Even if the car has an air bag, the driver must insist on wearing a seatbelt.
How can a seatbelt assist prevent accidents?The function of a seat belt, also referred to as a safety belt or seatbelt, is to safeguard the vehicle's driver or passenger from potentially hazardous movement that could happen during an accident or an abrupt stop. By lessening the force of secondary hits with interior striking hazards, retaining occupants in the proper position for the airbag's optimal effectiveness (if provided), and preventing people from being ejected from the vehicle after a crash or if the vehicle rolls over, a seat belt lowers the likelihood of death or serious injury in a traffic collision.
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The _______ middle refers to a group of products that are well suited to be sold online because they are fairly complex and require a medium level of trust to sell.
"The complex trust middle refers to a group of products that are well suited to be sold online because they are fairly complex and require a medium level of trust to sell."
The "complex trust" middle refers to a group of products that are ideally suited to be sold online because they require a medium level of trust and are fairly complex. These products are typically higher in price and require a significant amount of research and consideration before a customer makes a purchase decision.
Examples of complex trust middle products include electronics, furniture, and household appliances. Customers are likely to research these products thoroughly before making a purchase, and they require a certain level of trust in the seller and the product's quality. Selling these products online provides customers with the convenience of shopping from home, and sellers can take advantage of the ability to provide detailed product information and customer reviews to build trust with potential buyers.
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Mention three reasons why discrimination against gender is illegal in South Africa Constitution
Answer: #1: The Constitution of South Africa
#2: Employment Equity Act
#3: Promotion of Equality and Prevention of Unfair Discrimination Act
Explanation:
A sibation in which a market economy leads to too few or too many resources going to a particular econacnic activity is known as A. creative destruction 8. excesshe competion. C. competion D. a market
A context in which a market economy causes too many or too few resources to be allocated to an economic activity is called market failure. Alternative D. is correct.
A market failure occurs when the allocation of resources by the market is inefficient, leading to too few or too many resources going to a particular economic activity. This can occur due to a variety of reasons, such as externalities, public goods, imperfect information, and market power.
Market failures can lead to suboptimal outcomes, such as underproduction or overproduction, or the misallocation of resources. Therefore, market failures can justify government intervention in the economy to correct these inefficiencies and improve overall welfare.
In conclusion, alternative D. a market failure is correct.
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Define the term balanced market. What is meant by equilibrium price?
A balanced market con-sists of supply meeting demand. In other words, the num-ber of homes for sale is equal to the num-ber of people trying to pur-chase properties. There are 3 types of mark-ets that every one needs to know :
Balanced Market
Buyers’ Market
Sellers’ Market
What do you mean by equilibrium price?A market is said to have reached equilibrium price wh-en the supply of goods mat-ches demand.
A market in equili-brium demonstrates three character-istics : the behavior of age-nts is consistent, there are no incent-ives for agents to change behavior, and a dy-namic process governs equilibrium out-comes.
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what role was there for other branches and levels of government in enforcing brown v. board of education
Answer:
The role of the Brown II to the other branches of the government was to eliminate racial discrimination in public education. The board of members in each school was given the power to remove racial policies in public schools.
16. Family members were put in charge of specific regions by Zhou rulers
for what reason?
O To ensure that everyone in the empire was happy
O To keep control and influence over all of the different regions in the empire
O To start a civil service that met the criteria of Confucianism
By having a strong army on standby at all times
* 1 point
Answer:
The answer is: O To keep control and influence over all of the different regions in the empire.
Explanation:
the method of limits takes into account the variability of human perception by a. measuring brain activity concurrently. b. using deception to hide the true purpose. c. consistently presenting subliminal stimuli to avoid bias. d. averaging the results of several trials.
The method of limits is more objective because it requires less feedback from the individual. It is also less prone to bias because the results are based on D. an average of several trials.
The method of limits is used to determine the threshold value of a stimulus. It is a popular method in psychophysics that considers the variability of human perception. The method of limits determines the threshold by measuring the least amount of stimulus that an individual can detect, recognize or identify.The method of limits takes into account the variability of human perception by averaging the results of several trials. During these trials, the stimulus intensity is varied in small increments. The stimulus intensity is increased or decreased until it reaches a point where it can no longer be detected by the individual being tested. This point of threshold is noted and recorded.
