Answer:
d. $990,000
Explanation:
The multiplier method assumes that the total external failure cost is a multiple of the measured external failure costs. In this case, based on experience, the company determined that the measured value must be multiplied by a factor of 3:
[tex]C=3* \$330,000\\C= \$990,000[/tex]
Therefore, Azure Company's total external failure cost is $990,000
Absorption costing and product pricing LO P4 A manufacturer reports the following information on its product. Direct materials cost $ 41.00 per unit Direct labor cost $ 11.10 per unit Variable overhead cost $ 5.10 per unit Fixed overhead cost $ 1.10 per unit Target markup 50 % Compute the target selling price per unit under absorption costing.
Final answer:
To compute the target selling price per unit under absorption costing, we need to consider the total cost per unit. The target selling price can be calculated by adding the target markup percentage to the total cost per unit.
Explanation:
To compute the target selling price per unit under absorption costing, we need to consider the total cost per unit. Total cost per unit can be calculated by summing up the direct materials cost, direct labor cost, variable overhead cost, and fixed overhead cost. Then, we can add the target markup percentage to the total cost per unit to determine the target selling price per unit.
Here is the calculation:
Total cost per unit = Direct materials cost + Direct labor cost + Variable overhead cost + Fixed overhead cost
Total cost per unit = $41.00 + $11.10 + $5.10 + $1.10 = $58.30
Target selling price per unit = Total cost per unit + (Target markup percentage * Total cost per unit)
Target selling price per unit = $58.30 + (0.50 * $58.30) = $87.45
Last year, Pat spent $10 a day on miscellaneous things like downloading apps, buying music, and eating out. If Pat had invested that $3650 in a well-diversified investment paying a real return of 7 percent, compounded annually, how much would Pat have in 10 years?
Answer:
Pat would have $7,180.1 in 10 years
Explanation:
Data provided in the question:
Principal or amount of money deposited, P = $3650
Interest rate = 7%
Time, t = 10 years
for compounded annually, n = 1
Now,
The Future value (A) using compounding is given by the formula as:
[tex]A = P \left( 1 + \frac{r}{n} \right)^{\Large{n \times t}}[/tex]
on substituting the respective values, we get
Amount after 10 years = $3650 × (1 + 0.07)¹⁰
or
Amount after 10 years = $3650 × 1.967151
or
Amount after 10 years = $7,180.1
Pat would have $7,180.1 in 10 years
Using the compound interest formula, Pat's investment of $3650 at a 7% annual return, compounded annually for 10 years, would grow to approximately $7,225.22.
Explanation:If Pat had invested $3650 in a well-diversified investment with a real return of 7 percent, compounded annually, after 10 years, the investment would grow according to the formula for compound interest: A = P(1+r/n)^(nt), where P is the principal amount, r is the annual interest rate (in decimal form), n is the number of times that interest is compounded per year, t is the time the money is invested for in years, and A is the amount of money accumulated after n years, including interest.
In this case, Pat's initial investment (P) is $3650, the annual interest rate (r) is 7% or 0.07, the interest is compounded annually which makes n = 1, and the time frame (t) is 10 years. Substituting these values into the compound interest formula, we get: A = 3650(1 + 0.07/1)^(1*10).
This simplifies to: A = 3650(1.07)^10. Calculating the value, Pat's investment would grow to approximately $7,225.22 in 10 years.
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Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Division, a chain of coffee shops.
Machina Division produces the EXP-100 model espresso maker that can be used by Java Division to create various coffee drinks. The market price of the EXP-100 model is $950, and the full cost of the EXP-100 model is $475. Required:
1. If Teslum has a transfer pricing policy that requires transfer at full cost, what will the transfer price be?
2. If Teslum has a transfer pricing policy that requires transfer at market price, what would the transfer price be?
3. Now suppose that Teslum allows negotiated transfer pricing and that Machina Division can avoid $135 of selling expense by selling to Java Division.
What is the minimum transfer price?
What is the maximum transfer price?
Answer:
1. $475
2. $950
3. $815
4. $950 per unit
Explanation:
1. If Teslum has a transfer pricing policy that requires transfer at full cost, then,
Transfer price = $475
2. If Teslum has a transfer pricing policy that requires transfer at market price, then,
Transfer price = $950
3. Minimum Transfer price:
= Market price - Selling expense that could be avoided
= $950 - $135
= $815
Maximum transfer price = Market price per unit
= $950 per unit
The transfer pricing policies and negotiation scenarios for Teslum Inc.'s divisions are explained based on full cost and market price guidelines, along with a negotiated transfer pricing case.
