Every unit of good x that is produced in the United States has been exported to other countries. an increase in the price of good x shows up in the GDP deflator, but not in the consumer price index.
Gross Domestic Product (GDP) is a degree of the overall financial interest in a given USA or place, usually measured in phrases of the marketplace fee of all goods and services produced inside a rustic or place in a given time period, usually a year. it's miles the most commonplace measure of the scale of an economy and is used to compare the financial performance of various nations.
GDP is often used as an indicator of a rustic's economic health. with the aid of searching at a rustic's GDP, economists can get a feel of the way well a country's financial system is doing, in addition to its residents' popularity of residing. it's also used as a measure of the general length of an economic system relative to different international locations. GDP may be used to degree the relative monetary performance of different international locations or areas and can be used to evaluate the financial overall performance of different nations over the years.
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During the month of march, Sid, paid on salary, worked 35 hours the 1st week, 40 hours the 2nd week, 40 hours the 3rd week and 45 hours the 4th week
During the month of march, Sid, paid on salary, worked 35 hours the 1st week, 40 hours the 2nd week, 40 hours the 3rd week and 45 hours the 4th week and this is called fixed salary.
What is the fixed salary about?If Sid is paid on salary, it means that he is paid a fixed amount each month regardless of how many hours he works. Therefore, the number of hours he works each week would not affect his pay.
If Sid is paid an hourly wage, then the number of hours he works each week would affect his pay.
For example, if Sid's hourly wage is $20 and he worked 35 hours the first week, 40 hours the second week, 40 hours the third week, and 45 hours the fourth week, his total pay for the month of March would be $20 x 35 hours
= $<<2035 =700>>700 for the first week,
$20 x 40 hours = $<<2040=800>>800 for the second week,
$20 x 40 hours = $<<2040=800>>800 for the third week,
$20 x 45 hours = $<<2045=900>>900 for the fourth week,
For a total of $700 + $800 + $800 + $900 =
$<<700+800+800+900=3200>>3200 for the month of March.
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See full question below
During the month of march, Sid, paid on salary, worked 35 hours the 1st week, 40 hours the 2nd week, 40 hours the 3rd week and 45 hours the 4th week. What is this called
a. the banking system in the united states is referred to as a fractional reserve banking system because multiple choice 1 banks hold a fraction of deposits in reserve. a fraction of the money is lent out. a fraction of all monetary assets are held in banks. banks keep a fraction of reserves available. b. in a fractional reserve system, deposit insurance multiple choice 2 guarantees that depositors will always get their money, thus avoiding most bank runs. provides additional funds that can be lent out. is absolutely necessary or the banking system would collapse. raises the fraction of deposits that banks must keep available.
The concept mentioned is Fractional Reserve Banking.
1) Option A, banks hold a fraction of deposits in reserve.
2) Option A, guarantees that depositors will always get their money, avoiding bank runs.
Fractional-reserve banking is the system of banking operating in nearly all countries worldwide, under which banks that take deposits from the public are needed to hold a proportion of their deposit arrears in liquid means as a reserve, and are at liberty to advance the remainder to borrowers.
With a fractional reserve banking system, a fall in bank reserves results in multiple cascades in demand for deposit money. Deposits are insured by the Federal Deposit Insurance Corporation.
In a system known as fractional reserve banking, only a portion of bank deposits are guaranteed by factual cash that's on hand and accessible for withdrawal.
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hich practices are regulated by federal laws, in terms of a salesperson's ability to telephone potential customers?
The broad and permanent rules that the executive departments and agencies of the federal government publish in the Federal Register are codified in the Code of Federal Regulations (CFR).
The 50 titles indicate the major categories covered by federal regulation. The government controls company operations in five key areas: advertising, labour, the influence on the environment, privacy, and health and safety. A Federal Regulations is a list of requirements made by a federal government departments to implement a piece of legislation that Congress has approved. For instance, the Federal Reserve Board has produced regulations over the years to aid in the implementation of statutes like the Dodd-Frank Act.
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true or false: a key aspect of managing a brand's online reputation is to create positive content about the brand that will rank well in serps.
It is true that a key aspect of managing a brand's online reputation is to create positive content about the brand that will rank well in SERPs.
What is a SERPs?The list of outcomes a search engine produces in response to a specific word or keyword phrase query is known as a search engine results page (SERP). Search engine results pages (SERPs) typically feature paid search and pay-per-click (PPC) advertisements in addition to organic search results.
