Suppose the following is an estimated log-linear demand function:
ln Q = 8.99 – 3.78 ln P – 1.77 ln M – 2.03 ln PR
All parameter estimates are significant.
a. Is this good a normal or an inferior good?
b. Is this good a complement of or substitute for the related good?
c. What is the price elasticity of demand for this good?
d. What is the income elasticity of demand for this good?
Answers
This is an inferior good that is a substitute for the related good, with a price elasticity of -3.78 and an income elasticity of -1.77.
a. To determine if this good is a normal or inferior good, we need to look at the sign of the income elasticity of demand.
Since the coefficient of ln M is negative (-1.77), we can conclude that this is an inferior good, i.e., as income increases, demand for this good decreases.
b. To determine if this good is a complement or substitute for the related good, we need to look at the sign of the coefficient of ln PR.
Since the coefficient of ln PR is negative (-2.03), we can conclude that this good is a substitute for the related good, i.e., as the price of the related good increases, demand for this good increases.
c. The price elasticity of demand can be calculated by taking the derivative of ln Q with respect to ln P, multiplied by P/Q. Using the estimated coefficients, we have:
E_p = (d ln Q/d ln P) * (P/Q) = -3.78 * (P/Q)
So, the price elasticity of demand for this good is -3.78. This means that a 1% increase in price leads to a 3.78% decrease in quantity demanded.
d. The income elasticity of demand can be calculated by taking the derivative of ln Q with respect to ln M, multiplied by M/Q. Using the estimated coefficients, we have:
E_M = (d ln Q/d ln M) * (M/Q) = -1.77 * (M/Q)
So, the income elasticity of demand for this good is -1.77.
This means that a 1% increase in income leads to a 1.77% decrease in quantity demanded, confirming that this is an inferior good.
In summary, the estimated log-linear demand function suggests that this is an inferior good that is a substitute for the related good, with a price elasticity of -3.78 and an income elasticity of -1.77.
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Related Questions
Can an individual's financial situation change his or her views of what is
considered a need and what is considered a want? Explain.
Your answer
Answers
Individual work Students should select one of the credit agreements studied in class and, justify why this agreement fits their business model (specific conditions and characteristics) Tips There are different types of agreement such as Credit Card, loan, conditional sales.choose one of them and explain why this specific agreement is the best for your business - Take into account why you would request a credit and for what To be uploaded on VLE in Word or PDF
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For our business model—a technology startup focusing on developing innovative software solutions—the best fitting credit agreement is a small business loan. This is primarily due to our need for substantial capital for research and development (R&D) and expansion, without the immediate pressure of repayment.
A small business loan is a fitting choice because it provides us the capital we require for substantial upfront costs, such as R&D and infrastructure. Unlike a credit card agreement, where the borrowing limit may be insufficient for such large expenses, or a conditional sales agreement that doesn't align with our business operations, a small business loan offers a larger sum of money that can be repaid over a longer period. This allows us to invest in our growth, while maintaining operational fluidity. The relatively lower interest rates compared to credit cards and the ability to build strong business credit further justify this choice.
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What are the advantages and disadvantages of the three primary business writing formats?
Answers
Answer and Explanation:
The business writing formats benefits and disadvantages of the three primary business writing formats are described below:-
A memorandum is a formal define that it is the way of communication that enables corporations to connect with their workers. This is typically used to distribute updates or issues.
Memos are highly increasingly being replaced by e-mail, so sending a memo is more difficult and costly. Therefore, a Business Letter is a structured communication method that's best used to connect with clients.
It generally takes more time to write and format a business letter than to write an email or memo.
As we know that an Email is easy to send and priceless, and make enable to send message to many people at a time also Many unwritten e-mails etiquette rules and can be too casual for many business purposes.
