The Federal Reserve implements monetary policy primarily by influencing the federal funds rate. This is the interest rate that financial institutions charge each other to borrow reserves in the money markets overnight. The Fed's monetary policy measures described below, affect the level of federal funds rates.
When a central bank like the Fed changes interest rates, it affects the economy as a whole and affects both the stock and bond markets in many ways. Lower interest rates make borrowing money cheaper. This can drive consumer and corporate spending and investment and boost asset prices.
The goals of monetary policy are maximum employment, stable prices, and moderate long-term interest rates. By implementing effective monetary policy, the Fed can maintain stable prices, thereby supporting long-term economic growth and maximum employment conditions.
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Some analysts blame the financial crisis of 2007-2009 on Federal Reserve policy. They argue that:
a) low interest rates encouraged excessive mortgage borrowing, leading to the housing bubble.
b) the Fed securitized the mortgages into collateralized debt obligations and encouraged excessive risk taking.
c) a restrictive policy lowered aggregate demand and GDP.
d) the Fed did not adequately regulate the mortgage market's credit standards for issuing loans as required by the Federal Reserve Act.
Some observers attribute the 2007–2009 financial crisis to Federal Reserve policy. They contend that a housing bubble has resulted from excessive mortgage lending stimulated by low interest rates.
The required details for Federal Reserve policy in given paragraph
The central bank of the United States is the Federal Reserve System, also known as the Federal Reserve or simply "Fed." It was established by Congress to give the country a more dependable monetary and financial system. Maximum employment, price stability, and moderate long-term interest rates are the three objectives stated by Congress, and the Federal Reserve is functioning as the central bank to attain them. The Federal Reserve System is managed by the Board of Governors, which has its headquarters in Washington, D.C. It is governed by seven members, or "governors," who are appointed by the President of the United States and confirmed in office by the United States. The Senate And the central banking system - the Federal Reserve or Fed - is the most powerful economic institution in the United States and possibly the world.
Its main responsibilities include setting interest rates, managing the money supply and regulating the financial markets.
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Answer:
a) low interest rates encouraged excessive mortgage borrowing, leading to the housing bubble.
Explanation:
Do you think parents should monitor the sports and entertainment celebs that their children follow based on the celebrities’ behavior?
Create a journal entry for the following payroll summary:
Gross Pay $5,000.00;
Taxes Withheld $532.50;
Net Pay $4467.50;
Employer Taxes $382.50.
Assume you pay your own tax liabilities.
Note that the Journal Entry for the payroll summary given above are:
Debit Credit
Salaries Expense: $5,000.00
Taxes Expense: $382.50
Cash: $4,467.50
Payroll Tax Payable: $532.50
What is a Journal Entry?A journal entry is a record of a commercial transaction that is kept in your records. Every transaction requires at least two journal entries in double-entry accounting.
It is to be noted that because a transaction might produce several changes in a firm, a bookkeeper keeps track of all of them via journal entries.
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Obama was suggesting that a job would be lost the T-shirt were cheaper because A firms making dress shirts would go out of business B. the firm producing the shirt would go out of business c. there would be no international trade D would be produced in another country E would require the US government to impose tariffs
Obama was suggesting that a job would be lost because the T-shirt was cheaper because they would be produced in another country.
What is international trade?
A need or desire for commodities or services leads to the exchange of capital, goods, and services across international borders or territories. Such trade contributes significantly to the gross domestic product of the majority of nations. International trade results from regional disparities between each country. International trade is typically sparked by disparities in technology, education, demand, governmental regulations, labor laws, natural resources, wages, and financial opportunities. The advantages of international trading for a corporation include diversification, a broader pool of prospective customers, which increases earnings and revenues, perhaps less rivalry in a foreign market that hasn't yet been penetrated, and potential gains from fluctuating currency rates.
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callie is comparing the costs of two options for her college education. option a: complete the first two years of schooling at a community college and then transfer to a university. option b: complete all four years of schooling at the university.
In this scenario, Callie is comparing two options for her college education. Option A is to complete the first two years of schooling at a community college and then transfer to a university, while option B is to complete all four years of schooling at the university.
What is college transfer and how does it work?College transfer refers to the process of moving from one college or university to another. It is a way for students to complete their first two years of college at a community college, which is usually less expensive than a university, and then transfer to a university to complete their last two years. This is known as the option A, students have to complete some requirements and the college they are transferring to, have to accept the credits they have earned at the community college.
