Part1. The intrinsic value of the stock using the multistage DDM method is $9.98.2. Part 2. The expected holding period return is 36.98%.
1. Stock's intrinsic value using the multistage DDM method:
Given,
Dividend = $1.4
Growth rate = 10.3% for 3 years
Growth rate = 2.46% after 3 years
Required return = 11.7%
The growth rate is high for the first three years, hence dividend for first 3 years,
D1 = D0 × (1 + g)
= $1.4 × (1 + 10.3%)
= $1.54762
D2 = D1 × (1 + g)
= $1.54762 × (1 + 10.3%)
= $1.70773
D3 = D2 × (1 + g)
= $1.70773 × (1 + 10.3%)
= $1.88867
The dividend growth rate after 3 years is 2.46%, hence,
D4 = D3 × (1 + g)
= $1.88867 × (1 + 2.46%)
= $1.93813
Intrinsic value of stock:
V0 = (D1 / (1 + r)¹) + (D2 / (1 + r)²) + (D3 / (1 + r)³) + (D4 / (1 + r)⁴) + (P4 / (1 + r)⁴)
Where,
P4 = D4 × (1 + g) / (r - g)
= $1.93813 × (1 + 2.46%) / (11.7% - 2.46%)
= $30.669. (2 decimal places)
V0 = ($1.54762 / (1 + 11.7%)¹) + ($1.70773 / (1 + 11.7%)²) + ($1.88867 / (1 + 11.7%)³) + ($1.93813 / (1 + 11.7%)⁴) + ($30.669 / (1 + 11.7%)⁴)
= $9.978. (2 decimal places)
Expected holding period return:
Given,
Current price of stock = $26.93
Expected price of stock at the end of 1 year (P1) = $36.5
Dividend (D1) = $0.89
Expected holding period return = (P1 + D1 - P0) / P0
= ($36.5 + $0.89 - $26.93) / $26.93
= 36.98%. (2 decimal places)
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Ethics and corruption is increasingly important in the construction sector. You are requested to discuss the issues involved in ensuring the highest ethical standards, from the perspective of a UK based cost management professional services company planning to open a regional office in Abu Dhabi, to operate in the Middle East and Sub-Saharan Africa
As the construction sector grows, the importance of ethics and corruption control becomes increasingly important. Ethics is a critical aspect of any construction company, particularly those that want to operate in different parts of the world, such as the Middle East and Sub-Saharan Africa.
The United Arab Emirates has enacted strict legislation against corruption in the construction sector, and businesses that operate in the region must adhere to these regulations to avoid legal consequences. The construction industry is subject to various risks, including environmental challenges, economic and legal challenges, and risk management. However, businesses can establish internal control mechanisms to ensure compliance with ethical regulations.
The following measures may be taken to ensure compliance: • Companies should establish clear ethical standards and rules, ensuring that all employees are aware of them. • The introduction of comprehensive training programs for employees to ensure they understand the ethical policies. • Companies can establish an anonymous reporting mechanism for employees to report any unethical practices without fear of retaliation. • The establishment of policies and procedures to ensure that the company complies with ethical regulations. • Employing external auditors to conduct regular inspections of the company's operations to ensure compliance. Companies must have appropriate procedures in place to manage risk and guarantee ethical standards compliance. To expand operations into the Middle East and Sub-Saharan Africa, cost management professional services companies must work closely with regulatory authorities and consider various internal control mechanisms.
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ios was developed by and continues to be maintained by a consortium of companies.T/F
False.
iOS, the operating system for Apple's mobile devices (iPhone, iPad, and iPod Touch), was developed and is currently maintained solely by Apple Inc. It is not developed or maintained by a consortium of companies.
iOS was originally introduced in 2007 when the first iPhone was released. Since then, Apple has been responsible for its ongoing development, enhancement, and maintenance. Apple has a dedicated team of engineers and software developers who work on iOS, ensuring its performance, security, and compatibility with Apple devices.
While Apple has collaborated with various companies and developers to create applications (apps) for iOS through its App Store, the operating system itself is solely developed and controlled by Apple. This centralized approach allows Apple to have full control over the design, features, and updates of iOS, providing a consistent and integrated user experience across its devices.
In summary, iOS is developed and maintained exclusively by Apple Inc., and it is not a collaborative effort involving a consortium of companies.
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9) Which of the following is/are not a differing site condition?
Select all that apply
1) Unexpected minor price increase 2) Civil unrest 3) Normal, bad weather 4) Owner failure to get permit
The correct answer is Normal, bad weather.
A differing site condition refers to a condition that is either not indicated in the contract documents or differs from what was described in the contract documents. Site conditions that are encountered during the construction phase that are not consistent with what was expected during the bidding process may result in increased costs, time delays, or both. The correct answer is Normal, bad weather.
The following are the conditions that are regarded as differing site conditions: Subsurface or latent physical conditions at the construction site which differ significantly from what was indicated in the contract. Unknown physical conditions at the construction site that would have been impossible to anticipate through a standard visual inspection. The existence of unknown, built-in obstructions, such as abandoned pipes, foundations, or other obstructions, that were not documented in the contract documents.
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Initially, Airlift is the only high-lift tower crane service in the state and provides tower cranes to construct high-rise buildings. Suppose Airlift faces a linear market demand curve: Q=307.5-0.1P where P is price per hour for its service in dollars and is the number of service hours per month. Airlift has the following variable costs (for purposes of this problem, you may assume that there are no fixed costs associated with this service): TVC, =12522 a. Given that Airlift is the only supplier in this market, determine the price Airlift will charge, per hour, the number of hours of service per month, and the profits earned assuming Airlift's objective is profit maximization. Now suppose the situation changes and Hangemhigh decides to enter the market for this service. Being new to the market, Hangembigh's costs are different from Airlift's. Again, assuming no fixed costs, Hangembigh's costs for the service are given by: TVC=175Q. b. If these two firms behave as profit maximizing Cournot duopolists choosing output levels, determine each firm's output reaction function. C. How many hours of service will each firm sell? d. What will be the total number of hours of service and what will be the hourly market price for the service? e. Compare the market outcomes under monopoly conditions to those with two competitors. Specifically, how does price and output (hours of service sold) compare after the entry by Hangemhigh.
The number of service hours per month that Airlift will provide is Q = 1537.5; Hangemhigh will provide 1170.375 hours of service, and Airlift will provide 1537.5 hours of service; Price has decreased drastically from $154.75 per hour to $3.51 per hour.
a) Price charged by Airlift (P)= $307.5 - 0.1*Q, where Q is the quantity of services in terms of service hours per month. TVC = $12522
Given that the firm is aiming for profit maximization, we know that the formula for profit is: π = TR - TC
Here, we can calculate TR as P * Q, and TC as TVC * Q. So: π = (307.5 - 0.1Q)*Q - 12522Q= 307.5Q - 0.1Q² - 12522To maximize profit, we can take the derivative of the profit equation with respect to Q, equate it to zero, and solve for
Q:π = 307.5Q - 0.1Q² - 12522dπ/dQ = 307.5 - 0.2Q = 0Q = 1537.5
Substituting Q in the demand equation, we have: P = $307.5 - 0.1*1537.5= $154.75
Thus, Airlift will charge a price of $154.75 per hour for its service, and will sell 1537.5 hours of service per month. The profits earned can be calculated as: π = (307.5 - 0.1*1537.5)*1537.5 - 12522= $106,174.22.
b) Since the two firms are behaving as profit-maximizing Cournot duopolists, they will set their output levels such that each firm will maximize profits, assuming the other firm's output level remains fixed.