Business writing formats includes the use of memorandum, email business letters etc. The advantages and disadvantages of the three primary business writing formats are:
A Memorandum: (Advantages)
This is simply a formal, internal communication tool which allows companies to communicate with their employees. It is known to be used to deliver announcements or problems.Disadvantages
Memos are said to be rapidly been replaced by e-mail due to the fact that it is more complicated and expensive to deliver a memo.Business letters (Advantages)
A Business Letter is simply known as a formal communication tool which is utilized for communicating with customers.Disadvantages
Writing and formatting a business letter often takes more time than composing a memo or e-mail.Emails (Advantages)
E-mail is quick, easy and cheap, and allows you to send messages instantly to any number of people.Disadvantages
E-mail has too much unwritten rules to follow (etiquette) and it is too informal for many business purposes.Learn more from
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What is the difference between goods and services?
A. Goods are usually sold, while services are usually leased.
B. Goods are governed by contracts, while services are not.
C. Goods cannot transfer between parties, while services can.
D. Goods are physical objects, while services are actions.
SUBMIT
Answers
Answer: ALL OF THESE
Explanation:
The difference between goods and services is mainly based on their appearance and ownership. Goods are physical objects that can be seen, touched, and transferred from one person to another. Services are activities that are not physical, not visible, and not transferrable. Goods and services are both important to satisfy our needs and wants.
internal link --- Goods and services
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________ is a set of interdependent organizations that help make a product or service of a company available for use by consumers or business users.
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1. complete the schedule of expected cash collections. 2. complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 3. complete the cash budget. 4. prepare an absorption costing income statement for the quarter ended june 30. 5. prepare a balance sheet as of june 30.
Answers
In accounting, a cash disbursement is a price made with the aid of one party to another.
Also referred to as cash repayments or disbursements, they can be made by means of check, e-check, Automated Clearing House (ACH), digital payment, and all codecs of payments recorded with an immediately deduction.
How do you calculate budgeted cash disbursements for merchandise purchases?Multiply the proportion of sales you collect in the quarter in which you make the sales with the aid of the forecasted sales for the modern-day quarter to calculate the quantity of the modern quarter's sales you will collect in the modern-day quarter. In this example, multiply 60 percent, or 0.6, by $1,200 to get $720.
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https://brainly.com/question/24195927#SPJ4True or False, the efficient frontier is given by the cheapest company in the industry.
Answers
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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How important is money
Answers
Answer:
very important
Explanation:
money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.
L'Oréal created an advertisement for its Visible Lift makeup. Glamour magazine, in which the ad for the L'Oréal Visible Lift makeup appeared, is an example ofA. a messageB. noiseC. feedback loopD. a sourceE. a channel of communication
Answers
E. a channel of communication. The advertisement for L'Oréal Visible Lift makeup was communicated through the channel of Glamour magazine, which is a medium or vehicle through which the message is transmitted to the target audience.
A channel of communication is a means through which a message is conveyed from the sender to the receiver. It is the medium or method that is used to transmit the message from one party to another. Channels of communication can take many different forms, including face-to-face conversations, phone calls, text messages, emails, social media platforms, television, radio, newspapers, and other media outlets. The choice of channel depends on various factors, such as the nature of the message, the audience, the purpose of communication, and the resources available. Selecting the appropriate channel is essential to ensure that the message is received and understood by the intended audience.
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To find the total bond value, add the present value of the amount paid at maturity to the _____ of the annual coupon payments. Multiple choice question. future value factor simple interest amount annuity present value
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The addition of the present value of the amount paid at maturity to the annuity Present value of the annual coupon payments helps to derive the total bond value.
Calculation of the PV of bond's future interest payments known as cash flow and the bond's value upon maturity known as face value are components in Bond valuation.
The present value of the amount paid at maturity need to be determined for calculation of total bond value.The annuity Present value of the annual coupon payments need to be determined for calculation of total bond value.Therefore, the answer is annuity PV because the addition of the present value of the amount paid at maturity to the annuity Present value of the annual coupon payments helps to derive the total bond value.