The method of limits is more objective because it requires less feedback from the individual. It is also less prone to bias because the results are based on an average of several trials. It provides a more accurate measurement of the threshold value of a stimulus because it takes into account individual differences in perception and response.The method of limits can be used for various stimuli such as sounds, lights, or tastes. It has been used to test hearing thresholds, visual acuity, and even taste thresholds. The method of limits is used to determine the threshold value of a stimulus by averaging the results of several trials. The variability of human perception is taken into account to provide more accurate measurements.
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How is the federal legislature formed? Mention in according to the constitutional provision. State the reasons maintaining the provision of legislatives in three levels of the government
In U.S, both the House and Senate have the power to propose and pass legislation, although certain types of bills, such as revenue bills, must originate in the House.
The Constitution also provides for a complex system of checks and balances between the two chambers and between the legislative, executive, and judicial branches of government.
How is the U.S. federal legislature formed and its structure?The federal legislature, also known as the United States Congress, is formed by the U.S. Constitution in Article I, Section 1. The Constitution establishes a bicameral legislature consisting of two chambers: the Senate and the House of Representatives.
The House of Representatives is composed of 435 members who are elected every two years by popular vote in each of the 435 congressional districts. The number of representatives for each state is determined by its population as determined by the decennial census.
The Senate, on the other hand, consists of 100 members, with each state electing two senators for six-year terms. Senators were originally elected by state legislatures, but this was changed by the 17th Amendment to the Constitution, which provides for the direct election of senators by the people.
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Spanish coerced labor of Mexican natives:
A indentured servitude
B mita
C encomienda
D chattel slavery
Member of Congress are paid by the Department of Treasury and can have a private personal office in addition to work in Congress
((True or false ))
Member of Congress are paid by the Department of Treasury and can have a private personal office in addition to work in Congress
((True or false ))
Ans: True
BCG matrix used by stock brokers and other financial
professionals, is the BCG matrix used in most companies to
categories their products.
The BCG Matrix is a tool used by stock brokers and other financial professionals to analyze the investments of their clients. It is a portfolio analysis tool that helps classify products based on their market share and growth rate.
The market share is typically measured in terms of sales, while the growth rate is measured as the percentage of market share that the product has gained or lost over a certain period.
The BCG Matrix divides products into four categories: Dogs, Cash Cows, Stars, and Question Marks. Dogs are products that have a low market share and low growth rate, Cash Cows are products with a high market share and low growth rate, Stars are those with a high market share and high growth rate, and Question Marks are products with a low market share and high growth rate. By analyzing products this way, financial professionals can help their clients make informed decisions about their investments.
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Click on the picture link above to enlarge the picture. Review the differences between the left and the right. Based on the graphic with which side do you most identify and why? Don't forget to explain your answer.
What is crucial when collecting evidence to determine a wrongful death?
surveillance
protecting the scene of the crime
documenting the scene of the crime
conducting a search of the crime scene
In the rental housing market, what would be the effect of a rent control that was set at the market equilibrium rental price? (A) It would increase the number of housing units available, creating a surplus. (B) It would decrease the number of housing units available, creating a shortage. (C) It would have no impact on the number of housing units available. (D) It would increase the consumer surplus and decrease the producer surplus. (E) It would decrease the consumer surplus and increase the producer surplus
In the rental housing market, what would be the effect of a rent control that was set at the market equilibrium rental price it would have no impact on the number of housing units available.
The correct answer is (C).
When rent control is set at the market equilibrium rental price, it means that the price ceiling is set at the market price level. This creates no incentive for landlords to raise their rents, but also no incentive for them to provide more housing units. As a result, the quantity supplied of rental housing will remain the same as before, and the quantity demanded will also stay the same since renters will not have an incentive to consume more rental housing at the same price level.
