Answer: Decrease, Increase, Price flexibility.
Explanation: According to classical economics, a decrease in aggregate demand causes the price level to DECREASE in the long run. On the other hand, an increase in aggregate demand causes the price level to INCREASE in the long run. These changes occur because of PRICE FLEXIBILITY.
In a flexible market the forces of demand and supply determines the prices of commodities in the market.
As the demand Falls the prices also fall as the demand rises the prices of commodities also rises.
If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit at month-end, and a check for $600 was erroneously charged by the bank against the account, the correct balance in the bank account at month-end is :
a) $29,400
b) $30,000
c) $30,600
d) $41,400
Answer:
c) $30,600
Explanation:
Bank statement balance = $36,000
Outstanding checks = ($10,000)
Deposit in transit as at month end = $4,000
Erroneous check charged = $600
Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600
= $30,600
The right option is c) $30,600
Let’s use the model of the supply and demand for bank reserves to explain how the Federal Reserve can change aggregate demand in the short run. Remember that the Federal Reserve controls the supply of bank reserves, but private banks create demand for bank reserves.
a. After a meeting, the Federal Reserve’s Open Market Committee votes to cut interest rates from 2% to 1.5%. How will they make this happen: Will they increase the supply of reserves or decrease the supply?
b. As a result of your answer to part a, will banks usually lend more money in response, or will they lend less money? Will this tend to increase the nation’s money supply, lower it, or will it have no net effect on the money supply?
c. Will this typically increase aggregate demand or lower it?
Answer:
A) To cut the interest rate from 2% to 1.5%, the Federal Reserve needs to increase the money supply. The Open Market Committee will have to sell US Treasury security bonds in order to increase the money supply. This in turn will increase commercial bank's reserves, who in turn, will lower their interest rates in other to get rid of excess reserves.
B) Banks will lend more money because they now have excess reserves. It will increase the nation's money supply because banks create money when they make loans.
C) This will typically increase aggregate demand because a lower interest rate and cheaper loans result in a higher demand for financial securities. Firms will take more loans, they will use this loans for investments, and this investments will in turn increase production. Increased production means a higher supply of goods and services at a better price, and consumers will take advantage of it.
In 2018, Roxanne paid Badlaw University $12,000 for her nephew's tuition and gave her nephew $25,000 in cash. Roxanne is single and did not make any other gifts during the year. What is the amount of Roxanne's taxable gifts for the year?
A) $0.
B) $2,000.
C) $10,000.
D) $24,000.
How does the economy of Cuba differ from the economy of North Korea?
A) In North Korea, the government’s control of the economy has begun to loosen.
B) In Cuba, the government maintains a tight hold over the economy.
C) In Cuba, the government’s control of the economy has begun to loosen.
D) In North Korea, the government maintains a tight hold over the economy.
E) In North Korea, there is economic uncertainty in exchange for individual choice.
F) In Cuba, there is economic security in exchange for government control.
G) In Cuba, there is economic uncertainty in exchange for individual choice.
F) In North Korea, there is economic security in exchange for government control.
Answer:
The correct answer is C) In Cuba, the government's control of the economy has begun to loosen.
Explanation:
Cuba has implemented reforms that allows a few private entreprises to run in the country. It also allows people to hold foreign currency, which come especially from remittances from Florida. In North Korea, on the other hand, citizens cannot hold foreign currency, and those few who earn it, have to report it to the government, and in North Korea, private property is non-existant.
Under which of these market classifications does each of the following most accurately fit?
i. A supermarket in your hometown.
ii. The steel industry.
iii. A Kansas wheat farm.
iv. The commercial bank in which you or your family has an account.
v. The automobile industry.
Answer: i. A supermarket in your hometown. - fits more precisely to the market structure of oligopoly.
ii. The steel industry. - fits more precisely to the market structure of oligopoly.
iii. A Kansas wheat farm. - fits more precisely to the market structure of perfect competition.
iv. The commercial bank in which you or your family has an account. - fits more precisely to the market structure of perfect competition.
v. The automobile industry. - fits more precisely to the market structure of oligopoly.
Answer:
Pure Competition: A very huge number of firms; uniform products; no rent controls: price takers; no entry barriers; no un-price competition.