The answers to the questions are:
If Teslum Inc. has a transfer pricing policy that requires transfer at full cost, the transfer price will be $475.If Teslum Inc. has a transfer pricing policy that requires transfer at market price, the transfer price will be $950.For negotiated transfer pricing allowing for Machina Division to avoid $135 of selling expense, the minimum transfer price would be $475, and the maximum transfer price would be $815.An increase in the price of oranges would lead to
an increased supply of oranges.
a reduction in the prices of inputs used in orange production.
an increased demand for oranges.
a movement up and to the right along the supply curve for oranges.
Answer:
a movement up and to the right along the supply curve for oranges.
Explanation:
The supply curve exhibits the price and quantity.
Quantity on the x axis that reflects the quantity supplied.
Price on the y axis that reflects the price at which the particular commodity is offered.
Accordingly, when there is increase in prices of orange the y axis will move upward, also as there is increase in price the suppliers would supply more at the price, accordingly x axis will also grow.
Accordingly the supply graph will move upward in the right direction.
An increase in the price of oranges results in a movement up and to the right along the supply curve, indicating a higher quantity supplied at a higher price. Other factors, such as changes in supply or demand, would shift their respective curves. Understanding these distinctions helps in analyzing market behaviors.
An increase in the price of oranges leads to a specific reaction in the market, described by the law of supply and demand. If the price of oranges rises, there will be a movement up and to the right along the supply curve, indicating a higher quantity supplied at a higher price. This movement is caused by producers' motivation to supply more due to the higher potential profit.
Other options listed, such as an increase in supply of oranges or a reduction in input prices, would result in a rightward shift of the supply curve, not merely a movement along it. Similarly, an increase in demand for oranges would shift the demand curve to the right, leading to higher equilibrium prices and quantities.
Key Observations:
An increase in price causes movement along the supply curve.Change in supply (curve shift) is influenced by factors like weather and technology.Change in demand reflects consumer preferences and needs.Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,000, paid biweekly, and a garnishment for consumer credit of $375. Assuming that her disposable income is 80 percent of her gross pay per period, does the garnishment follow the CCPA? If not, what is the maximum garnishment allowed for Geraldine’s consumer credit garnishment?
Answer:
Explanation: The amount of the garnishment exceeds the allowable amount. Wolfe gross pay is $1,730.77 ($45,000 / 2624(bi weekly) income will be 80% which is $1,384.62. The allowed Consumer credit for garnishment is of 25% which would be $346.16 payment.
Tami Strand’s regular hourly wage rate is $10, and she receives an hourly rate of $20 for work in excess of 40 hours. During a January pay period, Tami works 50 hours. Tami’s federal income tax withholding is $88, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.
Compute Tami Strand’s gross earnings and net pay for the pay period.
Answer:
Gross earnings = $600
Net pay = $466.10
Explanation:
The computation of the gross earnings and the net pay is shown below:
Gross earnings
40 hours × $10 = $400
10 hours × $20 = $200
So, the total = $600
Since tami worked for 50 hours, 10 hours extra so $20 is paid for 1 hours extra. So, for 10 hours it would be $200
Net pay
Gross earnings $600
less: federal income tax withholding -$88
Less: FICA tax rate @7.65% on $600 - $45.90
Net pay $466.10
In our lecture about Strategic fit, we learned that a company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services, and its supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product.
Answer:
The approach is correct but it is necessary to complete the competitive advantage, with the addition that to meet the needs of the client, it is necessary to differentiate from the competition and that is what makes an advantage in the market. Example: Shampoo companies for men, being specialized for men's hair care, have a competitive advantage in the market for these products where the target is usually women.
In relation to the supply chain, the important thing is to obtain maximum efficiency in each of the processes. Example: That the time in elaboration of the products is the best in the market.
FancyTrends Inc., a handbag manufacturing company, assembles handbags in an assembly line using 10 workstations. The target output for an 8 hour workday is 120 bags. The sum of the task times is 30 minutes/bag. The cycle time is 4 minutes/bag. The assembly-line efficiency is _____.
