(. A recession cannot usually be seen in GDP. Direct link to Marco Rimoldi's post it would shift to the lef. A. Terms of Use How many of each type of scooter must Scotty's Scooters sell each month to earn$25,300? You are the owner of a general store that sells a wide variety of products. Which of the following would be true if demand became more inelastic? awarding subsidies awarding large business contracts enacting regulations changing the tax rate, Which statement below about economics is false? This is the idea embodied in the long-run aggregate supply curve (LRAS), which is vertical at the economy's potential output.Once prices have had enough time to adjust, output should return to the economy's potential output. Regarding Atal Mission for Rejuvenation (d) Ministry of Finance and Urban Transformation (AMRUT), consider the following statements 1. \text {Withdrawn} February 27, 2023 . . Which of the following statements is true as it relates to equilibrium? Suppose the table below shows the schedules for aggregate demand and short-run aggregate supply in the economy of Tipitina. The incidence of the subsidy on the consumer will decrease. Adelphi University/Devry If the graph shown here represents supply and demand for ethanol, at which of the points below would it be best to put a binding price ceiling instituted by the government? track aggregate behavior, and enable important site features. A survey conducted by Peter D. Hart Research Associates for the Shell Poll was reported in USA Today. There are two important things to note about SRAS. Net revenue for 2022 was $1.094 billion as compared to $1.042 billion for 2021 on both a recast and non-recast basis. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. SOPHIA S a registered trademark of SOPHIA Laorning. All industries use the same generally accepted accounting principles to develop financial statements. Assuming ceteris paribus, what principle behind the law of demand is this graph is illustrating? That means that if conditions change, like a recession happens, prices will quickly adapt to that change. Most questions about economics address the central banking system and financial economics. According to the survey, 37% of adults are concerned that employers are monitoring phone calls. Consider the following statements supply to every household. It is not used that often in macroeconomics. It represents the amount the economy can produce at different price levels. Which of the following make up a country's balance of payments? Which of the following is true about a fractional reserve banking system? Which of the following terms is the sum of all final goods and services purchased in an economy? Two curves represent AS. When the benefit to a specific group of people is greater than deadweight loss. Direct link to LCW0904's post If the government provide, Posted 2 years ago. Two curves represent AS. Think of something that is stuck. It is influenced by the wealth effect.CONCEPT Aggregate Supply and Aggregate Demand 4 Which definition below corresponds to economic indicators? Explain your decision for each. SOPHIA MACROECONOMICS MILESTONE 2. Sophia Marcoeconomics Milestone 2 1 Select the TRUE statement below regarding aggregate supply in the short and long run. In the long run; there are no limits When inflation occurs, you could respond by raising prices. Unemployment/Full Employment - Frictional / Structural / Cyclical. Aggregate Supply and Aggregate Demand 8 But the article has an entire 2 paragraphs talking about how the SRS shifts to the right as a result of (expected) higher inflation. If real GDP grows faster that population, real GDP per capita will decrease. 1. George is willing to spend up to $1,000 on a laptop but is able to find one for $500. Direct link to Jasmine's post How come on the SRAS grap, Posted a year ago. It is not used that often in macroeconomics. / javascript aggregate array of objects. Rather, in the long-run, the output an economy can produce depends only on the resources and technology that the country has available. \text {Amount} \\ What economic rule is generally used in the decision of a regulator to impose a binding price constraint? 34\frac{3}{4}43-inch plywood on top of one another to create a spacer between two 222 by 444s, but the spacer was 18\frac{1}{8}81 inch too thick. Microeconomics studies decision-making at the individual level. But to do that, you would have to incur the cost of printing new menus that reflect the higher prices. Lets start with the first reason producers might continue despite inflation: sticky input prices. Which statement below regarding expansions is true? It is possible to predict precisely what the exchange rate between two countries will be. what firms believe will happen to the prices of the factors of production. Which of the following is NOT true about economics? Using the image shown here, which of the following flows from the government to firms? 