Let the quantity of services provided by Hangemhigh be denoted as QH. Then, the profits earned by Airlift are given by:
πA = (307.5 - 0.1*(QA + QH))*(QA) - 12522
Similarly, the profits earned by Hangemhigh are:
πH = (307.5 - 0.1*(QA + QH))*(QH) - (175*QH)
Taking the derivative of πA with respect to QA and equating it to zero, we can solve for QA as:
QA = (3075 - 0.2QH)/2
Since the firms are symmetric, Hangemhigh's reaction function will be the same as Airlift's. So we can find the expression for Hangemhigh's output by substituting the expression for QA into either of the profit equations.
Substituting into πA, we have:
πH = (307.5 - 0.1*(1537.5 + QH))*(QH) - (175*QH)
Taking the derivative of πH with respect to QH and equating it to zero, we can solve for QH as:
QH = (3075 - 0.2QA)/2c)
Substituting the expression for QA into the formula for QH, we have:
QH = (3075 - 0.2*((3075 - 0.2QH)/2))/2
Simplifying the above equation, we get:
QH = 1170.375
d) The total number of hours of service will be:
Qtotal = QA + QH= 1537.5 + 1170.375= 2707.875
The market price for the service will be given by the demand equation: Q = 307.5 - 0.1P2707.875 = 307.5 - 0.1P3.5072 = P
Thus, the hourly market price for the service will be $3.51.e) When there was a monopoly, Airlift provided 1537.5 hours of service at a price of $154.75 per hour, resulting in profits of $106,174.22. After the entry of Hangemhigh, the two firms are now selling a combined total of 2707.875 hours of service at a price of $3.51 per hour.
This shows that there has been a significant increase in the total number of hours of service sold.
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On January 1, 2020, Tamarisk, Inc. purchased 9% bonds having a maturity value of $452,000 for $466,971.01. The bonds provide the bondholders with an 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2024, with interest receivable on January 1 of each year. Tamarisk, Inc. uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $462,800 2021 $463,900 2022 $459,200 2023 $452,000 Prepare the journal entry at the date of the bond purchase. (Round answers to 2 decimal places, e.g. 5,125.67. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1, 2020 Account Titles and Explanation Debt Investments Cash Debit 466,971.01 Credit 466,971.01 Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. (Round answers to 2 decimal places, e.g. 5,125.67. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Dec. 31, 2020 Account Titles and Explanation Interest Receivable Debt Investments Interest Revenue (To record interest revenue) Unrealized Holding Gain or Loss - Equity Fair Value Adjustment (To record recognition of fair value) Debit 40680 848.69 Credit 3322.32 37357.68 848.69 Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 5,125.67. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Dec. 31, 2021 Account Titles and Explanation Fair Value Adjustment Unrealized Holding Gain or Loss - Equity Debit 기 Credit
The journal entry to record the recognition of fair value for 2021 would be missing from the provided information.
In order to determine the journal entry for the recognition of fair value for 2021, we need to calculate the change in fair value from 2020 to 2021.
Change in fair value = Fair value at December 31, 2021 - Fair value at December 31, 2020
Change in fair value = $463,900 - $462,800 = $1,100
Since the bonds are classified as available-for-sale, the recognition of fair value adjustment is recorded in the Unrealized Holding Gain or Loss - Equity account.
This entry reflects the increase in fair value and recognizes the unrealized holding gain in the equity section of the balance sheet.
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Explain in detail the differences between internal and external metrics and provide an example of each as it relates to the hospitality industry. Choose a hospitality operation (hotel, airline, cruise line, restaurant, private clubs, etc.) and show an example of an internal metrics as well as an example of an external metrics.
Internal metrics and external metrics are two distinct types of metrics that have varying applications. Internal metrics deal with organizational development and performance, while external metrics measure outside forces that affect the organization, and its stakeholders.
In this context, the hospitality industry encompasses hotels, airlines, cruise lines, restaurants, private clubs, and other related sectors.Examples of internal metrics in the hospitality industryInternal metrics in the hospitality industry focus on the organization's performance and effectiveness. This may include metrics such as employee productivity, operational efficiency, service quality, and employee satisfaction. For example, hotels may use internal metrics to evaluate employee engagement, determine customer satisfaction, and the efficiency of the hotel's operational structure. Other examples of internal metrics in the hospitality industry include employee turnover rates, profitability, and labor costs.A hotel could use internal metrics to measure its operational efficiency. This could include employee productivity, the time it takes to complete tasks, and the effectiveness of the staff in handling customer inquiries and complaints. The hotel could also use internal metrics to track customer satisfaction by conducting surveys or tracking customer feedback. An example of an internal metric for a hotel could be the number of customers who return within six months of their last visit.Examples of external metrics in the hospitality industryExternal metrics in the hospitality industry are metrics that measure the organization's performance relative to its environment. These metrics include factors such as economic indicators, market trends, industry benchmarks, and customer preferences. For example, hotels may use external metrics to evaluate customer demand, analyze market trends, and predict future trends. Other examples of external metrics in the hospitality industry include occupancy rates, revenue per available room, and market share
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Which of the following is one of Marx's criticisms of capitalism, according to The Economist magazine? Multiple Choice Capitalism is regional and isolationist by nature. Capitalism provides laborers with job security Capitalism has an inherent tendency toward perfect competition Capitalists basically expropriate the wealth of others. Which of the following is true regarding socialism? Multiple Choice Socialists fear the irrationality of a society based on competition and unrestrained pursuit of industrial growth. Socialists embrace the rationality of a society based on competition and encourage the unrestrained pursuit of industrial growth. Socialists fear the irrationality of a society based on competition, but encourage the unrestrained pursuit of industrial growth. Socialists accept the rationality of a society based on competition, but fear the unrestrained pursuit of Industrial growth. Which of the following is true regarding socialism and capitalism? Multiple Choice Socialists consider class distinctions anathema. Capitalists consider all humans equally meritorious. Socialists believe that distinctions among humans are inherently just. Capitalists consider class distinctions anathema.
A)4. According to The Economist magazine, the following is one of Marx's criticisms of capitalism: Capitalists basically expropriate the wealth of others and B)3. Socialists fear the irrationality of a society based on competition, but encourage the unrestrained pursuit of industrial growth is true regarding socialism and C)1. Socialists consider class distinctions anathema, but capitalists consider class distinctions anathema is true regarding socialism and capitalism.
Capitalism refers to an economic system that is guided by the laws of supply and demand. It is based on the creation of goods and services to be sold in the market, which are in turn purchased by people. According to The Economist magazine, one of Marx's criticisms of capitalism is that capitalists basically expropriate the wealth of others.
Socialism refers to an economic system that is based on the principles of social ownership of the means of production. Socialists fear the irrationality of a society based on competition but encourage the unrestrained pursuit of industrial growth. They accept the rationality of a society based on competition but fear the unrestrained pursuit of industrial growth.
Socialists consider class distinctions anathema, while capitalists consider class distinctions irrelevant. In a capitalist society, the market determines the distribution of wealth and resources, whereas in a socialist society, the government is responsible for the distribution of resources.
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Due To The Stock Market Booms, The Real GDP Of Marvel Economy Raises By USD800 Billion. Suppose That The MPC (Or Marginal Propensity To Consume) Is 0.75. A. If It Is Assumed That There Are No Crowding-Out Effect And Investment Accelerator In The Economy, What Should The Government Do If It Wants To Avoid The Overheating By Offsetting The Increase In Real Due to the stock market booms, the real GDP of Marvel economy raises by USD800 billion. Suppose that the MPC (or marginal propensity to consume) is 0.75. a. If it is assumed that there are no crowding-out effect and investment accelerator in the economy, what should the government do if it wants to avoid the overheating by offsetting the increase in real GDP? Show also what happen to the Aggregate Demand graphically. b. With the same assumption as at point (a), if the government of Marvel decides to cut its spending, calculate the multiplier number and the required amount of government spending cut to offset the increase in real GDP. c. If crowding-out effect occurs, explain graphically the conditions in point (b). Will the amount of government spending cut in point (b) be still adequate to offset the rise in real GDP? Explain.
a. To offset the increase in real GDP and avoid overheating, the government should implement contractionary fiscal policy measures.
