In personal finance, one makes decisions based on needs vs. wants. What is considered a need?

John decides to leave college early and play professional sports. Which of the following economic principles does John use? i)

IgorLugansk [536]

Answer:

i) personal economic policies ii) marginal cost versus marginal benefit analysis

Explanation:

Marginal costs and benefits are an integral part of the economy as they help to calculate costs and benefits accurately at a particular production stage and usage stage.

An economic policy is an act that aims at influencing or controlling economic behavior.

At this stage John believes his decision will influence his economy positively and he sees more long-term benefits than costs for him if he plays professional sports rather than staying in college.

6 0

2 years ago

Hannah and Ellen rely on consistent messages received via word of mouth and are older and more conservative than other customers

Aleks04 [339]

Answer:

they fall into early majority

5 0

2 years ago

Consider the following cash flow of company profits. A company earns $3600 in years 1, 2, & 3, from years 4 through 7 the pr

stellarik [79]

Answer:

The present worth of cash flow is $22395.51

Explanation:

In this type of question we have two parts of the question the first part we are going to get the present value of it which is when the company earns $3600 for the first 3 years with an interest rate of 9%, so we will use the present value annuity formula as the company is earning future cash flows of a present amount that is agreed upon. The present value annuity formula which is Pv1 = C[(1-(1+i)^-n )/i) where:

Pv1 is the present value of the cash flows for three years.

C is the annual cash flows for 3 years which is $3600.

i is the interest rate on the cash flows which is 9%

n is the number of years in which the cash flows took which is 3 years.

Now we will substitute this into the above mentioned formula to get the present value of the cash flows that the company gets for the first 3 years:

Pv1 = $3600[(1-(1+9%)^-3)/9%]

Pv1 =$9112.66

Now we will deal with getting the present value of the remaining 4 years in which the profits increased by $500 therefore the cash flows increased to $4100 for the remaining 4 years of the total 7 years of the cash flows. We will use the present value annuity formula that we used above for the first three years which we will substitute as follows:

Pv2 is the present value of the 4 years cash flow.

C is the cash flows of profits which is $4100

i is the interest rate of 9%

n is the remaining number of years remaining which is 4 years.

now we substitute:

Pv2 = $4100[(1-(1+9%)^-4)/9%]

Pv2 = $13282.85

now to get the total present value of the profits we will combine both present values to get the present value of the profits in 7 years:

Present value for 7 years cash flows = Pv1 + Pv2

= $9112.66 + $13282.85

=$22395.51

6 0

2 years ago

Five proposals (V, W, X, Y, and Z) are available for investment. At least two and no more than four must be chosen. Proposals X

olga2289 [7]

Answer:

There are four alternatives

X- Z- W

X-W

Y-Z-W

Y-W

Explanation:

if X is founded, we cannot found Y or V so:

1)X- Z- W

2)X-W

if Y is founded, we cannot found X or V so:

3)Y-Z-W

4)Y-W

Z cannot be founded without X or Y

His alternatives are included in X and Y

if V is founded we cannot found W XY and Z can't be elegible without X or Y

There is no combination with V

W will be pick with X or Y and we have those cover, so we don't have a new alternative.

7 0

2 years ago

When a decrease in credit card availability increases the cash people hold, the money-demand curve shifts to the right. As a res

Tju [1.3M]

Answer:

The FED must decrease the price of money (or interest rates), and to do that it will buy US securities. By purchasing securities, the FED will decrease the money supply, lower the interest rates and halt inflation. This is called a contractionary monetary policy.

It can also increase the banking system's required reserve ratio, but besides lowering the interest rates, it will also decrease the supply of credit cards even further, so one action could offset the other. That is why this policy might be inefficient in this specific case.

7 0

2 years ago