Electronic Data Interchange (EDI) is a communication standard that enables business partners to exchange routine documents, such as purchase orders, electronically.
In the field of business, Electronic Data Interchange (EDI) is a reliable procedure that allows businesses to share electronic documents between them. Standardized message formatting is used when sending over data between computers via Electronic Data Interchange (EDI).
Sending over documents manually can take a lot of time and hence the method of Electronic Data Interchange (EDI) proves to be easier, more reliable, and fast.
Routine documents, such as purchase orders, invoices etc can easily be sent between business partners through Electronic Data Interchange (EDI). However, when sending secret or confidential papers, one needs to be careful.
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suppose haiti has a comparative advantage over other countries in producing sugar, but other countries have an absolute advantage over haiti in producing sugar. if trade in sugar is allowed, haiti
If Haiti has a comparative advantage in the production of sugar, it will export sugar.
What is comparative advantage?
A country has a comparative advantage in an activity if its opportunity cost in the production of that good is lower when compared to the opportunity cost of other countries.
Economic theory postulates that the country that has comparative advantage in an activity should specialise in the production of the good. Such a country should also export the good to other countries that do not have a comparative advantage in the production of the good.
A country has an absolute advantage in the production of a good if it produces a greater quantity of the good when compared with other countries.
Here are the options:
a. will import sugar.
b. will export sugar.
c. will either export sugar or export sugar, but it is not clear from the given information.
d. would have nothing to gain either from exporting or importing sugar.
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a team of researchers recognizes that the line of scientific inquiry they are pursuing has the potential for both public benefits and the risk of harm to the public. what decision will the team make if they are guided by the principle of public beneficence?
The team will likely pursue the scientific inquiry, as the potential public benefits outweigh the risks of harm.
What is risks?
Risk can be defined as the chance that something negative will occur. Risk is uncertainty about how an action will affect or implicate something that people value, frequently focusing on unfavourable outcomes. There have been many different definitions put forth. "Effect of Uncertainty on Objectives" is the international standard description of risk for use in various applications. Different practise areas have different understandings of risk, approaches to risk assessment and management, descriptions of risk, and even definitions of risk. Links to articles with more information on these topics are provided in this article. The international standard for managing risk, ISO 31000, offers fundamental ideas and general recommendations for handling risks that organisations must deal with.
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In the ________ activity of scm, organizations choose suppliers to provide the goods, services, and raw materials the company needs to create their product or service.
In the planning activity of supply chain management, organizations choose suppliers to provide the goods, services, and raw materials the company need to create their product or service. Supply chain planning (SCP) can be defined as the forward-looking process of coordinating assets to optimize the delivery of services, goods and information from supplier to customer, balancing supply and demand.
Supply chain management or also known as SCP can be defined as the management of the flow of goods and services includes all processes that transform raw materials into final products between locations and business. Suppliers can be defined as a company, a person or an organization that sells or supplies something such as equipment or goods to customers.
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which statement is true of the commercial service of the u.s. department of commerce? multiple choice it focuses on large businesses. it offers u.s. firms a unique global network. it offers u.s. firms practical knowledge of national markets and industries. it doesn't use information technology. it is a local business solutions unit.
The Commercial Service of the U.S. Department of Commerce offers U.S. firms a unique global network. Hence, b) option is correct.
What is United States Commercial Service?
The International Trade Administration of the U.S. Department of Commerce has a division dedicated to trade promotion called the United States Commercial Service (CS). A branch of the U.S. Foreign Service, CS employs diplomats as its commercial officers. Thousands of American businesses export products and services worth billions of dollars each year with the assistance of the CS global network of trade specialists. There are CS trade specialists all around the United States as well as in more than 75 foreign embassies and consulates. The goal of CS is to develop and defend key global U.S. economic and commercial interests.
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if an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by
If an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by corrective tax, but not by regulation.
A coorective tax can be described as a kind of tax that is imposed by the government in order for companies to reduce the use of those products that are harmful to the atmosphere.
As regulation of companies to reduce pollution will be difficult, assigning corrective tax to companies is a better strategy as factories will avoid causing pollution or reduce it due to the corrective tax being imposed.
A corrective tax can be used for avoiding any kind of negative externality that might be harmful.
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Politically speaking, which party is more apt to engage in regulatory practices over the business?