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which is not a benefit of mutual funds? select one: a. professional management b. taxation impact c. transparency d. daily liquidity
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A mutual fund does not provide D. daily liquidity as a benefit.
Daily liquidity refers to the ability to access funds quickly, on a daily basis. Mutual funds are not able to provide this, as they are often traded just once a day and the money is then sent to the investors a few days later. Mutual funds do, however, provide other benefits, such as professional management, taxation impact, and transparency.
Professional management means that the fund is managed by an experienced team of professionals, who are knowledgeable in the area and can make the best decisions for the fund. Taxation impact refers to how the fund's performance affects the taxes of the investor. Transparency means that the investor is able to see the fund's performance and the strategies used to manage the fund.
In conclusion, the D. daily liquidity is not a benefit of mutual funds.
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Erin's weekly health deduction from her check is $5.35. If his employer pays 80% of the premium, how much is her annual premium?
Answers
Answer:
Explanation:
I assume they are asking for the total premium paid per year, but I will also show just the amount she pays per year.
To figure out the total annual premium:
If the employer pays 80%, then the employee pays 20% (100%-80%).
Total Premium x .20% = 5.35
Total Premium = 5.35/.2 (20%)
Total Premium = 26.75 per week
Total annual premium is 26.75 x 52 weeks = 1,391
‘The employee only pays 20% or 5.35 per weekly paycheck. Her annual costs is 5.35 x 52 weeks=278.20
Suppose that in a particular market, the supply curve is highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then the.
Answers
Which of the following processes in project time management involves identifying the specific tasks that the project team members and stakeholders must perform to produce the project deliverables?
a) Defining activities
b) Sequencing activities
c) Developing the schedule
d) Estimating activity durations
Answers
Defining activities involves identifying the specific tasks that the project team members and stakeholders must perform to produce the project deliverables. Therefore, option A is correct.
The process in project time management that involves identifying the specific tasks that the project team members and stakeholders must perform to produce the project deliverables is called "Defining activities." This process is a part of the project planning phase and is crucial for creating a comprehensive project schedule.
During the "Defining activities" process, the project team breaks down the project scope into smaller, manageable activities. These activities are specific actions or tasks that need to be completed to accomplish the project objectives. The team identifies the dependencies between activities, determines the resources required, and establishes the sequence in which the activities should be performed.
Sequencing activities (option B) is the process of determining the logical order in which the identified activities should be executed.
Developing the schedule (option C) involves analyzing the sequence of activities, estimating their durations, and creating a project schedule that outlines the start and finish dates for each activity.
Estimating activity durations (option D) is the process of approximating the amount of time needed to complete each activity.
The correct answer is A) Defining activities. This process involves identifying the specific tasks required to produce the project deliverables and is an essential step in project time management.
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when is consideration due to a customer treated as a separate transaction involving a purchase of goods or services from the customer?
Answers
One scenario in which consideration may be treated as a separate transaction involving a purchase of goods or services from the customer is when the supplier or vendor agrees to purchase something from the customer in exchange for payment.
Consideration due to a customer is treated as a separate transaction involving a purchase of goods or services from the customer when it satisfies certain criteria. Generally, consideration is the price or value given in exchange for goods or services provided by another party. It is due when a customer provides something of value, such as cash or a service, to a supplier or vendor.
For instance, if a customer agrees to provide a supplier or vendor with marketing services or advertising space, the consideration due to the customer may be treated as a separate transaction involving the purchase of those services.
Ultimately, whether consideration due to a customer is treated as a separate transaction involving a purchase of goods or services from the customer depends on the specific terms and conditions of the agreement between the parties. If the customer is providing something of value to the supplier or vendor in exchange for payment, it may be appropriate to treat the consideration as a separate transaction.
