Answer: True
Explanation:
An exculpatory clause is a form of contract provision which relieves one party of liability when damages are caused while executing the contract. The party which ssues the exculpatory clause is the one that is seeking to be relieved of any potential liability incurred.
There has already been a notice that "the garage is not responsible for any item stolen from the car". Roger parking his car at the garage is at his own risk as the garage owners won't be responsible.
The drought of 2011 devastated hay crops in the plains states and horse owners ranged far and wide to purchase hay for their horses when winter arrived. Hay can be purchased "up north" for $4 a bale and a few entrepreneurs with large trailers were more than willing to pick up a few hundred bales and haul them south where demand was high. The transportation cost was $6 per bale and a packing and loading cost of $1 was typical. The landed cost of a bale of hay this winter was:
Answer:
The options are given below:
A. $10.
B. $4.
C. $6.
D. $11.
The correct options is D.
Explanation:
Landed cost refers to the total price of a product or shipment once it has arrived at a buyer's doorstep. It includes the original price of the product, the transportation fees (both inland and ocean), customs, duties, taxes, tariffs, insurance, currency conversion, crating, handling and payment fees.
Therefore, in calculating the landed cost of the question above, we sum all the costs incurred thus:
Purchase price = $4
Transportation cost = $6
Packing and loading cost = $1
Landing cost = $4 + $6 + $1 = $11.
Sales promotion refers to individualized communications programs that are specifically designed with a single customer in mind because the item being sold is unique to that customer. a sequence of value inducements aimed at retaining channel members. a long-term inducement of value offered to build and sustain loyal customer relationships. a single-themed IMC campaign employing multiple advertising and personal selling strategies. a short-term inducement of value offered to arouse interest in buying a product or service.
Answer:
a short-term inducement of value offered to arouse interest in buying a product or service
Explanation:
Sales promotion can be defined as a process of trying to get a potential customer to buy the product by persuading them. Sales promotion a short-term tactic used for the purpose of boosting sales. As a method of building long-term customer loyalty, it is barely suitable. Sales promotions are aimed at getting consumers interested in purchasing a product or service.
Sales promotion is a short-term inducement of value offered to arouse interest in buying a product or service. Examples include discounts, coupons, contests, and free samples. It is designed to temporarily boost sales and create a sense of urgency.
Sales promotion refers to a short-term inducement of value offered to arouse interest in buying a product or service. Unlike long-term marketing strategies focused on building brand loyalty, sales promotions are designed to temporarily boost sales by creating a sense of urgency. Examples include discounts, coupons, contests, and free samples, which can effectively attract new customers and encourage repeat purchases.It's important to distinguish between sales promotions and advertising. While advertising is a paid form of communication aimed at influencing a target audience's attitudes or behaviors over a longer period, sales promotions are immediate and short-lived. Effective sales promotions can be a crucial part of a company's overall marketing strategy by driving quick sales and clearing out inventory.You work for a company that wants to enter the business of manufacturing sustainable products. Thecompany has received a $1 million grant and will be creating prototypes of the products and slowlyintroduce them in the market. Select the following products that are considered sustainable products.Solar-powered lighting centersRunning shoes made entirely of hempBio-based water bottles made from methaneElectric cars
Answer:
they all are considered sustainable products:
Solar-powered lighting centersRunning shoes made entirely of hempBio-based water bottles made from methaneElectric carsExplanation:
Sustainable products provide long term environmental, social and economic benefits to the company, the environment and society as a whole.
Solar powered lighting centers help to reduce electricity consumption. Hemp is a type of plant.Bio-based water bottles reduce the use of plastic.Electric cars reduce the use of gasoline.If the price level increases, __________.
a. the money demand curve shifts to the right
b. there is movement along with a stationary money demand curve
c. the money demand curve shifts to the left
d. I DON'T KNOW YET
If the price level increases, a. the money demand curve shifts to the right.