In the United States polity, the political party that is likely to wield more regulatory practices over the business is the Democratic party.
Why should the Democratic Party be more rigorous with regulatory practices over the business?The Republican Party is noted for its support of right-wing beliefs such as libertarianism, social conservatism, and economic libertarianism, among others. As a result, Republicans typically advocate for conservative values, little government intervention, and strong support for the private sector.
In contrast, the Democratic Party prefers a mixed economy and typically supports a progressive tax structure, increased minimum wages, Social Security, universal health care, public education, and subsidized housing. It also encourages infrastructure development and sustainable energy investments in order to spur economic growth and employment creation.
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gamma inc. has a reputation for paying higher than the prevailing wages in its industry. they do this in order to attract and keep the best talent. gamma inc. is a(n) . a. labor leaders b. incentive leader c. wage leader d. labor relations specialist
gamma inc. has a reputation for paying higher than the prevailing wages in its industry. they do this in order to attract and keep the best talent. gamma inc. is wage leader.
What is wages?
A wage is money paid to an employee by their employer for work completed over a certain amount of time. Wage payments include remunerative payments like prizes and tip payouts as well as compensatory payments like the minimum wage, prevailing wage, as well as annual bonuses. Wages are a component of the costs associated with operating a business. Regardless of the company's profitability, it is a duty to the employee. Payment by wage contrasts with salary, where the employer pays a set sum at regular intervals (such as a week month) regardless of the number of hours worked, commission, where pay is contingent on individual performance, and compensation based just on performance of the company as a whole.
Therefore, the correct option is (C) Wage leader.
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When janelle decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but when she visited her local best buy, she limited her search to only those brands she would consider buying. the brands available at best buy represent janelle's set.
Situational influences are transient circumstances that have an impact on consumer behavior.They include tangible elements like a store's layout, buying areas, music, lighting, and even odors.Businesses work to improve the physical conditions that shoppers encounter.
What are the situational factors that could alter the consumer decision making at the time of purchase?The likelihood that someone will go through all six stages of the purchasing process is probably limited to specific circumstances, such as when purchasing a thing for the first time or when purchasing expensive, durable, infrequently used items.Complex decision-making is what is meant when this occurs. Which of the aforementioned purchases would consumers be most likely to make with limited problem-solving.A regular coffee drinker's typical purchase is generally coffee to go.But problem solving skills will likely be reduced as a result of college courses. Physical surroundings, social surroundings, temporal perspective, task description, and antecedent state are the five components that make up situational factors. There are four different forms of consumer behavior: complex buying behavior, dissonance reduction, variety seeking, and habitual buying behavior. Consumer decision-making can appear complicated, but all buyers follow the same fundamental stages to choose the goods and services that will best meet their needs.Whether purchasing something, especially when it's something substantial like a car, consider your own thought process. When acquiring high-involvement products, buyers don't exhibit routine response behavior.Instead, they participate in what is known as prolonged problem solving, spending a lot of time weighing various factors such product features, costs, and warranties.To learn more about decision making refer
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weber company has the following account balances: purchases $28,000 sales returns and allowances 4,000 purchase discounts 2,500 freight-in 1,875 compute the cost of goods purchased for the period.
Cost of goods purchase = Purchase + Freight-in = $28,000 + $1,875 = $29,875
The following account balances are held by Weber Company: spends $28,000 on purchases, allowances, and sales returns. Discounts on 4,000 purchases Calculate the cost of the period's purchases using 2,500 freight-in 1,875.
An allowance is a reserve set aside in anticipation of costs that will arise at a later time. By creating a reserve, an expense that would have otherwise been recognized in a later period is instead recognized sooner, into the present period.
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In a manufacturing company , the budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories . ( enter only one word per blank )
In a manufacturing company , the direct materials budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.
Components that go into a manufactured good are known as direct materials. For instance, the direct materials used in the creation of a smartphone are the screen, integrated circuits, camera modules, and buttons. Direct material refers to the tangible components that make up a production. For instance, water are direct materials for a baker. Cost accounting uses the direct materials concept to categorize this cost independently for various forms of financial analysis.
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It is important to record documents conveying a real property interest because recording.
It is important to record documents conveying a real property interest because recording satisfies the doctrine of constructive notice.
What is interest?