Answer:
75%
Explanation:
Given that,
No. of workstations used = 10
Target output for an 8 hour workday = 120 bags
Sum of the task times = 30 minutes/bag
Cycle time = 4 minutes/bag
Assembly-line efficiency:
= Sum of the task times ÷ (Number of work stations × Cycle time)
= 30 ÷ (10 × 4 )
= 30 ÷ 40
= 0.75
= 75%
Therefore, The assembly-line efficiency is 75%.
Final answer:
The assembly-line efficiency of FancyTrends Inc. is calculated using the provided task times, cycle time, and the number of workstations and is found to be 75%.
Explanation:
The student has provided information about an assembly line at FancyTrends Inc., a handbag manufacturing company, and is seeking to calculate the assembly-line efficiency. The assembly-line efficiency can be calculated by dividing the sum of the individual task times by the product of cycle time and the number of workstations. Using the information provided: The sum of the task times is 30 minutes per bag, the cycle time is 4 minutes per bag, and there are 10 workstations. Thus, efficiency can be found using the following formula:
E = (Sum of task times) / (Cycle time × Number of workstations)
E = (30 minutes/bag) / (4 minutes/bag × 10 workstations)
E = 30 / 40
E = 0.75 or 75%
Therefore, the assembly-line efficiency of FancyTrends Inc. is 75%.
Suppose Nicholas Ltd. just issued a dividend of $.60 per share on its common stock. The company paid dividends of $.35, $.40, $.45 and $.50 per share in the last four years. If the stock currently sells for $10, what is your best estimate of the company's cost of equity capital?
Answer:
Growth rate (g) = n-1√(Latest dividend) - 1
Earliest dividend
= 4-1√($0.50/0.35) -1
= 3√(1.4286) -1
= 0.1263 = 12.63%
Cost of equity(Ke) = Do(1+g)/Po + g
= $0.60(1+0.1263)/$10 + 0.1263
= $0.60(1.1263)/$10 + 0.1263
= 0.0068 + 0.1263
= 0.1331 = 13.31%
Explanation:
In this case, we need to calculate growth rate using dividend growth model as calculated above. Then, we will calculate cost of equity of the firm on the ground that dividend has been paid.
At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets $ 860,000 $ 440,000 Total liabilities 360,000 240,000 Total equity 500,000 200,000 Required: 1. Compute the debt-to-equity ratios for both companies
Answer:
ratio = 1.2 : 1
Explanation:
given data
Pulaski company scott company
Total assets 860,000 440,000
total liabilities 360,000 240,000
total equity 500,000 200,000
to find out
Compute the debt-to-equity ratios for both companies
solution
we get here debt-equity ratio that is express as
debt-equity ratio = [tex]\frac{Debt}{equity}[/tex]
here we get
Pulaski company = [tex]\frac{total\ liabilities}{equity}[/tex]
Pulaski company = [tex]\frac{360000}{500000}[/tex]
ratio are = 1.2 : 1
The debt-to-equity ratio is calculated by dividing a company's total liabilities by its stockholders' equity. For Pulaski Company, the ratio is 0.72 and for Scott Company, it is 1.2.
Explanation:The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders'equity and debt used to finance a company's assets. This ratio is calculated by dividing a company's total liabilities by its stockholders' equity. For Pulaski Company, using the provided information, the debt-to-equity ratio would be: 360,000 / 500,000 = 0.72. For Scott Company, the debt-to-equity ratio would be: 240,000 / 200,000 = 1.2. This means Pulaski Company uses 72% debt to every dollar of equity, while Scott Company uses 120% debt to every dollar of equity in its capital structure.
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Barin Retail Outlets incorrectly recorded inventory in 2016. Rather than recording ending inventory as $960,000, Barin's accounting manager entered $690,000, understating ending inventory by $270,000. Barin's controller discovered the error in 2018. Prepare the journal entry necessary to correct the inventory error, ignoring any income tax effects.
Answer:
Please see attachment
Explanation:
Please see attachment
The loss in efficiency due to market power large or small? Explain. The loss in efficiency due to market power is____________.
A. large because virtually every firm has at least some market power.
B. large because almost every industry is a monopoly with firms that have substantial market power.
C. small because almost every industry is perfectly competitive with firms that have no market power.
D. small because even firms without market power are economically inefficient.
Answer:
The answer is small because the firms with the market power of substantial are rare.
Explanation:
The loss in the efficiency is because of the market power which is small as the firms with the essential or substantial market power are rare in the market.
The firms with the power substantial market are the monopoly firms and these firms are very rare. Some competition exists in firms in the market but this competition limit the power of the market by decreasing the dead weight loss and keeping the cost closer to the marginal cost. So, it will result in loss in efficiency.