In this case, since there are no crowding-out effects and investment accelerator, the government can use fiscal policy tools such as reducing government spending or increasing taxes.
Graphically, the impact on the aggregate demand (AD) can be shown as a leftward shift of the AD curve. The initial increase in real GDP due to the stock market booms is represented by an outward shift of the AD curve. To offset this increase, the government needs to reduce aggregate demand. By reducing government spending or increasing taxes, the AD curve will shift to the left, bringing the economy back to its initial equilibrium level of real GDP.
b. The multiplier effect determines the impact of changes in government spending on the overall economy. The formula for the multiplier is given by 1/(1-MPC), where MPC is the marginal propensity to consume. In this case, the MPC is 0.75, so the multiplier would be 1/(1-0.75) = 4.
To offset the increase in real GDP of USD 800 billion, the government needs to implement contractionary fiscal policy by reducing government spending. The required amount of government spending cut can be calculated by dividing the increase in real GDP by the multiplier.
Amount of government spending cut = Increase in real GDP / Multiplier
Amount of government spending cut = USD 800 billion / 4 = USD 200 billion
Therefore, the government would need to cut its spending by USD 200 billion to offset the increase in real GDP.
c. If crowding-out effects occur, it means that increased government spending crowds out private investment in the economy. Graphically, this is represented by a decrease in private investment (I) as government spending (G) increases.
In this scenario, if crowding-out effects occur, the amount of government spending cut calculated in point (b) may not be adequate to offset the rise in real GDP. The decrease in government spending may lead to a decrease in aggregate demand, but the decrease in private investment could partially or fully offset the intended contractionary effect.
In such a case, the required amount of government spending cut to fully offset the rise in real GDP would be higher than the calculated amount in point (b). The exact amount would depend on the magnitude of the crowding-out effect and the responsiveness of private investment to changes in government spending.
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What are the differences between alicyclic, aliphatic, and aromatic hydrocarbons? How could the differences affect biodegradation?
5)Give the chemical equation on how stratospheric zone can be destroy and recombined.
The differences in structure between these hydrocarbon types influence the ease and rate of their biodegradation, with aliphatic hydrocarbons being generally more biodegradable than aromatic hydrocarbons.
(5) O3 + UV-C radiation → O2 + O
1) Alicyclic hydrocarbons: Alicyclic hydrocarbons, also known as cycloalkanes, are hydrocarbons that contain one or more closed-ring structures, similar to cyclic compounds. These rings can be saturated (containing only single bonds) or unsaturated (containing double or triple bonds). Alicyclic hydrocarbons do not have any double or triple bonds within the ring structure. Examples of alicyclic hydrocarbons include cyclohexane, cyclopentane, and cycloheptane.
2) Aliphatic hydrocarbons: Aliphatic hydrocarbons are hydrocarbons that do not contain any aromatic (benzene-like) rings. They are open-chain structures and can be either saturated (containing only single bonds) or unsaturated (containing double or triple bonds). Aliphatic hydrocarbons include alkanes, alkenes, and alkynes. Examples of aliphatic hydrocarbons include methane, ethane, propane, and butane.
3) Aromatic hydrocarbons: Aromatic hydrocarbons, also known as arenes, are hydrocarbons that contain one or more benzene rings. These rings are composed of six carbon atoms with alternating single and double bonds. Aromatic hydrocarbons are typically more stable and have distinct chemical properties compared to aliphatic or alicyclic hydrocarbons. Examples of aromatic hydrocarbons include benzene, toluene, and naphthalene.
The differences in the structures of alicyclic, aliphatic, and aromatic hydrocarbons can affect their biodegradability. Microorganisms have specific enzymes that can recognize and break down certain types of hydrocarbons. Generally, aliphatic hydrocarbons (especially shorter chain alkanes) tend to be more readily biodegradable compared to aromatic hydrocarbons. The open-chain structure of aliphatic hydrocarbons allows for easier access by microbial enzymes, leading to faster degradation. In contrast, aromatic hydrocarbons with their stable benzene rings are more resistant to biodegradation.
Alicyclic hydrocarbons, being similar to cyclic compounds, can have varying biodegradability depending on their specific structure and substituents. Some alicyclic hydrocarbons can be readily biodegraded, while others may exhibit slower degradation rates.
5) The destruction and recombination of molecules in the stratospheric zone, specifically referring to the destruction of ozone and its subsequent recombination, can be described by the following chemical equations:
1. Destruction of ozone:
O3 + UV-C radiation → O2 + O
In the presence of ultraviolet (UV) radiation, ozone (O3) molecules can be dissociated into oxygen molecules (O2) and atomic oxygen (O). This process contributes to the depletion of the ozone layer.
2. Recombination of ozone:
O + O3 → 2O2
Atomic oxygen (O) can react with ozone (O3) to form oxygen molecules (O2). This recombination process is essential for the regeneration of ozone and the maintenance of the ozone layer.
These reactions are part of the complex series of chemical reactions that occur in the stratospheric zone, particularly in the ozone layer. The destruction and recombination processes are influenced by various factors such as UV radiation, atmospheric composition, and the presence of other reactive substances.
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nearly two-thirds of the states have enacted criminal codes based on the uniform criminal code (ucc).
The Uniform Criminal Code (UCC) is a comprehensive document that was developed in order to provide states with a basic structure for their criminal law. Nearly two-thirds of the states have enacted criminal codes based on the UCC. These codes are designed to provide a consistent framework for criminal law across the country
Nearly two-thirds of the states have enacted criminal codes based on the Uniform Criminal Code. These codes are designed to provide a consistent framework for criminal law across the country. This helps to ensure that people are treated fairly and that the law is applied consistently regardless of where they live. The Uniform Criminal Code (UCC) is a comprehensive document that was developed in order to provide states with a basic structure for their criminal law. The UCC was created in order to make it easier for states to adopt common criminal codes, and to provide a uniform framework for criminal law across the country. The UCC is a model code that has been developed by the American Law Institute. It is designed to provide a framework for criminal law that is consistent across the country. The UCC is not a law in and of itself, but rather a model code that states can adopt in whole or in part. There are a number of benefits to using the UCC as a basis for criminal law. First, it helps to ensure that people are treated fairly and that the law is applied consistently. This is important because people should not be subject to different standards of justice depending on where they live. Second, the UCC helps to promote legal clarity and consistency. By providing a consistent framework for criminal law, the UCC helps to ensure that people understand the law and can comply with it more easily. Finally, the UCC helps to promote efficiency in the criminal justice system. By providing a uniform framework for criminal law, the UCC helps to reduce the time and resources required to prosecute criminals. This helps to ensure that justice is served more quickly and effectively.
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14. For each of following relations with no repeating group, indicate (1) every determinant (separate each determinant using a ;), (2) the most appropriate primary key for the relation and (3) the violation of the lowest normal form. Minus one point for each mistake. a. Contract (ContractBudget, ContractID, ConsultantID, ConsultantName, EmployeeID, ContractDescription, EmployeeName) Assumptions: (1) A consultant can work on more than one contract; (2) An employee can work on more than one contract; and (3) A contract can only have one employee and one consultant. Determinant(s): Primary key(s): Lowest normal form violation: Instruction (StudentID, InstructorID, CourseID) Assumptions: (1) A course can be taught by many instructor (2) A student can have more than one course; (3) A student always has the same instructor for the same course; and (4) An instructor only teaches one specific course. Determinant(s): Primary key(s): Lowest normal formal form violation: StudentSport (SportID, SportFee, StudentID, StudentName) b. C. d. e. Assumptions: (1) A student can only play one sport; and (2) A sport has only one fee. Determinant(s): Primary key(s): Lowest normal form violation: Account (CustomerID, BankID, AccountType) Assumptions: (1) A customer can have more than one bank; (2) A customer can have more than one account type with a bank; and (3) A bank can offer more than one account type. eterminant(s): Primary key(s): Lowest normal form violation: Shipping (RoutNo, OriginCity, DestinationCity, Distance) Assumption: Common Sense Determinant(s): Primary key(s): Lowest normal form first violated:
In the given relations, some violations of the lowest normal form are identified:
- The relation "Contract" violates the first normal form (1NF) due to the repeating group of attributes.
