Answer: It created a platform for small business owners to open online stores to meet the needs of consumers in Chinese speaking areas within and outside China.
Explanation: Taobao with over one billion listings,is owned and founded by Alibaba( a Chinese entrepreneur) in the year2003. Taobao is a market place for consumers of Products,it helps to create Opportunity for Businesses to market their products and services,this platform has helped to build the Chinese Economy empowering people and helping to improve creativity, It also helped Chinese entrepreneur to be accessible to the world over.
<span>This demonstrates of the principle of competitiveness. Every company wants a 'piece of the pie'. If this street is located in a high traffic area, then Arby's is giving McDonald's and Burger King some good old fashioned competition.</span>
Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
As it is known that future cash flows are
risky in nature so it is not possible to discount them at risk free rate. So
investor must discount the future cash flows based on the equity cost of
capital. It is the expected return of the other investments available in the market
with same kind of risk to the firm’s share.
Price of the stock can be found by using
the cost of equity equation which is as follows:
Po = Div_1 + P_1 / 1 + r_E
$15 = 0.8 + X / 1.12
X = $16
So the expected selling price of the
stock is $16.00
Answer:
d. it is balanced.
Explanation:
A budget is defined as the amount of money that is set aside for some future purpose. It is a way to effectively manage funds and avoids wastage. When one is going out of their budget they know is is an unallocated cost and this will lead to unbalanced funding for needs.
In this scenario the total budget of Jackie is
Monthly budget= fixed expenses+ living expenses+ annual expense
Monthly budget = 1,640+ 1,320+ 260
Monthly budget= $3,220
Yearly budget= monthly budget* 12
Yearly budget= 3,220* 12= $38,640
This is a perfect balance with her annual net income.