If the rent control was set below the market equilibrium price, it would create a shortage of rental housing since the quantity supplied would decrease due to the lack of incentive for landlords to produce more rental housing, and the quantity demanded would increase since renters would want to consume more rental housing at a lower price level.
Thus, rent control set at the market equilibrium rental price would not affect the quantity of housing units available in the rental housing market.
The correct answer is (C).
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using straight line method. Generate the plots using Microsoft excel.
4. A company has purchased an equipment whose first cost is BD1,00,000 with an estimated life of eight years. The estimated salvage value of the equipment at the end of its lifetime is BD. 20,000. Determine the depreciation charge and book value at the end of various years using the sinking fund method of depreciation with an interest rate of 12%, compounded annually.
The tοtal amοunt οf the depreciatiοn charge οver the 8 years is BD 666,666.67. At the end οf the 8th year, the bοοk value οf the equipment is BD 233,333.33.
What is amοunt?Amοunt is a term used tο refer tο the quantity οr size οf sοmething. It is used tο describe a numerical value that can be measured οr cοunted. Amοunt is οften used in financial cοntexts, such as when discussing the amοunt οf mοney in an accοunt, the amοunt οf mοney οwed, οr the amοunt οf mοney spent οn a purchase.
The fοllοwing table shοws the depreciatiοn charge and bοοk value at the end οf variοus years using the sinking fund methοd οf depreciatiοn with an interest rate οf 12%, cοmpοunded annually.
Year | Depreciatiοn Charge | Bοοk Value
-----|--------------------------------|-----------
1 | BD 83,333.33 | BD 816,666.67
2 | BD 83,333.33 | BD 733,333.33
3 | BD 83,333.33 | BD 650,000.00
4 | BD 83,333.33 | BD 566,666.67
5 | BD 83,333.33 | BD 483,333.33
6 | BD 83,333.33 | BD 400,000.00
7 | BD 83,333.33 | BD 316,666.67
8 | BD 83,333.33 | BD 233,333.33
The total amount of the depreciation charge over the 8 years is BD 666,666.67. At the end of the 8th year, the book value of the equipment is BD 233,333.33.
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when the response requirements of an emergency event exceeds the capabilities of established emergency services in one or more critical areas, the event is classified as a
When the response requirements of an emergency event exceeds the capabilities of established emergency services in one or more critical areas, the event is classified as a "disaster."
A disaster is an event that exceeds the capacity of a community or region to effectively respond using its own resources. Disasters can be natural, such as hurricanes, earthquakes, or wildfires, or they can be human-caused, such as terrorist attacks or industrial accidents. In a disaster, emergency services may be overwhelmed, leading to delayed or inadequate responses that can exacerbate the impact of the event. In these situations, additional resources, personnel, and support may be required from outside the affected area to effectively manage the disaster and minimize its consequences.
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Based on both accounts, what opinion about the Boston Tea Party do Joshua Wyeth and John Andrews share? Answer and give 2 details please
John Andrews was a loyalist who opposed the actions of the Sons of Liberty and the Boston Tea Party. He believed that the colonists should not take violent actions against the British government.
What was Joshua Wyett's perspective?In his words, he said, "I was just given a little heads-up about what was going to happen. We decided to disfigure ourselves and dress like Indians in order to avoid being discovered"
John Andrews believed that the colonists should instead pursue a peaceful resolution to their grievances. He argued that the Boston Tea Party was an illegal and immoral act of destruction and that it would only serve to further inflame tensions between the colonies and Great Britain
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which of the following is false concerning the template model of object recognition? accounts for the human ability to recognize novel configurations of objects
The statement that is false concerning the template model of object recognition is that it "accounts for the human ability to recognize novel configurations of objects."
The template model of object recognition suggests that we recognize objects by comparing them to a template or prototype that we have stored in our memory.
However, this model has difficulty accounting for the human ability to recognize novel configurations of objects, as it relies on the presence of a stored template or prototype for recognition. Therefore, the statement that the template model "accounts for the human ability to recognize novel configurations of objects" is false.
In contrast, other models of object recognition, such as the feature-based model and the structural description model, are better able to account for the recognition of novel configurations of objects.
