Imagine an economic debate among five presidential candidates. At the time of the debate, the government announces that the economy has entered a recession. Assuming each candidate makes one statement about the economy, can you tell whether he or she is a classical or a Keynesian economist?

Answers

Answer 1
Final answer:

Presidential candidates can be understood as aligning more with Keynesian or Classical Economics based on their views on government intervention in the economy in response to a recession. Keynesians support active measures such as tax cuts or increased government spending, while Classical Economists favor letting the market adjust naturally.

Explanation:

In understanding whether a presidential candidate aligns with Classical or Keynesian Economics, it's crucial to pay attention to their respective views on government intervention in the economy. Keynesian Economists, as developed by John Maynard Keynes, believe in periods of recession, the government should intervene through expansionary fiscal policies that would stimulate consumption and investment, thereby shifting the aggregate demand curve to the right. These measures could include tax cuts or direct increases in government spending.

On the other hand, Classical Economists advocate for a self-regulating economy where markets freely adjust to periods of highs and lows without government intervention. If a candidate supports robust government intervention to combat the recession such as boosting aggregate demand via increased government spending or tax cuts, they are more in line with Keynesian Economics. If they oppose this and advocate for minimal intervention, let the economy self-regulate and adjust naturally, they tend closer to Classical Economics.

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Answer 2
Final answer:

A presidential candidate's response to a recession could potentially indicate whether they lean more towards Keynesian economics (favoring government intervention) or classical economics (advocating minimal intervention). Metrics could include mention of tax cuts, government spending, or managing aggregate demand.

Explanation:

Yes, it is possible to infer whether a presidential candidate is a classical or a Keynesian economist based on their responses to economic issues such as a recession.

A Keynesian economist typically believes that government intervention can help stabilize the economy during a recession by managing aggregate demand.

For example, if a candidate suggests the use of expansionary fiscal policy, such as tax cuts to stimulate consumption and investment, or direct increases in government spending to boost aggregate demand, they are likely following Keynesian principles.

On the other hand, a classical economist would generally advocate for minimal government intervention, trusting in the natural ability of the market to self-correct.

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Related Questions

You were recently selected for an important 2-year overseas assignment in Qatar. This is a big career opportunity and a chance to work in a high-growth region of your company’s business.
You just returned from a weeklong trip to Qatar, which was part of the introduction to your new team and your soon-to-be new home.
You certainly became aware that there were some noticeable cultural differences between your country and Qatar.
You are scheduled to move in 3 months.


Which of the following actions would be the MOST EFFECTIVE approach for improving your cultural competence?


a) Create a list of the things that you found to be different than what you expected during your visit and plan some strategies for adjusting to these differences.

b) Learn as much as you can about each member of your new team in order to smooth your transition into the group.

c) Stay in frequent communication with your new team in order to prepare for your upcoming move.

d) Focus your efforts on closing out all of your remaining projects and commitments related to your current position to get ready for your overseas assignment.

Answers

Answer:

The correct answer is letter "A": Create a list of the things that you found to be different than what you expected during your visit and plan some strategies for adjusting to these differences.

Explanation:

To improve your cultural competence, it is a good idea to come up with a list of the aspects that you found different than expected so you can have a clear idea of what you may struggle with. From that point, you can determine what are the possible solutions for each aspect to adjust your cultural differences.

Which one of the following stocks is correctly priced if the risk-free rate of return is 2.4 percent and the market risk premium is 7.80 percent? Stock Beta Expected Return A 0.72 8.43% B 1.48 14.00% C 1.40 13.32% D 1.06 10.58%

Answers

Answer:

Stock C

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

For Stock A

= 2.4% + 0.72 × 7.80%

= 2.4% + 5.616%

= 8.016%

For Stock B

= 2.4% + 1,48 × 7.80%

= 2.4% + 11.544%

= 13.944%

For Stock C

= 2.4% + 1.40 × 7.80%

= 2.4% + 10.92%

= 13.32%

For Stock D

= 2.4% + 1.06 × 7.80%

= 2.4% + 8.268%

= 10.668%

Since we see that the expected rate of return for stock C is equal to the expected rate of return so the stock C is correctly priced

A $1,000,000 lottery prize pays $50,000 per year for the next 20 years. If the current rate of return is 4.25%, what is the present value of this prize? (Assume the lottery pays out as an ordinary annuity. Round your answer to the nearest cent.)