Explanation:The money demand curve illustrates the relationship between the interest rate and the quantity of money that individuals and businesses want to hold in an economy. It typically slopes downward, indicating that as interest rates rise, the quantity of money demanded falls, and vice versa. Factors affecting money demand include income, price levels, and interest rates.
If the price level increases, the money demand curve shifts to the right. This is because when the price level rises, people need more money to purchase the same amount of goods and services, so they will demand more money. This leads to a rightward shift of the money demand curve.
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"The correct option is a. If the price level increases the money demand curve shifts to the right.
When the price level increases, the value of money decreases because with higher prices, each unit of currency can buy fewer goods and services. As a result, people will need more money to conduct the same amount of transactions.
This increased demand for money to maintain the same level of transactions leads to a rightward shift in the money demand curve. This is because, at each price level, a greater quantity of money is now demanded.
To understand this concept, consider the equation of exchange:
[tex]\[ MV = PQ \][/tex]
where M is the money supply, V is the velocity of money, P is the price level, and Q is the quantity of goods and services produced. If P increases and Q and V remain constant, M must increase to keep the equation balanced, indicating an increased demand for money.
Therefore, the statement the money demand curve shifts to the right correctly describes the impact of an increase in the price level on the money demand curve."
Which of the following best illustrates the spirit of stewardship? Lobbying government officials to increase the drilling for offshore oil Selecting a source of energy based upon the maximum yield of tax dollars Converting automobiles from gasoline to natural gas as a new source of fuel Promoting the recycling of paper and aluminum on university campuses
Answer:
Promoting the recycling of paper and aluminum on university campuses
Explanation:
Environmental stewardship refers to taking care and protecting the environment by engaging in sustainable practices and conservation activities. By promoting a recycling program in campus, you are carrying out a sustainable practice that will help reduce the number of trees used to produce paper and the quantity of aluminum mined.
Answer:
The answer is promoting the recycling of paper and aluminum on university campuses.
Explanation:
To begin with, the idea of stewardship is borne out of love for the environment. Thus, people who practice stewardship believe that it is the duty of all humans to take care of the environment.
One of the ways of achieving the numerous goals of environmental protection is to promote the recycling of paper and aluminium. This is because the burning of paper constitutes environmental pollution while recycling aluminium prevents or avoids carbon dioxide emissions which are disastrous to the environment.
An insurance company assesses all employees' current job skills and creates road maps for them outlining the competencies they need to advance within the company. The company then makes sure they get the training they need, including coaching and mentoring, classroom training. This is an example of________.
a) making a career development plan.
b) succession management.
c) re-structuring.
d) ethical assessment.
Answer:
The correct answer is B
Explanation:
Succession management is the term which is defined as the procedure that is systematic to recognize or identify as well as develop or create individuals with the potential to advance to the university. And aiming on the development of the key or vital skills prepare the individuals for the variety of the roles.
This management aims on building the robust leadership map as well as establish the talent benches for the vital positions.
Therefore, the example which is mentioned or stated for the insurance company is of succession management.
In the case when the company get the training so this represent the option b. succession management.
What is succession management?
It refers to the management where the process of identifying or creating the individuals should be seen also their potential for advancing should be considered. Here the aim of creating or developing the skills for preparing the individuals for the various kind of roles should be considered.
Therefore, the option b is correct.
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Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $19,500 Deposits in transit 900 Notes receivable and interest collected by bank 4,800 Bank charge for check printing 120 Outstanding checks 12,000 NSF check 1,020 The adjusted cash balance per books on August 31 is
a. $11,160.
b. $12,060.
c. $23,160.
d. $24,060.
Answer:
c. $23,160
Explanation:
Adjusted cash balance per books as at August 31
Cash balance per book $19,500
Add Notes receivable and interest collected by bank $4,800
($19,500+$4800) $24,300
Less:(Deposits in transit $900
-NSF check 1,020) ($120)
NSF check (1,020)
Cash balance per books $23,160
Mezzanine lenders will occasionally include features like "PIK Toggle"s, which allow the borrower to "pay" its interest by rolling it into the loan balance. Thus, if the company can't make an interest payment as normally scheduled, it can defer some or all of the interest for a period of time. This is one of the reasons why borrowers like mezzanine debt. True or false?
