Answer:
D)Guilt
Explanation:
Commercial lenders consider the ability to repay, collateral offered, credit score, loan purposes, business plan, among other things before advancing credit to an individual or firm. Lenders have formal requirements to be met for a loan to be issued. As for family, there are no set requirements or criteria for lending amongst members.
Family members may lender based on various reasons. From the list provided, guilt could be a base for lending. A family member may feel bad when they turn down a request from a fellow member. To avoid that guilt feeling, a family member will lend out money to another member.
A competitive firm produces a product using labor and plastic. The firm is initially in equilibrium. If the cost of plastic suddenly increases, which of the following will occur?
A. The demand curve for the product will shift to the left.
B. The firm's demand curve for plastic will shift to the left.
C. The firm will increase the number of units offered for sale.
D. The firm will definitely go out of business, since competitive firms earn zero economic profits in equilibrium.
E. The firm's marginal costs will increase at each level of output.
Answer:
B
Explanation:
Option (e), which states that the firm's marginal costs will rise at each output level, is the right choice.
Does the marginal cost of a production increase?The marginal cost of production often increases as output volume increases. The manufacturer can decide how to divide resources among the production units in order to maximize output by using marginal cost.
What occurs when a company's marginal cost increases?They make the unit and supply it if the sale price exceeds the marginal cost. It would not be economically feasible to make it if the marginal cost was higher than the price. Therefore, manufacturing will continue until the sale price equals the marginal cost.
Why eventually does marginal cost increase with output?As output grows, the marginal cost eventually rises as a result of the declining marginal product of labor.
When output declines, what happens to the marginal cost?At this point, marginal cost decreases until it reaches a minimum due to economies of scale and the Law of Diminishing Returns. The marginal cost then grows as output rises.
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Which of the following is NOT a factor in selecting a pricing method?
Auditory preferences
Costs
Competition
Perceived value
Answer:
perceived value
Explanation:
goodluck
What is the purpose of preserving historical data?
A.
legal compliance
B.
recruitment
C.
leave sanctions
D.
payroll
Answer:
What is the purpose of preserving historical data?
A.legal compliance
According to Interland (2009), the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists of tracing the consequences of that policy not merely for one group but for all groups. Discuss
Answer:
The economy is a human activity whose purpose is to ensure the production, exchange, distribution and consumption of the goods and services that people need. The goal of the national economy is to ensure the livelihood and development of the country's population, therefore the national economy includes activities such as the procurement of food and clothing, the construction and heating of housing, education, and the care of health and cultural needs. The economy includes enterprises and institutions that produce goods and services. Companies that produce similar goods and provide similar services form an industry. These are, for example, energy, machinery, plant growing, education, tourism, etc.
Thus, the economy seeks not only to guarantee the general welfare of citizens in the immediate future, but also in the long term, through the creation of consistent and solid economic policies that allow achieving high development for society.
Suppose that the California legislature passes a law that severely restricts carbon dioxide emissions from automobiles in that
state. A group of automobile manufacturers files suit against the state of California to prevent the enforcement of the law. The
essentially the same as carbon dioxide emission standards. According to the automobile manufacturers, it is unfair to allow
ralifornia to impose more stringent regulation
automakers claim that a federal law already sets fuel economy standards nationwide and that fuel economy standards are
s than those set by the federal law. Using the information presented in the chapter,
answer the following questions. Are the plaintiffs seeking a legal remedy or an equitable remedy?
Answer:
The plaintiffs are seeking an equitable remedy.
Explanation:
Legal remedies basically involve monetary compensations, in other words, the non-breaching party (in this case case manufacturers) sue in order to receive money.
While equitable remedies do not involve monetary compensations, instead they seek other types of solutions.
In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.
Select one:
a. fiscal; monetary
b. monetary, monetary
c. monetary, fiscal
d. fiscal; fiscal
= fiscal; monetary
With an expansionary fiscal policy, the interest rate rises, while with an expansionary monetary policy, the interest rate falls.
What is an Expansionary fiscal & monetary policy?This is when an increases in money supply is stimulated by raising spending or cut taxes while the latter is when the cost of borrowing i reduced to stimulate an economy.
Therefore, the Option A is correct.
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____involves relying on one's
authority position or stressing that a
request is in accordance with
organizational policies or rules.
Select one:
a. Consultation
b. Legitimacy
c. Exchange
d. Rational persuasion
= Legitimacy
Explanation:
legitimacy involves relying on one's
authority position or stressing that a
request is in accordance with
organizational policies or rules.