Answers

Final answer:

The present value of a $1,000,000 lottery prize that pays out $50,000 annually for 20 years, taking into account a 4.25% interest rate, is approximately $577,462.86.

Explanation:

The present value of the lottery prize can be calculated using the formula for the present value of an ordinary annuity. An annuity is a series of equal payments made at regular intervals. The formula for the present value of an ordinary annuity takes into account the periodic payment amount, the interest rate, and the number of payment periods.

In this case, the lottery payout is an annuity with a yearly payment of $50,000, the interest rate is 4.25% (expressed as 0.0425 as a decimal), and there are 20 payment periods.

So, the formula to calculate the present value of the annuity is as follows: PV = Pmt * [(1 - (1 + r)^-n) / r]

Where:

PV is the present value of the annuity,Pmt is the recuring payment amount,r is the interest rate per period, andn is the number of periods.

Substituting the given values into the formula:

PV = $50,000 * [(1 - (1 + 0.0425)^-20) / 0.0425]

When you calculate the expression inside the brackets first and then multiply by $50,000, you get a present value of approximately $577,462.86.

This means that the $1,000,000 lottery prize, paid out as $50,000 per year for 20 years and discounted at an interest rate of 4.25%, is roughly worth $577,462.86 in today's dollars.

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Hannah Township has a General Fund, two Capital Projects Funds, one Permanent Fund, two Enterprise Funds, two Internal Service Funds, three Pension Trust Funds, and one Private-Purpose Trust Fund. Assuming all governmental and enterprise funds meet the major fund criteria, how many columns will the proprietary fund statement of net position have? Select one: a. Two (2). b. Three (3). c. Four (4). d. Five (5).

Answers

Answer:

c. Four (4)

Explanation:

Six months ago, you purchased 2,700 shares of ABC stock for $44.81 a share. You have received dividend payments equal to $.50 a share. Today, you sold all of your shares for $47.49 a share. What is your total dollar return on this investment?

Answers

The total dollar return on the investment is calculated by adding the total capital gain ($7,236) and the total dividends ($1,350) which results in a total return of $8,586.

The question involves calculating the total dollar return on an investment in the stock market. To determine the total dollar return, we must consider both the capital gain (or loss) and the dividend payments received during the investment period.

First, let's calculate the capital gain:

Sale price per share: $47.49

Purchase price per share: $44.81

Number of shares: 2,700

Capital gain per share: $47.49 - $44.81 = $2.68

Total capital gain: $2.68 \\u00d7 2,700 shares = $7,236

Next, let's calculate the dividend earnings:

Dividend per share: $0.50

Total dividends: $0.50 \\u00d7 2,700 shares = $1,350

Now, we can calculate the total dollar return:

Total capital gain: $7,236

Total dividends: $1,350

Total dollar return: $7,236 + $1,350 = $8,586

Stephanie's building, which was used in her business, was destroyed in a fire. Stephanie's adjusted basis in the building was $175,000, and its FMV was $210,000. Stephanie filed an insurance claim and was reimbursed $200,000. In that same year, Stephanie invested $180,000 of the insurance proceeds in another business building. Assuming the proper election is made to defer gain, Stephanie's basis in the new building will be

Answers

Answer:

$1,75,000

Explanation:

Please see attachment

Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend by 11.0 percent annually. The stock has a market price of $13.65 and a beta of 2.8. The market risk premium is 8.56 percent and the risk-free rate is 4.90 percent. What is the cost of equity?