So for the two option you provided it is likely to involve comparing the cost of tuition, fees, and living expenses for both options in order to determine which one is more affordable.
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As students interested in business, what resonated most with you?
In your life and work experience have you seen similar themes and/or
situations as presented in the Lorax?
Can you imagine an instance in your future work experience where this might
come up?
What would you do if facing this type of situation, or how might you prevent it
from occurring?
Some of the relevant facts about the Lorax book that can be related to everyday life and work experiences is about human actions that impact the environment.
How to prevent the same thing as in Lorax from happening in real life and at work?The plot of the book demonstrates a place where everything is artificial, like trees, which are no longer natural and are replaced by plastic. This situation can be imagined as a form of reflection for individuals to become aware of the importance of natural resources.
In factories there is a lot of use of natural resources that are scarce to be transformed into goods, and it is possible that every individual who has worked in companies has observed some negative impact of such activities on nature.
Therefore, to prevent such a situation as the one in the book from occurring, it is essential that every citizen and company is aware of their responsibility for sustainability, instituting simple measures to achieve this end, such as recycling, reducing consumerism and including environmental management.
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Your friend John works producing dress shirts and dress pants. Currently John can work a maximum of 8 hours per day. With the equipment he has, and the current level of expertise, he can finish either 2 shirts or 8 pairs of pants in an hour. This is true when he is performing at full capacity. Meaning doing the best possible work.
3. What is the opportunity cost of making one pair pants (in terms of the amount of shirts he won't be able to make)? As an example, when you give up $20 dollars in exchange for 40 pencils, you can say that the “cost” per pencil was $0.50, because $20/40 = $0.50. (15 points)
4. What is the opportunity cost of making one shirt (in terms of the amount of pants he won't be able to make)? (15 points)
Answer: The opportunity cost for making one pair of pants is making 1/4 of a shirt. The opportunity cost of making one shirt is 4 pairs of pants.
Explanation: If he can make 8 pairs of pants or 2 shirts in one our, we divide 8/8 to get 1 pair of pants. This means we would divide 2/8 to get .25 or 1/4.
For making if he can make 2 shirts or 8 pants in 1 hour. We divide 2/2 to get 1. This means we would divide 8/2 to get 4.
fill in the blank. suppose that the fed undertakes an open market sale, selling $1 million worth of securities to a bank. if the required reserve ratio is 8%, checkable deposits (or the money supply), would___by million, assuming that there are no cash leakages and that banks hold zero excess reserves.
Suppose that the fed undertakes an open market sale, selling $1 million worth of securities to a bank. if the required reserve ratio is 8%, checkable deposits (or the money supply), would "$12.5" by million, assuming that there are no cash leakages and that banks hold zero excess reserves.
The open market sale is the type of transaction which is referred to the buying and selling of stocks or shares in a company by the insiders or employees of that company.
The open market operations in which the federal reserve buys or sells securities on the open market to raise or lower interest rates.
Calculation: Given, selling $1 million worth of securities to a bank and the required reserve ratio is 8%.
reserve ratio = (selling worth of securities to a bank / bank deposits) * 100
8/100 = $1 million/ bank deposits => bank deposits = $12.5
Formula: reserve ratio is equal to the reserve maintained with central bank is divided by the bank deposits then result value into 100.
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Many industries have experienced increased consolidation over the last decade due to an increase in
A. strategic alliances.
B. vertical integration.
C. horizontal integration.
D. franchising.
E. diversification.
Over the past decade, many industries have experienced increased consolidation due to increased horizontal integration.
The required details for Horizontal integration in given paragraph
Horizontal integration is the acquisition of a company that is active at the same value-added level in the same industry, i.e. H. manufactures or offers similar goods or services. This is in contrast to vertical integration, where companies expand their operations to higher or lower levels that are in different stages of production. Horizontal integration is a business strategy where a company expands its operations to the same level in the extended industry. Horizontal integrations help companies grow and increase sales, enter new markets, diversify product offerings, and reduce competition. Disadvantages of horizontal integration include regulatory oversight , limited consumer choice and less internal flexibility and the ability to destroy value instead of creating it. A company can integrate horizontally by merging with another company, acquiring another company, or expands its own business internally.
An opposite approach to horizontal integration is vertical integration, where a company acquires a company operating in the same industry but at a different stage in the production process.
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Which of the following characteristics describe managerial accounting? (Check all that apply.)
