. Product lines, geographical regions, clients, departments, or anything else for which management would wish to quantify cost are typical examples of cost objects.
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What are the main purposes of a budget select three?
Budget refers to the an estimate of income and expenditure for a future period. It helps in tracking expenses and following a plan.
A budget is a financial statement. It makes it easier to pay bills on time, build an emergency fund, and save for major expenses.
A budget can be referred to as a spending plan based on income and expenses. In other words, a budget is an estimate of how much money you'll make and spend over a certain period of time, such as a month or year. A budget is tool for financial stability.
There are three types of budgets. These are- a surplus budget, a balanced budget, and a deficit budget
Importance of Budget-
It is a forecast of income and expenditure .It is a tool for decision making. It is a means to monitor business performance.To know more about budget refer to-
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Correct question
What are the main purposes of a budget?
Suppose a market basket consists of the following goods: 50 pens, 25 notepads, and 25 paperclips. Also assume that the unit prices of these goods are as follows for the years noted and that 2018 is the base year. What is the value of the price index in 2019
The value of the price index in 2019 is 111.
What is cost record and how is it calculated?
The Customer Cost Record (CPI) measures the month to month alter in costs paid by U.S. customers. The Bureau of Labor Insights (BLS) calculates the CPI as a weighted normal of costs for a wicker container of products and administrations agent of total U.S. customer investing.
CPI = Expenditure ins Current Years / Expenditure in Base year
= 50X 0.30 + 25 x 0.25 + 25x0.15 x100 / 50 x 0.25 + 25 x 0.30 + 25 x0.10
=25X 100/22. 5
=111.11%
Hence, rate of inflation = (111.11-100)%
=11.11%
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What are the 4 types of assets?
There have previously been three main asset classes, however today's financial experts widely concur that there are four major asset classes:
Equities (stocks)
debt and fixed income (bonds)
Cash equivalents and money markets.
Real estate and material possessions.
Which financial asset classes are the safest?Financial assets, sometimes referred to as financial instruments or securities, are an example of intangible assets. They are widely used as a means of financing the purchase of moveable assets like machinery and real estate. Some of the safe asset categories that have traditionally been utilized often include real estate, cash, Treasury bills, money market funds, and mutual funds that invest in U.S. Treasury securities. Risk-free investments, such as national debt instruments issued by industrialized country governments, are considered the safest investments.
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Manju is a full-time exempt employee living in Illinois who earns $46,280 annually and is paid biweekly. She is married filing jointly and has indicated checkbox withholding on her 2020 Form W-4. What is the total of her Federal and state income tax deductions for the most recent pay period
For the most recent pay period, she deducted $162 in federal and state income taxes.
What is income tax deduction?A tax deduction is a sum of money that lowers the amount of your taxable income and lowers your tax obligation. You can deduct some adjustments to income, such as: interest on student loans payments, after determining your total total pay for the year.
Biweekly payment to Manju = Annualy payment / 26 weeks
= $43680 / 26 = $ 1680
She has three withholding allowances and is married.
We must now determine the federal tax, which is shown in a chart and ranges from $1680 to $1700 with three allowances.
Federal Tax = $99 (Given)
State Income Tax = biweekly Payment * Rate
= 1680 * 3.75 %
= $63
Total Tax = Federal Tax + State Income Tax
= $99 + $63
=$162
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A balance sheet that places the liabilities and equity to the right of the assets is
a(n):
Select one:
a. Report form balance sheet.
b. Interim balance sheet.
c. Account form balance sheet.
d. Unclassified balance sheet.
a. Report form balance sheet. A balance sheet that places the liabilities and equity to the right of the assets is called a report form balance sheet.
This format of balance sheet is also known as the traditional format and is commonly used by companies to present their financial position. It is easy to read and understand and it provides a snapshot of the company's assets, liabilities, and equity at a given point in time. It also shows how the assets have been financed, whether through debt or equity. The report form balance sheet is often used in financial statements and annual reports. The other options like interim balance sheet, account form balance sheet, and unclassified balance sheet are not commonly used and not standard forms of balance sheet.