Note: The correct answer or option is missing. So, providing the correct statement.
On September 1, 2020, Concord Corporation acquired Skysong Enterprises for a cash payment of $790,000. At the time of purchase, Skysongâs balance sheet showed assets of $630,000, liabilities of $180,000, and ownersâ equity of $450,000. The fair value of Skysongâs assets is estimated to be $890,000.Compute the amount of goodwill acquired by Concord.
Answer:
$710,000
Explanation:
For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:
The fair value of net asset = The fair value of Skysongâs assets - the fair value of liabilities
= $890,000 - $180,000
= $710,000
And, the acquired value of Skysong Enterprises for cash is $790,000
So, the goodwill would be
= $790,000 - $710,000
= $80,000
Walgreens Boots Alliance’s Sales, Cost of Goods Sold, and Gross Profit
The following information was summarized from the consolidated balance sheets of Walgreens Boots Alliance, Inc. and Subsidiaries (the company created with the combination of Walgreens and Boots Alliance) as of August 31, 2015 and 2014 and the consolidated statements of earnings for the years ended August 31, 2015 and 2014. All amounts are from Walgreens Boots Alliance’s 2015 Form 10-K.
(millions of dollars) 2015 2014
Accounts receivable, net $6,849 3,218
Cost of sales 76,520 54,823
Inventories 8,678 6,076
Net sales 103,444 76,392
1. Calculate the gross profit ratios for Walgreens Boots Alliance for 2015 and 2014 If required, round the percentage to one decimal place.
Walgreen's 2015 gross profit ratio: %
Walgreen's 2014 gross profit ratio: %
Answer:
a. 26%
b. 28.2%
Explanation:
Consider the following formula:
Gross profit ratio = Net sales - Cost of sales / Net sales
Walgreen's 2015 gross profit ratio: (103444-76520)/103444
26.0%
Walgreen's 2014 gross profit ratio: (76392-54823)/76392
28.2%
Final answer:
The gross profit ratio for Walgreens Boots Alliance was 26.0% for 2015 and 28.2% for 2014, calculated by subtracting the cost of sales from net sales and dividing by net sales for each respective year.
Explanation:
To calculate the gross profit ratio for Walgreens Boots Alliance for the years 2015 and 2014, we need to subtract the cost of sales from net sales for each year, and then divide the result by net sales. The formula is: Gross Profit Ratio = (Net Sales - Cost of Sales) ÷ Net Sales.
For 2015:
Gross Profit = Net Sales - Cost of Sales = $103,444 million - $76,520 million=$26,924 million.
Gross Profit Ratio = $26,924 million ÷ $103,444 million = 0.2602 or 26.0% (rounded to one decimal place).
For 2014:
Gross Profit = Net Sales - Cost of Sales = $76,392 million - $54,823 million=$21,569 million.
Gross Profit Ratio = $21,569 million ÷ $76,392 million = 0.2824 or 28.2% (rounded to one decimal place).
Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc.
Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they :
a. want to avoid potential disputes.
b. are conscious of those rules.
c. are not conscious of those rules.
d. have a moral obligation to do so.
Answer:
a. want to avoid potential disputes.
Explanation:
The auditors are liable to report all the acts of the company, whether are in confirmation of law or not. This is because it is their duty to put a review on the balance sheet, and provide the users of such balance sheet the trust on the information presented.
Even if the agreement do not provide for complete details making it a valid contract this is sure that they need to act properly so that any moral dispute do not occur and that, all the work is done according to the responsibilities.
On January 1, 20X5, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually, beginning December 30, 20X5 and continuing each year for 30 years. The lease qualifies as a finance lease. On January 1, 20X5, the present value of the lease payments is $112,500 at the 8% interest rate implicit in the lease. In Blaugh's December 31, 20X5 balance sheet, the finance lease liability should be
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Final answer:
The finance lease liability for Blaugh Co. in its December 31, 20X5 balance sheet should be $111,500. This accounts for one lease payment of $10,000 and the accrued interest at 8% on the present value of the lease payments since the beginning of the year.
Explanation:
The question involves calculating the finance lease liability in the balance sheet for Blaugh Co. at the end of the year 20X5. On January 1, 20X5, the present value of the lease payments was $112,500 at an 8% interest rate. Since the lease payments begin on December 30, 20X5, Blaugh Co. would have made one lease payment of $10,000 by the end of 20X5. After making the first lease payment, the balance of the lease liability needs to be adjusted to reflect this payment.