Tax principles Smoking cigarettes is a leading cause of many diseases. Suppose the government has opened several public clinics that treat smoking-related diseases and is trying to decide how to fund these clinics. One suggestion is to raise the funds for the public clinics with a cigarette tax. This tax follows:______
Answer: The ability to pay principle.
Explanation:
The ability to pay can be defined as one of the principles of taxation. According to this principle people who earn more income are expected to pay more tax as compared to those who earn less income.
Smoking can be defined as the leading cause of many chronic diseases, one of them is hypertension, chronic heart diseases, and others. The ability to pay principle can be imposed on smokers as cigarette tax to obtain the tax for develop the clinics that can help in smoking related diseases. This will result in deduction of tax from smokers which get good income.
Which of the following statements accurately describe the phases of a business cycle?
A. A contraction phase is when an economy exhibits decreasing levels of production and consumption.
B. A period of expansion is when an economy exhibits decreasing levels of production and spending.
C. A trough occurs at the end of the contraction phase and the beginning of the expansion phase
D. A peak level of business activity occurs at the end of the expansion phase and the beginning of the contraction phase.
Answer:
Option A
Explanation:
In simple words, contraction relates to a period of the market cycle throughout which the market is in recession as a group When the economic cycle rises, a recession usually occurs, just before it reaches a trough. A contraction is triggered by three kinds of occurrences. We are talking of a sharp spike in borrowing rates a banking crash, or uncontrolled inflation . Paranoia and anxiety replace assurance.
What kind of pricing is based upon the perception of value and can command a higher price point?
Premium pricing
Economy pricing
Psychological pricing
Pricing for penetration
Answer: economy
Explanation:
At the beginning of the year, Vendors, Inc., had owners' equity of $49,850. During the year, net income was $6,150 and the company paid dividends of $4,250. The company also repurchased $8,350 in equity. What was the cash flow to stockholders for the year
Answer: $12,600
Explanation:
Based on the information that have been given in the question, the cash flow to stockholders for the year would be calculated as:
= Dividends Paid - (Ending Common Stock - Beginning Common Stock)
= $4250 - {[$49850 - $8350] - $49850}
= $4250 - [$41500 - $49850]
= $4250 - (-$8350)
= $4250 + $8350
= $12,600
$400 invested with compound interest at a rate of 3% per year for 2 years. Formula: M = P(1+ i)n
Answer:
$424.36
Explanation:
The applicable formula =M= P ( 1+ r)^2
Where M is the amount after two years
P = principal amount: $400
r = interest rate: 3% or 0.03
n =number of period :2
M= $400 x ( 1+ 0.03) ^ 2
M=$400 x 1.0609
M= $424.36
In 2018, Borland Semi-conductors entered into the transactions described below. In 2015, Borland had issued 195 million shares of its $1 par common stock at $39 per share.
Required:
1. On January 2, 2018, Borland re-acquired 12 million shares at $37.50 per share.
2. On March 3, 2018, Borland re-acquired 12 million shares at $41 per share.
3. On August 13, 2018, Borland sold 1 million shares at $47 per share.
4. On December 15, 2018, Borland sold 2 million shares at $41 per share.
Solution :
Serial No. Date given Journal Debit Credit
1). 02 Jan, 2018 Common stock $ 12
Paid-in-capital
excess of the par $ 456
Paid-in-capital
share repurchased $ 18
Cash $ 450
2). 03 March, 2018 Common-stock $ 12
Paid-in-capital
excess of the par $ 456
Paid-in-capital
share repurchased $18
Retained earnings $ 6
Cash $ 492
3). 15 Dec, 2018 Cash $ 82
Common-stock $ 2
Paid-in-capital
excess of the par $ 80
Supervisor: "Our goal is to make add-on sales during 85% of sales. If you make 35
sales, how many add-on sales do you need to make to meet the goal?"
Our goal is to make ad on sales during 85% of sales if you make 35% sales how many add-on on sales do you need to make to meet the goal?
Answer:
Calculate inventory turnover ratio in each of the following alternative cases
case 1: cash sales 25% of credit slaes credit sales Rs 300000 cross profit 20% on revenue form operations ie net sales closing inventory Rs 160000, opening inventory Rs 40000
case 2: cash sales 20% of Total sales, credit sales Rs 450000, Gross profit 25% on soct opening inventroy Rs 375000, closing inventorys 112500
A statement of cash flows helps answer all of the following:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
3. How can the company improve its operations?
4. How does a company receives its cash?
5. What are the changes in the non-cash accounts?
Answer:
1. What explains the changes in the cash account?
2. Where does a company spends its cash?
4. How does a company receives its cash?
Explanation:
The Cashflow statement deals with the cash transactions of the company with a view to know how actual cash moves through the company. As a result, it can answer questions related to the cash transactions of the company.
