Fuel, parking, and tolls are among the most common pricing elements of driving that are seen as being inelastic because they each only make up a small fraction of a user's overall expenses. When it comes to overall expenditures, though, driving is actually rather elastic.
What Is transportation an inelastic demand?Type of Traveler and Journey
In comparison to shopping or leisure outings, commutes are typically less elastic. The elasticities of weekday excursions and weekend trips may be significantly different. Because congestion deters lower-value journeys and leaves only higher-value automobile trips, urban peak-period trips are typically not price elastic. Less price-sensitive than passengers with lower incomes are those with higher incomes. More so than those who travel for leisure, business travelers have a tendency to be less price sensitive.Quality and cost of detour routes, modes, and destinations
If alternate routes, modes, and destinations are of high caliber and within reach, price sensitivity tends to rise. When there is a parallel untolled road, for instance, highway tolls tend to be more price sensitive.In communities dependent on the automobile where other forms of transportation are less desirable, driving is less price sensitive (e.g., walking, cycling and transit are poor substitutes for driving).Cost Structure and Range
Due to the greater number of options available to consumers, transport that is more specifically defined is generally more elastic. A higher price for driving at a specific time on a specific road may cause travel to alternative routes, destinations, modes of transportation, and travel times. For instance, demand for peak-period automobile travel on a specific road is typically more elastic than for total personal travel along a corridor.A driving elasticity of -0.2 with respect to gasoline price corresponds to a total financial cost elasticity of -1.3 because fuel prices only make up around 15% of overall vehicle costs (buying, insurance, maintenance and repairs, parking, etc.). This indicates that each 1% rise in this price would result in a 1.3% reduction in driving if all user costs were turned into variable charges.To Learn more About inelastic demand Refer TO:
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what should babidge (or hrdlicka) do? how can they ensure a2mc retains its position
Babidge and Hrdlicka should focus on developing and executing a strategic plan to ensure A2MC retains its position. This should include researching the competition, identifying customer needs, and identifying A2MC’s competitive advantages.
They should also focus on strengthening A2MC’s brand and marketing presence, developing new products and services, and leveraging technology to maximize efficiency. Additionally, they should create a customer service strategy to ensure customer satisfaction and loyalty.
Lastly, they should implement an effective financial management system to ensure A2MC’s continued success. By taking these steps, Babidge and Hrdlicka can ensure that A2MC retains its position in the market.
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how much would it cost to buy every powerball combination
The price of each Powerball combination would be determined by the current ticket price and the number of available combinations.
A Powerball ticket costs $2 in 2021, and there are approximately 292 million possible combinations. So the total cost of purchasing every combination would be around $584 million. However, it is important to note that purchasing every Powerball combination is neither practical nor financially sound. The chances of winning the Powerball are extremely slim, and the chances of recouping the cost of purchasing every combination are even slimmer.
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What is the 3rd goal of sustainable development?
Make sure everyone lives a healthy life and encourage wellbeing at all ages. Sustainable development depends on encouraging well-being at all ages and ensuring healthy lives.
The framework for achieving a better, more sustainable future for everybody is found in the Sustainable Development Goals. They deal with issues like poverty, inequality, climate change, environmental degradation, peace, and justice, as well as other worldwide problems we confront.
The UN has established webpages to inform the Inter-Agency and Expert Group on an Indicator Framework and the SDGs exercise. We must adhere to emancipated commentary and logic. Arrangement areas: The goals demonstrate a foundation, or a carefully sound and broadly instinctive design meant to rely on the progress decided upon for each Millennium Development Goal (MDGs).
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our servers have not received a response from your bank or card company, or you have not completed the payment process. if you are getting this message means that response is still awaited, and this may take up to 5 hours . if you don’t get any email notification in 5 hours, then retrieve your application and complete the payment process again.
Go to Home page on the online shopping cart > Quick Links > Reprint receipt option and proceed further.
What is payment process ?
Payment processing is how businesses complete credit card and debit card transactions. Payment processing services expedite card transactions, and payment gateways securely transmit data so money from a customer's issuing bank can be transferred to a merchant's account. All of this happens in seconds. The payment processor will act as a bridge between the customer, buyer, card network as well as bank. They communicate the information from the customer card to the bank. In other words, payment processing is all about authenticating, approving, and transferring funds in a payment transaction.