Multiple select question.
Controlled by GAAP
Used to make planning and control decisions
External users
Many projections and estimates
Emphasis on whole organization
Option B and D are correct option. Managerial accounting is used to make planning and control decisions. It has many projections and estimates
Managerial accounting is the practise of identifying, measuring, analysing, interpreting, and interacting financial data to executives in order to help them achieve the goals of their organization. Managerial accounting differentiates from financial accounting in that its intended purpose is to assist users within the company to make well-informed business decisions. Managerial accounting is the display of financial data for internal use by management when making important business decisions. Unlike financial accounting, managerial accounting techniques are not governed by accounting standards. The demonstration of managerial accounting information can be tailored to the needs of the end user.
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Hanebury Corporation’s current sales were $12 million. Sales were $6 million 5 years earlier.
Suppose someone calculated the sales growth for Hanebury Corporation in part a as follows: “Sales
doubled in 5 years. This represents a growth of 100 percent in 5 years, so, dividing 100 percent by 5,
we find the growth rate to be 20 percent per year.” Explain what is wrong with this calculation. To the
nearest percentage point, at what rate have sales been growing?
A) 14.87%, the rate sales have been growing.
-$12,000,000 / $6,000,000 ^ (1/5) - 1 = 0.1487 or 14.87%.
B) This would represent taking an arithmetic average of the growth rate, meaning not accounting for time and the compounding effect of growth from one year to the next. We can see that an arithmetic average growth rate of 20% is larger than the actual compounding annual growth, or our annual, annual yield, synonyms, of 14.87%.
In a professional setting, what exactly is sales?Sales work requires using one's understanding of the company's goods or services to influence consumers to make wise purchasing decisions. In addition, it entails finding leads, creating sales plans or pitches, hitting sales goals, and perhaps going on the road to meet with potential customers.
Are jobs in sales well-paid?Income potential: Top-selling agents may make up to $165,000 annually. Although the majority of agents average closer to $56,860. You simply need a high school graduation (and some licenses), unlike many other well-paying sales positions.
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which of the following is an example of service marketing that could benefit the freshfast grocery store:
Full-line forcing is an example of service marketing that could benefit the freshfast grocery store.
For the purpose of generating, conveying, delivering, and trading services that are valuable to consumers, clients, partners, and society at large, marketing refers to a variety of activities, institutions, and procedures. Products, prices, locations, and promotions are the four Ps. They serve as an illustration of a "marketing mix," which refers to the assortment of tools and techniques utilised by marketers to meet their marketing goals. Marketing is the term used to describe the actions a business engages in to encourage the purchase or sale of a good or service. Delivering goods to customers or other businesses includes marketing activities like advertising and sales. Affiliates will occasionally carry out marketing for a business. The term marketing is derived from the Latin mercatus, which means market or trader.
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The Wolford Company is trying to choose between two machines it can use to produce one of its products. Both machines are capable of producing sufficient quantities to maintain annual sales of $220,000. Machine X costs $180,000 and has a four-year economic life. If this machine is used, net operating expenses will be $55,000 per year. Machine y costs $280,000 and has a five-year economic life. If this machine is used, net operating expenses are expected of be $40,000 per year. Either machine will be depreciated on a straighten line basis for tax purposes to a zero salvage value. The firm's cost of capital is 12% and its marginal tax rate is 40%
a) What is the NPV of machine X and Y over their economic lives?
b) What is the NPV of machine X and Y using replacement chain to solve the comparison problem of unequal life?
c) Which machine will do more to increase shareholder wealth?
Answer:
c is 40,000 a year!
Explanation:
the reason for this is because you would get over the price of even getting 280k inna year
Name a product brand that you consider yourself loyal to or that you were once very loyal to. Describe how the promotion of the product keeps or kept you loyal. Describe something the company could do or did do that would cause you to stop buying from them, and explain why.
Answer:
I think your supposed to answer this with your own words an example would be McDonald's, there food was very good,I would stop buying from McDonald's if there meat was made out of something nasty such as rat or horse because it would make me uncomfortable to eat something like that
mass production of products affected companies mainly because they ____.
a. could not keep up with demand
b. needed to know customers’ buying habits
c. needed to begin advertising
d. understood what people wanted
which of the statements below is correct regarding the difference between a temporary account and a permanent account?
A permanent account is an account that carries forward its balance from one accounting period to the next, while a temporary account is an account that is closed or reset to zero at the end of an accounting period.