These models suggest that we recognize objects based on their individual features or structural relationships, rather than comparing them to a stored template or prototype.
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which of these statements is true? question 17 options: japanese americans have had a stronger influence than chinese americans on the culture of the united states. chinese americans have had a stronger influence than japanese americans on the culture of the united states. there are more japanese americans than chinese americans living in the united states.
The true statement is that Chinese Americans have had a stronger influence than Japanese Americans on the culture of the United States.
The Japanese culture and Chinese culture have both had a significant influence on the culture of the United States.
What is culture?
Culture can be defined as a set of learned and shared beliefs, values, behaviors, and material objects that define the members of a society. It is learned because we are not born with culture but acquire it through interaction with people who share our culture.
What is Japanese culture?
Japanese culture is distinct from other East Asian cultures because of its unique aesthetics, art, and rich history. Japanese cuisine is known for its artistry, presentation, and exceptional quality. Artistic traditions, such as ikebana and origami, are also prevalent in Japanese culture.
What is Chinese culture?
China is known for its rich history, culture, and achievements in science and technology. Chinese culture, like other cultures, is composed of customs, values, beliefs, material artifacts, and other tangible and intangible elements.
Chinese food, music, martial arts, and calligraphy are all elements of the country's culture.
QUESTION 17: Japanese Americans have had a stronger influence than Chinese Americans on the culture of the United States.
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Select all of the following that are true: An appreciation of the DC gives foreign investors (DI) an arbirtrage opportunity due to the lower relative price of investment (RP). An appreciation of the currency will reduce the GDP of a country A country can "export" its inflation by appreciating its currency, which is consistent with monetary policy An appreciation of the domestic currency reduces the reported profits of multi-national firms domiciled in the domestic country (assume no factor changes) An appreciation of the domestic currency increases the profits of domestic firms that make sales to foreigners (exports).
Following are true-A Multi-national firms domiciled in the domestic country (assume no factor changes). An appreciation of the domestic currency increases the profits of domestic firms that make sales to foreigners (exports).The correct answer is option d and e.
a. An appreciation of the DC (domestic currency) makes investment relatively more expensive for foreign investors. Therefore, it does not give them an arbitrage opportunity, but rather a disincentive to invest. On the other hand, it makes imports cheaper, which can benefit domestic consumers.
b. This is not necessarily true. An appreciation of the currency can reduce the GDP if it leads to a significant decrease in exports, as they become more expensive for foreign buyers. However, it can also increase the GDP if it leads to an increase in domestic consumption due to cheaper imports.
c. This is not consistent with monetary policy, as the objective of most central banks is to maintain stable prices. Exporting inflation by appreciating the currency can lead to higher import prices and inflationary pressure, which could undermine the central bank's efforts to maintain price stability.
d. This is true. If a domestic firm has operations in foreign countries and earns income in foreign currency, an appreciation of the domestic currency would reduce the reported profits when the foreign income is translated back into the domestic currency.
e. This is true. An appreciation of the domestic currency makes exports more expensive for foreign buyers, but it also makes imports cheaper for domestic consumers. Therefore, domestic firms that export goods or services would face a decrease in demand, but domestic firms that rely on imported inputs would see a decrease in costs and an increase in profits.
In conclusion, the effects of currency appreciation are complex and depend on various factors such as the structure of the economy and the nature of firms' operations.
While an appreciation of the currency can have both positive and negative effects, it is generally considered desirable by policymakers as it reflects the relative strength of the domestic economy and can enhance its credibility in international markets.
The correct answer is option d and e.
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Complete question
Select all of the following that are true:
a. An appreciation of the DC gives foreign investors (DI) an arbirtrage opportunity due to the lower relative price of investment (RP).
b. An appreciation of the currency will reduce the GDP of a country
c. A country can "export" its inflation by appreciating its currency, which is consistent with monetary policy
d. An appreciation of the domestic currency reduces the reported profits of multi-national firms domiciled in the domestic country (assume no factor changes)
e. An appreciation of the domestic currency increases the profits of domestic firms that make sales to foreigners (exports).
What is the atmosphere?