Answer:
True
Explanation:
Under PIK loan, the borrower doesn't have to make cash interest payment instead, the interest accrues to the amount of the principal loan which continues to increase over time.
A PIK "toggle" allows the company to choose whether to pay the interest in cash or have it accrue to the principal.
Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeting his same customer base was planning on spending $150,000 on promotion. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's promotion." Which method of promotional budgeting did the owner want to use
Answer:
The Competitive-parity method
Explanation:
The competitive parity method refers to an advertisement expense budgeting method wherein, a firm budgets or plans it's own advertisement expenditure which is based upon the estimated advertisement expenditure of it's competitors.
Under the method, the budget allocated for advertisement by a firm is set at par with those of the competitors.
The drawback of such a method being it's assumption of all firms having same marketing objectives. Also herein, if the competitor commits a mistake w.r.t it's budget, consequently the same mistake shall accrue to the firm following it.
In the given case, the owner learnt of his competitor's advertisement budget being $150,000, post which he immediately set the budget of his own company as $150,000. The method of promotional budgeting conveyed here is, the competitive-parity method.
On June 1, the board of directors of Big, Inc. declare a 20% stock dividend. On this date, there were 10,000 shares of $1 par value stock issued and outstanding and the market value was $5 per share. The entry to record this transaction would include a (debit/credit) to Retained Earnings in the amount of $ .
Answer:
The answer is Debit to Retained Earnings of $10,000.
Explanation:
Retained earnings simply put, is an accumulation of net income or loss over years minus dividend payouts (cash or stock).
The value of the stock in the company prior to the stock dividend payment was $1 x 10,000 units = $10,000
Meanwhile the market value increased to $5/share, the value now becomes $5 x 10,000 units = $50,000
20% stock dividend translates to 0.2 x $50,000 = $10,000
So, appropriate entries would be:
Debit Retained earnings $10,000
Credit Common stock $10,000
(To record stock dividend payment)
New-Tech Corporation borrowed $20,000 from the bank on March 1, 2011. The note carried a 9% annual interest rate and a 1-year term to maturity. The company paid the principal and the interest in cash on the maturity date. What amount of interest expense will New-Tech Corporation show on its 2011 and 2012 income statements? 2011 2012 a $ -O- $1,800 b. $1,800 $ -O- $1,500 $ 300 d. $1,350 $ 450
Answer:
The correct answer is:
$ -O- $1,800 (a)
Explanation:
Principal = Amount borrowed = $20,000
interest rate = 9% = 0.09
Time = 1 year
Simple Interest = Principal × Rate × Time
Simple Interest = 20,000 × 0.09 × 1 = $1,800.
Next, we are asked to show how interest expense will appear in 2011 and 2012 income statements respectively. First note that the 2011 interest expense will be recorded as $0 because that was the year in which the money was borrowed, and it was not paid back until 2012. In 2012, the interest and principal was paid back, and from the calculation, the interest paid was $1,800.