Before the payment, the lease liability stands at $112,500. To find the lease liability at the end of 20X5, we must consider the interest accrued and the payment made. The interest for the year is calculated on $112,500 at 8%, which amounts to $9,000 ($112,500 x 0.08). On December 30, 20X5, the payment of $10,000 is made, which is more than the accrued interest, therefore reducing the lease liability. Subtracting the lease payment from the sum of the initial liability and the interest accrued gives us the new lease liability:
Initial lease liability: $112,500
Accrued interest for 20X5 (at 8% of $112,500): $9,000
Total before payment: $121,500
Lease payment made on December 30, 20X5: $10,000
Finance lease liability on December 31, 20X5: $111,500 ($121,500 - $10,000)
On small projects, the cost management plan may be as simple as ensuring accurate estimates are made, securing the funding, and developing cost reporting procedures to ensure that the money is spent correctly. True False
Answer:True
Explanation:
The first in a project is making an estimate of the project, a wrong estimate will lead to the failure of the project for this does not only determined the viability of the project but also help in providing adequate liquidity.
Availability of needed fund gives the optimism than the project will be completed and a follow up to ensure money spent adds value to the project as estimated will ensure successful completion of the project.
James Company has 1,400 shares of $100 par preferred stock, which were issued at par. It also has 29,000 shares of common stock outstanding, and its total stockholders' equity equals $615,600. The book value per common share is:
Answer:
$16.4
Explanation:
Given: Preferred stock= 1400 shares of $100
Total share outstanding= 29000
Total shareholder´s equity= $615600.
Now, calculating the book value per shares.
Formula; Book value per shares= [tex]\frac{(Total\ equity-preferred\ equity)}{Total\ shares\ outstanding}[/tex]
Preferred stock= [tex]1400 shares \times \$ 100= \$ 140000[/tex]
∴ Preferred stock= $140000.
Book value per shares= [tex]\frac{(615600-140000)}{29000} = \frac{475600}{29000}[/tex]
∴ Book value per share= $16.4
You are buying a car, and have settled on a price of $22,678.95. You put $2,678.95 down and borrow the rest at an 8.5% APR, compounded monthly for 48 months. This requires a monthly payment of $492.97. If you decide to pay off the loan in full with a lump sum after 25 payments, how much will you need to give the dealer?
Answer:
$10429
Explanation:
Please see attachment .
Suppose an increase in the monetary base of $300,000 increases the quantity of money by $600,000. Calculate the money multiplier.
Answer:
Calculate the money multiplier.MM : 2
Explanation:
The money multiplier is the number of times that the monetary base is used in the economy, it's calculated as follows:
Money Supply = Monetary Base * Money Multiplier
Money Multiplier = Money Supply / Monetary Base
Money Multiplier = 600 / 300 = 2
The Money Supply is affected by the reserve of money that the banks keeps as required reserves and excess reserves, so, total reserves, it means less money to spent or lent.
The money multiplier used in this instance is 2.
What is Money Multiplier?
This refers to the number of times in which the monetary base is used in an economy,
Hence,e to find the money multiplier, we would:
Money Supply = Monetary Base * Money Multiplier Money Multiplier = Money Supply / Monetary Base Money Multiplier = 600 / 300 = 2Read more about money multiplier here:
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The country of Pepperland exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in the tables below. Pepperland Price Qd Qs 60 230 180 70 200 200 80 170 220 90 150 240 100 140 250 Land of Submarines Price Qd Qs 60 430 310 70 420 330 80 410 360 90 400 400 100 390 440a) What would be the equilibrium price and quantity in each country in a world without trade? Pepperland: Price = $ , Quantity = Land of Submarines: Price = $ , Quantity = b) What would be the equilibrium price and quantity in each country if trade is allowed to occur? Price = $ , Quantity = c) How much steel will Pepperland export without a quota? units If the Land of Submarines imposes an anti-dumping import quota of 30, will it benefit or injure consumers and producers in each country. Land of Submarines: It will consumers and producers. Pepperland: It will consumers and producers. e) Will your answer to part d change if The Land of Submarines increases the import quota to 70? (Yes, No, or No effect)
Answer:
Please see attachment
Explanation:
Please see attachment
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $105,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Labor costs would increase $3,200 per year using the gang punch, but raw material costs would decrease $12,250 per year. MARR is 5%/year. a)What is the present worth of this investment?
b)What is the decision rule for judging the attractiveness of investments based on present worth?
c)Should Bailey buy the gang punch?