Oligopoly: Few companies; uniform or distinguished goods; price controls constricted by mutual interdependence: a great deal of anti-price competition, especially product difference.
i. Supermarkets in hometown - Oligopoly - Supermarkets in every area are few in the total amount.
ii. Steel industry - Oligopoly - Companies are few; their goods are somewhat standardized.
iii. Kansas wheat farm - Pure Competition - there is no price control; there is no non-price competition.
iv. Commercial bank - Oligopoly - the facilities are as distinct as the bank can help them look.
v. Automobile industry - Oligopoly - Imports made the industry more competitive in the past 2 years, dramatically increasing American automakers' market power.
Luke Enterprises has 300,000 shares of $20 par common stock outstanding. On January 19, Luke Enterprises declared a 3% stock dividend. The market price of the stock on January 19 was $28 per share. The journal entry to record the stock dividend would include a.a debit to Stock Dividends Distributable for $252,000.
Answer:
On the day the the dividends are declared, the following journal entries must be made:
Dr Retained Earnings account 252,000Cr Dividends Payable account 252,000When the dividends are paid, the following journal entries should be made:
Dr Dividends Payable account 252,000Cr Cash account 252,000300,000 shares x $28 per share x 3% = $252,000
Kim's Retail had 800 units of inventory on hand at the end of the year. These were recorded at a cost of $15 each using the lastminusin, firstminusout (LIFO) method. The current replacement cost is $11 per unit. The selling price charged by Kim's Retail for each finished product is $18. In order to record the adjusting entry needed under the lowerminusofminuscostminusorminusmarket rule, the Merchandise Inventory will be ________.
A. credited by $11,200
B. debited by $11.200
C. debited by $1,600
D. credited by $1.600
Answer:
D. credited by $1.600
Explanation:
Market value lowering = ($11 - $15)*800/2 units = $1,600
Therefore, The Merchandise Inventory will be credited by $1,600.
Monterey Corporation reports net income of $550,000 that includes depreciation expense of $76,000. Also, cash of $53,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are:______
A) $603,000
B) $679,000
C) $626,000
D) $474,000
Answer:
C) $626,000
Explanation:
‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.
Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.
Examples: Revenue earned, expenses incurred etc.
There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.
The two methods of presenting cash flow statement are:
1. Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.
2. Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.
Given:
Net income = $550,000
Depreciation = $76,000
Net cash flows from operating activities = Net income + Depreciation expense
Net cash flows from operating activities = $550,000 + $76,000
Net cash flows from operating activities = $626,000
Relevant information for Product A follows: Actual variable overhead cost per hour $8.00 Standard variable overhead cost per hour $7.50 Actual hours 4,500 Standard hours 5,000 What was the variable overhead spending variance for Product A?
Answer:
variable overhead spending variance = $2,250
Explanation:
given data
Actual variable overhead cost per hour = $8.00
Standard variable overhead cost per hour = $7.50
Actual hours = 4,500
Standard hours = 5,000
to find out
variable overhead spending variance
solution
we know Actual hours and Application rate
so Total actual will be here = Actual hours × Application rate ..............1
Total actual = 4,500 × $8
Total actual = $36000
and
Total actual Standard will be = Standard variable × Actual hours .......2
Total actual for Standard will be = 4,500 × $7.50
Total actual for Standard = $33750
so
variable overhead spending variance = Total actual - Total actual for Standard .........3
variable overhead spending variance = $36000 - $33750
variable overhead spending variance = $2,250
The variable overhead spending variance for Product A is calculated by subtracting the standard variable overhead cost from the actual variable overhead cost, and multiplying the difference by actual hours. Here, the variance is $2,250 unfavorable.
Explanation:
The variable overhead spending variance for Product A is determined by analyzing the difference between the actual variable overhead cost incurred and the standard variable overhead cost that should have been incurred for the actual hours worked.
To calculate this, we subtract the standard cost from the actual cost and multiply the difference by actual hours worked. In this scenario, it would be:
Variance = (Actual variable overhead cost per hour - Standard variable overhead cost per hour) x Actual hours
Thus using the data given:
Variance = (($8 - $7.50) x 4500) = $2,250 unfavorable (because the actual variable overhead cost was more than the standard).
