In the one period closed economy model, the government is responsible for implementing economic policies that can influence the level of economic activity in the economy.
What is closed economy ?A closed economy is an economic system in which the country does not engage in international trade. This means that the country does not import goods or services from other countries or export goods or services to other countries.In the one period closed economy model, the government plays a central role in the economy. This model is a simplified version of an economy that is used to study macroeconomic phenomena and to make predictions about how the economy will behave.The government's role in the one period closed economy model is to use these economic policies to achieve certain economic goals, such as full employment, price stability, and economic growth. The government can also use its budget to smooth out fluctuations in the economy and to provide a safety net for individuals who are struggling financially.To learn more about closed economy refer :
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If my appraisal system is comprised of a series of scales where the end points are defined by the terms 'poor' and 'excellent', then i am probably using a(an)?
If my appraisal system is comprised of a series of scales where the end points are defined by the terms 'poor' and 'excellent', then i am probably using Absolute Rating System and Trait Rating System.
Absolute ratings System serve as a gauge of a worker's aptitude or potential. Absolute ratings are frequently used to establish an employee's beginning pay or to assign them to a certain position. A technique for evaluating employee performance is the use of absolute ratings. They are graded on a scale of 1 to 5, with 1 being the lowest score and 5 the highest. The evaluations are unrelated to the employee's peers since they are absolute. They are employed to gauge each employee's particular output.
Trait Rating System or visual rating scale, is arguably the most often used option for performance evaluations. This kind of evaluation asks the source to rank the applicant according to each of the qualities needed for the position, such as reliability and originality. Ratings could include a scale of 1 to 10, outstanding, average, or poor, or surpass, meet, or fall short of expectations, for instance.
The complete question is, "If my appraisal system is comprised of a series of scales where the end points are defined by the terms "poor" and "excellent", then I am probably using a(n):
A. Absolute Rating System
B. Comparative rating system
C. Trait Rating System
D. Both A and C"
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wuestion in the previous attempt View A vision represents Multiple Choice the CEO's responsibility the guardrails that keep the firm from making bad decisions the future that the firm is trying to create a way to market the firm to consumers. the strategic actions the firm takes.
The strategic actions the firm takes the guardrails that keep the firm from making bad decisions.
Strategic Actions are initiatives or programmes that go outside of an organization's normal operating activity and are intended to assist it in achieving its strategy. They include implementing change, building capacity to do something new or better, or enhancing performance. Setting goals or objectives, conducting analysis, developing, implementing, and monitoring strategies are the five stages of the process. The strategic management process consists of more than just a set of guidelines. It is a way of thinking about doing business. Based on a company's mission, vision, or goals, strategic decisions are made. Let me give you an illustration. A cat food company manager observes that his clients prefer fresher, higher-quality food over cheap, extremely huge volumes of cat food.
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What are the methods of scanning?
The ways of scanning are simplex or duplex scanning, scanning with separator sheets, prompted scanning, and scanning without indexing and scanning right away.
What is scanning?Reading a book rapidly allows you to find specific information, such names or numbers, within it. Skimming, which is reading quickly to acquire a broad understanding of the meaning, can be compared with it. To scan a text is to skim through it quickly in search of a particular piece of information. Scanning is frequently employed in daily life, such as when looking up a term in a dictionary or locating a friend's name in your phone's contacts list.
Which device is used for scanning?A device which optically scans photographs, written text, handwriting, or an item and converts it into a digital image is known as an image scanner; it is frequently abbreviated as simply "scanner." Variations of a desktop flatbed scanner, where the document was placed on the a glass window during scanning, are frequently used in offices.
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1. The data dashboard for a marketing manager may have KPIs related to
a. overall performance of the company’s stock over the previous 52 weeks.
b. current financial standing of the company.
c. current sales measures and sales by region.
d. data on the company's call center.
2. Compute the relative frequencies for students who earned a C shown in the table of grades below.
Grades Number of Students
A 10
B 31
C 36
D 6
83
a. 0.53
b. Not enough information
c. 0.43
d. 0.83
3. Data preparation includes all of the following except which task?
a. identifying erroneous data and outliers
b. calculating the confidence ratio for all association rules
c. defining the appropriate way to represent variables
d. treating missing data
1. The data dashboard for a marketing manager may have KPIs related to current sales measures and sales by region. Thus option (c) is correct.