In addition, featured snippets, knowledge panels, video carousels, and image packs are typical examples of SERP features. Because results are indexed using ranking signals, which affect where a website appears on the results page, SERPs are significant.
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what percentage of shoplifters are considered professionals who derive the majority of their income from shoplifting
10% of shoplifters are thought to be professionals who rely on theft for the majority of their revenue.
Why do individuals shoplift?People may shoplift for a variety of reasons, the majority of which have nothing to do with a shortage of funds or a requirement for the item being taken, according to Psychology Today. An addiction to stealing and a mental illness that promotes the activity are two frequently cited causes. People may, for instance, struggle to restrain themselves from grabbing something if they have an impulsive problem. A brain injury or other sort of brain damage is another reason why someone might not understand or even be aware that taking something without paying for it is wrong.
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as the global market for eyeglass products has become extremely competitive in recent months, u-see products' newly appointed cfo believes the company should address its minimum efficient scale and attempt to lower it. what is a consequence of a low minimum efficient scale?
The result is that by producing the same item in many places, a company may protect itself against currency risk.
What are the four basic product types?There are four different types of products, and they are categorized according to customer behavior, cost, and technology products: Convenience items, and shopping items, specialty items, and unexpected items
Why is a product good?Good goods must have a strong value proposition, or solve a genuine problem, be simple and easy to use, and get stronger and harder to leave with with each usage. They should also be straightforward to comprehend by users.
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place the statements based on whether they increase or decrease the bargaining power of suppliers.
The product is not differentiated from those of other suppliers, the supplier's bargaining power will be reduced if it sells an undifferentiated product.
Since there is only one supplier in the market, this will increase their bargaining power.
Because the input is specialized, it will give the supplier more bargaining power because it is specialized.
Therefore, the response will be to increase or decrease because the only supplier on the market sells a product that is not differentiated and the input is specialized.
How can suppliers' bargaining power be reduced?Integration in retrospect: This is one of the strategies generally utilized today to decrease the haggling force of providers. Backward integration is the process by which a company acquires its suppliers to establish a monopoly in its industry or reduce supply chain volatility.
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the amount of income before deductions for interest expense and income taxes is the amount available to pay interest. the ratio takes this income divided by interest expense to determine the risk for creditors. need help? review these concept resources.
The amount of income that is left over after tax and interest deductions is the amount that may be used to pay interest. The risk to creditors is calculated using the times interest earned ratio, which divides this revenue by interest costs.
What is times interest earned ?The Times Interest Earned (TIE) ratio gauges a company's capacity to consistently pay down its debt. Divide a company's EBIT by its recurring interest expenditure to get this ratio.The capacity of a business to make debt payments on time is gauged by the interest coverage ratio or times interest collected. EBIT or EBITDA divided by the total interest expenditure might be used to determine it.Divide revenue by the total amount of interest due on bonds or other types of debt to arrive at this ratio. You'll get a figure that rates the company's capacity to pay interest charges with pre-tax earnings after doing this computation.The complete question is The amount of income before deductions for interest expense and income taxes is the amount available to pay interest The _____ ______ ______ ratio takes this income divided by interest expense to determine the risk for creditors.
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how does warehousing enable you to take advantage of transportation economies? a. warehousing lets you ship in less-than-truckload quantities. b. warehouses enable you to receive full inbound shipments, which can be broken down and stored. c. warehouses allow you to consolidate outbound shipments, helping you ship in full truckload quantities. d. warehouses let you produce in large quantities. e. all of the above f. only b and c
The warehousing enable a person to take advantage of transportation economies, as the warehousing lets to ship in less-than-truckload quantities. Thus, option A is correct.
What is the warehousing?A warehouse is a structure used to store goods. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, and others use warehouses. They are typically large plain buildings located on the outskirts of cities, towns, or villages.
Therefore, Warehousing allows a person to take advantage of transportation economies by shipping in less-than-truckload quantities, so, option A is correct.
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how are monopolistic competition and a oligopoly similar? group of answer choices both involve the production of homogeneous products. both have barriers to entry that limit competition. oligopolistic interdependence is important in both market structures. none of the above
The similarity between monopolistic and oligopolies is that they both are involved in the production of homogeneous products.
Monopolistic competition:
An industry with monopolistic competition is one in which numerous businesses provide products that are similar but not exact alternatives.
It is argued that enterprises in this type of industry have a low degree of market power because decisions made by one company do not directly affect those of its rivals.