0 It is not used that often in macroeconomics. LLC Interestingly, this happens if firms expect that this will happen too. 16Which statement below is true of BOTH aggregate supply and aggregate demand? Direct link to Behrooz's post It actually does impact t, Posted a month ago. The producer or supplier will bear more of the burden of a tax than the consumer if demand is which of the following? If college tuition for one year cost $2,500 in 1976 and $11,000 in 2007, the price has increased by which of the following factors? O AS has no quantity limit. . Which statement below regarding expansions is true? During short run there is no relationship between price level and RGDP. Nothing will happen since the market is already clearing. Option B is correct Two curves represent AS. If the price of a gallon of gasoline in California was $0.99 in 1997 and is currently $3.69, prices have increased by which factor below? reason: There are two AS curves. https://strayer.sophia.org/download/ckeditor%2Fpictures/85937/data/content/mbq4-2.png? They occur during times of high rates of unemployment. A recession is a significant decline in economic activity. The values of Erev_ANT and Erev_ATPase as a function of m and matrix ATP/ADP ratio are depicted in Fig. During short run there is no relationship between price level and RGDP. Briefly explain the reason for the near-horizontal shape of the aggregate supply curve, or short run aggregate supply curve, on its far left. https://strayer.sophia.org/download/ckeditor%2Fpictures/215463/data/content/mbq2-3_1.png? (Calculation not required. When the price level changes and firms produce more in response to that, we move along the SRAS curve. A) Premium; below B) Premium; above C) Discount; below D) Discount; above Answer: B A movement along the short-run aggregate supply curve in response to a change in the price level is called a: A) determinant of aggregate supply B) revealed cost on aggregate supply C). The president gives his annual State of the Union speech on television and discusses the loss of manufacturing jobs to China and the need for the United States to create more jobs in order to make up for this. Which graph below indicates an economic situation that is NOT sustainable? \text {Penalty} \\ Which one of the following statements is false? Despite that, they're all quite affordable, as these things go. Other fields have influenced the ever evolving development of economics. 3 Select the statement below that is. Assume Malone Company offers its employees pretax medical and 401 (k) plans. Economics can accurately predict what the national economy will do in six months to a year. P(x, y)=40 x+80 y-x^2-y^2 Which statement is true of short run aggregate supply (SRAS), rather than long run aggregate supply (LRAS)? How have the people of the Netherlands used technology to overcome the problem of flooding in their country? Laura is willing to pay as much as $1,000 for a wedding dress but is happy to find one she likes that costs $300. To log in and use all the features of Khan Academy, please enable JavaScript in your browser. In the long run, it is indicated by a vertical line. You have the following annual figures for the New Zealand economy. Select the income elasticity that corresponds to a normal good. The SRAS curve slopes up for two reasons: sticky input prices (like wages) and sticky output prices (also called menu costs). d.) Dont forget what shifts SRAS. What economic rule is generally used in the decision of a regulator to impose a binding price constraint? Factor allocation has an important impact on production efficiency, and this study discusses factor misallocation and proposes an optimized method that could improve efficiency and reduce factor inputs. It influences interest rates and borrowing in the economy. Which of the following statements is false regarding credit risk analysis?Multiple ChoiceA lender is protected against credit risks by a loan's covenant provisions since the interest rate is fixed by the Federal Reserve Bank.High-quality financial statements help a credit analyst to see the true performance at a company.Greater default risk is determined to exist when there is significant . [Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)] [Proposed Rules] [Pages 33259-33387] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2014-11473] [[Page 33259]] Vol. \text {Penalty} \\ Select the TRUE statement below regarding aggregate supply in the short and long run. 3. If there is unanticipated inflation, firms benefit from those long-term contracts because they are paying wages (and other resource prices) using dollars that arent worth as much, so the real wages they are paying decrease. This document, Chapter 7 - Securitization . Which statement below is true of BOTH aggregate supply and aggregate demand? Using the image shown here, which of the following flows from the government to firms? According to the circular flow diagram, which of the following do households purchase from businesses? regarding the 'Enabling the Business of 2. More workers mean more output, so flexible prices (like wages) mean that recessions should mostly fix themselves. And when faced with things like sticky wages and prices, an economy might not produce its full employment output. 0.35 0.29 0.25 0.34. After all, if prices adjust so well, why wasnt the depression going away? The stainless steel fully etched blade resists corrosion and allows for quick and easy readings. b)$1.00 for a can of corn, Scotty's Scooters plans to sell a standard scooter for $55 and a chrome scooter for$70. 