2. The relative frequencies for students who earned a C shown in the table of grades below will:. Not enough information. Thus option (b) is correct.
3.Data preparation includes all of the following except calculating the confidence ratio for all association rules. Thus option (b) is correct.
What is a database?A database is the information that is set up or collected and stored for easy access, management and updating.
.
The databases are used for storing, maintaining and accessing the data. The information is collected through primary source like directly from people, places or things.
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What degree do you need to be a big data engineer?
A bachelor's degree in physics, statistics, applied mathematics, computer programming, software engineering, or a related field.
Give an example of a big data engineer.A data engineer, the It specialist, is primarily responsible for preparing information for analytical and operational purposes. These software developers are typically in charge of developing data pipelines to aggregate data from many data sources.
That perfect qualification for a big data engineer?Information technology, computer programming, or software engineering are the best majors. Engineering is among the alternative alternatives because it is more essential for this job then math or science.
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How do you reject a buyer offer?
You should reject the buyer offer is the humble way with a patience that will create some great new offer in the next time.
The offer is the term which generally refers to the person who may be employee, seller, buyer or any other individual person. In the job, the person are applicant in the job-offer.
To reject an offer the person should say, thank-you for offering me this offer or opportunity through the call, message or email. You should use the professional way in the company offer when you reject the offer.
The buyer offer may be for different purpose like offer you some products at discounted price and offering you new and low class product to just sell.
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Chapter 13Urban Patterns1) The city plus its surrounding built-up suburbs is theA) central city.B) urbanized area.C) metropolitan statistical area.D) consolidated metropolitan statistical area.E) regional government federation.
The city plus its surrounding built-up suburbs is the (b) urbanized area.
The territory close to a city is known as an urban area. Urban residents work mostly in nonagricultural industries. Urban regions are highly developed, which means there are many human constructions there, including homes, businesses, roads, bridges, and railroads.
Towns, cities, and suburbs can all be referred to as urban areas. The city and its surroundings together make up an urban area. Metropolitan areas, or "greater," are the names given to several urban regions, such as Greater New York or Greater London.
A megalopolis may develop from the growth of two or more metropolitan regions until they come together. The Boston metropolitan region in Massachusetts eventually grew as far south as Washington, D.C., becoming the BosWash megalopolis and the Northeast Corridor.
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2. The global retailing market entry strategy framework identifies the strategy used by firms.
Use a real example to differentiate between franchising and licensing global retailing
market entry strategies. [20 marks]
3. Use the global product planning matrix to differentiate between product extension
communication adaptation and product adaptation communication extension strategies
using relevant real examples.
[20 marks]
4. Market entry strategies are important in global contexts.
a. Distinguish between strategic partnerships and joint ventures. (8 marks)
b. When would joint ventures work as opposed to strategic partnerships in entering
new markets. Use their key attributes and relevant examples to explain. (12 marks)
Franchising involves bringing in an outside company (A franchisee) to run additional locations for a fee. One of the fastest market entry strategies (and common for fast-food companies like McDonald’s) involves distributing the entire process and brand materials, with corporate assistance and directives on everything from marketing slogans to site selection and permitting while Licensing involves transferring the rights and intellectual property from one company to another, using a local partner (the licensee) to create and distribute your product.
Several fast food chains like Dominos and McDonalds operate in India through franchising licensing on the other hand has been a market strategy for a company like Walt Disney. It is the registered owner of cartoon characters like Mickey Mouse, Donald Duck, etc. These characters are products of an artist’s imagination which are popular worldwide. Many merchandise bear these characteristics, like bags, cups, bottles, etc.; Walt Disney is not the sole manufacturer of this merchandise. Hence, apart from Walt Disney manufacturing these products, anyone agrees with the theme to gain a right to use these characters on its merchandise for some consideration and sell the same. This kind of arrangement is referred to as licensing.
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How does a government with a command economy manage its economy?
A command economy is a key aspect of a political system in which a central governmental authority dictates the levels of production that are permissible and the prices that may be charged for goods and services.
A Command Economy includes setting costs, allocating resources, and dictating production levels. the aim of a command economy is to make sure that the government will meet its economic goals.
These goals could embody making certain that there's economic condition, dominant inflation, or developing specific industries. In an exceedingly command economy, the government holds all the ability.
This implies that it will issue directives to businesses, telling them what to supply and the way abundant to supply.
The government also can management costs. This enables it to make sure that product area unit accessible at an occasional value, or those specific product area unit accessible briefly provide.