Payment is the voluntary transfer of money, equivalent, or other valuable items from one person to another in exchange for goods or services received or to meet a legal obligation.
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What accounted for the dramatic change in stock price from 1929 to 1932?
The stock market crash accounted for the dramatic change in stock prices from 1929 to 1932.
shares are a kind of safety that offers stockholders a share of ownership in a business enterprise. stocks are also called “equities. “An inventory is a well-known time period used to explain the ownership certificates of any organization. A percent, alternatively, refers to the inventory certificates of a particular enterprise. keeping a selected company's share makes you a shareholder. Description: shares are of kinds—common and desired.
Inventory is a type of investment in a company. organizations problem inventory shares to elevate money that allows you to finance operational dreams and to gasoline growth, and traders buy the one's inventory shares for the opportunity to generate a pass lower back on their investment. A percentage is an economic device that represents the aspect of ownership of an enterprise. A stock is a financial tool that represents element possession in one or greater establishments.
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thomas edison was quick to understand that movies would one day be a big business if shown in front of large audiences. question 1 options: 1) true 2) false
It is true that thomas edison was quick to understand that movies would one day be a big business if shown in front of large audiences.
Who is Thomas Edison?The Kinetoscope and Kinetograph, both motion image cameras, were created in Thomas Edison's laboratory (a peep-hole motion picture viewer). Beginning in 1888, Edison's aide William Kennedy Laurie handled the majority of this work. On April 14, 1894, a Kinetoscope parlour in New York City hosted the world's first commercially exhibited showing of an Edison film. Ten short videos, each less than a minute long, featuring athletes, dancers, and other performers made up the programme. Thomas A. Edison showed his brand-new kinetoscope to a small crowd in West Orange, New Jersey, according to a report in the New York Times from August 27, 1910. It was claimed to be the first instance of his synchronised moving picture idea.
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At a certain company, employees who earn $20. 00 per hour will be given an increase of $1. 00 per hour. For each ofthe other employees, either the employee will be given an increase of $1. 00 perhour or the employee will be given a percent increase equal to the percent increase that will be given to the employees who earn $20. 00 per hour,whichever results in a larger increase for that employee. Which of thefollowing statements are true? A. An employee who earns less than $20. 00 per hour will be given a percent increase that is greater than the percent increase that will be given to the employees who earn $20. 00 per hour. B. An employee who earns $22. 00 per hour will be given an increase of $1. 10 per hour. C. An employee who earns $24. 00 per hour will earn $25. 20 per hour after the increase
An rise of $1. 10 per hour will be awarded to an employee who currently makes $22. 00 per hour.
B)An employee who earns $22. 00 per hour will be given an increase of $1. 10 per hour.
To get the total weekly earnings per tire installed, we simply multiplicate employ. That is, we multiply, $1.10* per tire $22.00.
20 * $1.00 = $20
22 * $1.00= $22
24 * $1.100=$26.4
25 * $1.100=$27.5
Total: $22.00
Meanwhile, we get the total weekly earnings $22.00 per hour.
Your earnings are the money you take home after working a job. When you find out that your pay will be more than generous, babysitting will excite you much more. The majority of your profits come from work you've done, though you can also refer to money you make from investments as earnings.
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Which of the following demonstrates a scenario with no opportunity cost?
a) It's Friday night and you have no obligations the next day, so you stay up late talking and hanging out with your friends.
b) The chemistry club is giving out free pizza for lunch to all who come to their table to get it.
c) Naomi, age 8, is at a bookstore and chooses to buy a book about a young wizard instead of buying a math textbook that she would probably never open.
d) Chez Moi and Chez Nous, two premiere French restaurants with three Michelin stars, both offer you a full-time sous chef job at the same salary. You are ecstatic because you know it is a win-win scenario and chooses to work for Chez Nous.
e) All of these situations listed above have an opportunity cost
Chez Moi and Chez Nous, two premiere French restaurants with three Michelin stars, both offer you a full-time sous chef job at the same salary. This demonstrates a scenario with no opportunity cost. Here option D is the correct answer.
You are overjoyed because you realize it is a win-win situation and have decided to work with Chez Nous. Opportunity cost refers to the value of the next best alternative that must be given up in order to pursue a certain action or decision.
In the scenario presented, if you are offered the same salary and job conditions, you don't have to give up anything of value to make a decision, as both options are equally good. Therefore there is no opportunity cost, as you can choose one or the other without any loss.