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A vending machine is designed to dispense 8 ounces of coffee into a cup. After a test that recorded the number of ounces of coffee in each of 1000 cups dispensed by the vending machine, the 12 listed amounts, in ounces, were selected from the data above. If the 1000 recorded amounts have a mean of 8.1 ounces and a standard deviation of 0.3 ounces, how many of the 12 listed amounts are within 1.5 standard deviation of the mean?
A. Four
B. Six
C. Nine
D. Ten
E. Eleven
Answer:
The answer is letter E.
Explanation:
Within 1.5 standard deviation means:
{mean-1.5*sd; mean+1.5*sd} = {8.1-1.5*0.3; 8.1 + 1.5*0.3}= {7.65; 8.55}
From the 12 listed amountd, only one (7.51) is out of this rage and 11 is within this rage.
_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country. Trade balance Inflation Education Economic growth
Answer: Economic growth
Explanation:
The economic growth is basically refers to the increase in the economical capacity for producing the various types of product and the services as compared to the specific period of the time.
The economic growth can be measured in real and the nominal terms. There are four main factors of the economic growth are as follows:
Labor Land Entrepreneurship CapitalThe Economical growth rate is basically determined by the ratio of the GDP to the per capital income or the population. When the economical growth get increased then, the labor, material and the physical capital are automatically get increased.
One idea for reducing cyberloafing is to develop software that recognizes and categorizes Internet sites into sites that employees can always visit, sometimes visit, and never visit.
1) True
2) False
For this question, assume that the expected rate of inflation is a function of the past year's inflation. Also, assume that the unemployment rate has been equal to the natural rate of unemployment for a number of years. Given this information, we know that:
Answer:
The inflation rate should remain the same or around the same.
Explanation:
Since almost 50 years ago, there has been a very steady relationship between the inflation rate and the unemployment rate in the US. When the inflation rate is lowering, the unemployment rate tends to increase, and vice versa.
In this case the unemployment rate is stable and has been stable for a number of years, so the inflation rate should remain the same as last year's.
Describe a discretionary fiscal stimulus package that could be used that would not bring an increase in the budget deficit. A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal ______. A. increase in government expenditure and an increase in taxes B. increase in transfer payments and a decrease in taxes C. decrease in transfer payments and increase in the quantity of money D. decrease in government expenditure and taxes
A discretionary fiscal stimulation package that would avoid a budget deficit is a simultaneous and equal increase in government expenditure and increase in taxes.
Option A
Explanation:
A discretionary fiscal stimulus bundle is a bundle of monetary estimates set up together by a legislature to animate a flopping economy. The goal of an improvement bundle is to revive the economy and anticipate or turn around a downturn by boosting work and spending.
The hypothesis behind the value of a boost bundle is established in Keynesian financial matters, which contends that the effect of a downturn can be decreased with expanded government spending.
Upgrade bundle is various motivations and assessment refunds offered by an administration to support spending in an offer to haul a nation out of a downturn or to anticipate a monetary lull. An improvement bundle can either be as a financial upgrade or a monetary boost.
A money related boost includes slicing loan fees to animate the economy. At the point when financing costs are cut, there is progressively impetus for individuals to acquire as the expense of getting is diminished.
Beginning in 2008, the Federal Reserve and the US Treasury Department responded to the financial crisis by intervening in the financial markets in unprecedented ways. Briefly summarize the action of the Fed and the Treasury.
Answer:
The Fed mainly used two monetary policy tools to respond to the crisis: the discount rate, and open-market operations.
The Fed lowered the discount rate so that banks could borrow from the Fed at a lower price. This helped inject liquidity in the financial system, and revitalize the economy,
Secondly, the Fed implemented a policy known as quantitative easing, which is a type of open-market operation, but with much greater scope. Quantitative easing is a policy whereby the Fed buys goverment bonds for a longer period of time instead of the short-term government bonds it usually buys. These longer-term bonds have lower interest rates, and help increase the money supply. The Fed resorted to quantitative easing because inflation was very low, unemployment was very high, the economy was in recession, and traditional expansionary monetary policy would have probably not been enough.
Years later, the European Central Bank followed these steps when the soverign debt crisis several european countries.
Explanation:
Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. Your fixed cost is $______, and your marginal cost is $______ÂÂ.