Answers

Answer:

30.92%

Explanation:

You find the answer by calculating the cost of equity using two methods; Dividend discount model and CAPM

Dividend discount model;

cost of equity; r = (D1/P0) +g

whereby, D1 = next year's dividend = 3.00

P0= current price = 13.65

g = dividend growth rate = 11% or 0.11 as a decimal

r = (3/13.65) + 0.11

r = 0.2198 + 0.11

r= 0.3298 or 32.98%

Using CAPM;

r = risk free + beta (Market risk premium)

r = 0.049 + (2.8 * 0.0856)

r = 0.049 + 0.2397

r = 0.2887 or 28.87%

Next, find the average of the two cost of equities;

=(32.98% + 28.87% )/2

= 30.92%

On January 1, Year 1, McClurg Corporation issues 5%, 11-year bonds with a face amount of $70,000 for $76,180. The market interest rate is 4%. Interest is paid semiannually on June 30 and December 31. Complete the necessary journal entry for the issuance of the bonds by selecting the account names from the drop-down menus and entering the associated dollar amounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer:

The journal entry for the issuance of the bond is shown below:

Explanation:

The entry to be posted on Jan 1

Cash A/c..............................................Dr   $76,180

    Premium on bonds payable A/c........Cr     $6,180

    Bonds Payable A/c..................................Cr   $70,000

As bonds issued, so cash is increasing and any increase in cash is debited. Therefore, the cash account is debited. But the bonds issued at a premium so the premium on the bonds payable will be credited. And bonds payable account is credited.

Final answer:

The journal entry to record the issuance of the bonds would be: Debit Cash $76,180, Credit Bonds Payable $70,000, Credit Premium on Bonds Payable $6,180.

Explanation:

To record the issuance of the bonds, the journal entry would be as follows:

Debit: Cash $76,180Credit: Bonds Payable $70,000Credit: Premium on Bonds Payable $6,180

The debit to Cash represents the amount received from the issuance of the bonds. The credit to Bonds Payable represents the face value of the bonds. The credit to Premium on Bonds Payable represents the difference between the face value of the bonds and the amount received, which is recorded as a liability on the balance sheet.

Bramble Company took a physical inventory on December 31 and determined that goods costing $216,300 were on hand. Not included in the physical count were $22,720 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $19,770 of goods sold to Alvarez Company for $29,450, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Bramble report as its December 31 inventory?

Answers

Answer:

$258,790

Explanation:

Bramble report as its December 31 inventory:

= Inventory in hand as per physical count + Goods purchased from P corporation under FOB shipping basis + Cost of goods sold to A company under FOB destination basis

= $216,300 + $22,720 + $19,770

= $258,790

Therefore, the amount to be reported by Bramble company is $258,790.

Saks is expected to pay a dividend in year 1 of $1.80, a dividend in year 2 of $2.12, and a dividend in year 3 of $2.69. After year 3, dividends are expected to grow at the rate of 8% per year. An appropriate required return for the stock is 11%."
What should the stock price be worth after three years?

Answers

Answer:

$96.84

Explanation:

The computation of the stock price after three years are shown below:

= (Third-year dividend × growth rate) ÷ (Required rate of return - growth rate)

= ($2.69 × 1.08)  ÷ (11% - 8%)

= ($2.9052) ÷ (3%)

= $96.84

The growth rate equal to

= 1 + growth rate

= 1 + 8%

= 1.08

We simply apply the growth model so that the after three years stock price can be correctly computed

Final answer:

The stock price after three years is calculated using the Dividend Discount Model for a perpetuity, considering the given dividends and expected growth rate, resulting in a value of $96.12.

Explanation:

The question asks to calculate the worth of a stock after three years, given the dividends for the first three years and an expected perpetual growth rate thereafter. The dividends for year 1 are $1.80, year 2 are $2.12, and year 3 are $2.69. After year 3, dividends are expected to grow at a rate of 8% per year indefinitely. The required return for the stock is 11%. To find the stock price after three years, we will use the Dividend Discount Model (DDM) for a perpetuity which considers the dividend growth. The formula for the value of the stock at the end of year 3, which is before applying the growth rate in year 4, is: P3 = D3 * (1 + g) / (r - g), where P3 is the stock price at the end of year 3, D3 is the dividend in year 3, g is the growth rate (8%), and r is the required return (11%). Substituting the given values: P3 = $2.69 * (1 + 0.08) / (0.11 - 0.08) = $2.69 * 1.08 / 0.03 = $96.12. Therefore, the stock should be worth $96.12 after three years.

Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $850,000, with a cost of merchandise to Heller of $340,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much in net sales will Heller Company recognize for the current period?
A. $510,000
B. $816,000
C. $489,600
D. $360,400
E. $850,000

Answers

Answer:

B. $816,000

Explanation:

The computation of the net sales is shown below:

= Total sales - sales returned amount

where,

Total sales is $850,000

And, the sales returned amount would be

= Total sales amount × sales returned percentage

= $850,000 × 4%

= $34,000

Now put these values to the above formula

So, the value would be equal to

= $850,000 - $34,000

= $816,000

A machine that cost $192,000 has an estimated residual value of $24,000 and an estimated useful life of 24,000 machine hours. The company uses units-of-production depreciation and ran the machine 6,000 hours in year 1, 7,000 hours in year 2, and 8,000 hours in year 3.

Answers

The book value of the machine at the end of year 3, using the units-of-production depreciation method, is $144,000. This is calculated based on the machine's actual usage of 8,000 hours in year 3.

To calculate the book value at the end of year 3 using the units-of-production depreciation method, we'll follow these steps:

1. Determine the depreciation per machine hour:

[tex]\[\text{Depreciation per Hour} = \frac{\text{Cost} - \text{Residual Value}}{\text{Total Estimated Machine Hours}}\][/tex]

2. Calculate the accumulated depreciation for each year:

[tex]\[\text{Accumulated Depreciation} = \text{Depreciation per Hour} \times \text{Actual Machine Hours}\][/tex]

3. Determine the book value at the end of each year:

[tex]\[\text{Book Value} = \text{Cost} - \text{Accumulated Depreciation}\][/tex]

Let's calculate it:

Given:

- Cost = $192,000

- Residual Value = $24,000

- Estimated Useful Life = 24,000 machine hours

- Actual Machine Hours in Year 1 = 6,000 hours

- Actual Machine Hours in Year 2 = 7,000 hours

- Actual Machine Hours in Year 3 = 8,000 hours

1.

[tex]\[\text{Depreciation per Hour} = \frac{192,000 - 24,000}{24,000 \text{ hours}} = 6[/tex]

2.

[tex]\[\text{Accumulated Depreciation Year 1} = $6 \times 6,000 \text{ hours} = $36,000\\\text{Accumulated Depreciation Year 2} = $6 \times 7,000 \text{ hours} = $42,000\\\text{Accumulated Depreciation Year 3} = $6 \times 8,000 \text{ hours} = $48,000[/tex]

3.

[tex]\text{Book Value Year 1} = $192,000 - $36,000 = $156,000\\\text{Book Value Year 2} = $192,000 - $42,000 = $150,000\\\text{Book Value Year 3} = $192,000 - $48,000 = $144,000[/tex]

Therefore, the book value at the end of year 3 is $144,000.

The complete question is:

A machine that cost $192,000 has an estimated residual value of $24,000 and an estimated useful life of 24,000 machine hours. The company uses units-of-production depreciation and ran the machine 6,000 hours in year 1, 7,000 hours in year 2, and 8,000 hours in year 3.

Calculate its book value at the end of year 3.

The cash budget: Sit Down Corporation has a cash balance of $32,500 on April 1. The company must maintain a minimum cash balance of $30,000. During April, expected cash receipts are $48,500. Cash disbursements during the month are expected to total $56,100. Ignoring interest payments, how much will the company need to borrow during April?

Answers

Answer:

$5,100

Explanation:

Initial cash balance (IB) = $32,500

Expected cash receipts (EC) = $48,500.

Cash disbursements (CD) = $56,100

Amount borrowed (B) = ?

Assuming that the final balance must equal at least $30,000, the cash flow for april is given by:

[tex]\$30,000 = IB +EC-CD+B \\B= \$30,000 -\$32,500-$48,500+\$56,100\\B=\$5,100[/tex]

Sit Down Corporation will need to borrow $5,100 during April to maintain a minimum cash balance of $30,000.