Ben and Leah are planning their 30-year wedding anniversary and are considering taking a 4-day trip to Alaska. How much will their vacation cost if they have been able to come up with the following estimates?Flights are $400 per person, food will cost about $8 per meal per person (4 days of meals), a rental car will cost $45 per day, hotel costs are $190 per night (they stay 4 nights), airport parking is $25 per day, and an extra $90 for gas and another $500 for tours and souvenirs is expected.A) $1,258 B) $1,991 C) $2,451 D) $2,622
Answer:
D) $2,622
Explanation:
Daily costs
= ($8/meal x 3 meals/day x 2 people) + $45 + $190 + $25) = $308 daily costs
Total costs
= ($400 x 2) + 90 + 500 + (308 x 4 days)
Hence:
Total costs = 800 + 90 + 500 + 1,232
= $2,622
Answer:
Option D. 2,622
Explanation:
We have the following costs:
Flights = $400 per person
Food = $8 per meal per person
Car rental = $45 per day
Hotel costs = $190 per night
Airport parking = $25 per day
Gas = $90
Tours and souvenirs = $500
We calculate as follows:
Daily costs = (($8/meal x 3 meals/day x 2 people) + $45 + $190 + $25) = $308 daily costs
Total costs = ($400 x 2) + 90 + 500 + (308 x 4 days)
Total costs = 800 + 90 + 500 + 1,232 = $2,622.
Terps Company received a promissory note from a customer on October 1, 2019. The principal amount of the note is $25,000; the terms are 8 months and a 6% annual interest. Assuming the accounting period ends on December 31, determine the interest revenue recorded by the company for the year ending on December 31, 2020
Answer:
The answer is $3,000
Explanation:
Principal is $25,000
Tenor is 8 months
Annual interest is 6%
So the interest rate for 8 months is 4%
Therefore the monthly interest income is 4% x $25,000
=$1,000.
October 1, 2019 through December 31, 2019 is 3 months
The interest revenue that will be recorded for the year 2019 is $1,000 x 3 months
=$3,000
Describe the short run effects of each of the following socks on the aggregate price level and aggregate output. a. The government sharply increases the minimum wage. b. Solar energy firms launch a major program of investment spending. c. Severe weather destroys crops around the world.
Answer:
The answer is
A: Aggregate price level increases and aggregate output decreases
B. Both aggregate price level aggregate output increases
C. Aggregate price level increases and aggregate output decreases
Explanation:
A. This government action will increase the aggregate price level increases due to inflation. Aggregate output will decrease due to the increase in cost of product (high wage to labor)
B. Because of the increased spending Investment in solar program, both aggregate output and aggregate price level increase.
C. Due to the severe weather destroyed crops, aggregate price level increases and aggregate output decreases. This happened because there will be decrease in supply of crops.
Because your department has not reached its sales quota, your boss has asked you to change figures to show that sales were higher than they actually were. Which of the following questions is not important as you decide what to do?
- Is the action you are considering legal?
- Are there better alternatives?
- Would family, friends, or coworkers approve?
- What is the best channel of communication to use in
responding to your boss?
Donatello Co. has identified an activity cost pool to which it has allocated estimated overhead of $9,600,000. It has determined the expected use of cost drivers for that activity to be 800,000 inspections. Widgets require 200,000 inspections, Gadgets 150,000 inspections, and Targets 450,000 inspections. How much is the overhead assigned to each product
Answer:
$9,600,000
Explanation:
The computation of overhead assigned to each product is shown below:-
Overhead rate activity = Total overhead cost ÷ Total number of activity
= $9,600,000 ÷ $800,000
= $12
So, the Total overhead assigned to each product = (Widgets × Overhead rate activity) + (Gadgets × Overhead rate activity) + (Targets × Overhead rate activity)
= ($200,000 × 12) + ($150,000 × 12) + ($450,000 × 12)
= 2,400,000 + 1,800,000 + 5,400,000
= $9,600,000
Therefore for computing the overhead assigned to each product we simply applied the above formula.
Bezel Systems is introducing a few organization-wide changes. A coalition of employees will clearly lose out from the proposed changes and they have enough power to cause the change effort to fail. Assuming that the change effort can proceed slowly and cost is not an issue, the preferred strategy for dealing with this resistance tochange is: A. communication.B. employee involvement.C. stress management.D.negotiation.E. coercion.
Answer:
D. Negotiation
Explanation:
Bezel Systems can use the negotiation strategy in introducing the organzation-wide changes.
Negotiation can be defined as a strategic method of resolving an issue in a way that both parties involved find acceptable. It is a method of settling differences.