Products are generally comparable, thus businesses must use aggressive marketing to differentiate their offerings.
This marketing focuses on differentiating the product from competing products, which may be accomplished, for instance, by offering a price reduction or enhancing the product's branding.
Low entry barriers in monopolistic competition encourage new businesses to enter the market and boost competition.
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Which strategy benefits from upside price movement and has some protection should the price of the security fall?.
The Bull Spread strategy benefits from price movement to the upside and provides some protection if the security price falls. Thus, the correct answer is Bull Spread.
What is Bull Spread?A bull spread is a bullish vertical spread options strategy meant to profit from a slight rise in the underlying security's price. Because of put-call parity, a bull spread can be built using either put or call options. It is a bull call spread when built with calls. A bull put spread is formed by employing puts. A bull put spread is created by selling higher strike put options and purchasing the equivalent amount of lower strike put options on the same underlying securities with the same expiration date. The options trader adopting this approach believes that the underlying security's price rises sufficiently to make the written put options worthless.
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if an online retailer has focused almost exclusively on demand harvesting efforts for the last few years, it should
If an online retailer has focused almost exclusively on demand harvesting efforts for the last few years, it should focus on demand generation.
The meaning of the word "retailer"Instead of purchasing products from producers or wholesalers for their personal use, buyers obtain items for resale to clients through the retail process. Between the wholesaler and the consumer, the retailers act as a middleman. They buy products from wholesalers and resale them in small quantities to clients.
What role does the shop play?Retailers buy products in bulk from wholesalers and then sell them in smaller amounts to clients. A shopkeeper essentially keeps a range of items on hand. The ultimate aim of a business is to maximize client satisfaction by going above and beyond their expectations and providing excellent services.
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quizlret gdp is adjusted to reflect changes in the quality of the environment such as changes in air and water quality. true false
This announcement is false. GDP is adjusted to mirror changes in the great of the surroundings such as adjustments in air and water quality.
To determine “real” GDP, its nominal fee ought to be adjusted to take into account fee modifications to permit us to see whether or not the fee of output has gone up due to the fact more is being produced or honestly because expenditures have increased.
Which GDP is adjusted for rate changes?The gross domestic product implicit charge deflator, or GDP deflator, measures changes in the expenses of goods and services produced in the United States, including those exported to other countries. Prices of imports are excluded.
How regularly is GDP adjusted?BEA estimates the nation's GDP for each year and each quarter. But new GDP records are launched each and every month. Why? Because for each quarter, BEA estimates GDP three instances
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in the continuous change process model, the person responsible for managing the change effort is called
In the continuous change process model, the person responsible for managing the change effort is called a change agent.
What is the Continuous Change Process Model?The continuous change process paradigm encompasses the forces of change, the change process, a change agent, and transition management. This change model addresses it from the perspective of senior management and sees change as an ongoing activity.
Not to mention, a major alteration that is seen as a journey rather than as a destination. As an illustration, consider a city that strives to have the highest quality of life in the US and initiates a bold reform with widespread support.
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A person who is friendly, open, and confident possesses essential skills for
an assembly line worker
a customer service position
a mail carrier position
a maintenance worker position
A customer service position would be a positive role for a friendly, open and confident person. Option B is correct.
What does effective customer service look like?It is necessary that the professional who works with customer service has some characteristics, such as ease of communication, empathy and cordiality. Customer needs must be the focus of service, in addition to ethics and equal treatment of any customer indiscriminately.
Therefore, a person with such openness, reliability and friendly characteristics can be beneficial in making the customer feel that he was treated well during a service and doing business with the company again.
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A_____occurs when there is only one company that sells a product in a given market. when competitors agree to sell a product for the same price instead of competing, this is called a____. both monopolies and trusts reduce____, which results in increased for consumers.
A market situation where one business controls all of the market share and the prices and output is referred to as a monopoly.
How Does a Monopoly Work?A monopoly is a market arrangement where one producer or seller holds a disproportionate amount of power within a certain market. Monopolies are forbidden in free-market economies as they limit customer alternatives and impede competition.A market arrangement known as a monopoly has just one seller or producer.A monopoly restricts the number of product alternatives accessible and makes it difficult for rivals to enter the market.Monopolies may result in dishonest business practices.Government regulations apply to certain monopolies, such as those in the utility industry.A company that enjoys monopoly status lacks substitutes for its goods and faces little internal competition. Monopolies have the power to set prices and erect obstacles to entry for rival businesses.Rarely do pure monopolies exist, but when they do, antitrust rules do apply when some corporations control a sizable amount of the market.To learn more about Monopoly refer to:
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Answer:
Monopoly, trust, competition, prices
Explanation:
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business continuity management is a multiple choice preventive control. detective control. corrective control.