- The other relations, "Instruction," "StudentSport," "Account," and "Shipping," do not have any violations and are in at least the first normal form (1NF).
Overall, it is important to identify and eliminate any violations of the lowest normal form to ensure data integrity, eliminate redundancy, and enable efficient database management. Normalization helps in achieving these goals by organizing data into well-structured relations.
a. Contract:
Determinant(s): ContractID, ConsultantID, EmployeeID
Primary key(s): ContractID
Lowest normal form violation: The violation is in the first normal form (1NF) because there is a repeating group of attributes (ConsultantID, ConsultantName, EmployeeID, EmployeeName) within the relation.
Instruction:
Determinant(s): StudentID, CourseID
Primary key(s): StudentID, CourseID
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
StudentSport:
Determinant(s): StudentID
Primary key(s): StudentID
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
Account:
Determinant(s): CustomerID, BankID
Primary key(s): CustomerID, BankID
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
Shipping:
Determinant(s): RoutNo
Primary key(s): RoutNo
Lowest normal form violation: There is no violation of the lowest normal form in this relation.
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a) What would the PPC curve look like if the production possibility curve became more efficient for both goods? Graph it and give an example on the reason why it may become more efficient. b) Explain under what circumstances a producer would experience constant opportunity cost or when they would experience increasing relative costs. (3 marks)
The PPC shifts outward, indicating an increase in the economy's productive capacity, which can be achieved through technological advancements, improved skills and knowledge, and better resource allocation.
The PPC curve would shift outward and become steeper when the production process becomes more efficient for both goods. This means that the economy can produce more of both goods without giving up as much of the other. For example, with technological advancements in agriculture, farmers can increase their crop yields without reducing the production of manufactured goods. Similarly, advancements in manufacturing technology can lead to increased production without reducing agricultural output. This leads to an expansion of the production possibilities and a more efficient allocation of resources.
Constant opportunity cost occurs when the resources used to produce goods are easily adaptable between the two. In this case, the PPC would be a straight line, indicating that the trade-off between producing one good over the other remains constant. Increasing relative costs occur when resources are not easily adaptable and specialized for specific goods. As more of one good is produced, the opportunity cost of producing additional units of that good increases, leading to a bowed-out PPC curve. This implies that the economy must sacrifice increasing amounts of the other good to produce more of the first good.
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a) If both goods become more efficient, the production possibility curve (PPC) would shift outwards, indicating an increase in potential output. b) Constant opportunity costs occur under perfect substitution, while increasing relative costs occur when resources are not perfectly substitutable.
a) Greater efficiency in production for both goods means resources are utilized better, resulting in an outward shift of the PPC. For example, technological advancements can boost efficiency. b) A producer would experience constant opportunity cost when resources are equally productive in all uses, i.e., perfect substitution. For instance, in a factory producing identical widgets, reallocating resources doesn't alter output ratios. Conversely, increasing relative costs occur when resources aren't perfectly substitutable, as shifting resources from one good's production to another's leads to less efficient use and lower output.
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the situation in which markets fail to provide efficiently is called:
The situation in which markets fail to provide efficiently is called market failure.
What is market failure?Market failure happens when the free market, left to itself, does not lead to the ideal outcome for a specific group of individuals or the economy as a whole.
A market failure may occur for a variety of reasons, including:
Externalities, public goods, market power, lack of knowledge, and too much inequality or income disparity between people.
In such cases, the government may intervene to correct the inefficiency and re-establish economic efficiency and equity, as well as to provide for the public goods required by society.
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Assume that over the past 85 years, the total annual returns on large-company common stocks averaged 12.3%, small- company stocks averaged 17.4%, long-t government bonds averaged 5.7%, and U.S. T-billsAssume that over the past 85 years, the total annual returns on large- company common stocks averaged 12.3%, small-company stocks averaged 17.4%, long-t government bonds averaged 5.7%, and U.S. T-bills averaged 3.8%. What was the average risk premium earned by long-term government bonds, and small-company stocks respectively? Options: A 1.8%; 13.3%. B 4.4%; 11.9% C 1.9%; 5.1%. D 1.9%; 13.6%. E -6.6;5.1%.
Answer:
D) 1.9%; 13.6%
Explanation:
To calculate the average risk premium, we need to subtract the average return of a risk-free asset (U.S. T-bills) from the average return of the investment in question.
For long-term government bonds:
Average risk premium = Average return of long-term government bonds - Average return of U.S. T-bills
Average risk premium = 5.7% - 3.8%
Average risk premium = 1.9%
For small-company stocks:
Average risk premium = Average return of small-company stocks - Average return of U.S. T-bills
Average risk premium = 17.4% - 3.8%
Average risk premium = 13.6%
Therefore, the average risk premium earned by long-term government bonds is 1.9%, and the average risk premium earned by small-company stocks is 13.6%.
The correct option is:
D) 1.9%; 13.6%.
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To calculate the average risk premium earned by long-term government bonds and small-company stocks, we need to subtract the average return of U.S. T-bills from the respective average returns.
Given:
Average return on long-term government bonds = 5.7%
Average return on U.S. T-bills = 3.8%
Average return on small-company stocks = 17.4%
Average return on U.S. T-bills = 3.8%
For long-term government bonds:
Average risk premium = Average return on long-term government bonds - Average return on U.S. T-bills
Average risk premium for long-term government bonds = 5.7% - 3.8% = 1.9%
For small-company stocks:
Average risk premium = Average return on small-company stocks - Average return on U.S. T-bills
Average risk premium for small-company stocks = 17.4% - 3.8% = 13.6%
Therefore, the average risk premium earned by long-term government bonds and small-company stocks is:
Long-term government bonds: 1.9%
Small-company stocks: 13.6%
The correct option is D) 1.9%; 13.6%.
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The following table snows the annual average data on the employment status of the U.S. civilian noninstitutional population by age in 2016. Employed Unemployed Not in Labor Force Age (Thousands of People) (Thousands of People) (Thousands of people) 16 to 19 years 4,965 925 10,824 20 to 24 years 14,027 1,286 6,408 25 to 54 years 98,004 4,244 23,513 55 to 64 years 25,524 941 14,843 65 years and over 8,916 355 38,763 Total 151,436 7,751 94,351 Source: "Labor Force Statistics from the Current Population Survey."Bureau of Labor Statistics. What is the national unemployment rate? O 3.1% 4.9% O 8.2% O 59.3% Complete the following table by computing the unemployment rate for each age group. Age Unemployment Rate 16 to 19 years 20 to 24 years 25 to 54 years 55 to 64 years 65 years and over Which of the following groups has an unemployment rate lower than the national average unemployment rate? Check all that apply. 16 to 19 years 20 to 24 years 25 to 54 years 55 to 64 years 65 years and over
The national unemployment rate is 4.9%. The age groups with unemployment rates lower than the national average are 16 to 19 years and 20 to 24 years.
To calculate the unemployment rate, we need to divide the number of unemployed individuals by the total labor force (employed + unemployed) and multiply by 100 to express it as a percentage.
For the national unemployment rate, we sum up the number of unemployed individuals across all age groups and divide it by the total labor force:
National Unemployment Rate = (Total Unemployed / Total Labor Force) * 100
Using the given data, the total unemployed individuals are 7,751, and the total labor force is the sum of the employed and unemployed individuals, which is 151,436 + 7,751 = 159,187.