Two economists estimate the government expenditure multiplier and come up with different results. One estimates the multiplier at 0.75​, while the other comes up with an estimate of 1.25. Explain why these estimates are different in terms of the assumptions that each economist is making.
A. Compared to the first economist, the second economist is assuming a longer time frame for the effects of the increased expenditure to be observed.
B. Compared to the first economist, the second economist must be assuming either a smaller induced increase in consumption, a larger crowding out effect, or both.
C.Compared to the first economist, the second economist must be assuming either a larger induced increase in consumption, a smaller crowding out
D. Unlike the first economist, the second economist miust be assuming that the government expenditure is devoted to useful projects.
If the current value of GDP is $14.42 trillion and the government is planning to increase spending by $900 billion (all in one year), the percentage increase in GDP using the multiplier estimate of the first economist is 4.68 percent. (Round your response to two decimal places) Using the multiplier estimate of the second economist and the same current value of GDP, the percentage increase in GDP is percent. (Round your response effect, or both. to two decimal places.)

Answers

Answer: (B)

Compared to the first economist, the second economist must be assuming either a smaller induced increase in consumption, a larger crowding out effect, or both.

Explanation:

First of all, I'll like to explain some terms:

- Government Expenditure Multiplier is an index or figure showing the percentage by which Gross domestic product (GDP) will increase, when Government Expenditure increases; all other kinds of expenditure held constant

- the GDP equation is

GDP= C + I + G + (X-M)

Where C = consumption expenditure (by individuals)

I = investment expenditure (by firms)

G = government expenditure

(X-M) = international trade (export-import) expenditure

- If we hold other independent variables constant and measure the government expenditure multiplier, we will derive the index that shows the amount by which an increase in G will increase GDP.

Now to the question;

Crowding out effect means an act by the government to purchase so much more domestic goods and services than they previously purchased.

This is done deliberately by the government for various reasons: to boost the economy, to provide social welfare goods, and to kick-start national projects.

It is called "crowding out" because these huge government purchases limit private sector purchases.

If the 2nd economist assumes a larger crowding out effect, that means greater government expenditure, then this rhymes with the higher GM (government expenditure multiplier) that his estimate produces. GM of 1.25 means that a percent increase in G will increase GDP by 25%.

On the other hand, Economist 1's estimate of 0.75 implies a 25% decrease in GDP (coming from a decrease in G), which explains his part of option B. He (economist 1) is assuming a lesser crowding out effect.

If we add the assumption of Economist 2 that there'll be smaller induced increase in consumption, it follows that C will have a less positive impact on GDP.

If we combine both changes in C and G, we also have G producing more increase in GDP.

You are welcome.

Answer:

the correct answer is B

"Compared to the first economist, the second economist must be assuming either a smaller induced increase in consumption, a larger crowding out effect, or both".

Explanation:

Government use multiplier used to show increment in level of GDP when government use increment other than consistent of other consumption.  

Gross domestic product = c+I+g + ( x-m)  

In the event that we steady all use or free factors expected g which is meant government consumption at that point to compute government multiplier the expansion in g consequently increment in GDP.  

Swarming impact:- under this administration buy all the more increasingly residential merchandise and ventures which limits private division buy and this circumstance is gotten swarming out.  

So if financial specialist second have bigger swarming exertion implies government use increment and this lead higher government multiplier . Gm of 1.25 implies that percent expansion in g lead GDP increment by 25% .  

Financial specialist second gauge 0.75 methods 25% abatement in GDP .

Sherry, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is aA. standing committee.B. task force.C. special project team.D. cross-functional team.E. multifaceted work group.

Answers

Answer:

Letter D is correct. Cross-functional team.

Explanation:

A multifunctional team is made up of employees from different functional areas with the objective of enhancing organizational results.

Problem solving and search for innovation are relevant characteristics when choosing to form a multifunctional team in a company, it is believed that each sector has ideas and solutions that together will increase the possibility of effectiveness in activities and processes, besides providing greater integration, collaborative sense of team and resolution of common goals, which consequently drives the results and the organizational revenue.

Pioneer Systems Inc. has a high degree of formalization. Employees in Pioneer Systems are more likely to:
A. face morale and motivation problems.
B. feel empowered to implement new solutions.
C. exhibit high levels creativity and experimentation.
D. face ambiguity as a result of a lack of formal rules and procedures.

Answers

Answer:

Letter A is correct. Face morale and motivation problems.

Explanation:

A company with a high degree of formalization is a company with a vertical organizational structure. Vertical management is represented by a classic business structure, based on the principle of top-down authority and command and a fixed organization chart.