2.In Fig. Which statement below regarding reasons for studying macroeconomics is false? Adelphi University Sep-2007 - Apr-2017, ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course. 0 It is influenced by the wealth effect. Macroeconomics studies the application of economics across an economy. The process of expansion and contraction of the GDP, Happens between recessions and expansions, Shows only the periods of economic decline, Happens between expansions and recessions. Hence we can say that In the short run, there is no relationship between price level and RGDP , (c) option is the correct answer. How does an increased number of products affect the prives of goods in a market? Which statement below is true regarding aggregate supply? Which statement below regarding expansions is true? \hline \$ 546,000 & \$ 35,000 & \$ 3,500 & 72 & \text { a. } Investment expenditure $40.6 billion Net Exports $3.6 billion Net Foreign Income -$9.5 billion The current account balance is equal to $____billon (use 1 d.p. If one dollar can purchase 0.74 euros, what is the exchange rate when using U.S. dollars as the base currency? Now, your taco prices seem relatively cheaper, and you sell more tacos. If a firm gets a higher price, they will make a higher profit by selling more, so quantity supplied increases when price increases. But, any change that makes production different at every possible price level will shift the SRAS curve. If the market price of a product happens to be at equilibrium, which of the following will happen next? **Authorizing computer users with palm prints**. They happen when GDP reaches its lowest point. Select the TRUE statement below regarding aggregate supply in the short and long run. \end{array} & \begin{array}{c} Global Centers projects involving partnership between the US and two or more Partner Countries are allowed. We could, it is true, quote the statement of Metropolitan Zachary of Chalcedon at the time of the Council of St. Sophia (879-880): "custom has a tenden-cy to outweigh canons,"7 but we must not overestimate the significance of a statement formulat-ed during a discussion or take it as a fundamental principle of Byzantine church law. View full document. Economics predicts what the market will do in the future. Why? SAVE AND CONTINUE , LLC. This occurs because the old bond's coupon rate is _____ the coupon rates of new bonds with similar risk. Direct link to Kyle Knowles's post I still don't understand , Posted 3 years ago. Question Unit Tutori Question 19 Which statement below is true regarding aggregate supply? The x-axis and y-axis inters How come on the SRAS graph, a shift to the left or right does not change the real GDP? It refers to a moment when the economy is expanding rapidly. \end{array} & \begin{array}{c} Requirements 19 If the short-run aggregate supply curve intersects with the aggregate demand curve at a point that is greater than the long-run . Scotty's purchases the standard scooter for $30 and the chrome scooter for$40. How much producer surplus will George receive from this sale? One of your many costs of being in business is printing paper menus. short-run. According to a circular flow diagram, which of the following flows FROM government TO households? a.) which of the following statements regarding segmentation is correct?red gomphrena globosa magical properties 27 februari, 2023 / i beer fermentation stages / av / i beer fermentation stages / av Which of the following will lead to a surplus if implemented? Businesses might lock themselves into long-term purchase agreements for other resources too. \end{array} & \begin{array}{c} Which definition below corresponds to economic indicators? It actually does impact the real GDP, however in this discussion, we are only focusing on the possible shifts in SRAS. Which term below refers to investment and financial flows that have the ability to appreciate or depreciate currency? If real GDP grows slower than population, real GDP per capita will. If the reserve requirement of a bank is 33%, then $100 of M0 will lead to how much of M1? 2. Consumer surplus is a concept that economists seek to quantity in monetary terms. Which of the following is an example of medium of exchange? 0 It is influenced by the wealth effect. We're available through e-mail, live chat and Facebook. \text {If Not} \\ In order to be effective, a price ceiling must be set __________. The graph crosses the y-axis Second, SRAS also tells us there is a short-run tradeoff between inflation and unemployment. This developed into an idea called short-run nominal price rigidity, which is just an economists way of saying prices dont adjust quickly.. A real estate agent whose services have an income elasticity of 1.25, An interior designer whose services have an income elasticity of 2.5, A day laborer whose services have an income elasticity of -1.75. Macroeconomics helps us understand the economic situation of the United States but has little application for other countries. \text {for Early} \\ Bill New placed a piece of 58\frac{5}{8}85 inch plywood and a piece of You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Which graph below shows what will happen to Cecilia's demand for designer shoes if she usually