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How does a mixed market economy deal with scarcity?
Mixed economies deal with shortages by using a combination of rationing and free pricing systems.
A market economy deals with scarcity by using prices to direct production and ration the consumption of resources.For most goods and services, they are produced by firms that respond to price changes to meet society's demand for those goods.A price tells producers what is the greatest demand for any good or service at any given time and incentivizes producers to find the most efficient means of satisfying it with scarce resources.The economic system of the country in which I live is mixed. market economy.My government maintains this economic system by allowing citizens to make many economic decisions.The government responds to economic problems by trying to provide more opportunities for citizens. In a mixed economy, both market forces and government decisions determine what goods and services are produced and how they are distributed.In general,market forces prevail in mixed economies.
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Can a buyer reject goods after acceptance?
Yes, the buyer can reject the goods after receiving them. This can happen if the goods are not in accordance with the contractual terms, are not delivered in a reasonable time or are not in the condition that was originally agreed.
If the buyer believes that the goods are not suitable for their intended purpose, they can exercise their right to reject the goods and request a refund or exchange. The buyer must act within a reasonable time after receiving the goods to reject the goods. Depending on the agreement, the buyer may be able to reject the goods, even if they have already been accepted, if the rejection is within a reasonable time.
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What is the purpose of the EU single market?
The EU wants its citizens to be able to live, work, study, shop, retire, and enjoy goods from any of its member countries. To accomplish this, it ensures unrestricted mobility of people, capital, goods, and services inside an unified EU internal market.
What make up the essential elements of the EU Single Market?One of the four distinguishing characteristics of the European Single Market is the freedom of movement of people, money, products, and services. They are additionally known as the "four freedoms."
What are the fundamental principles governing the EU single market?The single market seeks to ensure the unimpeded flow of people, capital, products, and services, commonly known as the "four freedoms." All EU member states are required to abide by a set of uniform laws and regulations, which makes this possible.
Is the EU Single Market a success?The European Single Market is a financial success, accounting for more than 15% of the world economy's GDP. The EU Single Market has made a number of noteworthy accomplishments, including: Rome Treaty of 1957. There was only one European Act in 1986.
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a unit manager is tasked with developing a new organ procurement team. this type of team involves multiple entities within the hospital, as well as community partners and surgical groups that will need to be brought together. which actions should be practiced during the preparation stage of a negotiation? (select all that apply.)
This kind of team will need to bring together several hospital departments in addition to civic groups and surgical groups.
What does the term "hospital" mean?hospital, an establishment designed, staffed, and furnished again for diagnosis of a disease, the medical and surgical care of the ill and injured, and their residence while undergoing these procedures.
Why is a hospital necessary?Hospitals. Hospitals consistently offer services both for acute and complicated diseases, which improves and complements the functioning of many other parts of the healthcare system. To effectively address the demands of the population's health, they focus limited resources within well designed referral networks.
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Why is carbon important in industry?
Carbon is in carbon dioxide, which is a greenhouse gas that works to trap heat close to Earth.
It assists Earth in retaining the energy it receives from the Sun, preventing it from escaping back into space. The Earth's ocean would be frozen solid if it weren't for carbon dioxide.
Carbon is found in carbon dioxide, a greenhouse gas that traps heat near the Earth. It assists Earth in retaining some of the heat received from the Sun so that it does not all escape back into space. However, CO2 is only effective up to a point; beyond that point, the Earth's temperature rises too quickly. NASA's OCO-2 and OCO-3 research satellites are studying how carbon moves around the planet.
Carbon is found in all living things on Earth. You, too, contain carbon. There's a lot of it! We, like all other living things on this planet.
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1. As an alternative to selling shares of stock as a means of raising funds,
a large company could, instead,
a)invest in physical capital
b)use equity finance
c)sell bonds
d)purchase bonds
2. The economy's two most important financial markets are
a)the investment market and the saving market
b)the bond market and the stock market
c)banks and the stock market
d)financial markets and financial institutions
3. Two of the economy's most important financial intermediaries are
a)suppliers of funds and demanders of funds
b)banks and the bond market
c)the stock market and the bond market
d)banks and mutual funds
4. We associate the term debt finance with
a)the bond market, and we associate the term equity finance with the stock market
b)the stock market, and we associate the term equity finance with the bond market
c)financial intermediaries, and we associate the term equity
d)finance with financial markets financial intermediaries
5. A bond is a
a)financial intermediary
b)certificate of indebtedness
c)certificate of partial ownership in an enterprise
d)None of the above is correct
6. If the Apple corporation sells a bond it is
a)borrowing directly from the public
b)borrowing indirectly from the public
c)selling shares of ownership directly to the public
d)selling shares of ownership indirectly to the public
7. The single most important piece of information about a stock is its
a)term
b)dividend
c)daily volume
d)price
8. Which of the following lists is included in what economists call
"money"?