Business continuity management strategies include preventive control, detective control, and corrective control.
How can business continuity be achieved?Business continuity strategy refers to a stage of the BCM planning procedure. It provides a conceptual overview of the crisis response tactics, preventive (mitigation) measures, and recovery strategies that must be put into place between the time a disaster strikes and the moment that regular operations can resume.
How does business continuity consist of its three elements?Resilience, recovery, and contingency are the three crucial parts of a business continuity plan. An company can increase its resilience by incorporating employee rotation, data redundancy, and maintaining a surplus of capacity when creating essential infrastructure and functions.
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what is the maximum amount of expenses on which the child and dependent care credit is based for tax year 2022?
Answer: You may deduct a maximum of $3,000 for one person's care costs in 2022 and $6,000 for two or more persons. You may deduct 20% to 35% of your eligible expenses.
Explanation: Is income a factor when determining tax credits?
Earned Income Tax Credit
A person's adjusted gross income, earned income, and investment income are taken into account when determining their eligibility and credit amount.
What does the term "tax credit" mean?
A tax credit equals a dollar-for-dollar reduction in your income. For instance, if you owe $1,000 in total tax on your return but qualify for a $1,000 tax credit, your net liability is zero.
Does tax credit depend on adjusted gross income?
The following factors determine eligibility for premium tax credits:
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in a closed economy government spending was $30 billion, consumption was $70 billion, taxes were $20 billion, and gdp was $110 billion this year. investment spending was $10 billion. as a result:
A $10 billion net influx of capital.
Describe net capital.The gap between a company's current assets and current liabilities is known as net working capital. A company's balance sheet is used to calculate net working capital. The more net working capital you have, the more probable it is that your business will be able to pay its present commitments.
Briefing
Given that,
Government spending = $30 billion,
Consumption = $70 billion,
Taxes = $20 billion,
GDP = $110 billion
Investment spending = $10 billion
Y = Consumption + Investment spending + Government spending
= (Consumption - Taxes) + $10 billion + $30 billion
= ($70 billion - $20 billion) + $10 billion + $30 billion
= $50 billion + $10 billion + $30 billion
= $90 billion
Due to the fact that GDP is bigger than income (Y). Consequently, there has been a net influx of capital:
= GDP - Y
= $110 billion - $90 billion
= $20 billion
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brody invests money in an account paying a simple interest of 8.6% per year. if he invests $50 and no money will be added or removed from the investment, how much will he have in one year, in dollars and cents?
Brody will have final amount of $54.30 in one year. Future value at the conclusion of the period is the entire amount borrowed or the final amount, whichever is greater.
How to calculate final amount ?The final sum, often known as the entire amount borrowed, is what is referred to as the future value. The future value simple interest formula illustrates the future value that simple interest will produce once the time period has passed.
The sum of the initial principal amount and the interest accrued on that principal amount at the end of the period is the future value simple interest formula.
To find out how much money Brody will have in one year, you can use the following formula:
final amount = principal * (1 + rate * time)
In this case, the principal is $50, the rate is 8.6% per year, and the time is 1 year. Plugging these values into the formula, we get:
final amount = $50 * (1 + 0.086 * 1)
= $50 * 1.086
= $54.30
So, in one year, Brody will have $54.30 in his account.
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in new zealand, the opportunity cost of 1 bale of cotton is a. 1/2 bushel of wheat. b. 2 bushels of wheat. c. 1 bushel of wheat. d. 5 bushels of wheat
In New Zealand, 2 bushels of wheat are needed to replace 1 bale of cotton.
Which of the following statements about national comparative advantages in producing different goods is true?When one nation can create things at a lower opportunity cost than another one, that nation has a comparative advantage. A nation cannot enjoy a competitive advantage across all industries. It is possible for a nation to have a definite advantage in all items, nevertheless.Australia sacrifices 200 bales of cotton altogether, producing 800-200=600 bales of cotton, with a cost of 2 bales of cotton for every bushel of wheat produced. Around 600 cotton bales are produced by CER.In New Zealand, 2 bushels of wheat are needed to replace 1 bale of cotton.To learn more about Opportunity cost refer to:
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in the persepolis book what tools does the iranian government use throughout the book to oppress its people?