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True or false? The source document for an electronic funds transfer is a memorandum.
Electronic financial transfers use memorandums. Memorandums are used to buy debit cards. Petty cash funds allow substantial cash payments without checks. Petty cash funds reduce check writing.
Petty cash funds allow substantial cash payments without checks. Petty cash funds reduce check writing. Creating a petty cash fund requires a memorandum.
Petty cash slips are created for every petty cash payment. Refilling the petty cash fund raises its balance. Checks are used to request bank withdrawals from checking accounts.
If a check is prepared incorrectly, it should be discarded and replaced. Banks develop bank reconciliation forms to ensure accuracy. Pre-numbered checks are used to regulate cash.
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a stock purchased on january 1 cost $4.35 per share. the same stock, sold on december 31 of the same year, brought in $4.75 per share. what was the approximate return on this stock? 0.09% 109% 1.09% 9%
A share of stock purchased on January 1 cost $4.35. The expected rate of return is 9%.
What is Approximate rate of return?The net profit or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR). We've provided a stock that was bought on January 1 for $4.35.
and on December 31 of the same year sold.
The rate of return must be determined.
Return percentage will be equal to = 4.75-4.35/4.35
= 0.09
= 9%
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To be more competitive, companies set a goal of ___ ____ in their production processes because it reduces costs due to wasted materials
To be more competitive, companies set a goal of zero defects in their production processes because it reduces costs due to wasted materials
The development of zero Defects is attributed to Philip B. Crosby, a satisfactory manipulation department supervisor at the Pershing missile application at the Martin organization, even though at least one cutting-edge reference credit a small, unnamed group of Martin personnel. zero Defects became no longer the primary software of motivational strategies to manufacturing: all through world war II, the conflict branch's "E for Excellence" program sought to boost manufacturing and decrease waste.
The bloodless battle led to multiplied spending on the development of defense generation in the 1950s and Nineteen Sixties. because of the safety-essential nature of such technology, mainly weapons systems, the government and protection firms got here to hire hundreds of heaps of humans in the inspection and monitoring of rather-complex products assembled from masses of hundreds of individual components.
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at which level is the firm's objective to sustain its advantage by focusing on efficiencies related to production, operations, administration, marketing, human resources, and other support functions?
It can emphasize a business's advantages and disadvantages as well as give it a strategic management advantage or disadvantage over its rivals.
What is strategic management?Strategic management is the ongoing planning, analysis, and evaluation of all criteria that a business needs to meet in order to achieve its goals and objectives. As a consequence of shifts in the business environment, organizations will frequently need to review their success strategies.
Strategic management provides overall direction by developing policies and procedures that are meant to accomplish goals and then allocating resources to carry them out. Strategic management's overarching objective is to give firms a competitive edge over their competitors. To surpass competitors, a corporation adopts a continuous culture of review as part of its strategic management model.
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What are the three parts of an individual's balance sheet?
Your balance sheet details the assets, liabilities, and owner's equity of your company. It also lists the amounts owed and available for the owners.
The balance sheet, which provides a summary of the company's financial situation, is divided into three main sections: (1) assets, which are likely future economic benefits owned or controlled by the entity; (2) liabilities, which are likely future sacrifices of benefits; and (3) owners' equity.What Applies to the Balance Sheet?Assets. Operationally speaking, the company is its assets. Liabilities, etc. The right side of the balance sheet, which includes liabilities and equity, represents the company's financial position. The amount owed to the owners of the business is shown as equity beneath liabilities on the balance sheet.To know more about balance sheets here
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twelve years ago, your parents set aside $8,000 to help fund your college education. today, that fund is valued at $23,902. what annually compounded rate of interest is being earned on this account?
D. 9.55 percent annually compounded rate of interest is being earned on this account.
What is compounded rate of interest?The following is the compound interest formula: Where: 1. T = Interest and total accumulated amounts 2. Principal Amount = PA 3. ROI is the annual percentage rate of interest for a loan or deposit. 4. t= The annual interest compounding frequency 5. y is the number of years that the principle has been deposited or borrowed.
The interest charged on a loan or deposit is known as compound interest. It is the idea that we employ the most frequently on a daily basis. Compound interest is calculated for an amount based on both the principal and cumulative interest. The major distinction between compound and simple interest is this.