Each party involved in negotiation tries to persuade the other party to agree with his or her point of view. It is a process of reaching an agreement between two parties.
Negotiation takes place between two or more parties such as between a seller and a buyer, employers and employees, government of two countries. It helps a firm to reach it goals without causing disputes.
Emma works as a receptionist at Willoware Inc. As a part of her job, she is responsible not only for attending calls but also for welcoming clients and customers, keeping a record of the visitors, and mediating between visitors and managers. In the context of job design, Willoware Inc. is most likely using _____.
Answer:
Job enlargement
Explanation:
Job enlargement, as the name implies, consists in widening the scope of a job, by adding more related tasks to it.
In this case, Emma's job is not only answering a phone, which is what typically a receptionist does, but also keeping records, welcoming people, and even mediating between visitors and managers, this last task likely requiring a great degree of responsability and social skills.
As a result, the scope of her job is now wider, and she has more tasks and responsabilities to meet.
Delta Diamonds uses a periodic inventory sistem. The company had five one- carat diamonds available for sale this year: one was purchased on June 1 for $500, two were purchased on July 9 for $550, and two were purchased on September 23 for $600 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the fifo method, its ending inventory ( after the December 24 sale) equals
Answer:
$2300
Explanation:
The FIFO method is one in which inventory purchased first is sold first. Given that the company had five one- carat diamonds available for sale this year: one was purchased on June 1 for $500, two were purchased on July 9 for $550, and two were purchased on September 23 for $600 each. On December 24, the one was purchased on June 1 for $500 was sold
Ending balance
= 2 * $550 + 2 * $600
= $1100 + $1200
= $2300
Ellis gives a presentation to propose that his company, Ingenius Inc., eliminate its traditional departments and replace them with flexible teams that will allow employees to move from project to project as needed. He decides to use the PREP method of justifying this position. Which of the following is an example of the second step in the method?
a. He cites two studies that analyze the positive effects that adopting the flexible team system has on productivity.
b. He explains that, with the current structure, employees in one department may be underutilized while other departments are overtaxed.
c. He closes by reiterating his position and summarizing the benefits he thinks Ingenius, Inc. will gain from adopting a flexible team system.
d. He describes another company in their industry that has benefited from using the system he is urging Ingenius to adopt.
e. He opens by clearly stating that he favors a reorganization that eliminates departments in favor of flexible teams.
Answer:
B
Explanation:
PREP method , an acronym for Point, Reason , Example and point repeatation,is a pattern used in business communication in order to make an effective communication.I
The second step of the method is Reason , (PREP) which explains to the audience the objective of the presentation , backed up with research and statistics .
The reason to eliminate the traditional department and replace them with flexible teams that will allow employees to move from project to project has to be stated here.
Danny is an associate with Valley Chartered Accounts in New York. Among various other work commitments, Danny has to file the tax returns of Emerald Builders, an important client. It is a job with heavy workload and a short turnaround deadline. Sam, Danny's colleague, observed this stressful situation and volunteered to assist Danny in meeting the deadline. The support received by Danny can be best described as _____.
A. marginal support
B. physiological support
C. emotional support
D. adaptive support
E. instrumental support
Answer:
E. instrumental support
Explanation:
Instrumental support is generally the assistance or support an individual receives from their colleagues that is tangible.
Sam, Danny's colleague, observing his stressful situation and then volunteered to assist Danny in meeting the deadline is an example of an instrumental support.
Answer:
instrumental support
Explanation:
Instrumental support are tangible help that are provided by others to a person. It is what people physically do to assist others. For example providing money, clothes, and so on.
Emotional support on the other hand involves activities such as listening and offering sympathy.
Danny has a heavy workload with a short turnaround time. Sam volunteered to assist Danny in meeting the deadline.