Forcing Muslims to consume pork, consume alcohol, and renounce their religion is oppression and repression of freedom. They are subjected to these constraints and are compelled to share the communist party's beliefs.
This demonstrates oppression the government violates the rights and beliefs of its citizens. The government wields considerable power over its citizens in Persepolis and imposes numerous communist on how individuals can live their lives. For example, if alcohol is prohibited, Marji and her grandmother must flush all of the family's alcohol down the toilet before the house is inspected. In Persepolis, the veil was the most oppressive symbol.
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what are the relationships between people that arrange the production, distribution, and consumption of goods called?
Economics is a social science that examines how products and services are production, distribution, and consumption as well as the decisions that people, corporations, governments, and nations make when allocating resources.
How are the forces of production and the relations of production related?The materials worked on as well as the equipment and procedures used in the creation of economic items are referred to as the forces of production. The term "relationships of production" describes the social interactions that take place during the manufacturing process, particularly between owners and non-owners of the means of production. Sales and delivery of goods and services from a manufacturer to a customer are both considered to be part of distribution. This is sometimes referred to as product distribution. To keep customers satisfied and all members of the distribution channel happy as business grows increasingly global, it is crucial to improve distribution.
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did tax lax law changes effective in 2018 increase or decrease the amount of the double tax on c corporation income? explain.
The tax law changes effective in 2018 decrease the amount of the double tax on c corporation income.
What is tax lax law?Based on the specifics of each situation and the corporate tax rate of 21%, certain organisations may use C corporations more frequently (e.g., the applicability of the new top individual rate of 37 percent, still subject to the individual AMT, and a new deduction for certain pass-through income discussed below).Every person submitting a 2018 tax return is impacted by significant changes to the tax code. The IRS developed a number of materials, which are available on IRS.gov, to assist taxpayers in understanding these changes. Here is a concise summary of significant changes, along with a link to additional details on IRS.gov.The way pass-through business income is taxed has significantly changed under the new tax law. This includes revenue generated by partnerships, LLCs, and single proprietorships.To learn more about Tax Law refer to:
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what is not a product characteristic? group of answer choices complexity trialability observability relative advantage price
The one which is not a product characteristic is observability.
Product characteristics are considered to be the attributes of the product itself which are thus needed in order to be controlled. Thus, the examples of the product characteristics are tend to be shape, size, weight, color, quality, hardness, etc.
However, the list of the product characteristics tend to depend on your product and how its functional design requirements have been defined. Product is said to be complex of tangible and also the intangible attributes, including packaging, color, price, prestige, etc.
Hence, the one which is not a product characteristic is called observability.
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a bond has a macaulay duration of 4.0, a yield to maturity of 4.5%, a coupon rate of 5.0%, and semiannual interest payments. what is the bond's modified duration?
The correct answer is 3.91 years. Modified Duration = 4.0 / (1 + (.045/2)) = 3.91 years.
What are bond markets?The bond market is a financial market where players can buy and sell debt securities as well as issue new debt, often known as the primary market.
For both public and private spending, this is typically in the form of bonds, but it may also take the shape of notes, bills, etc.
According to SIFMA, the bond market is expected to be worth $119 trillion globally and $46 trillion in the US.
Bank loans and bonds together make up the credit market. In total, the global credit market is almost three times larger than the global equity market.
Bonds often have stricter regulations. Bonds are often sold in relatively small denominations of $1,000 to $10,000 and are not typically secured by security.