Answer:
fixed cost is $300 and marginal cost is $10
Explanation:
Data provided in the question:
total cost (in dollars) is given by the equation TC = 300 + 10Q,
where Q = the number of t-shirts we make
Now,
Total cost = Fixed cost + Total variable cost
The Fixed cost are the costs that remain constant for the range of products being manufactured
Therefore,
From the given function the constant value is $300
And,
The variable cost = Marginal cost × Number of products made
thus,
From the given equation, Marginal cost = $10
Hence,
The answer is fixed cost is $300 and marginal cost is $10
In the given equation for total cost, the fixed cost is $300, and the marginal cost is $10 per t-shirt, with the fixed cost being the cost at zero production and the marginal cost being the increase in cost for each additional t-shirt produced.
Explanation:The total cost (TC) for producing designer t-shirts as an entrepreneur in your garage is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. In this equation, the fixed cost is the cost that does not change regardless of the quantity produced, which in this case is $300. The marginal cost is the cost of producing one additional unit, which can be derived from the coefficient of Q in the total cost equation, and it is $10 per t-shirt.
The fixed cost is what you would incur even if you didn't produce any t-shirts, which is evident from the total cost being $300 at zero production. As you produce more t-shirts, only the variable costs increase, which are represented by the 10Q part of the equation, and for each additional t-shirt made, the variable cost increases by the marginal cost of $10.
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Larry Rauzer purchased $60,000 of whole life. What will the cash value of his policy be at the following anniversary dates?
1. 10 year
2. 15 year
3. 25 year
Cash Value Of The Insurance Policy
Policy Anniversary --- Cash Value Per Unit
5th year $30.00
10th year $89.00
15th year $160.00
20th year $232.00
25th year $340.00
^This list is what you use^
Step 1. Find number of units purchased. $70,000 ÷ $1,000 = 70 units
Step 2. Multiply the number of units time the cash value. 70 * $30 = $2,100
1. = 5,340
2.= 9,600
3.= 20,400
The cash value of Larry Rauzer policy that will be at the following anniversary dates are:
[tex]1. 10 \ {} year = 5,340\\2. 15 \ {} year = 9,6003. 25 year = 20,400[/tex]
What does policy mean?
A deliberate set of rules designed to direct choices and produce logical results is called a policy. A policy is a declaration of intent that is put into practise through a method or protocol. Usually, a governance board inside a company adopts policies.
They believe that Europe requires a common foreign and security policy. By policy, they mean a collection of ideas or a strategy of what to do in specific situations that has been publicly agreed upon by a group of individuals, a commercial organization, a government, or a political party.
Required calculations are:
The cash value per unit for [tex]10[/tex] years is [tex]89[/tex] dollars per unit.
[tex]\frac{60,000}{1000} = 60\\60 \times 89 = 5,340[/tex]
The cash value per unit for [tex]15[/tex] years is [tex]160[/tex] dollars per unit.
[tex]60 \times 160 = 9,600.[/tex]
The cash value per unit in [tex]25[/tex] years is [tex]340[/tex] dollars per unit.
[tex]60 \times 340 = 20,400[/tex]
In year [tex]10[/tex], the cash value of the policy is [tex]5,340[/tex].
In year [tex]15[/tex], the cash value of the policy is [tex]9,600[/tex].
In year [tex]25[/tex], the cash value of the policy is [tex]20,400[/tex].
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If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization
is achieved when 25 units are produced.
is achieved by setting price equal to 25.
is achieved only by shutting down in the short run.
cannot be determined solely from the information provided.
Answer:
is achieved when 25 units are produced.
Explanation:
profit is maximum at MR = MC
MR = 100 - 4Q
the MR curve is double sloped than the demand curve
since we were not given the MC;
let MC = 0 , then:
100 - 4Q = 0
4Q = 100
Q = 25
Therefore, The profit maximization is achieved when 25 units are produced.
Kaldon, Inc. acquired 2,500 of its own shares at $30 per share. The shares are to be held in treasury. The par value of Kaldon’s common stock is $4 per share. If Kaldon were to resell all its treasury stock at $32 per share, what journal entry would Kaldon make?