This includes:
Why there were changes in the cash account because it shows what activities brought in cash and which took cash.Where the company spends its cash because those entries will be shown.Where the company gets its cash as well.National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the standard factor tables.)
Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record their issuance by National on January 1, 2018.
3. Prepare the journal entry to record interest on June 30, 2018.
4. Prepare the appropriate journal entries at maturity on December 31, 2021.
Table Values Based On:
n=
i=
Cash Flow Amount Present Value
Interest
Principal
Price of Bonds
Answer:
1. Determine the price of the bonds at January 1, 2018.
PV of face value = $900,000 / (1 + 5%)⁸ = $612,525
PV of coupon payments = $40,500 x 6.4632 (PV annuity factor, 5%, 8 periods) = $261,760
market price of bonds = $874,285
2. Prepare the journal entry to record their issuance by National on January 1, 2018.
January 1, 2018, bonds issued at a discount
Dr Cash 874,285
Dr Discount on bonds payable 25,715
Cr Bonds payable 900,000
3. Prepare the journal entry to record interest on June 30, 2018.
Dr Interest expense 43,714
Cr Cash 40,500
Cr Discount on bonds payable 3,214
4. Prepare the appropriate journal entries at maturity on December 31, 2021.
Dr Bonds payable 900,000
Dr Interest expense 43,714
Cr Cash 940,500
Cr Discount on bonds payable 3,214
Differentiate domestic housekeeping from institutional housekeeping
Consider two economies that are identical, with the exception that one has a high marginal propensity to consume (MPC) and one has a low MPC. If the money supply is increased by the same amount in each economy, the high MPC economy will experience:
Select one:
a. a smaller increase in output and a
smaller decrease in the interest rate.
b. A larger increase in output and a
smaller decrease in the interest rate.
c. a larger increase in output and a
larger decrease in the interest rate.
d. A smaller increase in output and a larger decrease in the interest rate
= A larger increase in output and a
smaller decrease in the interest rate.
If the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.
What does a high MPC imply?A high MPC implies increased consumption while a low MPC shows increased savings.
Two factors that increase MPC include:
Readily available credit Lower interest rates.Thus, if the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.
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A___ Relationship would include your co-workers and friends.
Answer:
A colleague Relationship would include your co-workers and friends.
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $24,300; other assets, $147,300; liabilities, $48,200; Morgan, capital, $58,100; Rockwell, capital, $65,300. The other assets were sold for $123,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling
Answer:
$66,666.67
Explanation:
The amount available for sharing is the cash and the proceeds from sales of assets minus liabilities.
= $24,300 + $123,900 - $48,200
=$148,200 - $48,200
=$100,000
Morgan and Rockwell share losses in the ratio of 2:1. meaning Morgan taken 2/3 of shareable amounts
Morgan will get
=2/3 x $100,00
=$66,666.67
Which one of the following is a leakage from circular flow of income?
Select one:
a. Money invested by firms in
purchasing capital stock.
b. None
c. Money collected by the government, through income tax and value-added tax (VAT).
d. Government welfare benefits; and spending on infrastructure.
= Money collected by the government, through income tax and value-added tax (VAT).
A leakage from the circular flow of income in the economy is c. Money collected by the government, through income tax and value-added tax (VAT).
What are leakages in the circular flow of income?The circular flow of income shows how households and businesses interact. Businesses pay households for working, and households buy goods from businesses.
Leakages are those things that do not go to either the businesses or the households including taxes and funds collected by the government.
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Trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human rights abuses or poor labor or environmental standards.
a) true
b) false
Answer: True
Explanation:
As the proverbial 'Global policeman', the U.S. enacts sanctions on countries that it believes are acting in a way that is not beneficial to her own people or the plant at large.
This includes human rights abuses, poor labor standards and environmental standards amongst others. These sanctions are meant to hurt the sanctioned country so that they right their wrongs. Countries such as Burma are under trade sanctions due to their poor human rights record in dealing with Rohingya Muslims.
The statement is true that trade sanctions were often enacted as expressions of U.S. revulsion against nations for their internal practices, such as human rights abuses or poor labor or environmental standards.