Ben really enjoys outdoor activities. When he isn't working, he's biking, hiking, sailing, or training to run marathons. Which of the following criteria would Ben think is the LEAST important as he decides on a career to support his lifestyle?
a) high-paying
b) employee benefits such as paid vacations, health insurance
c) flexible work schedule
d) location - away from major city
Answer:
a) high-paying
Explanation:
As ben is an outdoor person and likes to have most of the time sent out, has the hiking and sailing or training and running marathons he could be least be focused on the jobs that are high or good-paying. As ben enjoys his life and lives for the moment and thus thinks of location, flexible work schedules and other benefits. But does not rely on the high paying careers.Interest spreads in the eurocurrency market are small for many reasons EXCEPT: Eurocurrency loans are secured loans. Eurocurrency deposits and loans are made in amounts of $500,000 or more on an unsecured basis. The eurocurrency is a wholesale market. Borrowers are usually large corporations or government entities
Answer:
Eurocurrency loans are secured loans
Explanation:
Base on the scenario been described in the question, all other interest spread are small for eurocurrency with only eurocurrency loans are secured loans which is not small for the spread of interest in eurocurrency. Normally, the rates on eurocurrency loans are lower than that of those in the domestic or local market of country for reasons which are essentially the same.
Sandhill Co. bought equipment for $600000 on January 1, 2016. Sandhill estimated the useful life to be 4 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Sandhill decides that the business will use the equipment for a total of 9 years. What is the revised depreciation expense for 2017
Answer:
yes vvcvf
Explanation:
The Shannon Community Kitchen provides hot meals to homeless and low-income individuals and families; it is the organization's only program. It is the policy of the community kitchen to use restricted resources for which the purpose has been met before resources without donor restrictions. The Kitchen had the following revenue and expense transactions during the 2020 fiscal year.
1) Cash donations without donor restrictions of $25,000 were received. A local philanthropist also contributed $3,000, which was to be used for the purchase of Thanksgiving dinner foodstuffs.
2) A local grocery store provided fresh produce with a fair value of $100. The produce was immediately used.
3) The Kitchen received a $5,000 federal grant for the purchase of institutional kitchen appliances.
4) At Thanksgiving time, the Kitchen spent $4,100 on foodstuffs for preparation of the Thanksgiving dinner.
Answer:
THE SHANNON COMMUNITY
KITCHEN GENERAL JOURNAL
Particulars Debits Credits
1.CASH DEBIT 28,000
CONTRIBUTIONS—UNRESTRICTED Credit 25,000
CONTRIBUTIONS—TEMPORARILY RESTRICTED Credit 3,000
2.PROGRAM EXPENSES Debit 100
CONTRIBUTIONS—UNRESTRICTED Credit 100
3.CASH Debit 5,000
CONTRIBUTIONS—TEMPORARILY RESTRICTED Credit 5,000
4.PROGRAM EXPENSES Debit 4,100
CASH Credit 4,100
Explanation:
An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained
Complete Question:
An inventory system is a set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be
Answer:
TRUE
Explanation:
The reason is that the inventory system includes the management of the inventory which includes the decision making related to:
How much to purchase?
What to purchase?
When to Purchase?
When to deliver raw materials and receive the finished goods from the production house?
It also involves the control system designed to control the flow of the inventory and policies in place to maintain and manage the inventory.
So the statement is true.
Instead of featuring any functional benefits of the product or brand in ads for the iPod, this product was introduced by showing a silhouette of a person dancing with the white earbuds and holding a white iPod MP3 player. Which type of advertising appeal does this illustrate? a) one -sided message b) two- sided message c) testimony d) value- expressive appeal e) utilitarian appeal
Answer:
d) value- expressive appeal
Explanation:
Based on the scenario being described within the question it can be said that this specific advertisement focuses on value- expressive appeal. This is an approach that focuses on creating a generalized illustration or depiction of the user that will use the advertised product or brand. Such as in this case, the advertisement is showing the silhouette of the person dancing while listening to the product because it is representing a depiction of how the everyday user will act with while using the product.