Being an inflexible organizational model, there are some disadvantages, such as difficulty in interaction between areas and teams, communication failure due to communication noise, which can lead to the creation of moral conflicts and also the lack of motivation of employees, which due to Organizational rigidity is not so active in the process of contributing ideas and suggestions to organizational objectives, as decision making is centralized and concentrated at the top of the hierarchy.

At GetHelp Inc., after customer service representatives complete training, their phone calls are monitored to determine if they are applying the lessons about gathering pertinent information from callers. This evaluation best exemplifies a _____ measure.

Answers

Answer:

This evaluation best exemplifies a "behavior-level" measure.

Explanation:

Donald Kirkpatrick proposed a Four-level training evaluation model for evaluating the impact of training on employees.

The four levels are; Reaction, Learning, Behavior and Results.

The behavior level of Kirkpatrick's model is the third stage and it comes after employees have undergone learning/training. At this stage, the behavior is measured through monitoring and observation to determine if they are implementing what they have learnt.

This gives some insight into how effective the training was.

Therefore GetHelp Inc. by monitoring the phone calls of their customer service representatives are carrying out a "behavior-level" measure.

otal Labor Variance Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.01 hours. During the month of April, 510,000 bottles were produced using 13,000 labor hours @ $9.00. The standard wage rate is $7.50 per hour. Required: Calculate the total variance for production labor for the month of April. Enter amounts as positive numbers. If required, round your answer to the nearest cent.

Answers

Answer:

$78,750 unfavorable

Explanation:

Total labor variance can be divided into direct labor efficiency variance and the direct labor rate variance

Direct labor efficiency variance (DLEV):

DLEV = (Expected labor hours - actual labor hours)*standard rate

[tex]DLEV=(0.01*510,000 - 13,000)*7,50\\DLEV = -59,250[/tex]

Direct labor rate variance (DLRV):

DLRV = Actual labor hours * (Standard Rate - Actual Rate)

[tex]DLRV = 13,000*(7.50 - 9.00)\\DLRV = -19,500[/tex]

Since both values are negative, they are both unfavorable and the total labor variance (TLV) is given by:

[tex]DLRV = 13,000*(7.50 - 9.00)\\DLRV = 59,250 + 19,500\\TLV = \$ 78,750 \ unfavorable[/tex]

2. You have just completed an analysis of Rodriguez Manufacturing. You used the Capital Asset Pricing Model to determine that the required rate of return is 13%. The last dividend paid was $1.80, and the current price is $25. Based on new manufacturing processes that the company recently adopted and the company’s history of consistently paying dividends, you believe the company’s dividends will grow at a constant growth rate of 6%.

Answers

Answer:

You didn´t post the question complete. So I found the expected rate of return. Hope be useful.

Explanation:

Required rate of return on stock = 13%

Expected rate of return is calcualted below Using DDM model:

Expected rate of return = [$1.80 × (1 + 6%) / ($25)] + 6%

= ($1.908 / $25) + 6%

= 7.632% + 6%

= 13.632%

Expected rate of return is 13.632%.

Economics can be described as the study of how people use ________ resources to satisfy ________ wants.A) unlimited; unlimitedB) unlimited; limitedC) limited; unlimitedD) limited; limited

Answers

Answer:

C) limited; unlimited

Explanation:

Economics can be described as the study of how people use limited resources to satisfy unlimited wants.

Final answer:

Economics is the study of how people use limited resources to satisfy unlimited wants, which requires making choices due to the scarcity of resources.

Explanation:

Economics can be described as the study of how people use limited resources to satisfy unlimited wants. The correct answer to the student's question is C) limited; unlimited

Scarcity is a core concept in economics, indicating that there is a finite amount of resources available to meet the endless human wants and needs. Resources such as labor, tools, land, and raw materials are essential to produce the desired goods and services but are not available in unlimited quantities. Time is another scarce resource; with only 24 expendable hours in a day, people must make choices about how to allocate their time among work, leisure, and rest.

Because of these limitations, economics studies how individuals and societies prioritize and allocate their resources, making trade-offs to best satisfy the varying wants and needs. Every choice made implies another option foregone, which is known as an opportunity cost.

