Q7 and Q8 and Q9 please True or Falses1. According to the wage-price spiral, if a company gives a worker a raise in pay, then they increasethe price of their products.2. When the actual inflation rate is lower than expected, lenders win and borrowers lose, because thereal interest rate is greater than expected.3. When the supply of a product or service goes down and the demand stays the same the Price willtypically fall4.The fundamental economic concept that describes the total amount of a specific good or servicethat is available to consumers is called supply.5. Book value of a fixed asset is equal to: Cost-Salvage value.6. With an interest rate of 8% compounded semiannually, the value of a $1000 investment after 5years is most nearly ($1840).7.The calculation of depreciation using the declining-balance method ignores salvage value indetermining the amount to which a constant rate is applied.8. Inflation occurs whenever the price level falls continuously over a period of time.9. When the supply of a product or service goes down and the demand stays the same the Price willtypically fall.10. To earn as much interest as possible, you should open a savings account that earns simpleinterest and has the highest interest rate.

Depreciation is the gradual loss of value experienced by an asset over time as a result of wear and…

7. The calculation of depreciation using the declining-balance method ignores salvage value in determining the amount to which a constant rate is applied. 8. Inflation occurs whenever the price level falls continuously over a period of time. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10

7. The calculation of depreciation using the declining-balance method ignores salvage value in determining the amount to which a constant rate is applied. 8. Inflation occurs whenever the price level falls continuously over a period of time. 9. When the supply of a product or service goes down and the demand stays the same the Price will typically fall. 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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