Answer:
The journal entries Kaldon, Inc. needs to make are as followed:
Dr Cash 80,000
Cr Common share 75,000
Cr Paid-in capital 5,000
(to record the sale of repurchase share)
Explanation:
Calculation notes:
As Kaldon, Inc. sell 2,500 shares at $32, the cash proceed the company gets is 2,500 x 32 = $80,000.
As Kaldon, Inc. had previously repurchased the shares at $30, the value of common shares should be recorded at $30 per share in the sell of repurchased shares transaction. Thus, total value of common share repurchased is 30 x 2,500 = $75,000.
The difference amount between Cash Receipt and Value of common share recorded will be recorded in Paid-in capital account : 80K - 75K = 5,000.
Based on counting the number of galaxies in a small patch of the sky and multiplying by the number of such patches needed to cover the entire sky, the total number of galaxies in the observable universe is estimated to be approximately:
a. 100 million
b. 1 billion
c. 10 billion
d. 100 billion
e. 1 trillion
Answer:
D) 100 billion
Explanation:
This method is used by astronomers all over the world because it is impossible to count all the stars. Even in parts of the sky that seem to be totally dark, there are dozens of galaxies, each with millions of stars.
Our universe is so incredibly huge that even a number as big as 100 billion stars seems to be small. But using that technique, astronomers have calculated that there are 100 billion stars in the universe. I believe that number will change in the future as soon as we are able to build better telescopes, and astronomers will be capable of counting more stars in each patch.
A product's life cycle is divided into four stages, which are: A. introduction, growth, maturity, and decline. B. introduction, growth, saturation, and maturity. C. introduction, maturity, saturation, and decline. D. introduction, growth, stability, and decline. E. incubation, growth, maturity, and decline.
Answer:
A. introduction, growth, maturity, and decline.
Explanation:
The four stages of a product life cycle are
Introduction: is when the product is launched to the market. The focus at this moment is to create awareness of among consumers. Companies may choose to use a low price as a way of attracting customers. A lot of finances and resources are used to gain market share and create a brand name. Profits are not a concern at this level.
Growth: the product starts to record high volume of sales. Customers are becoming more aware of the product. The product qualities are recognized, and word about the product is spreading. More resources are used in marketing to target a bigger audience.
Maturity: At maturity, demand for the product is high. The product can withstand competition from rivals. The sales are at a peak stage. The business may differentiate the product to make standout it from the rest and to prolong this stage.
Decline; At this last stage, the product reaches its saturation point. Sales begin to decline. The company need to decide on whether to withdraw or to make significant changes to the product.
Which of the following is correct?
a. Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced.
b. Equality can be judged on positive grounds whereas efficiency requires normative judgments.
c. Efficiency is more difficult to evaluate than equality.
d. Equality and efficiency are both maximized in a society when total surplus is maximized.
Answer: (A)
Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced.
Explanation:
According to Gregory Mankiw, resources are scarce and therefore every society must use its scarce resources to derive as much benefits as it can. It is this derived benefits he calls the "economic pie"
The more efficient a society is, the more the benefits (or the larger the economic pie) it can derive from its resources.
According to Mankiw, equality means fairness in distributing the benefits (or slicing the pie) among the people in that society.
Inflation can be caused by A. increases in the long-run aggregate supply curve or decreases in the aggregate demand curve. B. decreases in the long-run aggregate supply curve or decreases in the aggregate demand curve. C. decreases in the long-run aggregate supply curve or increases in the aggregate demand curve. D. increases in the long-run aggregate supply curve or increases in the aggregate demand curve.
Answer: d
Explanation: the increase in the aggregate demand leads to increase in the price level. Workers have a higher expending capacity.
Any increase in the demand production causes the prices
to increase.
Inflation is primarily caused by decreases in the long-run aggregate supply curve or increases in aggregate demand curve, making option C the correct answer. Increases in LRAS signify economic growth, while increases in AD when the economy is at potential lead to higher prices but do not change real GDP or unemployment.
Explanation:Inflation can occur in an economy when there are shifts in aggregate demand (AD) and aggregate supply (AS). Specifically, inflation is typically caused by decreases in the long-run aggregate supply (LRAS) or increases in aggregate demand (AD). Therefore, the correct answer to the provided question is C. decreases in the long-run aggregate supply curve or increases in the aggregate demand curve.