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ECONOMICS CHAPTER 2 SECTION 3
explain the relationship between the terms in each of these pairs
A. Private property rights and market
B. laissez-faire and capitalism
C. Specialization and profit
D. Factor market and product market
ECONOMICS CHAPTER 2 SECTION 3
Answers
Private property rights and market is in which people buy and sell resources or goods and services.
Private property rights are the rights of individuals and groups to own property and the market is any place or situation in which people buy and sell resources and goods and services.
Laissez-faire and capitalism-The relation-ship between laissez-faire and capitalism is laissez-faire is an economic philosophy of free-market capitalism that opposes government intervention.
Specialization and profit- The relation-ship between specialization and profit is the companies specialize in making one product or one component of a product, if this product will make at large scale, companies reduces it's cost to earn profit.
Factor market and product market- The relation-ship between Factor market and product market is the factor market is running by the demand of product market. The product market is sold their goods and services with the demand of factor market to production these goods and services.
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1. Describe all the functions of Airline Operation, with an
explanation of each function.
2. How the Airline Operation contributes to Global Economy.
Answers
Airline operations encompass various functions that are vital for the smooth functioning of an airline. These functions include flight operations, ground operations, revenue management, network planning and scheduling, customer service, and safety and security.
Flight operations focus on planning and executing safe and efficient flights, while ground operations handle activities related to aircraft handling, passenger services, and maintenance. Revenue management optimizes ticket pricing and seat allocation to maximize airline revenue. Network planning and scheduling involve strategic planning of routes and flight schedules. Customer service ensures a positive travel experience for passengers. Safety and security functions prioritize the well-being of passengers and assets.
In terms of the contribution to the global economy, airline operations play a crucial role. They stimulate economic growth by creating employment opportunities in various sectors, such as aviation, tourism, and hospitality. Airlines facilitate international trade and business activities by connecting people and goods across borders. They support the tourism industry by transporting tourists and generating revenue for related businesses. Airline operations also drive infrastructure development, including the construction and expansion of airports and aviation facilities. Additionally, airlines contribute to foreign exchange earnings through international travel, further strengthening the global economy. Overall, the functions of airline operations have a significant impact on the global economy.
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Malick has a videoconference with two
coworkers this afternoon and is trying to
position his camera for the best results.
Which of these would provide the BEST
background?
Answers
When there is a videoconference, the one that would provide the best background is a blank wall with a plant and some books on a shelf. Hence, Option A is correct.
What is a video conference?Through the use of video conferencing technology, remote employees can communicate. The technology allows two or more people who are dispersed across several locations to have live audio and video connections.
A style of teleconference in which there are more than two participants and who use a computer, smartphone, etc. to send and receive both audio and video data.
Therefore, Option A is correct.
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An effective social media policy includes an element that
o prevents all use of social media during daytime hours.
o vaguely threatens employees who violate the policy.
o applies consistent standards across all social media networks.
o encourages anonymity when posting on social networks.
Answers
An effective social media policy includes an element that applies consistent standards across all social media networks. Therefore option C is correct.
What is Social Media?The phrase "social media" refers to a computer-based technology that makes it possible to share concepts, ideas, and knowledge through online groups and networks. Social media is internet-based and allows users to share anything quickly, including movies, images, documents, and personal information.
Users interact with social media using web-based software or applications on a computer, tablet, or smartphone. Despite being widely used in America and Europe, Asia, particularly Indonesia, leads the world in social media usage. By October 2021, there will be more than 4.5 billion users of social media.
Therefore option C is correct.
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An real estate agent is comparing the average price for 3-bedroom, 2-bath homes in Chicago and Denver: Samples from each city provide the following data: Chicago: Xc " 5148,000, 0 <= 512,000,n2 20 Denver: Xo 5142,500, 00 S10,000,np= 18 Suppose he is conducting test to see if there evidence to prove Chicago has higher average price than Denver. State the proper null and alternate hypothesis Click the answer you think is right
Answers
To maintain your standard of living in Denver, CO, you'll need a household income of: $46,267. The cost of living is 7% lower in Denver, CO.