National Unemployment Rate = (7,751 / 159,187) * 100 = 4.9%
To calculate the unemployment rate for each age group, we divide the number of unemployed individuals in each age group by the total labor force in that age group:
Unemployment Rate = (Unemployed in Age Group / Total Labor Force in Age Group) * 100
For the age groups:
16 to 19 years: Unemployed = 925, Total Labor Force = 4,965 + 925 = 5,890
Unemployment Rate = (925 / 5,890) * 100 ≈ 15.7%
20 to 24 years: Unemployed = 1,286, Total Labor Force = 14,027 + 1,286 = 15,313
Unemployment Rate = (1,286 / 15,313) * 100 ≈ 8.4%
25 to 54 years: Unemployed = 4,244, Total Labor Force = 98,004 + 4,244 = 102,248
Unemployment Rate = (4,244 / 102,248) * 100 ≈ 4.2%
55 to 64 years: Unemployed = 941, Total Labor Force = 25,524 + 941 = 26,465
Unemployment Rate = (941 / 26,465) * 100 ≈ 3.6%
65 years and over: Unemployed = 355, Total Labor Force = 8,916 + 355 = 9,271
Unemployment Rate = (355 / 9,271) * 100 ≈ 3.8%
The national unemployment rate is 4.9%. The age groups with unemployment rates lower than the national average are 16 to 19 years (15.7%) and 20 to 24 years (8.4%).
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Virtual team leaders need to follow the same protocols for team success as their F2F counterparts by helping the team to do the following.
Define the goal and be sure there is team consensus.
Virtual team members should all be involved in developing the goal as a way to enhance their ownership and successful attainment of the goal.
Define members' roles.
Develop schedules (including meeting schedules), timelines, and due dates.
Establish processes and protocols.
Determine report out and feedback process.
Agree on the technology that will be used for team communication and establish that everyone is comfortable with it and skilled at using it.
Maintain a sense of dynamic interaction with the team to eliminate any issues with procrastination that might arise due to geographic isolation.
Virtual team leaders play a crucial role in ensuring the success of their teams by following similar protocols as face-to-face (F2F) counterparts.
To achieve this, they need to focus on the following key aspects: Goal Definition and Consensus: Virtual team leaders should actively involve all team members in defining the team's goal. This participation fosters a sense of ownership and increases the likelihood of successful goal attainment.
Role Definition: Clearly defining members' roles within the virtual team helps establish individual responsibilities and promotes effective collaboration. This clarity avoids confusion and ensures smooth teamwork.
Schedules and Timelines: Virtual team leaders need to develop schedules, timelines, and due dates to provide structure and direction to the team's activities. This helps in managing time effectively and meeting project milestones.
Processes and Protocols: Establishing clear processes and protocols for team communication, decision-making, and problem-solving is essential for virtual teams. These guidelines ensure consistency and enable efficient coordination.
Reporting and Feedback: Determining the reporting and feedback process allows virtual team leaders to track progress, identify issues, and provide necessary support. Regular feedback and communication help maintain accountability and drive improvement.
Technology Selection: Agreement on the technology to be used for team communication is vital. Virtual team leaders should ensure that everyone is comfortable and skilled in utilizing the chosen tools to facilitate effective collaboration and seamless communication.
Dynamic Interaction: Virtual team leaders should foster a sense of dynamic interaction to counteract potential issues with procrastination caused by geographic isolation. Regular engagement, motivation, and team-building activities are essential to maintain team cohesion and productivity.
By following these protocols, virtual team leaders can create a conducive environment that maximizes team performance, collaboration, and goal achievement, ultimately leading to the success of the virtual team.
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.Ms Indy opened uChampion Painters (uCP) on 1 June 2021.
On 31 May 2022, records show the following accounts:
$'000
Accounts receivable 167
Repairs expense 102
Painting supplies used 156
Painting revenue 1229
Long term loan 500
Ms Indy, drawings 220
Building 600
Ms Indy Capital 900
Salaries expense 176
Vehicle 681
Painting supplies 70
Equipment (painting) 210
Accountant fees expense 58
Cash at bank 98
Advertising expense 199
Accounts payable 108
Required:
a Prepare an income statement for uChampion Painters (uCP) for the year ended 31 May 2022. 4 marks
b Prepare a balance sheet as at 31 May 2022.
a. Income Statement for uChampion Painters (uCP) for the year ended 31 May 2022:
Income:
Painting Revenue: $1,229,000
Expenses:
Repairs Expense: $102,000
Salaries Expense: $176,000
Accountant Fees Expense: $58,000
Advertising Expense: $199,000
Net Income: Painting Revenue - Total Expenses
Net Income: $1,229,000 - ($102,000 + $176,000 + $58,000 + $199,000)
b. Balance Sheet as at 31 May 2022:
Assets:
Cash at Bank: $98,000
Accounts Receivable: $167,000
Building: $600,000
Vehicle: $681,000
Painting Supplies: $70,000
Equipment (Painting): $210,000
Total Assets: Sum of all individual asset values
Liabilities:
Accounts Payable: $108,000
Long-Term Loan: $500,000
Owner's Equity:
Ms Indy Capital: $900,000
Total Liabilities and Owner's Equity: Sum of all individual liabilities and owner's equity values
The balance sheet provides a snapshot of the company's financial position as of 31 May 2022, showing the company's assets, liabilities, and owner's equity.
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19. (Comprehensive problem) Over the past few
years, Microsoft founder Bill Gates' net worth has fluctuated
between $20 billion and $130 billion. In early 2006, it was
about $26
If the "current natives" seek a 4 percent yearly return on the initial purchase price of $24, Bill must pay $395.52 for Manhattan Island 387 years later.
The calculation is as follows:
Calculation of the cost of Manhattan Island for Bill -
The initial cost was $24
Return on investment purchase price - 4% yearly return
Duration: 387 years
Simple interest calculation: The total amount due is equal to $24 multiplied by (1 + 4 100 387).
FV - Final value is used here.
P is the primary sum.
yearly interest rate is r.
time in years, t = $395.52
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Discuss the need to select an 'appropriate' quality system for a given environment and compare and contrast the needs of engineering and service industries in terms of their application of quality systems and the critical factors needed for success.
Selecting an appropriate quality system is crucial for achieving success in any given environment. The choice of quality system should align with the specific requirements, characteristics, and objectives of the industry or organization.
Engineering industries typically require robust quality systems that focus on product design, manufacturing processes, and adherence to technical specifications. Quality systems such as ISO 9001 provide a structured approach to quality management, emphasizing standardization, process control, and continuous improvement. The critical factors for success in engineering industries include precise specifications, adherence to regulations and safety standards, rigorous testing and inspection procedures, and efficient supply chain management. In contrast, service industries emphasize customer satisfaction and experience. Quality systems like Six Sigma and Total Quality Management (TQM) are commonly applied in service sectors. These systems focus on understanding customer needs, enhancing service delivery processes, and maintaining consistency in service quality. Critical success factors for service industries include customer feedback and engagement, effective communication, employee training and empowerment, service customization, and continuous evaluation and improvement of service delivery processes.
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Cole Ltd sells 45,000 units each year. The budgeted profit statement for next year is as follows:
$
$
Sales (45,000 units at $37.50)
1,687,500
Direct materials
360,000
Direct labour
270,000
Variable production overhead
180,000
Fixed production overhead
133,500
(943,500)
Gross profit
744,000
Variable selling costs
90,000
Fixed selling costs
60,000
(150,000)
Net profit
594,000
Required:
Based on the budgeted figures above, calculate:
(i) The sales revenue needed to break-even.
(ii) The margin of safety expressed as a percentage of sales revenue.
(iii) The number of units that would have to be sold to earn a profit of $28,000.
(i) The sales revenue needed to break-even is $1,093,500.
(ii) The margin of safety expressed as a percentage of sales revenue is 35.17%.
(iii) The number of units that would have to be sold to earn a profit of $28,000 is approximately 0.04 units (more units would need to be sold).
(i) The sales revenue needed to break-even can be calculated by adding up all the costs and expenses and then adding the desired profit.