What are trade sanctions?Trade sanctions are used as a tool for a penalty in order to restrict one nation's actions. It is initiated by the US when it started to protect its domestic market from abuse of foreign markets.
Therefore, it is also imposed to make a country act to certain international standards in different aspects for ensuring right and wrong activities in all nations.
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The Kissel Trucking Company Inc. has a defined benefit pension plan for its employees. At December 31, Year 1, the following information is available regarding Kissel's plan:
Fair value of plan assets $30,000,000
Present value of defined benefit obligation 38,000,000
Service costs 4,000,000
Interest costs 1200,000
Actuarial gains 150,000
Past service costs 375,000
Required:
Determine the amount that Kissel will report on the balance sheet as of December 31, Year 1, for this pension plan under IFRS.
Answer:
Under IFRS, net defined benefit liability is reported in balance sheet when Present value of defined benefit obligation (PVDBO) exceeds Fair value of plan assets(FVPA) which results in deficits.
In this case, PVDBO exceeds FVPA, then the difference betwen the two ix the net defined benefit liability.
Difference of PVDBO and FVPA = $38,000,000 - $30,000,000 = $8,000,000. Hence, net defined benefit liability reported in the balance sheet is $8,000,000.
Your project to obtain charitable donations is now 30 days into a planned 40-day project. The project is divided into three activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 25 days of the project and to bring in $25,000. Even though we are 30 days into the project, we still see that we have only 90 percent of this activity complete. The second activity relates to company donations and is scheduled to run for 30 days starting on day 5 and extending through day 35. We estimate that, even though we should have 83 percent (25/30) of this activity complete, it is actually only 50 percent complete. This part of the project was scheduled to bring in $150,000 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $50,000. So far, $175,000 has actually been brought in on the project.
Calculate the Schedule Variance, Schedule Performance Index, and Cost (actually value in this case) Performance Index. How is the project going? (Hint: Note that this problem is different since revenue rather than cost is the relevant measure. Use care in how the measures are interpreted.)
Answer:
1. schedule variance = -$52,500
2. SPI = 0.65
3. CPI = 0.56
Explanation:
to get the solution, we calculate for BRWS and BRWP
first we calculate the budgeted revenue of the work scheduled for each activity using this formula:
budgeted revenue * planned completion
A = 25,000 x 100percent
= $25000
B = 150,000 x (25/30) percent
= $125000
C = 50000 x 0percent
= 0$
total = $25000+$125000+$0
= $150000
Next we calculate budgeted revenue of work performed (brwp)
calculated using this formula:
budgeted revenue x actual completion
A = 25000 x 90percent
= 22500 dollars
B = 150000 x 50percent
= $75000
C = 50000 x 0%
= $0
total = 22500 + 75000 + 0
= $97500
1. schedule variance = BRWP - BRWS
= $97500 - $150000
= -$52500
we have a negative schedule, telling us that the project is behind schedule
2. schedule performance index = revenue of work performed divided by revenue of work schedule
= 97500/150000
= 0.65
3. cost price index = revenue of work performed divided by actual revenue
= 97500/175000
= 0.56
4. how the project is going:
the schedule performance index (SPI) is 0.65 which is less than 1. this is to say that the project is doing better than planned revenue when we talk of revenue
Jamestown Furniture Mart, Inc., sold $ 80,000 of furniture in May to customers who used their American Express credit cards. Such sales are subject to a 3 per cent discount by American Express (a nonbank credit card).
Required:
a. Prepare journal entries to record the sales and the subsequent receipt of cash from the credit card company.
b. Do the same as requirement (a), but assume the credit cards used were VISA cards (a bank credit card).
Answer:
a. Debit Bank for $77,600; Debit Sales discount for $2.400; and Credit Sales for $80,000.
a. Debit Bank for $80,000; and Credit Sales for $80,000.
Explanation:
a. Prepare journal entries to record the sales and the subsequent receipt of cash from the credit card company.
The journal entry will look as follows:
Accounts Title Debit ($) Credit ($)
Bank (97% * 80,000) 77,600
Sales discount (3% * 80,000) 2.400
Sales 80,000
(To record sales paid for by the customer using American Express credit cards.)
b. Do the same as requirement (a), but assume the credit cards used were VISA cards (a bank credit card).
Under this scenario, the sales are NOT subject to discount and the customer will 100% of the price.
The journal entry will therefore look as follows:
Accounts Title Debit ($) Credit ($)
Bank 80,000
Sales 80,000
(To record sales paid for by the customer using VISA cards.)
Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.