In the neoclassical model, the LRAS is depicted as a vertical line, indicating that, in the long run, the economy's productive capacity is fixed and determined by factors such as technology and resources. When AD increases rapidly and shifts to the right, it intersects the LRAS at a higher price level, leading to inflation, but it does not affect the real GDP or the natural rate of unemployment in the long run.
On the contrary, increases in the LRAS would mean the economy is capable of producing more goods and services without causing inflation, reflecting economic growth rather than inflation. An inflationary gap, on the other hand, is created when AD increases while the economy is already at its potential output, leading to higher prices without a change in real GDP.
Spectrum Inc., an automobile manufacturer, is interested in measuring the customer satisfaction of car owners. It decides to collect data from new purchasers of Spectrum cars. In this scenario, the new purchasers of Spectrum cars represent a(n) _____.
Answer: Sampling unit
Explanation:
The sampling unit is the process in which the singular value are produced within the sampling database. Sampling is basically done for producing the accurate result by the proper research process and it is the process of represent the sampling by avoiding the bias.
The each unit of the sampling is the basically divided for the purpose of representing the samples in individually format in the form of unit.
According to the given situation, the new purchasers of the given spectrum are basically represent the sampling unit.
The new buyers of Spectrum cars represent a Sample unit from where the data relating to customer satisfaction will be collected.
What is a Sampling unit?A Sampling unit is one of the units selected for the purpose of sampling. Each unit is considered as one and indivisible when selected.
A sampling unit is a process by which a single quantity is generated within a sample site. Sampling is done to produce an accurate result through a proper research process and is a process for representing samples by avoiding bias.
Each Sample unit is basically subdivided for the purpose of representing the samples for each format in the form of a unit.
Thus, the new buyers of the given spectrum represent the Sampling unit.
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Monetary neutrality means that a change in the money supply ____.
a. does not change real variables. Most economists think this is a good description of the economy in the short run and in the long run. b. does not change real variables. Most economists think this is a good description of the economy in the long run but not in the short run
c. does not change nominal variables. Most economists think this is a good description of the economy in the short-run and the long run
d. does not change nominal variables. Most economists think this is a good description of the economy in the long run but not in the short run
Monetary neutrality is the concept that changes in the money supply do not affect real variables in the economy. This is generally accepted as true in the long run, but not in the short run.
Explanation:Monetary neutrality refers to a concept in economics that states an increase or decrease in the money supply does not affect real variables in the economy. Among the choices, option B correctly defines this concept. A change in the money supply does not change real variables. Most economists accept this as an accurate description of the economy in the long run, but not in the short run.
Real economic variables like production output and employment are unaffected by the money supply in the long run as per this theory.
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Monetary neutrality is the concept that changes in the money supply do not influence real variables like GDP and employment in the long run. Many economists agree that this is true for the long run, but not the short run, as an increased money supply can stimulate short-term spending and employment.
Explanation:In the field of economics, Monetary neutrality is a concept that contends that changes in the money supply do not have real effects on the economy in the long run. This means that a change in the money supply does not impact real variables such as employment levels, real GDP, or real consumption. It is connected with the concept of economics where 'real' refers to values that have been adjusted for inflation.
The correct answer to your question is 'Monetary neutrality means that a change in the money supply does not change real variables. Most economists think this is a good description of the economy in the long run but not in the short run'. This is because in the short run, an increase in money supply can stimulate spending and employment. However, in the long run, the economy adjusts, and we return to the original levels of output and employment, but with a higher price level i.e, more inflation. Hence, the general consensus among economists is that money is 'neutral' in the long run but 'non-neutral' in the short run.
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Which of the following statements is CORRECT?
a. Assume that the required rate of return on the market, rM, is given and fixed at 10%. If the yield curve were upward sloping, then the Security Market Line (SML) would have a steeper slope if 1-year Treasury securities were used as the risk-free rate than if 30-year Treasury bonds were used for rRF.
b. An investor who holds just one stock will generally be exposed to more risk than an investor who holds a portfolio of stocks, assuming the stocks are all equally risky. Since the holder of the 1-stock portfolio is exposed to more risk, he or she can expect to earn a higher rate of return to compensate for the greater risk.
c. If investors become more risk-averse but rRF does not change, then the required rate of return on high-beta stocks will rise and the required return on low-beta stocks will decline, but the reared return on an average-risk stock will not change.
d. There is no reason to think that the slope of the yield curve would have any effect on the slope of the SML.
e. If Mutual fund A held equal amounts of 100 stocks, each of which had a beta of 1.0, and Mutual Fund B held equal amounts of 10 stocks with betas of 1.0, then the two mutual funds would both have betas of 1.0. Thus, they would be equally risky from an investor's standpoint, assuming the investor's only asset Is one or the other of the mutual funds.