Answer:
D. value-expressive appeal
Explanation:
The value-expressive function is served by attributes that displays a particular products image to others thus, the person dancing with the white earbuds and holding a white iPod MP3 player.
Jose owns an ice cream and frozen treat restaurant and is considering adding new menu items. He recently met with the representative of a yogurt company who is trying to convince Jose to add the frozen yogurt to his menu. Jose has never offered a yogurt product in the restaurant and has concentrated on ice cream items. The yogurt product would not need a different freezer or dispensing unit, so the investment would be similar to changing flavors of ice cream. However, since he’s never offered yogurt, he’s unsure what the market response will be and how much profit he can achieve with the frozen yogurt. What type of purchasing decision does this represent for Jose?
Answer:
A. Modified rebuy
Explanation:
There are three types of buying situation:
1. Modified rebuy
2. Straight rebuy
3. New task
1. Modified rebuy: This is a buying situation in which an individual or organisation buys goods that have been purchased previously but changes either the supplier or some other element of the previous order. It is a buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers.
2. Straight rebuy: It is also known as Extensive problem solving situation. Customers are aware of his or her choices, what they are searching for, his/her needs which is based on personal experience of the customer or friends and families.
3.The new task: This is a business buying situation in which the buyer purchases a product or service for the first time. The buyer has no past experience about the products. It takes a longer time for the buyer to decide because of the risk involved.
Practice: True or False 1. Investment spending is spending on financial assets like stocks and bonds F 2. Transfer payments are not counted in the calculation of GDP 3. If the nominal GDP increases then the economy is definitely experiencing inflation 4. An economy is not at full employment unless there is no unemployment 5. Countries that have generous unemployment benefits tend to have higher natural rates of unemployment 6. Lumberjacks are structurally unemployment when they are replaced by machines
Answer:
1. False
2. True
3. False
4. False
5. True
6. True
Explanation:
1. False: Investment spending is spending on financial assets like stocks and bonds.
2. True: Transfer payments are not counted in the calculation of GDP.
3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.
4. False: An economy is not at full employment unless there is no unemployment.
5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.
Investment spending refers to spending on capital goods, not financial assets. An increase in nominal GDP does not necessarily mean inflation. Full employment does not mean zero unemployment. Countries with generous unemployment benefits often have higher natural unemployment rates. Lumberjacks replaced by machinery are structurally unemployed.
Explanation:1. True. Investment spending refers to money spent on capital goods, not financial assets like stocks and bonds.
2. True. Transfer payments are not counted in the calculation of GDP because they do not involve the production of new goods or services.
3. False. If nominal GDP increases while real GDP stays the same, it implies inflation, but if both nominal and real GDP increase, it indicates economic growth rather than inflation.
4. False. Full employment does not imply zero unemployment. It means that all unemployment is frictional or structural, and not from a lack of overall demand in the economy.
5. True. Countries that have generous unemployment benefits often do have higher natural rates of unemployment because the benefits can reduce the incentive for unemployed individuals to accept new jobs.
6. True. Lumberjacks who are replaced by machines would be considered structurally unemployed, as their jobs are eliminated due to technological changes.
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Assume Japan begins with its economy running at full employment. If the Japanese government increases government expenditures the AS/AD model shows that in the short run, A. the AD curve will shift out, causing an increase in Japanese output and in the Japanese price level. B. the AS curve will shift out, causing an increase in Japanese output and in the Japanese price level. C. the AS curve will shift out, causing an increase in the Japanese price level, but not change in output. D. the AD curve will shift out, causing an increase in the Japanese price level, but not change in output.
Answer:
D) the AD curve will shift out, causing an increase in the Japanese price level, but not change in output.
Explanation:
If the government starts to increase spending, the total income will increase, shifting the AD curve outwards. Generally this situation would increase both the general price level (inflation) and total output (AS curve). But since the economy is already at full employment, real output will increase minimally (if any increase at all). The largest effect will be felt in the rise of inflation.