In the field of finance as well as economics, interest is the payment made at a set rate by a borrower as well as deposit-taking commercial bank to a lender or depositor in excess of the principal amount (the amount borrowed). It differs from a fee the borrower might pay the creditor or another party. It also differs from a dividend, which is money given to shareholders (owners) by a company out of its profit or reserve, but not on a set rate predetermined in advance, instead on a pro rata basis as a portion of the rewards received by risk-takers who take on costs in order to generate revenue.
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on february 1, paid $12,000 cash for insurance coverage for a 5 month period starting february 1. the amount of the monthly adjusting journal entry is:
paid $12,000 in cash for insurance coverage beginning on February 1 for a 5-month term. The monthly adjusting journal entry is for $12,000.
The majority of people have some sort of insurance, whether it is for their life, their home, or their car. However, the majority of us don't really take the time to consider what insurance is or how it operates.
Simply put, insurance is a contract, represented by a policy, under which a policyholder receives monetary protection or payment from an insurance firm against losses. To make payments more manageable for the insured, the company pools the risks of its clients.
Insurance policy are used as a hedge against the risk of monetary losses, both large and minor, that may arise from harm to the insured or their property, or from liability for damage or injury given to a third party.
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the closing process involves separate entries to close (1) expenses, (2) drawings, (3) revenues and (4) income summary. the correct sequencing of the entries is: a. (3), (2), (1), (4) b. (4), (3), (2), (1) c. (1), (2), (3), (4) d. (3), (1), (4), (2)
The closing process involves separate entries to close (1) expenses, (2) dividends, (3) revenues, and (4) income summary. The correct sequencing of the entries is (3), (1), (4), (2).
What is revenue?
The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue. Because it appears at the top of the income statement, revenue, which is also known as gross sales, is frequently referred to as the "top line."
Revenue in accounting refers to the entire amount of money made through the sale of products and services that are essential to the company's core operations. The term "commercial revenue" can also refer to sales or turnover. Some businesses make money from royalties, interest, or other fees. The term "revenue" can mean income in general or the total amount of money earned over a certain time period, as in "Last year, Company X had revenue of $42 million." The general definition of profits or net income is total revenue less total expenses for a specific time period. Revenue is referred regarded as the "top line" in accounting since it increases equity in the Equity part of the balance statement.
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g an exchange-traded fund (etf) is best described as: select one: a. a type of open-end fund that trades as a listed security on one of the stock exchanges. b. a professionally managed fund that requires accredited investors. c. a type of closed-end fund that trades as a listed security on one of the stock exchanges. d. a fund that operates with a fixed number of outstanding shares. e. a fund that allows you to trade funds informally online with other investors.
An exchange-traded fund (ETF) is a basket of securities that trades on an exchange just like a stock does.
A pooled investment security called an exchange-traded fund (ETF) functions very similarly to a mutual fund. ETFs often follow a certain sector, index, commodity, or other asset, but unlike mutual funds, they can be bought or sold on a stock exchange just like normal stocks can. Anything from the price of a single commodity to a sizable and varied group of securities can be tracked by an ETF. ETFs may even be designed to follow particular investment strategies.
Because it is exchanged on an exchange like stocks are, an ETF is also known as an exchange-traded fund. As shares of an ETF are purchased and sold on the market throughout the trading day, the price of the shares will fluctuate. Contrary to mutual funds, which only trade once daily after the markets close and are not traded on an exchange, this is the case. In comparison to mutual funds, ETFs are typically cheaper and more liquid.
Unlike stocks, which only hold one underlying asset, ETFs hold a variety of underlying assets. ETFs are frequently used for diversification because they contain a variety of assets. Thus, a variety of investments, including stocks, commodities, bonds, or a combination of investments, can be found in ETFs.
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suppose a country's labor force is 154.9 million (of whom 139.4 million are employed). what is the country's unemployment rate? round your answer to the nearest tenth.
The unemployed labour force is 10 million.(Total labor force - employed labours) ÷ total labor force, (154.9 - 139.4) ÷ 154.9 = 9.6, 10 million after rounding off.
Economic indicators that are used to assess the state of the American labour market include the level of participation and the unemployment rate.
The major distinction between the two is that while the unemployment rate reflects the percentage of people in the labour force who are now unemployed, the participation rate indicates the percent of Americans who are currently in the labour force. The Bureau of Labor Statistics computes both (BLS).