Break-even sales revenue = Total costs + Desired profit
Given:
Direct materials: $360,000
Direct labour: $270,000
Variable production overhead: $180,000
Fixed production overhead: $133,500
Variable selling costs: $90,000
Fixed selling costs: $60,000
Desired profit: $0 (break-even)
Total costs = Direct materials + Direct labour + Variable production overhead + Fixed production overhead + Variable selling costs + Fixed selling costs
Total costs = $360,000 + $270,000 + $180,000 + $133,500 + $90,000 + $60,000
Total costs = $1,093,500
Break-even sales revenue = Total costs + Desired profit
Break-even sales revenue = $1,093,500 + $0
Break-even sales revenue = $1,093,500
Therefore, the sales revenue needed to break-even is $1,093,500.
(ii) The margin of safety can be calculated by subtracting the break-even sales revenue from the actual sales revenue, and then dividing it by the actual sales revenue.
Margin of safety = (Actual sales revenue - Break-even sales revenue) / Actual sales revenue
Given:
Actual sales revenue = $1,687,500 (as per the budgeted profit statement)
Break-even sales revenue = $1,093,500 (calculated in part (i))
Margin of safety = ($1,687,500 - $1,093,500) / $1,687,500
Margin of safety = $594,000 / $1,687,500
Margin of safety = 0.3517 or 35.17% (rounded to two decimal places)
Therefore, the margin of safety expressed as a percentage of sales revenue is 35.17%.
(iii) The number of units that would have to be sold to earn a profit of $28,000 can be calculated by dividing the desired profit by the contribution margin per unit.
Contribution margin per unit = Sales price per unit - Variable cost per unit
Given:
Sales price per unit = $37.50 (as per the budgeted profit statement)
Variable cost per unit = Direct materials + Direct labour + Variable production overhead
Variable cost per unit = $360,000 + $270,000 + $180,000
Variable cost per unit = $810,000
Contribution margin per unit = $37.50 - $810,000 = -$772,500 (negative because the costs exceed the price)
To earn a profit of $28,000:
Number of units to be sold = Desired profit / Contribution margin per unit
Number of units to be sold = $28,000 / (-$772,500)
Number of units to be sold = -0.0362 or approximately -0.04 units
Since the result is negative, it means that the company would need to sell more units than currently budgeted to earn a profit of $28,000.
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a) The price per kilolitre of water consumed is fixed in regional territories and states like Darwin and Hobart. In Darwin of Northern Territory, the price per kilolitre in 2020/21 was $1.96 while in Hobart of Tasmania, the price per kilolitre was $1.06. Does this pricing scheme encourage an efficient consumption of water? Explain.
(5 marks)
b) Other Australia and cities like Adelaide, Canberra, Melbourne and Perth implement "tiered pricing" or increasing block rates tariffs. Why? Explain.
(5 marks)
c) I have noticed that my water bill consists of two-part charges consisting of a fixed-fee service use charge and a variable water use charge. Why? Explain.
(5 marks)
a) The pricing scheme of fixed prices per kilolitre of water consumption in Darwin and Hobart does not necessarily encourage efficient water consumption. The fixed pricing does not take into account the scarcity or demand for water in different regions, which means that consumers are not directly incentivized to use water efficiently. Regardless of the actual costs associated with water supply and scarcity, consumers pay the same price per kilolitre, which may not reflect the true value of water.
b) Other Australian cities like Adelaide, Canberra, Melbourne, and Perth implement "tiered pricing" or increasing block rate tariffs to encourage efficient water consumption. Tiered pricing involves dividing water consumption into different usage tiers or blocks, where the price per kilolitre increases as the consumption levels increase. This pricing structure encourages consumers to be more mindful of their water usage and promotes conservation.
The reasons for implementing tiered pricing include:
1. Encouraging conservation: By increasing the price as consumption levels rise, tiered pricing incentivizes consumers to use water efficiently and reduce wasteful practices. It encourages individuals to be mindful of their consumption patterns and adopt water-saving behaviors.
2. Reflecting the true cost of water: Tiered pricing recognizes that the cost of supplying water increases as consumption levels rise. Higher usage may require additional infrastructure, treatment, and maintenance, which can be reflected in the higher prices of subsequent tiers. This ensures that consumers who use more water pay a proportionate amount that covers the additional costs.
3. Promoting equity: Tiered pricing can be designed to be progressive, meaning that lower levels of water consumption are charged at lower rates, benefiting low-income households. This helps ensure that water remains affordable for essential needs while discouraging excessive consumption by higher-income households.
c) The inclusion of two-part charges in a water bill, consisting of a fixed-fee service use charge and a variable water use charge, serves different purposes:
1. Fixed-fee service use charge: The fixed-fee service use charge is a set fee that consumers pay regardless of their actual water consumption. It covers the fixed costs associated with maintaining the water supply infrastructure, such as maintaining pipes, meters, and administrative expenses. This charge ensures that the costs of providing water services are recovered, even if water consumption is low.
2. Variable water use charge: The variable water use charge is based on the actual amount of water consumed by the customer. It is calculated by multiplying the volume of water used by the price per kilolitre. This charge reflects the variable costs associated with supplying water, such as treatment, pumping, and distribution costs.
The inclusion of both fixed and variable charges allows water utilities to recover the fixed costs of maintaining the infrastructure while also ensuring that customers pay for the amount of water they consume. This two-part charging system promotes fairness and cost recovery, as it considers both the fixed costs of providing the service and the variable costs associated with consumption.
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Apple cider is produced in a perfectly competitive market. Firms are identical and all have the short run cost function
C(q) = 50+ 50q+q²
Assume that there are 10 firms in this industry. The market demand for cider is
D(p) = 400 - p
(a) What is the short run equilibrium price?
(b) What would be the deadweight loss if the price was mandated to be p = 120?
a) The short run equilibrium price is approximately $-4.76.
b) The deadweight loss if the price was mandated to be p = 120, in this case would be 180 units of cider.
(a) To determine the short-run equilibrium price in a perfectly competitive market, we need to find the market quantity demanded and supplied at the point where the quantity demanded equals the quantity supplied.
In a perfectly competitive market, the short-run equilibrium occurs when the market price (p) is equal to the marginal cost (MC) of the firms.
Given that each firm's cost function is C(q) = 50 + 50q + q², we can find the marginal cost function by taking the derivative of the cost function with respect to quantity (q):
MC(q) = dC(q)/dq = 50 + 2q
Since all firms in the market are identical, the industry's supply curve is the sum of the marginal cost curves of each firm, multiplied by the number of firms. Therefore, the industry's supply curve is:
Market Supply: Qs = 10 * MC(q) = 10 * (50 + 2q)
The market quantity demanded (Qd) can be obtained from the market demand function: D(p) = 400 - p. Rearranging this equation to solve for quantity (Qd):
Qd = 400 - p
Setting Qs equal to Qd and solving for quantity (q):
10 * (50 + 2q) = 400 - p
500 + 20q = 400 - p
20q + p = 100
Since the equilibrium occurs when Qs = Qd, we can substitute the value of q obtained from the equation above into either the supply or demand equation to find the equilibrium price. Using the demand equation:
Qd = 400 - p
10 * (50 + 2q) = 400 - p
10 * (50 + 2(100 - p)) = 400 - p
500 + 20p = 400 - p
21p = -100
p = -100/21
The equilibrium price is approximately $-4.76.
(b) To calculate the deadweight loss if the price was mandated to be p = 120, we need to compare the quantity demanded and supplied at this mandated price with the equilibrium quantity.