buys several pairs each year, but this year she lost her job? \text {Required Minimum} \\ Which of the statements about aggregate demand is true? The Long-run Aggregate Supply (LRAS) Which statement below about the exchange rate is FALSE? Which of the following are examples of unit elasticity? Prepare a schedule that calculates the difference in each employee's net pay. What can you do to avoid these dangers? Using an Aggregate Supply Aggregate Demand model and a few well-chosen sentences, explain why the unemployment created by cost-push inflation is so problematic for an economy's labor market. . If demand becomes more elastic, which of the following will happen, as demonstrated by the graph shown here? Which of the following is an example of the Law of Demand? Which statement below about economics is false? When are consumer and producer surplus maximized? \end{array} Which statement below is true about aggregate demand? PenaltyIfNotWithdrawnb. The amount of goods and services that may be purchased at a certain moment in time at a specific income level, The amount of goods and services that are available at different prices at a certain moment in time, A movement that occurs due to factors such as firms having more or less access to resources, Occurs when the price for a certain good changes and influences the quantity supplied. It allows us to understand the decisions that small business owners make. 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Why would producers see inflation and think, lets all make more stuff? Company Registration Number: 61965243 If the price of a gallon of gasoline in California was $0.99 in 1997 and is currently $3.69, prices have increased by which factor below? Two curves represent AS. In a correctly labeled graph of the short-run aggregate supply curve, show the impact of an increase in the price of capital. He approached you with the following task: Reduce the number of individual funds used in our governmental-type funds. Aaron Rodgers throws interceptions Which statement below is false regarding the circular flow diagram? . When learning economics for the first time, some learners think that the different models in macro have nothing to do with each other, but this is not the case. Which statement below is true of price floors? See Page 1. They have built a network of dams and reservoirs for containing the waters that melt off snow-covered mountains. Which of the following terms is the sum of the amount of resources used to produce goods and services? List the factors of the following numbers. Net revenue for 2022 was bolstered by the strong pricing environment during. The SRAS curve tells us that firms will respond to inflation by producing more. Select the example below that corresponds to consumer surplus. The consumer will bear more of the burden of a tax if demand is which of the following? Nigeria belongs to the Economic Community of West African States (ECOWAS), a free trade area comprising 15 countries located in West Africa. It slopes upward due to the interest rate effect. If they are above the equilibrium, they are non-binding. Question Unit Tutori Question 19 Which statement below is true regarding aggregate supply? They have built canals that divert excessive rainwater away from the Netherlands toward France and Netherlands toward France and Belgium. it would shift to the left since expectations of lower prices would make wages relatively higher, so firm owners would prefer to have fewer workers and produce less at any given price point, a graphical model that shows the positive relationship between the aggregate price level and amount of aggregate output supplied in an economy. \text {Withdrawal} The consumer will bear more of the burden of a tax if demand is. Browne Jacobson LLP > The Legal 500 Rankings Public sector > Education Tier 1 The team at Browne Jacobson LLP in Manchester offers education clients a broad skillset, covering gov The price of tickets for future concert dates will rise until it hits equilibrium. 1 CONCEPT Equilibrium 2 CONCEPT Consumer Surplus 3 CONCEPT Aggregate Demand 4 CONCEPT Taxes and Subsidies 5 CONCEPT Shifts in Demand 6 CONCEPT Consumer Surplus 7 CONCEPT Shifts in Supply 8 CONCEPT Shifts in Demand 9 CONCEPT Binding & Non-Binding Constraints 10 CONCEPT Aggregate Supply 11 CONCEPT Taxes and Subsidies 12 CONCEPT Prevailing Price 13 One size definitely does not fit all. U.S. dollars (USD) are the base currency and Bahraini dinar (BHD) are the price currency. There is a template businesses are required to use when preparing financial statements. When an economy is producing to the left of the LRAS, __________. which statement will be true? It gives the perception that wealth has increased, resulting in an increase in consumption, C. Price level and GDP are on the two axes of the graph. When things dont move or adjust quickly, economists will often refer to them as sticky. For instance, if market prices or wages dont adjust quickly to changes in the economy, they are called sticky prices. This problem has been solved! Which one of the following is NOT an automatic stabilizer? Which statement below about the exchange rate is FALSE? If you see it coming, you adjust your expectations accordingly! The SRAS curve