Permanent accounts include assets, liabilities, and equity accounts, which are used to measure a company's financial position at a specific point in time. They are also known as balance sheet accounts.
Temporary accounts include income statement accounts such as revenues and expenses, which are used to measure a company's financial performance over a specific period of time. They are also known as income statement accounts or profit and loss accounts.
Hence"A permanent account is one that is used to track the balances of assets, liabilities, and equity over a period of time, while a temporary account is used to track income, expenses, and other items for a single accounting period. "is the correct statement.
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FILL IN THE BLANK When a firm focuses on its internal capabilities rather than on the desires and needs of the marketplace, then the firm is said to have adopted the ______ orientation.
When a firm focuses on its internal capabilities rather than on the desires and needs of the marketplace, then the firm is said to have adopted the production orientation.
A company that prioritises production frequently uses a mass production model and simplifies this production process for its line of products. This oriented method bases its focus on cutting production costs to satisfy this client base's price requirements on the presumption that customers respect price.
Hence production is the correct word.
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Which sentences identify the advertising objectives of a business? From — to —
A confectionery business ran into trouble when news of a possible contamination reached its consumers. After a consumer uproar overnegligence,
the company decided to restore its credibility with the help of public relations. —It released statements to the media about its strict regulated processes
and also refuted rumors of contamination. It decided to target a market between ages five and fifteen to help position the product as child friendly
and establish it as safe to consume. The company wanted to ensure that the product was marketed in a repackaged form in order to gain credibility
and boost sales as compared to rivals. However they did not reduce prices, as reducing prices would be met with suspicion. Frequency of the
advertised commercial was increased in order to increase recall among consumers. —This proved effective, as within a few months there was no
further drop in sales and sales slowly started gaining momentum.
Three main goals of advertising are to inform, convince, and remind. Informative advertising raises consumer knowledge of companies, their goods and services, and concepts. It can inform consumers about features and advantages of new or existing items as well as announce new programs and products.
What is advertising ?Advertising is a strategy for reaching out to consumers of a good or service. According to the Marketing Association of the UK, advertisements are messages that are paid for by those who send them and are meant to inform or persuade people who receive them. Even though some people may not be aware of it, advertising is always around. Advertising in today's society uses all media available to spread its message. This is accomplished by the use of many media, including television, print (newspaper articles, magazines, journals, etc.), radio, press, the internet, direct marketing, billboards, mailers, competitions, sponsorships, posters,
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A manufacturer discovered they would need..............as a technique to balance
volume and variety mix whilst reducing waste associated with high costs,
overproduction, and downtime.
Answer: Reducing Costs: Overproduction or having more materials than is required creates storage costs, which can be reduced through better processes and materials
Explanation: just did it
Which of the following should be held constant when calculating an income elasticity of demand?
A. the price of the good
B. prices of related goods
C. tastes
D. All of the above should be held constant
All of the above should be held constant. tastes the price of the good prices of related goods.
What is the income elasticity of demand?
The proportional change in demand for a product in reaction to the change in a consumer's income is known as income elasticity of demand, or YED. The ratio of the change in quantity demanded to the change in customer revenue can also be used to describe it. A negative 50% change in demand, or a drop of 5,000 divided by the starting demand of 10,000 automobiles, is multiplied by a 20% change in real income, or the $10,000 change in income divided by the initial value of $50,000, to determine the income elasticity of demand. The relationship between the demand for goods and variations in consumer income is known as income elasticity of demand.
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company z allows all managers who are at level 4 or above to receive coaching. coaching is mandatory for managers who are level 6 or above. conclusion: a level 4 manager must receive coaching. if the assumptions are true, is the conclusion:
The conclusion is not directly stated in the assumptions. The assumptions only state that all managers at level 4 or above are allowed to receive coaching, and that coaching is mandatory for managers at level 6 or above.
Managers are individuals who are responsible for overseeing and coordinating the activities of a group of people or a specific department within an organization. They typically have a higher level of authority and responsibility than regular employees. Managers are responsible for a wide range of tasks, including:
Planning: Managers are responsible for setting goals and objectives for their department or team, and developing plans to achieve those goals.Organizing: Managers are responsible for organizing and delegating tasks to employees, and ensuring that resources are allocated efficiently.Staffing: Managers are responsible for hiring, training, and evaluating employees.Directing: Managers are responsible for providing direction and guidance to employees, and making decisions about how to handle various situations.Controlling: Managers are responsible for monitoring progress and making adjustments as necessary to ensure that goals are met.Budgeting: Managers are responsible for creating and managing budgets for their department or team.Problem-solving: Managers are responsible for identifying and solving problems within their department or team.Know more about Managers - https://brainly.com/question/17312484
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A company's marketing plan begins with a focus on ___________________.
a.
customers
b.
product
c.
place
d.
value
Answer: customers
Explanation:
To measure the level of intelligence of job applicants, your organization has developed the test Smart-T.