What is cost of living?The Cost of Living Index - COLI from of the Council for Communities and Economic Research provides the fundamental information on cost of living. Price collection is done by cities at designated times and in strict accordance with established standards. The cost of living in a new city or town is one of the most crucial decisions you must make before moving there. The "cost of living" is the sum of money required to support a specific way of life in a particular location.
Determining the cost of living would reveal how expensive it is to live in a particular location because the cost of products and services vary from city to city.
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Should citizens participating in
criminal trials should have some requirements such as someone who
has a degree? Or someone who makes at least $20,000 per year? Why
or why not?
Answers
Citizens participating in criminal trials should not be required to have a degree or make a certain amount of money per year. This is because such requirements would create inequalities in the justice system and violate the principle of equal protection under the law that is enshrined in the US Constitution.
First, requiring citizens to have a degree in order to participate in criminal trials would discriminate against those who cannot afford higher education. This would create an unfair advantage for those who are more affluent and better-educated, and it would prevent many people from serving on juries or as witnesses.
Secondly, requiring citizens to make a certain amount of money per year would also create inequalities. Poorer citizens would be excluded from participating in criminal trials, which would violate their rights to equal protection under the law. Moreover, wealth is not necessarily a measure of a person's ability to serve as a juror or a witness. A person's income level does not necessarily correlate with their intelligence, education, or integrity
.In conclusion,citizens should not be required to have a degree or make a certain amount of money per year in order to participate in criminal trials. Doing so would violate the principle of equal protection under the law, create inequalities, and prevent many people from participating in the justice system.
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if india traded textiles with the united states in exchange for corn products, this would be an example of which form of countertrade?
Answers
The United States government will profit from the import taxes levied on textiles from India.
If trade obstacles are removed, the United States will suffer. The United States will suffer from the removal of trade barriers because a flood of Indian textiles will be poured into the nation, stunting the development of domestic textile manufacturing enterprises. India has a competitive advantage over the US in the production of textiles since they are in higher demand than aircraft, which are only seldom needed. The United States government will profit from the import taxes levied on textiles from India. Since India will produce textiles at the lowest cost per unit and flood the USA with reasonably priced, high-quality apparel, the government will benefit greatly from import tariffs.
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You bought two frappe with the last ten dollars in your checking account and your next payday is on Monday. What is the opportunity cost of these drinks?
Answers
Answer:
Based on the given answer choices, the opportunity cost of buying the two frappes with the last ten dollars in your checking account would be the movie with your friends this Saturday night that you would have enjoyed had you not bought the frappuccinos, which is valued at 5 dollars.
Explanation:
Answer:
The opportunity cost of the drinks is $10.
Explanation:
Opportunity costs refer to the value of the next best alternative that has been foregone when making a different choice. If the person has not bought the two frappuccinos, then the person would have left with $10 until they get their next paycheck on Monday. Since the question does not specifically mention any other alternative, it can assume that the next best alternative would be to save the money until Monday.
Thus, the person would have saved $10 if he/she did not buy the drinks and therefore the opportunity cost of the drinks is $10.
. In one to two sentences, explain how the money for a negative tax for low-income earners could be redistributed from high-income earners.
Answers
A negative tax for low-income earners could be funded by redistributing money from high-income earners through a progressive tax system.
The money for a negative tax for low-income earners could be redistributed from high-income earners through a progressive tax system where individuals with higher incomes pay a higher percentage of their income in taxes, which can be used to fund programs like the negative income tax. This approach aims to reduce income inequality by providing support to low-income earners while ensuring that those with higher incomes contribute proportionally more to society's overall financial needs.