It is another name for outer space
The first layer of the Earth's crust
A layer of gases that surround the Earth
The name of a trendy restaurant
All of the above
Answer:
the third one
Explanation:
It surrounds earth in gases.
Problem \#1 (20 pts) J
B
is planning to retire in 35 years. He would like to deposit a regular amount every 2 weeks until he retires at an average rate of return of
12%
compounded quarterly. Following his retirement, he wishes to receive an annual payment of
$120,000
increasing by
$3,000
per year for 25 years. Assume that withdrawals occur at the beginning of each year during retirement. a. How much money he must have in his saving account at retirement?
JB needs to have $3,828,263.77 in his savings account at retirement.
Calculation of the final account balance: Final account balance is the amount of money a person should have in his/her savings account at the time of retirement.
In this problem, we have to find the final account balance of JB. The formula for the final account balance is: B = [P(1 + r/n)nt – A / (1 + r/n)nt - 1](1 + r/n)Assuming that JB deposits a regular amount, say P, every 2 weeks, we will have to find the value of P to use in the formula above.
The first step is to determine how much will be deposited over the next 35 years every two weeks: We will find the future value of this ordinary annuity with the following formula:
Future value of an ordinary annuity (A) = P[((1 + r/n)nt - 1) / (r/n)]A = $[P((1 + 0.12/4) * (35 * 52) - 1) / (0.12/4)]$1,233,513.45 = P[((1 + 0.12/4)^(4 * 35) - 1) / (0.12/4)]
To calculate the present value of the annuity:
PV of annuity = P[((1 + r/n)nt - 1) / (r/n)] × 1 / (1 + r/n)n
PV of annuity = P[((1 + 0.12/4)^(4 * 35) - 1) / (0.12/4)] × 1 / (1 + 0.12/4)^(4 * 35)
PV of annuity = $1,233,513.45 × 1 / (1 + 0.12/4)^(4 * 35)
PV of annuity = $69,159.02Now, we can find the final account balance by using the above formula:
FAB = [P(1 + r/n)nt – A / (1 + r/n)nt - 1](1 + r/n)
FAB = [$69,159.02(1 + 0.12/4)^(4 * 25) - $120,000 / (1 + 0.12/4)^(4 * 25) - 1] × (1 + 0.12/4)FAB = $3,828,263.77.
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We are given the following labour per output ratios for the US and Mexico:
Chemicals Radios
US 1 3
Mexico 10 5
This should be read as; in order to produce 1 unit of the good, for example chemicals, we need 1
unit of labour in the US and 10 units of labour in Mexico
Suppose that the US has a labour endowment of 600 units and Mexico has a labour
endowment of 2000 units. Show and explain the production possibility frontier for
each country with and without trade at the limits that you identified in part c. Who
gains from trade at each limit?
We first determine the maximum amount of each good that can be produced given their labor endowment and labor per output ratios in order to depict the production potential frontier (PPF) for each country.
What does the production possibility frontier mean?
The graph known as the Production Possibilities Frontier (PPF) shows every potential output combination of two products that can be produced with the current resources and technology. A production-possibility frontier (PPF), production possibility curve (PPC), or production possibility boundary (PPB) is a graphical representation in microeconomics of all the output options for two goods that can be produced using all factors of production, where the resources are used fully and efficiently per unit time. Allocative efficiency, economies of scale, opportunity cost, product efficiency, and resource scarcity are just a few of the economic ideas that a PPF shows.
For the US:
The chemicals: 600 labor units / 1 labor unit per chemical = 600 chemicals
Radios: 600 labor units / 3 labor units per radio = 200 radios
For Mexico:
The chemicals: 2000 labor units / 10 labor units per chemical = 200 chemicals
The radios: 2000 labor units / 5 labor units per radio = 400 radios
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Concept of ethnocentrism in japan that are being observed
Ethnocentrism refers to the tendency to view one's own cultural group as superior to others. While ethnocentrism is a common human tendency, it can sometimes lead to discrimination and prejudice against individuals or groups from different cultures.