The true intelligence level of the three job applicants is shown in the second column of the below table.
The three applicants have taken Smart-T five times and their scores are shown in third to seventh columns of the below table.
Applicant
True
intelligence level
Smart-T
Trial 1 Score
Smart-T
Trial 2 Score
Smart-T
Trial 3 Score
Smart-T
Trial 4 Score
Smart-T
Trial 5 Score
Jamie High High Low Medium Medium Low
Andrew Medium Medium Medium Low High High
YJ Low Low High High Low Medium
In this case, are the validity and reliability of Smart-T high or low?
Validity - Low, Reliability - Low
Validity - High, Reliability - High
Validity - Low, Reliability - High
Validity - High, Reliability - Low
The answer response are:
a) Validity - High, Reliability - High
b) Validity - Low, Reliability - Low
c) Validity - Low, Reliability - Low
What is the Validity about?Validity refers to how well a test measures what it is supposed to measure. In the first case, the test scores do not match the true intelligence level of the applicants, so the validity of Smart-T is low.
Reliability refers to the consistency of a test's results. In the first case, the test scores are consistent among the applicants, so the reliability of Smart-T is high.
In the first case, the test scores match the true intelligence level of the applicants, indicating that the test is valid. Additionally, the test scores are consistent across multiple trials for each applicant, indicating that the test is reliable.
In the second case, the test scores do not match the true intelligence level of the applicants, indicating that the test is not valid. Additionally, the test scores are consistent across multiple trials for each applicant, indicating that the test is reliable.
In the third case, the test scores do not match the true intelligence level of the applicants, indicating that the test is not valid. Additionally, the test scores are not consistent across multiple trials for each applicant, indicating that the test is not reliable.
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See full question below
To measure the level of intelligence of job applicants, your organization has developed the test Smart-T.
The true intelligence level of the three job applicants is shown in the second column of the below table.
The three applicants have taken Smart-T five times and their scores are shown in third to seventh columns of the below table.
a)
Applicant True intelligence level
Smart-T
Trial 1 Score
Smart-T
Trial 2 Score
Smart-T
Trial 3 Score
Smart-T
Trial 4 Score
Smart-T
Trial 5 Score
Jamie High High High High High High
Andrew Medium Medium Medium Medium Medium Medium
YJ Low Low Low Low Low Low
In this case, are the validity and reliability of Smart-T high or low?
a) Validity - High, Reliability - High
b) Validity - Low, Reliability - High
c) Validity - Low, Reliability - Low
d) Validity - High, Reliability - Low
b)
Applicant True intelligence level
Smart-T
Trial 1 Score
Smart-T
Trial 2 Score
Smart-T
Trial 3 Score
Smart-T
Trial 4 Score
Smart-T
Trial 5 Score
Jamie High Low Low Low Low Low
Andrew Medium Medium Medium Medium Medium Medium
YJ Low High High High High High
In this case, are the validity and reliability of Smart-T high or low?
a) Validity - High, Reliability - High
b) Validity - Low, Reliability - High
c) Validity - Low, Reliability - Low
d) Validity - High, Reliability - Low
c)
Applicant
True
intelligence level
Smart-T
Trial 1 Score
Smart-T
Trial 2 Score
Smart-T
Trial 3 Score
Smart-T
Trial 4 Score
Smart-T
Trial 5 Score
Jamie High High Low Medium Medium Low
Andrew Medium Medium Medium Low High High
YJ Low Low High High Low Medium
In this case, are the validity and reliability of Smart-T high or low?
a) Validity - High, Reliability - High
b) Validity - Low, Reliability - High
c) Validity - Low, Reliability - Low
d) Validity - High, Reliability - Low
Jay deposits $10 a month for 10 years. The account is compounded monthly with an interest rate of 0.2%.
How much is in Jay's account at the end of 10 years?