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if betty had the power to make a take it or leave it offer to aisha, and the initial allocation was at e as indicated, what would the final allocation of apples and oranges be? select one: a. point i b. point f c. point g d. point h
Point F. Betty would offer Aisha an equal split of the apples and oranges (i.e. 3 apples and 3 oranges). If Aisha accepted the offer, the final allocation would be Point F.
What is allocation?Allocation is the process of assigning resources to an individual, group, or organization. This can involve assigning financial resources, material resources, or personnel. Allocation is a key factor in effective resource management, and it helps to ensure that resources are used in the most efficient and effective way. Allocation also helps to ensure that resources are distributed fairly and equitably to those who need them. Allocation requires careful consideration of the needs of the individual, organization, or group, as well as the availability of resources. It also requires good communication and coordination between different stakeholders in order to ensure that resources are allocated effectively.
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interslice co.'s payroll for the month ended march 31, year 4, is summarized as follows: total wages $12,000 federal income tax withheld 1,440 all wages paid were subject to fica. fica tax rates were 7% each for employee and employer. interslice is also required to pay unemployment taxes under futa at a 2% rate. interslice remits taxes on the 15th of the following month. what amounts should interslice record in its journal entry for march, year 4, payroll tax expense and total payroll tax liability?
The total payroll tax liability for the month should be recorded as $1,440 for federal income tax withheld, $840 for FICA taxes, and $240 for FUTA taxes, for a total of $2,520.
Interslice should record $840 in payroll tax expense for the FICA taxes (7% of $12,000 for the employee portion and 7% of $12,000 for the employer portion) and $240 in payroll tax expense for the FUTA taxes (2% of $12,000).
The total wages for Interslice Co. for the month ended March 31, Year 4 are $12,000The federal income tax withheld is $1,440. The FICA tax is 7% each for the employee and employer, which totals $840. The FUTA tax is 2%, which totals $240. All taxes are remitted on the 15th of the following month.
Interslice should record $840 in payroll tax expense for the FICA taxes and $240 in payroll tax expense for the FUTA taxes. The total payroll tax liability for the month should be recorded as $1,440 for federal income tax withheld, $840 for FICA taxes, and $240 for FUTA taxes, for a total of $2,520.
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on july 1, one of rudd co.'s delivery vans was destroyed in an accident. on that date, the van's carrying amount was $2,500. on july 15, rudd received and recorded a $700 invoice for a new engine installed in the van in may, and another $500 invoice for various repairs. in august, rudd received $3,500 under its insurance policy on the van, which it plans to use to replace the van. what amount should rudd report as gain (loss) on disposal of the van in its year-end income statement?
The amount that Rudd should report as gain(loss) on disposal of the Van in its year-end income statement is option B: $300.
$500 is the cost of repairs, which should not be added to the van's carrying value but rather should be recorded as an expense. Therefore, the profit that should be declared upon selling that van is $3500 receipts less $3200 carrying value. The $700 cost of installing a new engine must be capitalised, or added to the van's cost. As of the accident date, the value should be $3200, which is $2500 more than it was before the expenditure of $700. Therefore, the profit that should be declared upon selling that van is $3500 receipts less $3200 carrying value. A $300 profit must be shown on the income statement.
The carrying amount, $2500, reflects value that has not yet been modified to account for the cost of installing the engine. Engine costs must be capitalised because they extend the asset's life and provide future benefits, making them a capital expense.
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Complete question is:
On july 1, one of rudd co.'s delivery vans was destroyed in an accident. on that date, the van's carrying amount was $2,500. on july 15, rudd received and recorded a $700 invoice for a new engine installed in the van in may, and another $500 invoice for various repairs. in august, rudd received $3,500 under its insurance policy on the van, which it plans to use to replace the van. what amount should rudd report as gain (loss) on disposal of the van in its year-end income statement?
A. $1,000
B. $300
C. $0
D. $(200)
What is the most important technological change in the world today?
The widespread use of artificial intelligence is the most significant technological change in the world today (AI). AI is transforming industries ranging from healthcare and finance to transportation and logistics.
What is the most important technological change in the world today?
