Alex goes to the store to buy snacks. While he's there, he remembers he also has run out of deodorant. When Alex gets to the cashier, he finds that he's forgotten his wallet and has only $5 in cash to spend. Alex has to choose which items to buy. Which of the following key ideas of economics does this illustrate?
a. marginal analysis
b. market failure
c. tradeoffs
d. incentives
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Ответ:
C) Tradeoffs
Explanation:
A trade-off (or tradeoff) is a decision that has to be taken due to situation that involves diminishing or losing one quality, quantity or property of a set or design in return for gains in other aspects. In simple terms, a tradeoff is a situation where one thing increases while another must decrease.
Tradeoffs: Alex has found himself with only $5 to spend and must decide among the items. This illustrates the idea that scarcity forces tradeoffs.
Ответ:
$23,925 for both the second and third years
Explanation:
Depreciation is the systemic recognition of the cost of an asset in the profit or loss statement. It is an expense.
Depreciation may be computed on a straight line basis as
Depreciation = (cost - salvage value)/estimated useful life
Given that Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years and after four years it can sell the equipment for $2,000
Depreciation in the first year of use
= ($65,800 - $2,000)/4
= $15,950
The carrying amount at the start of the second year
= $65,800 - $15,950
= $49,850
Depreciation for the second year and 3rd year after the company realizes that this equipment will last only a total of three years
= ($49,850 - $2,000)/2
= $47,850/2
= $23,925