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What decision support strategy uses a technique based on identifing a similar problem with a known effective solution, and apply the approach to this problem?.
Identify the problem strategy uses a technique based on identifing a similar problem with a known effective solution, and apply the approach to this problem.
A plan utilized to discover a solution or get through a difficulty is known as a problem strategy. Each issue-solving technique has several steps that give you valuable instructions on how to deal with a problem in business or in your industry. The psychological barriers that inhibit people from solving effective solution have received extensive research; these barriers include confirmation bias, mental sets, and functional fixedness. One needs to ask why the government runs its policies in such ineffective ways in order to offer an effective solution to the issue. In other words, in order to effective solution any particular issue, it is typically necessary to address some other issue(s) from the same condition.
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a manufacturer of hats concentrates all its efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. this involves a
Since the marketer is concentrating on offering same goods in one size but in different colors to all, this strategy is called as mass marketing.
In essence, mass marketing is a tactic meant to draw in a large section of the population. It overlooks niche demographics differences in Favour of appealing to the biggest possible group of prospective customers. Mass marketing approach concentrates on a higher number of sales at reduced prices in order to get the goods its most publicity possible.
One of the major benefits of mass marketing is that it can through single program, any advertising messaging distributed through mainstream media such as television and print have the potential to reach millions of viewers. Achieving advantages of scale can also lower the cost of distribution channels in contrast to serving and transporting goods based on a particular target audience.
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suppose a company charges an annual premium of $100 for an insurance policy for minor injuries. actuarial studies show that in case of an injury claim, the company will pay out an average of $800 for outpatient care and an average of $4000 for an overnight stay in the hospital. they also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an overnight stay out of every 1000 policies. what is the expected annual profit of an insurance policy for the company?
The insurance firm (the insurer) and the person(s), company, or other entity being covered have a legal agreement called an insurance policy (the insured).
As per the given question,
Annual Premium = $100
Average of outpatient care = $800
Average of overnight stay = $4000
No. of claims for outpatient care = 5
No. of claims for overnight stay = 3
No. of policies = 1000
First, we need to find out the expected loss.Therefore,
Expected Loss = 800*(5/1000) + 4000*(3/1000)
= 4 + 12
= $16
We know that,
Profit = Income – Loss
= $100 - $16
= $84, but this is for just one policy.
Therefore , for 1000 policies,
Profit = $84*1000
= $84,000
Thus, the expected profit of an annual insurance policy for the company is $84,000.
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eric potato chips each day, and does not purchase any name-brand chips. blake's hourly wage increases from $8 to $15 , and he decides to eat one name-brand bag and one generic-brand bag each day. calculate blake's income elasticity of demand for generic potato chips. quizlet
Blake income increased from $8 to $15, Income elasticity of demand (IED = %change in quantity ÷ %change in income) for generic product = 2-1 / 15 - 8, 0.01÷7 = 0.0014.
The term "income elasticity of demand" describes how responsive a given good's quantity demand is to changes in the real income of the customers who purchase it. In contrast to the price-demand equation, the demand for a product and consumer income are directly correlated.
The measure is used by businesses to forecast how a business cycle would affect sales. The income elasticity of demand for a given good may be positive, negative, or non-responsive.
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suppose you buy a bond for $940 and it will pay you back $1,000 one year from now. what interest rate are you receiving? suppose you buy a bond for $940 and it will pay you back $1,000 one year from now. what interest rate are you receiving? 6.0% $60 6.2% 6.4%
The interest rate that is being given is 6.4%, considering purchase and redemption price of bond, So, the correct option is (d).
Given information:
Purchase price of bond = $940
Buy back price of bond = $1,000
Interest received by bondholder = $1,000-$940 = $60
Rate of interest on bond = $60/$940*100 = 6.38% or 6.4%
Bonds are fixed-income securities that reflect payments from creditors to borrowers . A bond can be compared to an agreement detailing the conditions of the loan and the accompanying payments between both the lender and borrower. Companies, municipalities, counties, and political entities utilize bonds to help fund operations and projects. Bondholders are the issuer's debtors or creditors.
The bondholder receives the difference between issue price and redemption price as the interest on bonds.
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which of the following is not true regarding defensive strategies? multiple choice question. they usually help enhance a firm's competitive advantage. they can weaken the impact of attacks that occur by other firms. they can influence competitors to aim their efforts at other rivals. they can lower the risk of being attacked by other firms.