The most important technological change in the world today is the widespread adoption of artificial intelligence (AI). AI technology has been used to improve countless aspects of everyday life, from healthcare to transportation, and its potential to revolutionize the world in the coming years is immense. AI is already being used to automate many tedious and labor-intensive tasks, and its capabilities are growing rapidly. AI is also being used for predictive analytics, machine learning, natural language processing, and more, all of which have the potential to revolutionize how businesses and individuals operate.
What is logistics?
Logistics is the planning, execution, and management of the efficient flow of goods and services from their point of origin to their point of consumption. It involves the coordination of transportation, warehousing, inventory, and supply chain management. Logistics also encompasses the integration of information, communication, and technology to ensure the efficient flow of goods and services.Logistics is a key component of any successful business, as it helps to ensure that products and services are delivered on time and at the right place. It also helps to reduce inventory levels and improve customer satisfaction.
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why is a 15-year fixed-rate mortgage better than a 30-year?
A 15-year fixed-rate mortgage is better than a 30-year mortgage for several reasons. On the one hand, with a 15-year mortgage, you will repay the loan twice as quickly and thus pay less in total interest than with a longer loan.
In addition, with a 15-year mortgage, your monthly payments will be higher, but you will have peace of mind knowing that your loan will be paid off in less time. With a 15-year mortgage, your equity in your home will also increase faster. Finally, the interest rate on a 15-year mortgage is often lower than a 30-year mortgage, meaning you'll have a lower monthly payment. All in all, a 15-year fixed rate mortgage is often a better choice for someone who wants to pay off their loan as quickly and affordably as possible.
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True or False, the efficient frontier is given by the cheapest company in the industry.
The efficient frontier is given by the cheapest company in the industry.
Explanation:
The set of portfolios known as the efficient frontier are those that meet the requirement that no other portfolios exist that have a higher expected return but the same standard deviation of return. In investing, it's a common misconception that greater risk entails a higher potential reward. Investors who take on less risk, however, have lower potential returns. In accordance with Markowitz's theory, an ideal portfolio might be created that perfectly balances risk and reward. The best portfolio does not just consist of low-risk or securities with the biggest potential returns. The best portfolio balances investments with the highest potential returns and a manageable level of risk or investments with the lowest level of risk for a particular level of potential return. The efficient frontier refers to the places on the risk vs anticipated return plot where ideal portfolios lie. Therefore, it can be claimed that the cheapest firm in the industry does not necessarily provide an efficient frontier due to low investment and low risk factors.
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What are effects of unemployment?
The effects of unemployment are that, unemployment tends to cause the workers to suffer the financial hardship which directly tends to impact the families, relationships, and the communities.
The unemployed individuals are considered to be at a higher risk for anxiety, depression, and other mental health issues than people with the certain jobs. Thus, the research shows that people who have experienced longer periods of unemployment have poorer health by the age 50.
However, unemployment tends to occur when the workers who want to work are thus unable to find the jobs. Where in the economy, high rates of unemployment tend to signal economic distress and thus leading to the financial hardship.
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Which term describes the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan? a. collateral b. interest c. lien
The correct answer is c. lien. A lien is a legal right given by a lender to a borrower that allows the lender to take the borrower's collateral if the loan is not repaid.
This means that if a borrower fails to make payments on a loan, the lender can sell the collateral to get back the principal of the loan.
A valuable item is committed as collateral to secure a loan. Lenders' risk is decreased by collateral. The lender has the right to sell the collateral if a borrower defaults on the loan in order to recover its losses.
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the federal reserve controls the money supply through monetary policy actions. in your initial post address the following: how do changes to the federal funds rate affect the unemployment rate? explain by using information from the textbook. how do changes to the federal funds rate affect the inflation rate? explain the relationship using information from the textbook. this video will would help to explain the monetary policy and the fed- econmovies
The federal funds rate—the interest rate that financial institutions charge one another for loans—is largely how the Fed implements monetary policy.
How is the unemployment rate impacted by changes in the federal funds rate?Major corporations, especially those with large levels of corporate debt, may decide to lay off employees or delay recruiting as a result of rising rates. As a result, the unemployment rate rises and consumer demand declines, restricting the flow of money even more.
What steps does the Federal Reserve use to manage the supply of money?Reserve requirements, which primarily refer to the amount of cash banks must retain against deposits in bank accounts, are one method the Fed may affect the money supply. Banks are able to lend more money when reserve requirements are reduced, which raises the total amount of currency in the economy.
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How can capital resources increase productivity?