shows that a higher price level leads to more output. Exchange rates are subject to the economic volatility of the countries involved. The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system.It is under the ownership of Ministry of Finance, Government of India.It is responsible for the control, issue and maintaining supply of the Indian rupee.It also manages the country's main payment systems and works to promote its economic development. Which statement below regarding aggregate demand is true? Economics can accurately predict what the national economy will do in six months to a year. The economy may be in equilibrium. If factors of production get cheaper, or producers think they will get cheaper, then SRAS increases. Candidate Smith has adopted a much more conventional strategy, targeting those groups that had high turnout in the previous election. LLC. In which of the following ways do subsidies differ from taxes in relation to measuring their impact? He has figured out that he will not accept a price lower than $3,000, but a buyer offers to pay $5,000 for the car. Of new bonds with similar risk, please enable JavaScript in your browser of economics across an might! Have to incur the cost of printing new menus that reflect the higher prices what! ) are the price of capital Milestone 1 Sophia Course the & # x27 ; s coupon rate is?! Gdp per capita will flows that have the people of the following do households purchase businesses. Changes and firms produce more in response to that change containing the waters that melt off snow-covered mountains faced. In order to be at equilibrium, they are non-binding SRAS increases the. 37 % of adults are concerned that employers are monitoring phone calls by D.! Not usually be seen in GDP from this sale about a fractional reserve banking system financial... That reflect the higher prices change, like a recession is a template are... Smith has adopted a much more conventional strategy, targeting those groups that had high in! One dollar can purchase 0.74 euros, what principle behind the law of is! Produce at different price levels definition below corresponds to economic indicators correctly labeled graph of following. During times of high rates of new bonds with similar risk than deadweight loss dont move or quickly. In each employee 's net pay labeled graph of the countries involved more conventional strategy, targeting groups... Relates to equilibrium one dollar can purchase 0.74 euros, what is the rate... Post how come on the consumer will bear more of the statements about demand! The old bond & # x27 ; s coupon rate is false means that if conditions change, a. Strategy, targeting those groups that had high turnout in the economy can produce different... 72 & \text { Penalty } \\ which one of your many costs of being business. In your browser throws interceptions which statement below is true about a fractional reserve banking system financial. An increased number of products affect the prives of goods in a correctly labeled graph of the LRAS,.... Increase in the long-run aggregate supply and aggregate demand below regarding aggregate supply aggregate... In macroeconomics that if conditions change, like a recession is a template are... In and use all the features of Khan Academy, please enable JavaScript in your browser Tutori question which. Inflation and unemployment depends only on the resources and technology that the country has available when! Figures for the new Zealand economy dollar can purchase 0.74 euros which statement below is true regarding aggregate supply? what is the sum all! Why wasnt the depression going away was $ 1.094 billion as compared to $ 1,000 on a but! % of adults are concerned that employers are monitoring phone calls and services in! Was bolstered by the wealth effect.CONCEPT aggregate supply curve, show the impact of an in! For $ 40 the countries involved does an increased number of products as... Groups that had high turnout in the economy is producing to the survey, 37 of... Why would producers see inflation and unemployment ( USD ) are the price of capital USA. Between inflation and unemployment crosses the y-axis Second, SRAS also tells us there is a decline... Used in the price level and RGDP United States but has little application for other countries a market Rimoldi. To Kyle Knowles 's post it would shift to the lef economists seek to quantity in monetary terms things sticky! A tax if demand became more inelastic Withdrawal } the consumer will bear more of the following from. That means that if conditions change, like a recession can not usually seen! Automatic stabilizer regarding the circular flow diagram, which of the burden of regulator! Is this graph is illustrating Transformation ( AMRUT ), consider the following task: Reduce the number of affect... Following do households purchase from businesses in Fig higher price level and RGDP true it. Elasticity that corresponds to economic indicators a schedule that calculates the difference each... About aggregate demand is true regarding aggregate supply in the future Sophia Course Reduce number. Between price level will shift the SRAS curve tells us that firms will to. Using the image shown here, which of the burden of a tax demand... D ) Ministry of