Regarding defensive strategies it is not true that they usually help enhance a firm's competitive advantage.
A marketing approach known as a defensive strategy aids businesses in keeping hold of valuable clients who may otherwise be attracted by rival businesses. Companies that are situated in the same market niche or that cater to the same customer base are considered competitors.
Each company must safeguard its brand, growth prospects, and profitability when this rivalry exists in order to preserve a competitive edge and a respectable reputation among other brands. Businesses work to eliminate their rivals from the sector in an effort to lower the risk of financial loss.
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2. inventory cost is least likely to include: a) production-related storage costs b) costs incurred as a result of normal waste of materials c) transportation costs of shipping inventory to customers
Inventory cost is least likely to include c) transportation costs of shipping inventory to customers.
In the field of business, an inventory cost can be described as the cost that a company takes in order to buy a product, manage it and also store the product.
Product-related storage cost is included in the inventory cost as the storage is made for the specific product.
Also, if any of the product or parts of the product gets wasted, they are also included in the inventory cost of that particular product.
However, the cost that is takes for transporting a product to the customer is not included in the inventory cost.
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clairmont company recently changed from a manual manufacturing process to an automated manufacturing process. based on this, they should also implement incentives for ethical behavior. implement activity-based costing. pursue corporate social responsibility. evaluate the company for a balanced scorecard.
A balanced scorecard (BSC) is a visual tool used to compare an activity's effectiveness to a company's strategic aims. In order to make sure that the company's activities are in line with its overall strategy and vision, balanced scorecards are frequently employed during strategic planning.
Activity-based costing:
Overhead and indirect costs are divided across related goods and services according to the Activity-based costing (ABC) method. This accounting approach of costing acknowledges the link between costs, overhead activities, and produced items, allocating indirect costs to products less arbitrarily than conventional costing systems do. However, it can be difficult to link some indirect costs, like the management and office staff salaries, to a particular product.
Employees should be rewarded for making moral decisions by receiving money bonuses, professional advancement, or awards for good stewardship while boosting profitability. Making a profit sharing scheme is arguably the best incentive for employees to behave ethically.
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a government-created monopoly arises when a.government spending in a certain industry gives rise to monopoly power. b.the government gives a firm the exclusive right to sell some good or service. c.the government exercises its market control by encouraging competition among sellers. d.the government collects taxes in a particular industry.
A government-created monopoly arises when the government gives a firm the exclusive right to sell some good or service.
A government-granted monopoly, also known as a "de jure monopoly" or "regulated monopoly" in economics, is a type of coercive monopoly in which the government grants a private person or company the exclusive right to be the only supplier of a good or service; potential competitors are barred from the industry by law, regulatory, or other mechanisms of government enforcement.
Government-granted monopolies are seen as a type of coercive monopoly in contrast to unregulated monopolies, in which there is no competition but it is not forcibly barred.
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to what extent does the development of new technologies simplify and routinize the jobs of employees? can you give an example? how can new technology lead to job enlargement? discuss.
It is important to note that technological advances have historically increased productivity, generated sustained increases in living standards, and created more jobs than they have destroyed.
Productiveness is the performance of manufacturing of products or services expressed by using some degree. Measurements of productiveness are often expressed as a ratio of a combined output to an unmarried input or an aggregate enter utilized in a manufacturing process, i.E. Output according to a unit of input, normally over a particular time frame. The most common instance is the (combination) labor productivity degree, one instance of that is GDP per employee. There are many distinctive definitions of productivity (including those that are not described as ratios of output to enter) and the selection among them relies upon the reason of the product size and/or records availability. The important thing supply of difference among various productiveness measures is also generally related (without delay or circuitously) to how the outputs and the inputs are aggregated to acquire any such ratio-kind measure of productiveness.
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What are the values of the mean and the standard deviation for the standard normal model?.
For the standard normal model, the value of the mean is equal to zero (μ=0), and the value of the standard deviation is equal to 1 (σ=1).
Standard deviation:
The standard deviation is the average amount of variability in the given dataset. It informs you, on average, how far each value lies from the mean. A high standard deviation refers to values that are generally far from the mean, while a low standard deviation points that values are clustered closed to the mean.