SPRAGUE COMPANY BALANCE SHEET DECEMBER 31, 2014
Cash $40,000
Accounts payable $80,000
Receivables 75000
Mortgage payable 140,200
Inventory 95000
Common stock ($1 par) 150,000
Plant assets (net) 220,000
Retained earnings 60,000 430000
The net income for 2017 was $25,000. Assume that total assets are the same in 2016 and 2017.
Compute each of the following ratios. for each of the four, indicate the manner in which it is computed and its significance as tool in the analysis of the financial soundness of the company
a) Current ratio
b) Acid-test ratio
c) Debt to assets ratio
d) Return on asset
Answer:
A. Current Ratio= 2.63
B. Acid-Test Ratio = 1.44
C. Debt to Assets Ratio 51.16%
D. Return on assets 5.81%
Explanation:
a. Calculation forn Current Ratio
First step is to Calculate the Total Current Assets
Cash 40,000
Receivables 75,000
Inventory 95,000
Total Current Assets 210,000
Now let calculate Current Ratio
Current Ratio= Current Assets / Current Liabilities
Current Ratio=210,000/80,000
Current Ratio= 2.63
b Calculation for Acid-Test Ratio
Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities
Acid-Test Ratio =(210,000-95,000)/80,000
Acid-Test Ratio =115,000/80,000
Acid-Test Ratio = 1.44
c. Calculation for Debt to Assets Ratio
First step is to calculate total Debt
Accounts payable 80,000
Mortgage payable 140,000
Total Debt 220,000
Now let calculate the Debt to Assets Ratio
Debt to Assets Ratio= Total Debt/ Total Assets
Debt to Assets Ratio=220,000/430,000
Debt to Assets Ratio= 51.16%
d. Calculation for Return on assets
Return on assets= Net Income/ Average Assets
Return on assets=25,000/430,000
Return on assets 5.81%
Wanda Company produces its finished product in two processing departments--Mixingand Finishing. The following information is available for the month of March:
Mixing Department:
The beginning work in process inventory was $17,130 ($14,880 direct materials and $2,250 converion costs) and consisted of 1.200 units.
During March, an additional 10.600 units were started into production. A total of 10.900 units were completed and transferred out to the Finishing Department.
The ending work in process inventory consisted of 900 units which were 80% complete as to conversion costs.
The following costs were incurred during March: direct materials $132,620; direct labor $140, 000; and overhead costs $101,770.
Direct materials are added at the beginning of the process in the Mixing Department and conversion costs are incurred evenly throughout the process.
Finishing Department:
The beginning work in process inventory was $57,210 ($44,250 transferred-in costs and $12,960 conversion costs) and consisted of 600 units.
During March, a total of 11.000 units were completed and transferred out to Finished Goods Inventory.
The ending work in process inventory consisted of 500 units which were 40% complete as to conversion costs.
The following costs were incurred during March: direct materials $143,000; direct labor $250, 000; and overhead costs $149.200.
Direct materials are added at the end of the process in the Finishing Department and conversion costs are incurred evenly throughout the production process.
Required:
a. Prepare a production report for March for the Mixing Department.
b. Give the general journal entry to record the transfer of the completed units from the Mixing Department to the Finishing Department for March.
c. Prepare a production report for March for the Finishing Department.
d. Give the general journal entry to record the completion of the units in the Finishing Department for March.
e. Draw the Work-in-Process Inventory T-accounts for the Mixing Department and the Finishing Department and enter the appropriate cost flow account data.
f. Why is computing cost of goods sold problematic in a process costing environment?
Answer:
Part a
Production report for March for the Mixing Department
Units Costs
Input
Opening Inventory 1.200 $17,130
Started during the period 10.600 $374,390
Total 11.800 $391,520
Output
Completed and transferred 10.900 $365,150
Ending Work In Process 900 $26,370
Total 11.800 $391,520
Part b
Debit : Work in Process - Finishing Department $365,150
Credit : Work in Process - Finishing Department $365,150
Part c
Production report for March for the Finishing Department
Units Costs
Input
Transferred 10.900 $365,150
Opening Inventory 600 $57,210
Started during the period 0 $542,200
Total 11.500 $964,560
Output
Completed and transferred 11.000 $933,130
Ending Work In Process 500 $31,375
Total 11.500 $964,560
Part d
Debit : Finished Goods Inventory $933,130
Credit : Work In Process - Finishing Department $933,130
Part e
Work-in-Process Inventory T-accounts for the Mixing Department
Units Costs
Debit
Opening Inventory 1.200 $17,130
Cost incurred 10.600 $374,390
Total 11.800 $391,520
Credit
Completed and transferred 10.900 $365,150
Ending Work In Process 900 $26,370
Total 11.800 $391,520
Work-in-Process Inventory T-accounts for the Finishing Department
Units Costs
Debit :
Transferred 10.900 $365,150
Opening Inventory 600 $57,210
Started during the period 0 $542,200
Total 11.500 $964,560
Credit :
Completed and transferred 11.000 $933,130
Ending Work In Process 500 $31,375
Total 11.500 $964,560
Part f
Cost of Goods Sold is a direct cost related to sale of goods. In process costing it is difficult to accurately value this amount since it contains the average cost. this means that units never sold would have been included in the calculation of the cost of goods sold.