a)cash
b)cash and stocks and bonds
c)cash and stocks and bonds and real estate
d)cash and stocks and bonds and real estate and all other assets
9. Which of the following best illustrates the medium of exchange function
of money?
a)You keep some money hidden in your shoe.
b)You keep track of the value of your assets in terms of currency.
c)You pay for your oil change using currency.
d)None of the above is correct.
10. Most financial assets other than money function as
a)a medium of exchange, a unit of account, and a store of value.
b)a medium of exchange and a store of value, but not a unit of account.
c)a store of value and a unit of account, but not a medium of exchange.
d)a store of value, but not a unit of account nor a medium of exchange
11. To maintain their standard of living, most people rely on
a)government assistance.
b)their labor earnings
c)their personal savings
d)All of the above are correct
12. The amount of unemployment that an economy normally experiences is
called the
a)average rate of unemployment
b)natural rate of unemployment
c)cyclical rate of unemployment
d)typical rate of unemployment
As an alternative to selling shares of stock as a means of raising funds, a large company could instead sell bonds, The economy's two most important financial markets are the bond market and the stock market.
What is the economy?An economy is a collection of interconnected production and consumption processes that ultimately decide how resources are distributed within a community. The demands of persons who live there and conduct business there are met by the production and consumption of goods and services as a whole.
Prices of stocks and bonds typically connect with one another. Stock prices will eventually follow bond price declines and decline as well. The justification is that bonds are typically viewed as less risky investments than equities.
Financial intermediaries are organizations that include commercial banks, investment banks, mutual funds, and pension funds. Through debt and equity, they redistribute uninvested capital to the economy's productive sectors.
Therefore, Thus option ( C and B ) is correct.
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What are the advantages and disadvantages of conducting a cost-benefit analysis?
A benefit-cost analysis is a methodical procedure for locating, estimating, and contrasting the anticipated advantages and disadvantages of an investment. BCA can be used to determine whether a project offers users significant economic advantages compared to the resources needed to achieve it.
What are cost-benefit analyses used for?
It is typical to anticipate that supply and demand will balance out. Comparing the costs and benefits of a certain course of action is the aim of cost-benefit analyses.
The cost-benefit principle is what, exactly?
A key idea in economics is the cost-benefit principle, which states that decisions should only be made if the benefits outweigh the costs.
This demonstrates the trade-offs included in every decision-making process.
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In which sector will the majority of workers in a developed country be employed?
The service sector makes up the majority of the economy in a developed country. The service sector will use manufactured goods, there is also the matter of providing clients with a service.
Businesses that provide "intangible products" including entertainment, retail, insurance, travel, and banking make up the service industry. Although the service sector will use manufactured goods, there is also the matter of providing clients with a service.
The service sector makes up the majority of the economy in a developed country like the UK, accounting for roughly 80% of GDP and a comparable proportion of jobs. Seventy percent of the workforce in the US works in the service industry.
The following are the main service sectors in the UK:
Retail sectorIT and computer servicesLodging and travel servicesA restaurant or a cafeCommunication: rail, bus, air, and seaFinancial servicesServices for insurancePension consultingDrinks and food servicesMailing servicesTo learn more about service sectors link is here
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MGT 302: Principals of International Business Exam 2
Expand the market for your domestic product offerings by selling those products in international markets.2.Realize economies of location through dispersion.
Study Flashcards in MGT 302 International Business Exam 2 at Cram com. Quickly memorize terms, phrases and much more. Cram.com makes it easy to get mgt302 exam study guide culture, that complex whole that includes Knowledge,Belief,Arizona State University International Business Principles. Study of international business environments from the managerial aspect and international management practices and principles international business.
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What is Article 1 of the Code of Ethics?
According to Article 1, REALTORS promise to uphold and advance the interests of their clients when acting as an agent on behalf of a buyer, seller, landlord, renter, or other client.