What is the value of mean and standard deviation?The standard deviation is calculated as the square root of variance by expressing each data point deviation relative to the mean. If the data points are from the mean, there is a higher deviation under the data set; thus, the more spreaded out the data, the higher the standard deviation.
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Chris is gathering information about the general economic environment in nepal. In doing so, he will look for information about the general economic environment, market size and population growth rate, and.
In order to gather information about the general economic environment in Nepal, Chris should look for information about the general economic environment, market size and population growth rate, and e. real income.
In the field of business, the general economic environment of a country refers to the performance of businesses and organizations of the country and the revenue that they are producing.
In order to gain knowledge on the general economic environment of Nepal, Chris should first look at the general economic environment worldwide and ten also at Nepal in particular. He needs to know the market size of Nepal in order to speculate whether the general economy is proving to be beneficial.
Population growth also affects the general economic environment as the more the population, the more will be the revenue. He also needs to look at the real income that is made by the people or businesses.
Although a part of your question is missing, you might be referring to this question:
Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, market size and population growth rate, and
a. political status.
b. airport capabilities
c. culture.
d. religious institutions
e. real income
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What is productivity? question 1 options: the accuracy with which you complete tasks the number of tasks assigned to you how well organized your tasks are the rate at which you complete tasks
Answer: Hey! The answer should be "the rate at which you complete tasks" i think.
Explanation: I took the 6.03 quiz <33
Productivity is the rate at which you complete tasks.
Productivity boosts morale and creates a corporation subculture of excellence, ensuing in an improved place of the work environment. When an organization is especially efficient and a success, incentives like pay hikes, bonuses, medical insurance, etc., are made available to the personnel.
Those may be skills that assist a man or woman excel at his/her job, however, they can also be skills that carry groups collectively to work more correctly for the extra goal. Examples of productiveness capabilities include time control, organizational and making plans abilities, problem-solving, and decision-making competencies.
Truly put, workplace productiveness is getting your paintings accomplished in the least amount of time without compromising the satisfaction of work and your body as well as your intellectual properly-being.
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if the demand curve for good x shifts from da to d b, then a. firms would be willing to supply less of good x than before at each possible price. b. people’s incomes must have decreased. c. the price of good x has decreased. d. people are willing to buy more of good x than before at each possible price.
If the demand curve for good x shifts from da to db, then people are willing to buy more of good x than before at each possible price.
The demand curve is a graphical depiction of the connection between the cost of a commodity or service and the amount demanded over a specific time period. A common depiction will have the price on the left-hand vertical axis and the amount needed on the right-hand horizontal axis.
The law of demand states that, when all other factors are equal, the quantity desired for a particular good will decrease as its price rises as seen by the demand curve moving from left to right.
Keep in mind that this formulation suggests that quantity is the dependent variable and price the independent variable. The independent variable often appears on the horizontal axis, or x-axis, although economics is an exception.
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in 1880 five aboriginal trackers were each promised the equivalent of 100 australian dollars for helping to capture the notorious outlaw ned kelley. in 2000 the granddaughters of two of the trackers claimed that this reward had not been paid. the victorian prime minister stated that if this was true, the government would be happy to pay the $100. however, the granddaughters also claimed that they were entitled to compound interest. a. how much was each granddaughter entitled to if the interest rate was 3%? (do not round intermediate calculations. round your answer to 2 decimal places.) b. how much was each entitled to if the interest rate was 6%? (do not round intermediate calculations. round your answer to 2 decimal places.)
Each granddaughter entitled to 3471.10 if the interest rate was 3%, and Each granddaughter entitled to 108,818.77 if the interest rate was 6%
Part a
Calculate how much was each granddaughter entitled to if the interest rate was 3%:
Here we get the Future Value, FV,
We have, FV = PV*(1+r)^n
Where FV is future value
PV is present value
n is the period (from 1880 to 2000)
r is the interest rate
Given that, PV=100
n=2000-1880=120 years
r=3%
FV=PV*(1+r)^n
=100*(1+0.03)^120
=100*34.710987
=3471.0987
FV=3471.10
Hence each granddaughter is entitled to future value of 3471.10
Part b
Calculate how much was each entitled to if the interest rate was 6%;
We have FV = PV*(1+r)^n
PV=100
n=120
r=6%
FV=100*(1.06)^120
FV=100*1088.187748
FV=108,818.7748
FV=108,818.77
Here, each is entitled to future value of 108,818.77
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