Answer:
E
Explanation:
As the capital asset pricing model dictates, assest's systematic risk is captured by beta parameter. If we have beta value of asset then we can calculate expected return.
expected return = risk free rate + beta * market risk premiumAs both A and B have same beta hence they have same expected returns.
Jon, a U.S. petroleum engineer, moved his family to Saudi Arabia for a two-year assignment. The company provided him a travel allotment of $.10 a mile, a food allowance of $500 a month, and $2000 a month for housing to maintain his standard of living. What kind of pay factor was used?A. Base payB. DifferentialsC. BonusesD. IncentivesE. Assistance programs
Answer:
differentials
Explanation:
Based on the information provided within the question it can be said that the the kind of pay factor being used is called differentials. This term refers to the additional payments made by an employer in order to make up for the difference in costs of labor or living between different geographical location. Which in this case would be the U.S and Saudi Arabia.
Candy and Sarah own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs
Answer:
The correct answer is Cash and Carry.
Explanation:
Cash and carry ("Buy (take) and take (it)") is considered a commercial formula similar to an economato, evolved from traditional wholesale, with the particularity of addressing only and exclusively professionals (independent retailers and hoteliers) and operate on a free service basis. The retailer travels to the location of the wholesaler, chooses the items he needs, pays them and transports them, in front of the conventional procedure of placing the order to the wholesaler, so that he can transport it and serve it in the establishment of the retailer.
The concept of "Cash and Carry, wholesale self-service", is a commercial formula adapted to the needs of certain retailers, restaurants, cafes, hotels and other service providers, such as some institutions (HoReCa Sector, Hotels-Restaurants-Caterers). It is basically designed for professionals in the HoReCa sector, but it also accepts clients that are large consumers, such as institutions or educational centers.
In summary:
It is a wholesaler; that is, it never sells to an end consumer. To access a Cash and carry establishment, you must have a card or identification that proves the status of a retailer.
It has a commercial policy based on price and continuous offers.
Know your customers, their consumption and needs well.
My boss does not get the technical aspect of the job my group is trying to complete. I understand the intricacies of the project and my team come to me and ask questions. What has happened in this work setting?
The given situation is called as “Expectation Management”
Explanation:
"The management of expectations is one of the most powerful weaponry in psychological warfare. In managing expectations people instinctively disregard other people's thoughts and then use the technique intentionally, considering own ideas as they reveal them to other people."
The manager knows just well the essence of your venture, his point of view is a little different from yours and you have to understand his point of view (or even more) because he wants to comprehend yours.
Therefore, the manager is less involved in the execution and the technical aspects of operation than can the performance and how it works to meet its organizational goals. And that's how you should refer to the manager. Clearly, your ability to provide is limited, depending on how many hours you work every day.
Any requests he makes, create scope, calculate the cost (how fast), and ask him to give priority to other demands. On this basis, you can determine when you can provide what.
Bubba is a shrimp fisherman who can catch 4,000 pounds of shrimp per year. Bubba is considering hiring his cousin Bobby to work for him. Bobby can catch 3,000 pounds of shrimp per year. If Bubba hires Bobby, what will be the total output of his shrimp business?
Answer:
7,000 pounds
Explanation:
Data provided in the question:
Shrimps Bubba catches per year = 4,000 pounds
Shrimps that Bobby can catch per year = 3,000 pounds
Therefore,
The marginal contribution of Bobby in the output if Bobby is hired is 3,000 pounds of shrimp
Hence,
The total output of his shrimp business is Bubba hires Bobby will be
= Output of Bubba per year + Output of Bobby per year
= 4,000 pounds + 3,000 pounds
= 7,000 pounds