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Evelyn enjoys drawing. Even though she has never had formal lessons, she is artistically gifted. Her artistic ability can be referred to as a(n) _____.
aptitude
hobby
job
skill
Answers
Answer:
i think its a hobby bc i put skill and it was wrong
Explanation:
enter mia profit/loss for the 2 month
Answers
the first time ever corporation sells two products with a sales mix of 4:1 respectively for product a and b. what is the breakeven point in sales considering this additional information? product a product b sales price per unit $50 $100 variable cost per unit $20 $40 total fixed cost
Answers
The breakeven point in sales would be reached when the company sells enough units of product A (x) to cover 45 times that quantity in fixed costs.
To calculate the breakeven point in sales, we need to determine the level of sales at which the company's total revenue equals its total costs, resulting in zero profit or loss. In this case, we have two products, A and B, with a sales mix of 4:1, respectively.
Let's assume the number of units sold for product A is represented by 'x', and for product B, it is 'y'. Based on the sales mix, we can express y in terms of x: y = (1/4)x.
The total revenue from product A would be 50x, and from product B would be 100y. The total variable cost for product A would be 20x, and for product B, it would be 40y. The total fixed cost is not given.
To calculate the breakeven point, we need to set the total revenue equal to the total costs:
50x + 100y = 20x + 40y + Fixed Cost
Substituting the value of y in terms of x:
50x + 100(1/4)x = 20x + 40(1/4)x + Fixed Cost
Simplifying the equation:
50x + 25x = 20x + 10x + Fixed Cost
75x = 30x + Fixed Cost
45x = Fixed Cost
This equation tells us that the fixed cost is equal to 45 times the number of units sold (x). Therefore, the breakeven point in sales would be reached when the company sells enough units of product A (x) to cover 45 times that quantity in fixed costs.
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In the context of the types of executive search firms, _____ charge a client a set fee whether or not the contracted search is successful.
a. retainer firms b. craft unions c. contingency firms d. labor unions
Answers
Answer: (A) Retainer firms.
Executive Search firms are recruitment service organizations, that specializes in seeking, recruiting and placing highly qualified candidates for senior level and executive jobs across the public and private sectors, as well as non-profit organizations.
These firms work on the basis of two types of searches-
1) Retained Searches- In this, the firm receives guaranteed payment in form of direct payment, a further amount on 'shortlisted candidates' and final amount at time of completion.
2) Contingency Searches- In this, the recruiter will only be paid in the event of successful placement.
So, in the context of the above mentioned question, retainer firms charge a client a set fee whether or not the contracted search is successful.
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Suppose a manufacturer produces soccer balls and footballs. If the cost of producing a soccer ball decreases, the opportunity cost of producing:
Answers
Suppose a manufacturer produces soccer balls and footballs. If the cost of producing a soccer ball decreases, the opportunity cost of producing increase
What is opportunity cost?Opportunity Cost of a product is the amount of money or benefits that is lost when a particular products is not used again.
The product is left for another alternative that is better.
Therefore, Suppose a manufacturer produces soccer balls and footballs. If the cost of producing a soccer ball decreases, the opportunity cost of producing increase
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11. True or false. A crime is an offense against the public at large.
a. TRUE
b. FALSE
Answers
Answer:
I mean I'm pretty sure that's true considering crime is against the law.
It is true that a crime is an offense against the general public. Thus option (A) is correct.
What is the offense?You know, playing offense refers to taking proactive measures, approaching rather than avoiding situations, getting a head start on the day, and tackling the difficult task first. By taking the offensive, you are shaping your life rather than letting it happen to you. Compared to playing defense, it is considerably more intriguing and gratifying.
The offensive conduct is the primary focus of a public order felony charge. While public order offenses generally follow a similar pattern across all states, certain local governments may have extra or different laws.
Such actions are viewed as crimes not because an obvious offender and victim can be identified, but rather because the larger community, or at least a vocal and influential portion of it, feels offended and hence victimized by such actions. Public order offenses have different legal standing in different jurisdictions.
Therefore, Thus option (A) is correct.
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