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Help!!!!!! i need help Quick
1. What is the savings in a bank referred to as? (1 point)
A. A pile of money under your mattress
B. A real estate property
C. A luxury car
D. An interest bearing savings account
2. Which option is an investment with compound interest?(1 point)
A. a rental property
B. a checking account
C. a mutual fund following the S&P 500
D. a savings account
3. Which of these is considered a financial market?(1 point)
A. Sotheby’s auction
B. New York Stock Exchange
C. J.P. Morgan Chase
D. Ferrari dealership
4. Which of the following is not a characteristic of a typical bank savings account?(1 point)
A. no restrictions on money withdrawals or deposits
B. savings are easily accessible for the customer
C. a high interest rate
D. an average of 0.05% interest with no other restrictions
5. Which of the following are considered to be capital gains?(1 point)
A. the new value of a stock after the market closes
B. the profit earned on the sale of an asset which has increased while it was owned
C. the money lost when a stock is sold for less than it was purchased for
D. the interest earned from a government bond
6. Which of these is a mutual fund? (1 point)
A. a fund that pools money from many investors to buy securities
B. a fund used to pay shared bills and expenses
a fund used by the government to gather taxed money
a fund that you share with your family to save in the bank
7. Which is a source of passive income?(1 point)
A. teaching about personal finance
B. owning dividend stocks
C. owning luxury cars
D. working as a consultant
8. Which is an employer-sponsored retirement plan?(1 point)
Responses
A. a type of account offered to employees at very little or no cost
B. a Social Security coverage that is offered only to employed citizens
C. a strategy offered by the company that will advise employees on how to invest in order to retire
D. a private bank plan that is recommended by the company
9. Which is an appropriate use of money in an emergency fund?(1 point)
A. buying a brand new car
B. replacing the furnace in July
C. replacing the furnace in January
D. painting the house
10 Which option defines a tax benefit? (1 point)
A. a type of tax form that needs to be completed each year.
B. some type of savings for taxpayers
C. a government loan
D. a government bond affiliated to tax collection
An asset or object acquired with the intention of creating income or recognition is referred to as an investment.
What is Investment ?A purchase of products that are not consumed right away but will be utilized to create wealth down the road is referred to as an investment in an economic outlook.
Investments refer to a portion of revenue that is set aside each year for capital formation rather than being used for consumption.
1. What is the savings in a bank referred to as option D is correct.
2.Option C is correct .
3.Option B is correct .
4. Option C is correct .
5. Option D is correct .
6. Option A is correct .
7.Option B is correct .
8.Option B is correct .
9. Option C is correct .
10. Option B is correct .
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an individual's taxable income equals adjusted gross income less the greater of the standard deduction or itemized deductions less the qbi deduction. true or false
A tax simply means a compulsory financial levy that is imposed on a taxpayer by a governmental organization to fund government expenditures.
Why is my standard deduction more than my income?Many people may also find the standard deduction amount greater than the total that they could reach if they added up all their eligible tax-deductible expenses separately. Whether you use the standard deduction or itemize your deductions is up to you, but you cannot do both.The standard deduction amount typically increase each year due to inflation. You usually have the option of claiming the standard deduction or itemizing your deductions. However, you can't claim both in the same year.Taxation refers to an involuntary and compulsory fee that are usually levied on individuals or business firms (entities) by the government, in order to generate revenues which are used in funding public institutions and activities.Taxable income can be defined as an individual or a business firm's earnings (amount of income) that is used by federal or state authorities, as a base to determine the tax to be levied on them.
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suppose your refrigerator uses 300 w of power when it's running, and it runs 8 hours a day. what is the yearly cost of operating your refrigerator?
If our refrigerator uses 300 w of power when it's running, and it runs 8 hours a day than the yearly cost of operating at Rs.4.00 per kWh will be Rs. 3504.
Power of refrigerator =300W=0.3kW
Total operation hours 8×365=2920h
Work done or total electrical energy (W)=0.3×2920=876kWh
Total cost of energy to operate =Rs.(876×4.00)=Rs.3504
1 kWh is equal to 3 600 000 joules.
Yearly cost of operating is the continued expenses incurred from the traditional daily of running a business. in operation prices embody each prices of products sold (COGS) and alternative in operation expenses—often referred to as marketing, general, and body (SG&A) expenses.
The question is incomplete, find the complete question here
suppose your refrigerator uses 300 w of power when it's running, and it runs 8 hours a day. what is the yearly cost of operating your refrigerator at Rs.4.00 per kWh?
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for each market, determine whether each market is likely to have sufficient barriers to entry to allow individual firms to make positive economic profits in the long run. classify each market as possessing sufficient barriers to entry or not possessing sufficient barriers to entry.
Barriers to entry refer to restrictions placed on new firm or market entry.
Barrier cost is an economic term that refers to high initial costs that limit or prevent other competitors in the industry from entering the business. . These barriers or restrictions make it difficult for other companies to participate in business. They can be
a). Government Regulation - Sometimes the government imposes many restrictions on the entry of a new business. This could be a licensing requirement or a resource availability limitation.
b). Economies of scale - These refer to production efficiencies that occur when a firm grows and can cover the entire market at a lower cost than many smaller firms producing the same product in smaller quantities. Production costs are lower in one company than in many companies.
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