What does the Code of Ethics' first section say?Preamble ,The aim and guiding principles of the social work profession are outlined in the first Section, or "Preamble." The second part, "NASW Code of Ethics: Purpose," offers a summary of the Code's principal purposes as well as a quick guidance for handling moral quandaries that may arise over the course of social work practice. According to Article 1, REALTORS promise to uphold and advance the interests of their clients when acting as an agent on behalf of a buyer, seller, landlord, renter, or other client. Although serving the client's needs comes first, REALTORS nevertheless have a duty to treat everyone fairly.To learn more about Code of Ethics refer to:
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What is the difference between WTO and GATT?
GATT and WTO vary in that GATT was an intergovernmental body, whereas WTO was an arrangement between or among governments.
What exactly is GATT?The General Tariffs and Trade Agreement is an international treaty that was created with the aim of promoting trade by lowering or removing trade restrictions like tariffs and quotas.
What is the major goal of GATT?It was created to speed the economic recovery following World War II by reducing or eliminating trade tariffs, quotas, and subsidies. To help the economy of developing nations, developed nations agreed to remove import tariffs from those nations. Even developed nations benefited from lower tariffs.
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How does citizens live on a daily basis in Econimic system?
Economic factors, including money, education, work, neighborhood safety, and social resources. These elements impact our capacity to make healthy decisions, pay for housing and healthcare, control stress, and other things.
What is Economics system?An economic system is a mechanism used by communities or authorities to coordinate and allocate wealth, activities, and goods throughout a territory or nation. The factors that affect production, such as land, cash, labor, and natural facilities, are governed by economic structures.
People who study economics are better able to comprehend their surroundings. It makes it possible for people to comprehend other people, organizations, market, and institutions, enabling them to better react to the challenges and possibilities that arise when circumstances change.
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metallica bearings, inc., is a young start-up company. no dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. the company will pay a dividend of $10 per share exactly 10 years from today and will increase the dividend by 6 percent per year thereafter. if the required return on this stock is 10 percent, what is the current share price?
The corporation would then pay a payout of $10 for each share in 10 years and will boost the dividend by 6% per year after that.
What exactly do you say by "share"?
Shares are equity ownership units in a corporation. Shares occur as a capital product for some companies, supplying for an equitable split of any residue left profits, if any are proclaimed, in the dividend form. Stockholders of a shares that does not pay dividends are not entitled to a profit distribution.
What are the various kinds of shares inside a limited company?
Ordinary stock.Non-voting stock.Preferences are distributed.Shares that are redeemable.To know more about Shares visit:
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Does USPS pay for late delivery?
You can ask for a refund at USPS.com if your Priority Mail Express mailpiece is not delivered within the promised window of time. The Post Office will no longer process refunds there.
If a delivery is late, will USPS reimburse you?If the parcel is not delivered by the promised certain delivery date and time at the time of shipping, USPS® will reimburse you again for postage and, if you purchased it, the Sunday or holiday premium cost.
If USPS doesn't deliver by the scheduled time, what happens?There is a money-back guarantee on all Priority Mail Express shipments from USPS. Within two days and so by 6:00 pm local time, these packages must reach the recipient's address. If your product isn't delivered by the Scheduled Delivery Date listed on the label, you can request a postage refund.
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How does the Scrum team decide when a product backlog item is done?
The "completed" Product Backlog items will be compared to the Scrum Team's overall Definition of Done.
When a backlog item is completed, how does a Scrum team know?This is accomplished by evaluating the work completed since the previous Daily Scrum and forecasting the work that could be completed prior to the next one. The Run Audit is held toward the finish of the Run to examine the item increase. The Scrum Team and stakeholders evaluate the Sprint's accomplishments during the Sprint Review.
How do developers determine whether an item in the product backlog has been completed?The Product Owner and the Scrum Team work together at the Sprint Planning event to create a Sprint Goal that explains why the Sprint is valuable. The Development team then selects Product Backlog Items to describe what will be delivered and makes a plan for how to deliver them.
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Although buying a certificate of deposit can earn your higher returns than a regular savings account, it can have the negative side effect of _________.
Although purchasing a certificate of deposit might provide you with higher returns than a standard savings account, this investment is costly up front. The correct answer is b.Requiring a high initial investment
It is a term used in finance to describe a savings product that pays interest on a lump sum for a predetermined amount of time. The money in a Certificate of Deposit must stay untouchable for the duration of its term in order to avoid penalty fees or lost interest, which sets it apart from savings accounts. In order to compensate for lost liquidity, certificates of deposit pay out higher interest rates than savings accounts.