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Treat the three income streams (from year 1 onwards) as if they were bonds. Find the prices of the three bonds in each of the following cases: (i) all the bonds yield 5%, (ii) all yield 10%, (iii) all yield 15%. Which is the most expensive bond in each of these cases, and which is the cheapest
The yield on the 10-year note serves as an indicator of mortgage rates. It is said to be an indicator of how investors feel about the state of the economy.
Explain about the Mortgage rates?A mortgage is a loan used to pay for the upkeep of a home, piece of land, or other kinds of rental properties. The lender commits to repaying the loan over time, usually in a series of consistent instalments that are separated into principal and interest. Loans are safeguarded by the property.
There are six basic forms of mortgages in India: simple mortgages, usufructuary mortgages, English mortgages, mortgages based on conditional sales, mortgages deposited using title deeds, and anomalous mortgages.
Good interest rates on mortgages often start in the 5% to 6% level for 15-year fixed loans and the 5% to 6% region for 30-year fixed loans.
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Which role does human resources have in relation to the Equal Employment Opportunity Commission (EEOC) in this scenario?
In this scenario, the role of human resources in relation to the Equal Employment Opportunity Commission (EEOC) would likely be to ensure compliance with the laws and regulations set forth by the EEOC.
This would include implementing policies and procedures to prevent discrimination in the hiring, promotion, and termination of employees, as well as ensuring that any complaints or allegations of discrimination are properly investigated and addressed.
Additionally, human resources would be responsible for providing training and education to employees and management on the laws and regulations set forth by the EEOC, as well as on preventing discrimination in the workplace.
Human resources would also act as a liaison between the company and the EEOC, ensuring that the company is aware of any updates and changes to the laws and regulations and that the company is meeting the requirements of the EEOC.
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If bonds have been issued at a discount, then over the life of the bonds the
a. carrying value of the bonds will increase.
b. discount will increase.
c. interest expense will increase, if the discount is being amortized on a straight-line basis.
d. carrying value of the bonds will decrease.
If bonds have been issued at a discount, then over the life of the bonds the interest expense will increase, if the discount is being amortized on a straight-line basis.
Give a brief account on Straight-line amortization.In a process known as "straight-line amortization," interest is added to each payment in the same proportion until the debt is fully repaid. You can charge the cost of the intangible asset, calculate monthly loan repayment installments that include interest, and decide how much interest to pay for intangible assets using straight-line amortization. You divide the overall interest you owe on a loan by the number of periods. You calculate the projected salvage value of an intangible asset by deducting it from the book value, then dividing the result by the number of periods of the asset's useful life. Borrowers are guaranteed to pay interest at the beginning of the repayment period thanks to straight-line amortization. Gradually, the principal repayments decrease as the amount of interest expense in the subsequent instalments decreases. By increasing the percentage of each repayment, you can allocate more money to the principal.
Formula for straight-line amortization :
Intangible asset amortization = (book value - expected salvage value) / number of periods
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Which of the following amounts paid by an employer to an employee is not subject to withholding?
a. Salary
b. Bonus
c. Commissions
d. Reimbursement of expenses under an accountable plan
e. All of the above are subject to withholding
Salary paid by an employer to an employee is not subject to withholding.
So option A is correct.
How would you define salary?A salary is a set sum of money or other remuneration that a company gives to an employee in exchange for work completed. Salary is frequently paid at predetermined periods, such as monthly installments equal to one-twelfth of the annual salary. Employee compensation that is quoted on an annual basis, such as $50,000, is referred to as salary. The majority of workers in a company's main office will receive a salary. Hourly wage workers are paid for the number of hours they work, and they may be entitled to overtime compensation if they work more than the typical 40 hours per week. Salaried employees receive regular paychecks, even if they put in long days during busy times.