Answer:
a) Present value of the investment: $198,936
b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.
c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch
Explanation:
Please find detailed of calculation in (a) which is shown as below:
Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.
In large, publicly traded corporations, typically the shareholders have little involvement in the day-to-day operations of the corporation, but rather the shareholders select a board of directors who hire officers and managers to operate the business True or False?
Answer: True
Explanation:
A publicly traded corporation is a type of corporation where shares are public traded. People who buy shares in the company are known as shareholders and are usually referred to as owners of the company.
The shareholders usually vote to elect board members usually through proxy voting.
The board of directors hire managers and oversee the running of the corporation.
During the next three months, Shoemaker, Inc. must meet the following demands for shoes:
month 1, 1000 pairs; month 2, 1500 pairs; month 3, 1800 pairs. It takes 1 hour of labor to produce a pair of shoes. During each of the next three months, the following number of regular-time labor hours are available: month 1, 1000 hours, month 2, 1200 hours, month 3, 1200 hours. Each month, the company can require workers to put in up to 400 hours of overtime. Workers are paid only for the hours they work, and a worker receives $4 per hour for regular-time work and $6 per hour for overtime work. At the end of each month, a holding cost of $1.5 per pair of shoes in incurred. Formulate a min-cost network ow problem (MCNFP) that can be used to minimize the total cost incurred in meeting the demand of the next three months. A formulation requires drawing the appropriate network and determining the cij 's, uij 's, bi 's. How would you modify your answer if demand could be backlogged (all demand must still be met by the end of month 3) at a cost of $20/pair/month?
Answer
The answer and procedures of the exercise are attached in athe following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
A fall in the price level: Multiple Choice reduces the value of money in peoples' pockets, so people buy less goods. reduces the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy less goods.
Answer:
increases the value of money in peoples' pockets, so people buy more goods.
Explanation:
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
If price level falls, the value of money rises as a consumer would be able to buy the same basket of goods at a reduced price. This would induce a consumer to buy more goods.
A rise in price levels reduces the value of money in peoples' pockets, so people buy less goods.
I hope my answer helps you.
As sole heir, Gascon receives all of Lafayette's property (adjusted basis of $15,700,000 and fair market value of $16,900,500). Six months after Lafayette's death in 2019, the fair market value is $16,500,100. a. Can the executor of Lafayette's estate elect the alternate valuation date and amount?
Answer:
No
Explanation:
Fair market value of Mary's property = $16,900,000. Six months after Mary's death in 2018, the fair market value is = $16,900,000. Fair value has increased on alternate valuation date. The executor of Mary's estate cannot elect the alternate valuation date and amount as the election does not result in reduction in fair value of gross estate.
All of the following arguments are presented in favor of inflation targeting EXCEPT
(A) it would reduce the lags inherent in monetary policy.
(B) it would provide an anchor for inflationary expectations.
(C) it would draw attention to what the central bank can achieve in practice.
(D) it would promote accountability by providing a yardstick by which policy can be measured.
Answer:
The correct answer is letter "A": it would reduce the lags inherent in monetary policy.
Explanation:
Inflation targeting is a monetary policy in which the central bank sets a specific target for medium-term inflation and declares the target for inflation. The idea is that maintaining price stability is the best that monetary policy can do to support the economy in the long run.
Wen, a consumer researcher, is conducting a research on the buying behavior of the Hispanics. As part of her study, she calculates a consumer’s buying power by relating it to the consumer’s income. The consumer attributes that Wen employs in her research can best be described as _____?
Answer:
demographics.
Explanation:
Demographic attributes refer to the particular characteristics common to a particular regional population. In a demographic survey factors such as gender, race, age and income are analyzed.
Demographic data help to understand peculiar characteristics of a given population, through the data it is possible to understand if the individual characteristics of a participant are relevant to configure as a representative sample of the population, in order to assist in the generalization and development of policies and research. Market
Because of the identity equation that relates to net exports, the in U.S. net exports is matched by in U.S. net capital outflow. Which of the following is an example of how the United States might be affected in this scenario? Check all that apply.