Homogeneity: Japan is a relatively homogenous society with a strong emphasis on group identity and conformity. This can sometimes lead to a sense of cultural superiority and a reluctance to accept or adapt to different cultural practices.
Language: Japanese is the primary language spoken in Japan, and while there is a growing interest in learning other languages, there is also a sense that speaking Japanese is essential to being fully integrated into society.
Cultural practices: Japan has a rich cultural heritage, and many traditional practices are still widely observed. However, there can be a tendency to view these practices as superior to those of other cultures, which can lead to a reluctance to adopt new practices or ideas from outside of Japan.
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What should be the core values, mission, objectives, and vision of the Economics Department of a University?
The answer should be well explained with different headings.
Core values of the Economics Department of a University are integrity and honesty, innovation and scholarship, professionalism, diversity, and collaboration.
Mission of the Economics Department of a University is to provide high-quality education, advance economic knowledge and research, and foster economic development, in service of the public good.
The objectives of the Economics Department of a University include:
Providing rigorous and relevant education to undergraduate and graduate students in economics, econometrics, and related fields.Advancing knowledge and understanding of economic theory, policy, and practice through cutting-edge research and scholarly activity.Engaging in service to the university, the economics profession, and the wider community.Vision of the Economics Department of a University is to be recognized as a leading center of excellence in economics education, research, and service, and to be a valued contributor to the economic well-being and prosperity of society.
The department aspires to produce outstanding graduates who have the knowledge, skills, and values to make meaningful contributions in their chosen fields, and to be a source of intellectual leadership and innovation in economic theory, policy, and practice.
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Read the following articles to help you complete this week’s assignment.
Elon Musk breaks out the dance moves as he opens new Tesla factory in Germany
Tesla: Elon Musk Opens Delayed ‘gigafactory’ in Berlin
Elon Musk Opens Tesla’s First European Plant, near Berlin
What are the reasons for the company to choose a specific region over other countries? Consider sources of comparative advantage, protectionism, dynamic gains from trade, regulatory policy, and the movement of the factors of production.
How do you think current political climate, events, and will create challenges to the company’s operations in the country they have chosen to open a factory in?
Present a recommendation for another country which may have similar sources of comparative advantage, considering findings from the Hofstede Country Comparison tool.
Please research and discuss which other countries will be suitable to set up this company’s operations.
To answer the given question, it is important to note that a company can choose a specific region over other countries for various reasons.
Below are some of the reasons a company can choose a specific region over other countries: Sources of comparative advantage Protectionism Dynamic gains from trade Regulatory policy Movement of factors of production Political climate and events can create challenges to the company's operations in the country they have chosen to open a factory in. Political unrest or instability can increase the risk of security and damage to the company's properties. In addition, unfavorable regulations or laws can hinder the smooth running of the company's operations.
The following countries are recommended as suitable for setting up the company's operations. These countries have similar sources of comparative advantage and findings from the Hofstede Country Comparison tool have been considered:
1. Germany - The Hofstede Country Comparison tool shows that Germany has a high score in individualism, uncertainty avoidance, and long-term orientation. This makes Germany a suitable location for a company to set up its operations.
2. The Netherlands - With a high score in individualism, uncertainty avoidance, and long-term orientation, the Netherlands is a suitable location for the company to set up its operations.
3. Switzerland - The Hofstede Country Comparison tool shows that Switzerland has a high score in individualism, uncertainty avoidance, and long-term orientation. This makes Switzerland a suitable location for a company to set up its operations.
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________ viewed the social contract as indicating that government rules by "consent of the governed", while ________ believed the social contract was a way that humans could find security from their naturally dangerous selfishness. a. thomas hobbes; john locke
b. john locke; thomas hobbes
c. john locke; jean-jacques rousseau d. jean-jacques rousseau; john locke
The legitimacy and political commitment to the free consent of those governed were the foundations upon which Aristotle, Locke, and Rousseau formed their "models" of political society.
What is ruled over?The British government selected him to lead the colony. Since being installed as the nation's leader in a military coup, he has been in charge.
What exactly is constitutional?Pertaining to or involving the basic components of something significant. being permitted or in conformity with a state's constitution.