Although buying a Certificate of Deposit can earn your higher returns than a regular savings account, it can have the negative side effect of _________.
a.Needing frequent transfers to stay active
b.Requiring a high initial investment
c.Being taxed when invested and when withdrawn
d.Having to be tied to a fixed rate saving account
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Is protectionism good for trade?
Answer:
Explanation:
Companies without competition decline in quality: In the long term, trade protectionism weakens industry. Without competition, companies do not need to innovate. Eventually, the domestic product will decline in quality and be more expensive than that produced by foreign competitors.
How does a command economy affect private citizens?
People are harmed by it because it uses resources inefficiently and puts their needs and preferences at risk. Additionally, the quality of the products may be subpar due to a lack of innovation brought on by a lack of competition.
What do you know about command economy?In a political system with a command economy, a central governing body sets both the level of output that is allowed and the prices that can be paid for goods and services. The majority of industries are publicly held.
A free market economy, where supply and demand determine prices and output, is the primary alternative to a command economy.
In contrast to capitalist nations, which have a free market, communist political systems have a command economy.
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jeff owns a health care company that sells medical supplies. the company bills health insurance companies for their customers. they are required by the insurance companies to complete paperwork that includes personal and health information. which option describes the regulated data jeff's organization needs to secure?
A federal, state, or municipal government-run program in the United States that covers all or part of a person's medical expenses. Medicare and Medicaid are the two primary public health insurance programs.
What is Health insurance?Shopping for health insurance gives you options. Health plans are categorized into bronze, silver, gold, and platinum categories depending on the degree of coverage they give when purchased through your state's Marketplace or through an insurance broker. In terms of coverage, platinum plans offer the most and bronze plans the least. A high-deductible catastrophic plan can be available to you if you're under 30.For the typical enrolled person, each pays a specific percentage of the costs. Plans may differ in the specifics. Furthermore, deductibles differ per plan, typically with the least priced having the highest deductibles. Deductibles are the sums you must pay before your insurance covers 100% of your medical expenses.Platinum: typical medical costs are covered at 90%, with 10% being your responsibility.Gold: you pay 20% of your medical bills, while the insurance covers 80% on average.Silver: you pay 30% of your medical expenses, while the insurance covers 70% on average.Bronze: 60% of your average medical costs are covered; the remaining 40% is your responsibility.Catastrophic: Policies with a high deductible ($8,700 in 2022) won't start paying out until that point. Even if your deductible has not yet been reached, catastrophic plans are required to pay for your first three primary care visits as well as any necessary preventative treatment.Associated with the care levels will be insurance brand names as well. Aetna, Blue Cross Blue Shield, Cigna, Humana, Kaiser, and United are a few of the well-known household names.To Learn more About health insurance refer to:
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What are the 4 types of credit cards?
4 Various Credit Card Types
Visa credit cards.Mastercard credit cards.American Express credit cards.Discover credit cards.Definition of a credit card What is the objective of it?A credit card is a type of payment that permits both consumer and business transactions, including as purchases and cash advances, when used virtually. A credit card usually serves as a substitute for money or checks and normally provides an unsecured revolving line of credit.
What benefits do credit cards offer?Advantages of credit cards
Earn rewards such as cash back or miles.the defense against credit card theft.Free information on credit scores.not a single foreign transaction fee.an expanded buying capacity.unconnected to a checking or savings account.putting a hold on a lodging or rental vehicle.Learn more about Credit Card: https://brainly.com/question/27350251
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How can contractionary policies be used to reduce demand pull inflation?
Standard central bank response is to raise official discount rate; an example of contractionary policy. Higher interest rates reduce aggregate demand, leading to slower economic growth and (eventually) lower demand inflation.
How does demand pull lead to inflation?Demand-pull inflation occurs when aggregate demand increases and supply stays the same or decreases. This drives prices up as businesses try to meet increased demand due to a shortage of the necessary supply. The cause of demand-pull inflation include: an expanding economy, increased government spending, or overseas growth.
What is the best example of demand pull inflation?One of the best examples of how demand-pull inflation is directly related to an increase in aggregate demand is the 2008 financial crisis and subprime mortgages. As the popularity of mortgage-backed securities increased in the years leading up to the crisis, so did the demand for these securities.
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