A. You store the Thai baht in your safety deposit box at home.
B. You exchange the THB 80,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.
C. You purchase THB 48,000 worth of stock in a Thai corporation and THB 32,000 worth of Thai bonds.
Answer:
Please see attachment
Explanation:
Please see attachment
Consider planned aggregate expenditure model: planned investment, I = $60 billion; government spending G = $50 billion; Taxes are equal to $60 billion; the consumption function, C(Y-T)= $80 billion + .75(Y-T).
a. What is the equilibrium level of output?
b. If output in the economy started at 600 billion, what would happen to inventories and output?
c. At the equilibrium level of output: what are total consumption and savings?
d. If taxes decreased to $50 billion, what would be the new level of equilibrium output? Calculate the tax multiplier?
e. If taxes stayed at $60 billion but government spending increased to $60 billion, what would be the new level of equilibrium output? Calculate the government spending multiplier? How would your answers change to c, d, and e if the consumption function were instead C(Y-T)= $80 billion + 0.80(Y-T).
Answer:
The answer is (a) Y = 520, (b) Y = 2,720, (c) (I) Y = 560, (II) Y = 560, (d) (I) Y = 560, (II) M = 3, (e) (I) Y = 560, (II) Government Multiplier = 40billion, (III) Y = 700
(a)
Explanation:
(a)
Given that
Y = I + G + ca + 0.75 ( Y - T)
Where ca = autonomous consumption, Y - T = disposable income
Substitute into the equation
Y = 60 + 50 + 80 + 0.75 ( Y - 60)
Rearrange the equation
Y - 0.75Y = 60 + 50 + 80 - 60
Factor out the variable Y
(1 - 0.75) Y = 190 - 60
Simplify
0.25Y = 130
Divide both sides by 0.25
0.25Y/0.25 = 130/0.25
Y = 520
(b)
Y = C + I + G
Since the value of output depends on the household's intention to consume
Substitute into the equation
Y = 80 + 0.75 + 600
Rearrange the equation
Y - 0.75Y = 80 + 600
Factor out the variable Y
(1-0.75)Y = 680
Simplify
0.25Y = 680
Divide both sides by 0.25
0.25Y /0.25 = 680/0.25
Y = 2,720
(c)I
Y = C + I
Y = 80 + 60
Rearrange the equation
Y - 0.75Y = 80 + 60
Factor out the variable Y
(1-0.75)Y = 80 + 60
Simplify
0.25Y = 140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(II)
Equilibrium condition S = I
C = 80 + 0.75Y =60
Rearrange the equation
Y - 0.75Y = 80 + 60
Factor out the variable Y
(1-0.75)Y = 80 + 60
Simplify
0.25Y = 140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(d)(I)
Y = I + G + ca + 0.75 (Y -T )
Where ca = autonomous consumption, Y - T = disposable income
Substitute into the equation
Y = 60 + 50 + 80 + 0.75 (Y -50)
Rearrange the equation
Y - 0.75Y = 60 + 50 + 80 - 50
Factor out the variable Y
(1-0.75)Y = 190 - 50
Simplify
0.25Y = 140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(II)
Tax Multiplier = -MPC/(1-MPC)
Because there is a decrease in tax,then the multiplier will be positive, because there is now more money in the circular flow
M= MPC /(1-MPC )
M = 0.75/(1-0.75)
0.75/0.25
= 3
The tax multiplier is 3
(e)(I)
Y = I + G + ca + 0.75 (Y -T)
Substitute into the equation
Y = 60 + 60 + 80 + 0.75 (Y -60)
Rearrange the equation
Y-0.75Y = 60 + 60 + 80 - 60
Factor out the variable Y
(1-0.75)Y = 200 - 60
Simplify
0.25Y =140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(II)
K = ▲Y/▲G
K= 1/1-MPC
K = 1/1-0.75
K = 1/0.25
K = 4
K = ▲Y/▲G
▲G = (60-50) =10
4 = ▲Y/10
Cross multiply
▲Y = 4 × 10
▲Y = 40 billion
(e)(III)
How would the answer change, if consumption function were
C (Y -T )=80billion + 0.80 (Y -T )
Y = I + G + ca + 0.75 (Y -T )
Substitute into the equation
Y = 60 + 50 + 80 + 0.80 (Y -50)
Rearrange the equation
Y - 0.80Y = 60 + 50 + 80 - 50
Factor out the variable Y
(1-0.80)Y = 190 - 50
0.2Y = 140
Divide both sides by 0.2
0.2Y /0.2 = 140/0.2
Y = 700