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Answer:
Pretty postitive its C
Explanation:
.....
Why did Senator James Henry Hammond feel that enslaved people were needed in the South?
Senator James Henry Hammond was a pro-slavery politician from South Carolina who believed that enslaved people were essential to the economy and way of life in the South.
Why did Senator James Henry Hammond want slavesHe argued that the institution of slavery was necessary for the economic success of the South, and that without it, the region would suffer.
Hammond believed that slavery allowed for the efficient production of crops such as cotton and tobacco, which were major sources of wealth for the South. He believed that enslaved people were better suited to labor-intensive work in hot and humid conditions than free workers, who he felt were not as motivated to work hard and would demand higher wages.
Hammond also argued that slavery provided a stable and hierarchical social order in which white people held power and authority over black people.
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A closed economy is described as follows:
Desired consumption C ^ d = 600 + 0.5(Y - T) - 50r
Desired investment I ^ d = 450 - 50r
Real money demand L = 0.5Y = 100i
Full-employment output overline Y = 2210
Expected inflation pi ^ e = 0.05
In this economy, the government always has a bal- anced budget, so T = G where T is total taxes collected.
a. Suppose that M = 4320 and G = 150 Use the clas- sical IS-LM model to find the equilibrium values of output, the real interest rate, the price level, con- sumption, and investment. (Hint: In the classical model, output always equals its full-employment level.)
b. The money supply rises to 4752. Repeat part (a). Is money neutral?
c. With the money supply back at 4320, government purchases and taxes rise to 190. Repeat part (a). Assume, for simplicity, that Y is fixed (unaf- fected by G). Is fiscal policy neutral in this case? Explain.
A. The equilibrium values for consumption and investment, C and I is C = 1255 and I = 902.5.
B. Money is not neutral in this case.
C. Fiscal policy is not neutral in this case since an increase in government purchases and taxes leads to a decrease in the equilibrium values for consumption and investment.
a. In the given economy, the equilibrium output is the full-employment output, Y = 2210. The equilibrium real interest rate, r, can be found by solving the IS equation for desired investment and desired consumption, which yields r = 0.1. The equilibrium price level, P, can be found by solving the LM equation for real money demand and money supply, which yields P = 1.38. The equilibrium values for consumption and investment, C and I, can then be calculated from the given desired consumption and desired investment equations, which yields C = 1255 and I = 902.5.
b. With the money supply increased to 4752, the equilibrium real interest rate, r, increases to 0.27, the equilibrium price level, P, increases to 1.54, and the equilibrium values for consumption and investment increase to 1302.5 and 937.5, respectively. Money is not neutral in this case since an increase in the money supply leads to an increase in the equilibrium real interest rate, price level, and values for consumption and investment.
c. With government purchases and taxes increased to 190, the equilibrium real interest rate and price level remain unchanged at 0.1 and 1.38, respectively. However, the equilibrium values for consumption and investment decrease to 1220 and 867.5, respectively.
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Which one of the following statements is false?
A. A Pigouvian tax is used to internalize pollution costs
B. Transactions costs could reduce the potential for parties in a dispute to reach an efficient agreement
C. The assignment of initial property rights affects the distribution of costs and benefits.
D. The market equilibrium level of production in the presence of externality maximizes social net benefits.
The false statement is D) The market equilibrium level of production in the presence of externality maximizes social net benefits, I will show you why.
What is an externality?An externality refers to a cost or benefit from an economic activity that is borne by someone other than the individuals involved in the transaction or in the production of the goods. An externality exists when the welfare of one individual is influenced by the activity of another individual or a firm, without any compensation or price for the impact of the activity.
In the presence of an externality, the market equilibrium level of production does not always lead to the most efficient social outcome. It may result in an inefficient level of production if there are positive externalities or an overproduction of the good if there are negative externalities, option D being the correct one.
Another options are not correct because all true: the Pigouvian tax refers to a tax that is levied on an activity that creates a negative externality, thetransaction costs are costs incurred while completing a transaction, and the Initial property rights refer to the initial assignment of the property rights of a given resource.
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