Bartran Company assembles ink cartridges. Each finished cartridge has three child items: a plastic case, a label and several ounces of ink. Lead time on assembling a finished cartridge is 2 days, while the lead time for procuring new plastic cases is 1 day, although the lead time is 5 days for procuring new labels and 2 days for procuring more ink. Assuming that all the assumptions of an MRP bill of materials is true, how long would it take Bartran to create at least one finished ink cartridge if it started with nothing in stock?

Answers

Final answer:

It would take Bartran Company a minimum of 5 days to create at least one finished ink cartridge if they started with nothing in stock.

Explanation:

Using the information given, we can determine the lead times for each component and calculate the total lead time to create a finished ink cartridge. The longest lead time comes from procuring new labels, which is 5 days. Therefore, it would take Bartran Company a minimum of 5 days to create at least one finished ink cartridge if they started with nothing in stock.

Total Lead Time Calculation: Since the longest lead time is 5 days (procuring new labels), it sets the minimum total lead time for creating a finished ink cartridge. This is because all other steps can occur in parallel or have lead times shorter than or equal to 5 days.

Therefore, if Bartran Company started with nothing in stock and initiated the process of creating an ink cartridge, it would take a minimum of 5 days to complete at least one finished ink cartridge.

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Henry Hobbs, age 51, has compensation of $72,000. The normal retirement age for his 457(b) plan is age 62. Henry has unused deferrals totaling $21,000 as of January 1, 2019. How much can Henry defer into his 457(b) public plan for 2019?

Answers

Answer:

Henry's maximum amount defer in public plan  is = $25000.

Explanation:

given data

age = 51

compensation = $72,000

normal retirement age = 62

unused deferrals totaling =  $21,000

to find out

How much can Henry defer into his 457(b) public plan for 2019

solution

we know that as per plan 457(b) is an Employer sponsored

and tax favored retirement savings account

so here in 2019 Employees can contribute = upto  $19000

and

Employees over age  = 50

he can  contribute additional  = $6000

and making maximum contribution limit = $25000

so here

Henry's maximum amount defer in public plan  is = $25000

Maxine, age 35, earns $200,000 annually from ABC Incorporated. ABC sponsors a SIMPLE, and matches all employee deferrals 100% up to a 3% contribution. What is the maximum employee deferral contribution to Maxine’s SIMPLE account for this year?

Answers

Answer:

$12,500.

Explanation:

Please see attachment.

Final answer:

The maximum employee deferral contribution to Maxine’s SIMPLE account for this year is $6,000.

Explanation:

The maximum employee deferral contribution to Maxine’s SIMPLE account for this year can be calculated using the employer's matching policy. ABC Incorporated matches all employee deferrals 100% up to a 3% contribution. Maxine's annual income is $200,000, so her maximum employee deferral contribution for this year would be 3% of $200,000, which is $6,000.

Rise Against Corporation is comparing two different capital structures: an all equity plan (Plan A) and a levered plan (Plan B). Under Plan A, the company would have 210,000 shares of stock outstanding. Under Plan B, there would be 150,000 shares of stock outstanding and $2.28 million in debt outstanding. The interest rate on the debt is 8%, and there are no taxes.a. If EBIT is S500,OOO, which plan will result in the higher EPS? b. If EBIT is $750,000, which plan will result in the higher EPS? c. What is the break-even EBIT?

Answers

Answer:

a. Plan A

b. Plan B

c. $638,400

Explanation:

The formula to compute the earning per share is shown below:

Earning per share = (Net income - interest) ÷ (Number of shares)

a. For Plan A

EPS = ($500,000) ÷ (210,000 shares) = $2.38

For Plan B

EPS = ($500,000 - $182,400) ÷ (150,000 shares) = $2.12

The interest is computed below:

= $2.28 million × 8%

= $182,400)

Plan A has higher EPS

b. For Plan A

EPS = ($750,000) ÷ (210,000 shares) = $3.57

For Plan B

EPS = ($750,000 - $182,400) ÷ (150,000 shares) = $3.78

The interest is computed below:

= $2.28 million × 8%

= $182,400)

Plan B has higher EPS

c. Break-even EBIT

(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares

(EBIT) ÷ (210,000) = (EBIT - $182,400) ÷$150,000

After solving this,

The EBIT would be $638,400

The Edward Company is expected to pay a dividend of D1 = $3.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price?