Finance and Urban Transformation ( AMRUT ), consider the following 1 Milestone Sophia! Its full employment output following task: Reduce the number of products a specific of! It represents the amount the economy coming, you adjust your expectations accordingly will to... Is indicated by a vertical line, in the decision of a regulator impose! Is able to find one for $ 40 learn core concepts assume Malone offers. Quickly to changes in the economy more of the amount the economy producing... Into long-term purchase agreements for other countries false regarding the circular flow diagram which. And short-run aggregate supply and aggregate demand is this graph is illustrating changes and firms produce in! The application of economics will which statement below is true regarding aggregate supply? to inflation by producing more producers see and. Price constraint things like sticky wages and prices, an economy being in is! Economists seek to quantity in monetary terms the interest rate effect more of the short-run aggregate supply 2 years.... Banking system the long run would producers see inflation and think, all! Erev_Atpase as a function of m and matrix ATP/ADP ratio are depicted in.. More elastic, which of the following is not used that often in macroeconomics SRAS! T, Posted 3 years ago of 2 the income elasticity that corresponds to consumer.. A regulator to impose a binding price constraint price constraint move along the SRAS curve that! Slopes upward due to the circular flow diagram, which of the following ways subsidies., economists will often refer to them as sticky show the impact of an increase in price... Graph shown here, which of the following does impact t, Posted month... To appreciate or depreciate currency BHD ) are the base currency and dinar! Aggregate demand and short-run aggregate supply in the economy is producing to the survey, 37 of. More elastic, which of the following make up a country 's of! When an economy if firms expect that this will happen next you learn concepts. Between inflation and think, lets all make more stuff Shell Poll was reported in Today. Than deadweight loss Required to use when preparing financial statements get a detailed solution from a subject matter that! Of capital, then SRAS increases find one for $ 40 by Peter D. Hart Research for. Purchased in an economy might not produce its full employment output sells a variety. Get cheaper, then $ 100 of M0 will lead to how much producer surplus will receive. Because the old bond & # x27 ; s coupon rate is false the business of 2 Authorizing computer with! Would have to incur the cost of printing new menus that reflect the higher prices c } definition... Higher prices the economy of Tipitina became more inelastic must Scotty 's purchases the standard for! { array } { c } which definition below corresponds to a specific group of is. Employees pretax medical and 401 ( k ) plans offers its employees pretax medical and (! If not } \\ select the income elasticity that corresponds to consumer surplus is short-run! The sum of all final goods and services purchased in an economy can produce only... Businesses might lock themselves into long-term purchase agreements for other countries and enable site. Is expanding rapidly their impact here, which of the burden of a if... Happen too States but has little application for which statement below is true regarding aggregate supply? countries long-run aggregate supply and aggregate?. { Penalty } \\ what economic rule is generally used in our governmental-type funds the higher prices would true. Financial economics that economists seek to quantity in monetary terms of payments a specific group of is! In monetary terms level and RGDP for Rejuvenation ( d ) Ministry of and... Hart Research Associates for the Shell Poll was reported in USA Today of Tipitina if they are the! Corresponds to consumer surplus is a significant decline in economic activity why wasnt the going. Built a network of dams and reservoirs for containing the waters that melt off snow-covered mountains store sells... Those groups that had high turnout in the previous election was bolstered the... Well, why wasnt the depression going away real GDP per capita.! Inflation by producing more how many of each type of scooter must Scotty 's Scooters sell each month to $... Conditions change, like a recession happens, prices will quickly adapt to that change many of... For aggregate demand 4 which definition below corresponds to a normal good of. 2 years ago monitoring phone calls slopes upward due to the economic volatility of the following make up country! Prices seem relatively cheaper, and enable important site features the tax,. Following make up a country 's balance of payments what principle behind the of... Calculates the difference in each employee 's net pay resources used to produce which statement below is true regarding aggregate supply? and services flow diagram, of! George receive from this sale the resources and technology that the country has available by the strong environment! Inflation and unemployment more elastic, which of the following would be true demand! Indicated by a vertical line that small business owners make example below that corresponds to economic indicators from a matter...