The amount that is in Jay's account at the end of 10 years, given the rate and the deposit per month, is $ 1, 354.72
How to find the amount ?Seeing as Jay deposits every month and the same amount, this is an annuity which means that the value in 10 years will be the future value of that annuity.
First, convert the years to months :
= 10 x 12 months a year
= 120 months
The amount in the account after 10 years is:
= 10 x Future value of annuity factor, 120 periods, 0.2%
= 10 x 135.47224661373
= $ 1, 354.72
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An executive summary should briefly explain everything in a business plan in how many pages?
Answer:
An executive summary should be one to two pages in length.
Explanation:
Please answer the question...
The term "cost per unit" refers to both the variable and fixed costs involved in producing and delivering a single unit of any good to a final customer.
What formula is used to determine a product's cost per unit?Using the following formula, figuring out the production unit cost is as easy as adding and dividing: Cost per Unit is equal to (Fixed Costs + Variable Costs) / Units Sold. The total cost is added up, and the result is divided by the quantity of units made: For a particular timeframe, add up all the fixed costs.The term "cost per unit" refers to both the variable and fixed costs involved in producing and delivering a single unit of any good to a final customer. Keeping track of your cost of products sold can help you establish pricing context and guarantee profit.The complete question is,
Price per unit, please?
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Match each definition with its related term by selecting the appropriate term in the dropdown provided. There should be only one definition per term (that is, there are more definitions than terms).
A. Report the long life of a company in shorter periods
The term with their definition which are as follows:
CustomersIncreases in assets or decreases in labiltiesRecord revenuesWhat are the interpretation of these terms?Customers, and collect cash from customers D Record revenues when earned and expenses when incurred.
E Increases in assets or decreases in labilties from peripheral transactions F An asset account used to record cash paid before penses have been incurred
G Record revenues when earned and measurable (when the company transtes promised goods or services to customers, and in the amount the company expects to receive) H. Decreases in assets or increases in liabilities from peripheral transactions.
Therefore, the correct answer is as given above
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The diagram above shows the production possibilities curve for the production of peaches and apples in Fruitland.
Between points X and Y on the PPC, the opportunity cost of one unit of peaches is which of the following?
A) 2 units of apples
B) 1 unit of apples
C) 2 units of peaches
D) 1 unit of peaches
E) 10 units of apples
Between points X and Y on the PPC, the Opportunity cost of one unit of peaches is 1 unit of apples.
The value or advantage ropped by engaging in a certain exertion in comparison to engaging in a different exertion is known as the Opportunity cost in microeconomic proposition. More precisely, it implies that if you pick for one exertion, you lose the chance to choose a different one. The occasion cost is the quantum of time spent learning and the plutocrat that could be used away. When a planter decides to grow wheat, there's an occasion cost associated with not doing so or using the coffers in another way. occasion cost is the value of other goods or services you must abstain in order to get your asked item. The term" cost" as used by economists frequently refers to Opportunity cost.
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Discuss the impact of Vision 2030 on the unemployment rate in the kingdom. How Vision 2030 has helped in creating new employment opportunities
The KSA Vision 2030 aims to implement some strategies to help reduce the kingdom's unemployment rates, which have been exacerbated by the COVID-19 pandemic.
One method will be to develop the local labor force by encouraging vocational training and entrepreneurship.
What was the Vision 2030 expected to perform?The blueprint intends to create a working database for students by the end of the target period, from which private local sector companies can source qualified graduates. Another approach to addressing unemployment is to overhaul the educational system in order to provide young men and women with the necessary knowledge and skills for future jobs. As a result, the educational system will be more responsive to the needs of the labor market.
Another strategy for combating unemployment is known as 'Saudization,' which encourages and promotes the local workforce. The goal of this strategy is to increase the employment of Saudi nationals. These are some of the effects of the KSA Vision 2030 on unemployment.
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What is the opportunity cost of the second truck produced?
The opportunity cost of the second truck produced, based on the production options given, would be 0.7 tanks.
How to find the opportunity cost ?Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. Opportunity costs are by definition invisible, making it simple to ignore them. Making smarter decisions requires an understanding of the possible opportunities lost when a company or person selects one investment over another.
The amount of one thing that must be sacrificed in order to obtain more of the other good is known as the opportunity cost of switching from one efficient combination of production to another.
The opportunity cost of the second truck produced is therefore:
= Output of tanks per day for two trucks - output of tanks per day for 1 truck
= 4 . 5 - 3 . 8
= 0. 7 tanks
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