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zloy xaker [14]
2 years ago
15

Milovia is a small open economy. The general price level in the economy has been increasing at a rate of about 7.5 percent each

year. Jane​ Wilson, an industry​ analyst, is of the opinion that such high inflation is adversely affecting aggregate demand in the economy and therefore its ability to grow. Her​ colleague, Harry​ Gomes, however, disagrees. According to​ Harry, some amount of inflation is unavoidable in a growing economy. Higher prices for products help to increase the level of corporate profits and induce firms to increase aggregate output. Which of the​ following, if​ true, will indicate that higher prices will not induce firms to increase​ output? A. The Milovian government offers subsidies on inputs used in many manufacturing industries. B. The government purchased bonds in an open market operation last year. C. In spite of rising​ inflation, people in Milovia expect real incomes to increase substantially in the next few years. D. The​ country's trade balance has been positive for the last five years. E. The increase in the price of inputs outweighed the increase in the price of the final product.
Business
1 answer:
mr Goodwill [35]2 years ago
4 0

Answer:  Option E

Explanation: As per the law of supply, the producers increase the supply of product when there is an increase in the price of the product, but this law might not work when the increase in price of inputs needed is more than the increase in price of final product to be offered.

In case of above scenario there will be decline in profits for the suppliers hence they will decrease the production.

Hence, from the above explanation we can conclude that Option E is correct.

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Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers ar
balu736 [363]

Answer:

The correct answer to the given above question is Zone of tolerance.

Explanation:

Zone of tolerance in simpler terms can be defined as the difference between a consumers desired level of service and the level of service a consumer considers adequate. This zone consists a range of various service performance that a consumer considers to be satisfactory. We can see this zone of tolerance when a consumer will stand in a line at a retail store , a consumer would be willing wait longer in the line if he or she thinks that product or service is valuable or a necessity to him and the waiting time would also depend on the type of store it is.

6 0
2 years ago
Read 2 more answers
An institutional broker wants to review their book of customers to see which are most active. Given a list of trades by customer
bixtya [17]

Answer:

Alpha

Beta

Delta

Epsilon

Zeta

Explanation:

The customers list should be updated and sorted periodically to identify regular customers and those customers with big orders. There are many customers in the list and the list is not sorted according to alphabetical order. Those customers which account for more than or at least 5% of total trade are Alpha, Beta, Delta, Epsilon and Zeta. These are place first in list among other customers.

8 0
2 years ago
Archoid's Flowering Plants provides the following information for the month of May: Actual Budget Tulips Geraniums Tulips Gerani
gogolik [260]

Answer:

Contribution margin= $15

Explanation:

Giving the following information:

Sales May in units:

Budget:

Tulips= 4,950

Geraniums= 3,300

Actual:

Tulips= 4,420

Geraniums= 4,080

Contribution margin:

Budget:

Tulips= $11

Geraniums= $21

Actual:

Tulips= $12

Geraniums= $19

We need to calculate the budgeted contribution margin per composite unit.

First, we need to calculate the percentage of sales for each plant.

Total units= 8250 units

Tulips= 4950/8250= 0.6

Geranius= 3300/8250= 0.4

Contribution margin= (0.6*11)+(0.4*21)= $15

4 0
2 years ago
(a) what was the opportunity cost of non-gm food for many buyers before 2008?
Rama09 [41]

Answer:

Buyers opportunity cost for non genetically modified food was alternative food available before 2008

Explanation:

opportunity cost simply means cost of alternative forgone. Example if one purchases a car and utilizes for a taxi, his opportunity cost could be the value he would have received for his investment if he had bought a truck and used it for loading cement for building projects. We apply this to the question above and so the opportunity cost is alternative of non genetically modified food available that would have been bought before 2008

7 0
2 years ago
b. When launching a new brand, we discussed in lecture that it is best to build the brand first with PR, and then sustain it wit
SashulF [63]

When launching a new brand, it is best to build the brand first with PR, and then with advertising is explained in the following way

Explanation:

In the past, almost every new brand was launched with a big advertising campaign. In today's media environment, that's not a good idea. Advertising is expensive and not very credible, especially when used on behalf of a new brand. That's why many of the most successful new brands were launched with PR.

Launching a new brand with PR, however, raises a number of questions.If no advertising agency is involved, who does the positioning strategy.

To stimulate your thinking about these ,here is an outline of six steps a PR launch might take.

1. The leak -A PR program usually starts with a leak to key reporters and editors. Internet sites are often favorite targets.

But no big brand has ever been successful in a category with no competition. The best thing that ever happened to Coca-Cola is Pepsi-Cola.

Not a good idea. The more competitors in a category, the larger the category. Competition creates enormous consumer interest in the category and stimulates a lot of PR.

Advertising is different. An advertising program is launched like a D-day attack. It's usually kept a top secret until the day the first ad runs.

It would have been better to let the PR run for a few months before launching the advertising. In turn, the ads could then focus on the success of the launch. (Nothing succeeds like success.)

2. The slow buildup

A PR program slowly unfolds like a flower blooming. A company has to allot enough time for the PR to develop momentum. That's why a PR launch often starts before the details of a new product or service are firmly fixed.

Advertising is different. An advertising program usually starts with a "big bang." Since consumers tend to ignore advertising messages, a new ad program needs to be big and bold enough to get above the "noise level."

3. The recruitment of allies

Why go it alone when you can get others to help communicate your message? The slow buildup of a PR program allows enough time to recruit allies to your cause.

Advertising is different. With a big-bang launch, there usually isn't enough time to line up supporters. Also, advertising alliances usually fall apart over the question of who pays for what.

4. Product modification

Feedback is an important element in a PR launch. By launching the PR program ahead of the actual product introduction, t

Advertising is different. Once a big-bang advertising program is launched, a company is committed.

5. Message modification

Feedback from a PR program also allows a company to modify the brand's message for greater consumer appeal.

6. The soft launch

PR versus advertising

In almost every way, the launch of a brand via PR is exactly the opposite of how a brand is currently launched with an advertising program.

5 0
2 years ago
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