At a mandated price of p = 120, we can substitute this value into the demand equation to find the quantity demanded (Qd):
Qd = 400 - p
Qd = 400 - 120
Qd = 280
To find the quantity supplied (Qs) at this mandated price, we substitute p = 120 into the market supply equation:
Qs = 10 * (50 + 2q)
Qs = 10 * (50 + 2(100 - p))
Qs = 10 * (50 + 2(100 - 120))
Qs = 10 * (50 + 2(-20))
Qs = 10 * (50 - 40)
Qs = 100
The deadweight loss can be calculated as the difference between the quantity demanded and the quantity supplied at the mandated price:
Deadweight Loss = Qd - Qs
Deadweight Loss = 280 - 100
Deadweight Loss = 180
The deadweight loss in this case would be 180 units of cider.
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The accompanying table gives the relationship between the price of custard pies and the number of pies Jacob buys per week Click the icon to view the table a, is the relationship between the price of pies and the number of pies Jacob buys a positive relationship or a negative relationship? OA. Negative relationship OB. Positive relationship b. Plot the data 1) Use the point drawing tool to plot each data-point from the table. 2) Use the line drawing tool to draw a straight line that best fits the points. Label this line 'Demand Carefully follow the instructions above, and only draw the required objects c. Calculate the slope of the line Slope (Enter your response as an integer value. Be sure to include a minus sign if necessary) Price (dollars per ple) Quantity (pies per week) 9 10 O Q G view the between t or a neg tionship wing tool t ving tool to instructions pe of the lin your respon Table Price ($ per pie) $3.00 2.00 5.00 6.00 1.00 4.00 Print Quantity of pies 6 7 4385 Done Week July 2 July 9 July 16 July 23 July 30 August 6 - X eek) 8
The relationship between the price of custard pies and the number of pies Jacob buys is a negative relationship. This means that as the price of pies increases, the quantity of pies Jacob buys decreases
a) The relationship between the price of pies and the number of pies Jacob buys is a negative relationship. This means that as the price of pies increases, the quantity of pies Jacob buys decreases.
b) I'm sorry, but as a text-based AI, I am unable to directly view or interact with images or tables. However, you can plot the data points on a graph yourself by using a graphing software or drawing tool. Plot each data point with the price of pies on the x-axis and the quantity of pies on the y-axis. Then draw a straight line that best fits the points to represent the demand.
c) To calculate the slope of the line, you can choose any two points on the line and use the formula:
Slope = (Change in y) / (Change in x)
Select two points on the line and determine the change in y (quantity) and the change in x (price). Then calculate the slope using the formula above. The slope will indicate the rate at which the quantity of pies changes with respect to the price.
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From your theoretical knowledge on the concept about the reserve requirement policy of the Fed in bank deposit and money creation in bank's lending process, read the transcript in the url link below posted by the Federal Reserve on March 15, 2020. At the bottom of the transcript, the Fed announced the reserve requirement to zero for all bank deposits, a major departure from its years of unchanged policy on reserve requirement. https://www.federalreserve.gov/newsevents/pressreleases/monetary. Question26: What is the key reason for reducing the reserve requirement to zero% and its potential effect on macroeconomic fundamentals during this economic downturn caused by COVID-19 pandemic? O Answer 2: To encourage the banks and financial institutions to use this additional reserve and liquidity buffer to provide financial support to households and businesses who are affected by COVID-19 crisis. O Answer 3: To accelerate inflation to encourage business investments O Both Answer 1 and Answer 2 are correct statements O Answer 1: To maximize the liquidity in bank reserve so that financial institutions can continue to fuel the economy with massive lending to businesses, consumers, and local governments
Option 1) To maximize the liquidity in bank reserve so that financial institutions can continue to fuel the economy with massive lending to businesses, consumers, and local governments is correct .
The key reason for reducing the reserve requirement to zero% and its potential effect on macroeconomic fundamentals during this economic downturn caused by COVID-19 pandemic is to maximize the liquidity in bank reserve so that financial institutions can continue to fuel the economy with massive lending to businesses, consumers, and local governments. reserve requirement policy is the share of the deposit that the bank is obliged to hold in reserve with the Fed, while the rest can be used for loans, purchases of securities, or other purposes.
Reserve requirements help to ensure that banks have enough liquidity to meet customer demands for cash withdrawals, especially in times of economic or financial stress, by limiting the amount of loan and investment banks can finance through their deposits. When the reserve requirement is reduced to zero, banks can now hold the entire amount of their deposits as excess reserves, which they can use for lending and investment, which leads to an increase in the money supply.
In other words, reserve requirements reduce the money creation capacity of banks, and their absence allows banks to create more money, resulting in increased economic activity. With zero reserve requirement policy, banks can make more loans available, encourage more lending to households, businesses, and local governments, and thus increase the liquidity in bank reserve, fueling the economy with massive lending to businesses, consumers, and local governments.
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What is associate thinking?
What is Myers Briggs?
What is Jung’s 8 Cognitive process?
Associate thinking, also known as associative thinking, is a cognitive process that involves connecting and linking ideas, concepts, or information based on similarities, relationships, or patterns. It is the ability to form associations between different elements and draw conclusions or generate new ideas through these connections. Associate thinking allows individuals to recognize patterns, make connections, and generate insights by linking related concepts.
The Myers-Briggs Type Indicator (MBTI) is a widely used personality assessment tool developed by Katherine Briggs and her daughter Isabel Myers. It is based on the theories of Swiss psychologist Carl Jung. The MBTI assesses individuals based on four dichotomies: extraversion (E) vs. introversion (I), sensing (S) vs. intuition (N), thinking (T) vs. feeling (F), and judging (J) vs. perceiving (P). These preferences are combined to create sixteen different personality types, providing insights into an individual's preferences, strengths, and potential areas for growth.
Jung's eight cognitive processes, also referred to as the eight mental functions, are fundamental ways in which individuals perceive and process information. These cognitive processes include extraverted thinking (Te), introverted thinking (Ti), extraverted feeling (Fe), introverted feeling (Fi), extraverted sensing (Se), introverted sensing (Si), extraverted intuition (Ne), and introverted intuition (Ni). Each cognitive process represents a different way of gathering information, making decisions, and orienting oneself to the world.
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Consider a market with the inverse demand function P(q) = a − bq, where a and b are positive constants. The cost function of the firm under consideration is C(q) = cq where 0
In the given market scenario, where the inverse demand function is P(q) = a - bq and the cost function is C(q) = cq (where c > 0), we need to determine the optimal level of output and price for the firm.
To find the optimal output level, we can set the marginal cost (MC) equal to the marginal revenue (MR), as profit maximization occurs when these two are equal.
The marginal cost is the derivative of the cost function, which is MC(q) = c. The marginal revenue can be calculated using the inverse demand function: MR(q) = P(q) + q * dP/dq. Taking the derivative of the inverse demand function, we have dP/dq = -b. Substituting these values into the marginal revenue equation, we get MR(q) = a - bq - bq = a - 2bq.
Now, equating MC and MR, we have c = a - 2bq. Solving for q, we find q = (a - c) / (2b).
To determine the price, we substitute the optimal output level into the inverse demand function: P(q) = a - bq. Thus, the price is P = a - b * ((a - c) / (2b)). Simplifying, we get P = (2a + c) / 2.
The optimal output level for the firm is q = (a - c) / (2b), and the corresponding price is P = (2a + c) / 2.
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he free market economic system has both benefits and problems. Discuss the key market imperfections that exist and in particular highlight the imperfections that the Australian Government should have a role in addressing. Include reasons as to why the Australian Government should address these imperfections.
The free market economic system, while providing numerous benefits, also faces certain imperfections or market failures that can hinder its efficient functioning. In the Australian context, there are several market imperfections that the government should address.
Let's discuss some of these key imperfections and the reasons why the Australian Government should intervene:
Externalities: Externalities occur when the actions of producers or consumers impose costs or benefits on others who are not directly involved in the transaction. For example, pollution from industrial activities can impose costs on society in terms of environmental degradation and health effects. The government should intervene to address negative externalities through regulations, taxes, or subsidies to incentivize environmentally friendly practices and internalize the costs.