Explanation:
It is important to first calculate the equivalent cost unit in each department to be able to solve the question. Calculations of equivalent units are shown below :
Mixing Department
Equivalent Units :
Conversion costs = 900 x 80% + 10,900 = 11,620
Material costs = 900 + 10,900 = 11,800
Equivalent Units Costs
Conversion = ($2,250 + $140,000 + $101, 770) ÷ 11,620 = $21.00
Material costs = ($14,880 + $132,600) ÷ 11,800 = $12.50
Finishing Department
Equivalent Units :
Process 1 = 11.000 + 500 = 11.500
Conversion costs = 500 x 40% + 11.000 = 11,200
Material costs = 11.000 + 500 = 11.500
Equivalent Units Costs
Process 1 = ($44,250 + $365,150) ÷ 11.500 = $35.60
Conversion = ($12,960 + $250,000 + $149,200) ÷ 11,200 = $36.80
Material costs = ($0 + $143,000) ÷ 11,500 = $12.43
If the United States could produce five televisions per hour of labor and China could produce three televisions per hour of labor, would it necessarily follow that the United States should specialize in television production? Why or why not?
Answer:
US specialisation in TV can be stated on the basis of Absolute Advantage, not comparative advantage.
Explanation:
Absolute Advantage is when a country can produce more output per input of a commodity, than other country.
Comparative Advantage is when a country can produce a good at lower opportunity cost (in terms of other sacrifised)
China can produce more (ie 5 units television) per hour employed, compared to US able to produce lesser (3 units) in the same time. So, on the basis of Absolute Advantage, it can be stated that US should specialise in TV production.
However, since other good's details have not been given. So, we cannot attain the relative opportunity costs. Hence, specialisation on the basis of comparative advantage can't be stated.
Countries do have areas of specialization. If the United States could produce five televisions per hour of labor and China could produce three televisions per hour of labor, It would be necessarily that the United States should specialize in television production.
Based on the fact that United states can produce 5 televisions per hour of labor as compared to 3 televisions per hour of labor in China, The US has an absolute advantage and can therefore specialize in it.Countries often produce more when they have an advantage. This advantage is known as the ability to a lower production cost of a good when compared to competitors but Comparative advantage is known to the lower opportunity cost of production of some specific goods when compared to competitors.
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Select the type of economic system that best matches each of the given descriptions.
traditional
market
command
mixed
based on government control
of resources and production
arrowRight
based on traditions and customs
arrowRight
based on the forces of supply and demand
arrowRight
based on price rationing and includes
some government involvement
arrowRight
Answer:
based on government control- command
of resources and production
based on traditions and customs- traditional;
based on the forces of supply and demand- market
based on price rationing and includes- mixed
some government involvement
Explanation:
i dont cap
There are different kinds of economic system. The best match is given below.
Based on government control- command systemBased on traditions and customs- traditional systemBased on the forces of supply and demand- market systemBased on price rationing and includes- mixed systemWhat is an economic system?An economic system is known to be a kind of system of production, resource allocation and distribution of goods and services found present in a society or a said geographic area.
A traditional economy is said to be one that depends on customs, history, and time honored beliefs.
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Ford Motor Company is considering launching a new line of hybrid diesel-electric SUVs. The heavy advertising expenses associated with the new SUV launch would generate operating losses of million next year. Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 35% tax rate on its pre-tax income. The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is closest to ________. Group of answer choices $15.8 million $40.3 million 12.3 million $28.0 million
Answer:
$28 million
Explanation:
The amount that Ford Motor Company owes in taxes next year without the launch of the new SUV is = $80 million * 35% = $28 million. Because the SUV have not been launched, the operating loss associated with heavy advertising will not be considered.