Answers

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.  

When they produce 20,000 units per month, Sanders Incorporated has variable costs of $392,000 and fixed costs of $242,000. If Sanders increases their production to 25,000 units, by how much will they have to increase their budget?

A : $98,000
B : $158,500
C : $490,000
D : $792,500

Answers

Answer:

increased in budget = $98000

correct option is A $98000

Explanation:

given data

produce = 20,000 units per month

variable costs = $392,000

fixed costs = $242,000

increases production = 25,000 units

to find out

how much will they have to increase their budget

solution

we get here total cost or present budget that is

total cost = variable cost + fixed cost

total cost = $392000 + $242000

total cost = $634000

and

variable cost per unit will be here

variable cost per unit = [tex]\frac{variable\ costs}{produce}[/tex]

variable cost per unit = [tex]\frac{392000}{20000}[/tex]

variable cost per unit = 19.6

and

variable cost for increased production = increases production × variable cost per unit  

variable cost for increased production = 25000 × 19.6

variable cost for increased production = 490000

and

total cost of increased production = fixed cost + variable cost for increased production

total cost of increased production = $242000 + $490000

total cost of increased production = $732000

and

increased in budget = $732000 - $634000

increased in budget = $98000

correct option is A $98000

X Company purchased a patent on January 3, 2017 from Y Company for $145,000. An attorney drew up the contract between X & Y at a total cost of $15,000, which was split equally by the parties. The patent had a carrying value of $90,000 on Y’s books. X expects to be able to benefit from the patent for 10 years, after which it is expected to be of little to no value. What will be the carrying value of the patent on X Company’s December 31, 2018 balance sheet?

Answers

Answer:

$122,000

Explanation:

Cost of Patent:

= Cost of patent + (total cost ÷ 2)

= 145,000 + (15,000 ÷ 2)

= $152,500

Accumulated depreciation for 2 years:

= (Cost of Patent ÷ Benefited years) × No. of years

= (152,500 ÷ 10) × 2

= $30,500

Carrying value on December 31,2018:

= Cost of Patent - Accumulated depreciation for 2 years

= $152,500 - $30,500

= $122,000

Moreno Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2019, Moreno sells 15,000 subscriptions beginning with the December issue. Moreno prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.

(a) Prepare the entry in November for the receipt of the subscriptions
(b) Prepare the adjusting entry at December 31, 2019, to record sales revenue recognized in December 2019.

Answers

Answer:

Explanation:

The journal entries are shown below:

a. Cash A/c Dr $300,000        (15,000 × $20)

To Unearned Service revenue A/c $300,000

(Being unearned service revenue recorded)

b. Unearned Service revenue A/c Dr $25,000    (300,000 ÷ 12 month)

                To Service revenue A/c $25,000

(Being the adjusting entry for December month is recorded)

Why, with the monetary policy tools it had used prior to the financial​ crisis, could the Fed not control the federal funds​ rate?

(A) The Fed would have needed to conduct a massive open market purchase of government securities.
(B) Investor and consumer behavior was not conforming to normal patterns.
(C) Using the tools the Fed had available would have disrupted the financial system.
(D) Reserves would have needed to be increased by too large an amount.

Answers

Answer:

(C) Using the tools the Fed had available would have disrupted the financial system.

Explanation:

Every time the solution of any problem is not available with the resources we have, rather the available resources might add up to the cost of damage.

In the given case also, this general phenomenon is applicable.

As the Fed had monetary policy tools, which it even used earlier are not good for the problem of financial crisis. That the policies could even turn the situation worse as the country is already facing the crisis, and the policies would not contribute to the well being.

On January 1, 2016, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,000.How much is the annual depreciation expense assuming use of the straight-line depreciation method?A. $6,100.B. $6,000.C. $5,950.D. $5,750.

Answers

Answer:

B. $6,000

Explanation:

The computation of the annual depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($41,000 - $5,000) ÷ (6 years)  

= ($36,000) ÷ (6 years)  

= $6,000

The original cost is computed below:

= Purchase value + transportation and installation cost

= $40,000 + $1,000

= $41,000

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