Economics Questions from Feb 23,2025

Browse the Economics Q&A Archive for Feb 23,2025, featuring a collection of homework questions and answers from this day. Find detailed solutions to enhance your understanding.

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A financial obligation requires the payment of \( \$ 1000.00 \) in 9 months, and \( \$ 500.00 \) in 12 months. When can the obligation be discharged by a single payment of \( \$ 1700.00 \) if interest is \( 12 \% \) compounded quarterly? Which of the following firms has the least incentive to advertise? a. A manufacturer of batteries b. A manufacturer of light bulbs c. A restaurant d. A wholesaler of crude oil A 11 -year \( \$ 8000.00 \) promissory note, with interest at \( 8.4 \% \) compound monthly, is discounted at \( 6.5 \% \) compounded semi-annually yielding proceeds of \( \$ 14631.15 \). How many months before the due date was date of discount? Defenders of the use of brand names argue that brand names a. provide information about the quality of the product b. give firms incentive to maintain high quality c. establishes the consistency of a product across different sales locations d. do all of the answer choices Which of the following is not an argument put forth by economists in support of the use of advertising? a. Advertising provides information to customers about prices, new products, and location of retail outlets. b. Advertising provides new firms with the means to attract customers from existing firms. c. Advertising provides a creative outlet for artists and writers. d. Advertising increases competition. Expensive television commercials during the Super Bowl that appear to provide no specific information about the product being advertised a. only affect the buying habits of irrational consumers b. should be banned by regulators because they add to the cost of the product without providing the consumer with any useful information about the product c. are most likely used by firms that are perfect competitors d. may be useful because they provide a signal to the consumer about the quality of the product A 11 -year \( \$ 8000.00 \) promissory note, with interest at \( 8.4 \% \) compound monthly, is discounted at \( 6.5 \% \) compounded semi-annually yielding proceeds of \( \$ 14631.15 \). How many months before the due date was date of discount? Which of the following is not put forth as a criticism of advertising and brand names? a. Advertising manipulates people's tastes to create a desire that otherwise would not exist. b. Advertising increases competition, which causes unnecessary bankruptcies and layoffs. c. Advertising increases brand loyalty, causes demand to be more inelastic, and thus, increases markup over marginal cost. d. Brand names cause consumers to perceive differences that do not exist between goods. e. All of the answer choices are criticisms of advertising and brand names. For the economy as a whole, what percentage of firm revenue is spent on advertising? a. 1 percent b. 2 percent c. 4 percent d. 6 percent e. 10 percent A loan of \( \$ 4500.00 \) was repaid together with interest of \( \$ 1164.00 \). If interest was \( 12.4 \% \) compounded quarterly, for how many months was loan taken out?
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