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Assume that you had $130,000 in the bank and you wanted to use it to bum around Europe for as long as you could. If your account earned a 10% annual rate of return, how long would that amount provide you with an annual income of $20,000 per year
At a withdrawal rate of $20,000 per year, your original investment of $130,000 would last 7.2 years, assuming a 10% annual rate of return.
What is the Rate of return?The net gain or loss of a property over a certain time period stated as a percentage of the investment's starting cost is known as a rate of return (RoR). You determine the percentage difference from the start of the period to the end when computing the rate of return.
To determine how long $130,000 would last, assuming you are withdrawing $20,000 per year and earning a 10% annual rate of return, you would need to use the formula for the time it takes for an investment to double:
The time it takes to double = 72 / rate of return (in percentage)
Given a 10% rate of return, it would take 7.2 years for your $130,000 to double.
So, at a withdrawal rate of $20,000 per year, your original investment of $130,000 would last 7.2 years, assuming a 10% annual rate of return.
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Discuss the differences between the internal and external leadership roles surrounding self-managed work teams.
The exterior leadership function surrounds the team as a whole, whereas the internal leadership role surrounds each member of the self-managed work team.
Why is leadership so important in business?Business leadership is the capacity of an organization's management to set and achieve challenging objectives, act quickly and decisively when called upon, outperform the competition, and inspire staff to give their all in every task.
Why is leadership so important in business?Effective leadership at work can promote and support teamwork, build a sense of the greater good, arouse motivation and trust, or provide purpose and direction. They are crucial traits to possess because a competent leader can inspire his or her team to work together toward a common objective by bringing out the best qualities in each person. In order to prevent delays, a skilled leader keeps the group engaged and on task.
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Consider the demand for pumpkin pie. For each of the following events, will the demand for pumpkin pie increase, decrease, or will demand remain unchanged? Identify the determinant of demand. (4 points) a. The price of apple pie has decreased. B. The government informs consumers that pumpkin pie increases immunity against many viruses. C. The price of pumpkin pie has increased. D. Consumer incomes are rising and pumpkin pie is a normal good
For each of the following events, the effect on the demand for pumpkin pie are
a. The price of apple pie has decreased- The demand for pumpkin pie will decrease
b. The government informs consumers that pumpkin pie increases immunity against many viruses - The demand will increase
c. The price of pumpkin pie has increased - The demand will decrease
d. Consumer incomes are rising and pumpkin pie is a normal good - The demand will remain unchanged.
What is Demand?Demand is an economic principle that captures the consumer's desire to purchase a good or service. The price that customers are prepared to pay for the good or service is used to determine demand. If all other variables remain unchanged, demand should increase as prices decrease and decrease as prices rise. The demand for products and services can be understood using market and aggregate demand. Demand and supply are the factors that affect market prices. Prices appear to rise when there is a surplus of a good compared to the demand for it. Prices decrease when there is a surplus of a good compared to what is needed. This straightforward economic tenet is simple to comprehend, yet it is interesting to consider what the concept of demand is.
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Mr. and Mrs. Garcia have a total of $100,000 to be invested in stocks, bonds, and a money market account. The stocks have a rate of return of 6%/year, while the bonds and the money market account pay 4%/year and 2%/year, respectively. The Garcias have stipulated that the amount invested in stocks should be equal to the sum of the amount invested in bonds and 3 times the amount invested in the money market account. How should the Garcias allocate their resources if they require an annual income of $5,000 from their investments
This issue is over-defined, or, to put it another way, it contains TOO MANY criteria that conflict with one another. Therefore, under the circumstances, there is NO SOLUTION to the problem.
You can open a money market account at banks and credit unions, which is an interest-bearing account. Although they offer certain checking account services as well, they are very comparable to savings accounts.
Keep in mind that money-market mutual funds, which are not deposit accounts, differ from money-market accounts. Financial institutions, such as banks and credit unions, provide money market accounts as higher-interest deposit options.
A money market account can be the best option for you if you're preparing for a future purpose or want your money to grow faster while avoiding insecure market investments.
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