Market Power and Monopolies: In some industries, firms may have significant market power, leading to reduced competition and potential exploitation of consumers. Monopolies or oligopolies can limit consumer choices, result in higher prices, and hinder innovation. The government can regulate such industries to ensure fair competition, prevent abuse of market power, and protect consumer welfare.
Public Goods: Public goods are non-excludable and non-rivalrous in consumption, meaning that individuals cannot be excluded from benefiting, and one person's consumption does not diminish the availability for others. Examples include national defense, public infrastructure, and basic research. Due to the non-excludability, private markets may underprovide public goods, as firms have no incentive to produce them. The government should step in to provide and finance public goods for the benefit of society.
Information Asymmetry: Information asymmetry occurs when one party in a transaction has more information than the other, leading to market inefficiencies. For instance, in financial markets, borrowers may have more information about their creditworthiness than lenders. The government can address this by implementing regulations to ensure transparency, enforce disclosure requirements, and protect consumers from fraudulent or misleading practices.
Income Inequality and Social Safety Nets: The free market system can lead to unequal distribution of income and wealth, resulting in social disparities and potential social unrest. The government should address income inequality through progressive taxation, welfare programs, and social safety nets to ensure a more equitable distribution of resources and provide a safety net for vulnerable individuals and communities.
The Australian Government should address these market imperfections for several reasons:
Enhancing Efficiency: Addressing market imperfections can lead to more efficient resource allocation, improved market competition, and higher overall economic efficiency.
Ensuring Fairness and Equity: Government intervention can promote fairness by preventing exploitation, reducing income inequality, and ensuring the provision of essential public goods and services.
Safeguarding Public Interest: The government has a responsibility to protect the public interest by addressing externalities, ensuring consumer protection, and maintaining the stability and integrity of the market system.
Promoting Long-Term Sustainability: Government intervention can contribute to sustainable development by addressing environmental challenges, promoting responsible business practices, and supporting innovation and research in critical areas.
While the free market economic system offers numerous benefits, it is not immune to imperfections or market failures. The Australian Government should play a role in addressing market imperfections, such as externalities, market power, information asymmetry, provision of public goods, income inequality, and social safety nets. By intervening strategically, the government can promote efficiency, fairness, and the long-term sustainability of the Australian economy while safeguarding the public interest.
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Discuss the benefits and potential challenges of of using electronic procurement cards
2. Discuss three potential procurement objectives
Using electronic procurement cards (e-procurement cards) offers several benefits, including increased efficiency, enhanced financial control, and improved supplier relationships. However, there are also potential challenges associated with their use, such as security risks and the need for proper training and monitoring. Additionally, three potential procurement objectives include cost savings, supplier diversification, and sustainability.
Electronic procurement cards provide numerous benefits to organizations. Firstly, they improve efficiency by streamlining the procurement process. E-procurement cards enable quick and convenient purchasing, eliminating the need for paper-based requisitions and approvals. This saves time and enables faster order fulfillment. Secondly, e-procurement cards enhance financial control by allowing organizations to set spending limits and track expenses in real-time. This helps prevent overspending and enables better budget management. Lastly, e-procurement cards can strengthen supplier relationships. They provide organizations with detailed transaction data, enabling better negotiation and collaboration with suppliers, leading to potential discounts and improved service.
However, there are challenges associated with e-procurement cards. One major challenge is security risks. The use of electronic cards introduces the potential for unauthorized use, fraud, or data breaches. Organizations must implement robust security measures, such as encryption and user authentication, to mitigate these risks. Another challenge is the need for proper training and monitoring. Users need to be trained on the appropriate use of e-procurement cards to ensure compliance with procurement policies and guidelines. Regular monitoring and audits are also necessary to detect any misuse or fraudulent activities.
When it comes to procurement objectives, organizations often aim for cost savings as a primary objective. By leveraging strategic sourcing, negotiation, and supplier evaluation, organizations can optimize costs and achieve savings in their procurement processes. Supplier diversification is another objective, which involves reducing dependency on a single supplier by engaging with multiple suppliers. This promotes competition, reduces risk, and enhances the organization's bargaining power. Additionally, sustainability has become a significant procurement objective in recent years. Organizations strive to source products and services from environmentally and socially responsible suppliers, aligning with their sustainability goals and values.
By setting and pursuing these procurement objectives, organizations can improve their procurement practices, achieve cost efficiencies, mitigate risks, and contribute to sustainable and ethical sourcing practices.
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Use the below information to answer 1.1.1 to 1.1.4
Portfolio
return 18%
Standard deviation 22%
Beta 0.8
Market Average return
return 14%
Standard deviation 24%
Beta 1.0
The risk-free rate is 6%.
1.1.1 Sharpe ratio
1.1.2 Treynor
1.1.3 CAPM
1.1.4 Alpha
Sharpe ratio = (18% - 6%) / 22% = 0.55 . Treynor ratio = (18% - 6%) / 0.8 = 15% . Rm = market return. R = 6% + 0.8(14% - 6%) = 12.4% . The alpha of the portfolio is 3.6%.
1.1.1 Sharpe ratio Sharpe Ratio is used to determine the amount of excess return per unit of risk generated by the portfolio. It is calculated by subtracting the risk-free rate from the portfolio's return and then dividing by its standard deviation.
Sharpe ratio = (R - Rf) / σ
Where, R = portfolio return, Rf = risk-free rate, and σ = standard deviation of the portfolio.
Sharpe ratio = (18% - 6%) / 22% = 0.55
The Sharpe ratio of the portfolio is 0.55.
1.1.2 Treynor Treynor ratio measures how much excess return is generated by a portfolio per unit of market risk taken by that portfolio. It is calculated by dividing the portfolio's excess return over the risk-free rate by its beta coefficient.
Treynor ratio = (R - Rf) / β
Where, R = portfolio return, Rf = risk-free rate, and β = beta coefficient of the portfolio.
Treynor ratio = (18% - 6%) / 0.8 = 15%
The Treynor ratio of the portfolio is 15%.
1.1.3 CAPMCAPM stands for Capital Asset Pricing Model, which is a model used to determine the expected return of an asset given its risk and the risk-free rate of return. The CAPM formula is as follows:
R = Rf + β (Rm - Rf)
Where, R = expected return
, Rf = risk-free rate, β = beta coefficient,
Rm = market return. R = 6% + 0.8(14% - 6%) = 12.4%
The expected return of the portfolio according to CAPM is 12.4%
1.1.4 AlphaAlpha measures the excess return of the portfolio relative to the expected return as predicted by CAPM. If the alpha is positive, it means that the portfolio has outperformed the expected return.
Alpha = R - [Rf + β (Rm - Rf)]
Where, R = portfolio return, Rf = risk-free rate, β = beta coefficient,
Rm = market return.
Alpha = 18% - [6% + 0.8(14% - 6%)] = 3.6%
The alpha of the portfolio is 3.6%.
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If the effect of an improvement in consumer preferences is greater than an increase in factor prices for a particular good X, we can expect a. Equilibrium price and quantities to rise O
b. The outcome cannot be determined with certainty c. Equilibrium price and quantities to fall d. Equilibrium price will fall, quantities will rise e. Equilibrium price will rise, quantities will fall
If the effect of an improvement in consumer preferences is greater than an increase in factor prices for a particular good X, we can expect Equilibrium price and quantities to rise.
When we see the effect of an improvement in consumer preferences is greater than an increase in factor prices for a particular good X, then it means that the consumer preference is high and it directly affects the demand for a good X and it will raise the demand for good X.
This increase in demand leads to an increase in the equilibrium price and quantities. In this case, suppliers will supply more good X to meet the demand of the consumer, and it will raise the supply of good X in the market. The equilibrium price will rise as there is an increase in demand and the equilibrium quantity will rise as the quantity supplied is increased to meet the demand. Hence, the correct answer is option A. Equilibrium price and quantities to rise.
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