Labor productivity rises when capital per hour (or capital deepening) increases. Take industrial workers in a car plant as an example.
How can capital resources be leveraged to boost productivity?Capital in economics refers to the physical resources—tools, plants, and machinery—that enable higher levels of job output. More items can be produced and the level of living raised by improving capital equipment productivity.
How are capital resources utilised in the industrial process?Capital is the third production component. Consider capital to be the equipment, tools, and structures that people utilize to produce commodities and services. Hammers, forklifts, conveyor belts, computers, and delivery vans are a few typical instances of capital.
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phoenix inc. estimates a 15% expected return, with a variance of 10, what is the coefficient of variation?
Data variability is assessed using the coefficient of variation, a relative measure of variation.
What is the coefficient of variation?
Standard deviation to mean ratio is known as the coefficient of variation (CV). The spread around the mean increases as the coefficient of variance increases. It is frequently stated as a percentage. The coefficient of variation is the ideal metric to compare two sets of data when the units are different. Verify the statistics as well. You might have a record that reads [80, 90, 100]. The population mean is 90, and the standard deviation is 8.165. 0.09 is the variance coefficient. A CV of 5% or less usually gives us an idea of how well the population is performing. CV of 10% or more sounds bad.
Before you rate your CV, however, you should take a good look at the average score. The CV can be high at very low concentrations and low at high concentrations.
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What was a common element in the two key debates at the convention?
Subjugation was a typical component in the two key discussions, and it impacted legislative regulations on the subjection exchange and expenses and whether or not slaves ought to be counted for state populace based portrayal in Congress.
Throughout the late spring of 1787 representatives to the Established Show in Philadelphia discussed one issue for a really long time, the subject of how legislative portrayal not entirely set in stone.
5 Issues at the Established Show. When the 55 representatives accumulated in Philadelphia to reconsider the Articles of Confederation, there were a few significant issues on the plan to examine including portrayal, state versus government powers, leader power, subjugation, and business.
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in beginning an assessment interview for social services, the interviewer should: a. try to find solutions for the client's problems as quickly as possible. b. understand how the client feels. c. assure the client that he can eventually solve the client's problems. d. find out exactly what the client's presenting problems or needs are.
The interviewer must find out exactly what the client's presenting problems or needs are. It is because as a social services, we have to help the customer or client solve their problem more quickly, so the correct answer is D.
Social services generally can be defined as a range of public services intended to provide support and assistance towards particular groups. In general, social services usually include the disadvantaged. There are some type of social services, social services may be provided by individuals, private and independent organizations, and also can be administered by a government agency.
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What are savings bonds called?
A savings bond is a loan from the US Treasury to the US government. One is a loan to the government when purchased. If they are under 18, you can register as the owner or joint owner of a savings bond.
Describe the saving bond.Series EE and Series I savings bonds are the two types that are for sale, and you can acquire them electronically on the TreasuryDirect.gov website of the United States Treasury. Paper bonds are no longer available for purchase via banks or brokers, although they are still redeemable at a financial institution. Unlike other bonds, savings bonds cannot be held in brokerage accounts or sold to other investors.
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steadily increasing inflation is associated with a growing economy.
Steadily increasing inflation is often associated with a growing economy because it is a sign that the demand for goods and services is increasing.
When demand is high, companies will raise prices to meet the demand, which leads to inflation.
Additionally, a growing economy often leads to an increase in wages, which can also contribute to inflation as people have more money to spend. However, it is important to note that too much inflation can be detrimental to an economy and can lead to economic instability.
It is important for governments to monitor and control inflation to ensure that it is at a healthy and sustainable level.
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an increasing unemployment rate is associated with a growing economy. true or false
An increasing unemployment rate is associated with a growing economy is false.
How does the unemployment rate impact the economy?The proportion of workers in the labor force who do not currently have a job but are actively seeking one is measured by the unemployment rate. Numerous factors have an impact on the economy when there is a high unemployment rate. Unemployment may result in larger payments from state and federal governments for things like food stamps because unemployed persons tend to spend less and may accumulate more debt.
The unemployment rate sheds light on the economy's untapped potential and resources. Because businesses hire more people to fulfill rising demand, unemployment tends to be cyclical and declines when the economy grows. Typically, as economic activity slows, unemployment rises. However, a relatively low unemployment rate might have unfavorable effects.
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