C i belive im pretty sure sure.
Answer:
Consumer EVA 7, 133.00
Commercial EVA 7,090.50
<u>Both are profitable</u>
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Explanation:
The EVA (economic value added) is the result from subtracting the cost of capital of the investment to their divisional income. This will determinate if the division increase the company's capital or destroyed (as it return less than optimal/desired)
Consumer Income 11,500
Investment: 35,500 + 4,200 = 39,700
EVA: 11,500 - 39,700 x 11% = 7, 133
Commercial Income 11,925
Investment: 39,750 + 4,200 = 43,950
EVA: 11,925 - 43,950 x 11% = 7090.5
Both division are profitable as they generate more income than the cost of the investment
Answer:
D. Efficiency in arranging transactions.
Explanation:
in a barter system, it is difficult to determine how much something would cost. If I am raising corn and you are raising cabbage, how much corn equals one head of cabbage? It is difficult to come to fair trade terms. With a monetary system, it is much easier to set a price and make a trade because everyone is using a common trading instrument.
Answer:
The correct answer is letter "B": increase the price level, but not real GDP.
Explanation:
The neutrality of money principle states that fluctuations in the money supply affect the prices of <em>goods, services, </em>and <em>wages</em> but not the growth in an economy or its real Gross Domestic Product (GDP). Austrian economist Friedrich A. Hayek (1899-1992) coined the term "<em>neutrality of money</em>" referring to a characteristic of money playing a neutral role in the growth of an economy.
Nowadays, specialists in the field believe the neutrality of money is a concept that applies in the long-run analysis of the productivity od a country.