Answer:
We can assume that both Strike and Bailey are American companies and that they operate in that US under the UCC rules. Under UCC rules they are both considered merchants since they trade with the goods related to the contract. Strike's offer was very precise and Bailey's acceptance was made in a reasonable manner which can be considered a valid acceptance.
The only difference exists with the shipping company, which the UCC rules consider a conflicting term and Strike should have either objected or ratified it before sending the goods. Since Strike didn't object Bailey's terms, then by using a different truck company it is breaching the contract.
A product's life cycle is divided into four stages, which are: A. introduction, growth, maturity, and decline. B. introduction, growth, saturation, and maturity. C. introduction, maturity, saturation, and decline. D. introduction, growth, stability, and decline. E. incubation, growth, maturity, and decline.
Answer:
A. introduction, growth, maturity, and decline.
Explanation:
The four stages of a product life cycle are
Introduction: is when the product is launched to the market. The focus at this moment is to create awareness of among consumers. Companies may choose to use a low price as a way of attracting customers. A lot of finances and resources are used to gain market share and create a brand name. Profits are not a concern at this level.
Growth: the product starts to record high volume of sales. Customers are becoming more aware of the product. The product qualities are recognized, and word about the product is spreading. More resources are used in marketing to target a bigger audience.
Maturity: At maturity, demand for the product is high. The product can withstand competition from rivals. The sales are at a peak stage. The business may differentiate the product to make standout it from the rest and to prolong this stage.
Decline; At this last stage, the product reaches its saturation point. Sales begin to decline. The company need to decide on whether to withdraw or to make significant changes to the product.
A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably top up production to 2,000 cell phones a day. Consequently, it built a larger plant and installed efficient machineries and work arrangements to realize the projected output. Which of the following can most likely be inferred from this information?
a. the unit cost of producing 2,000 cell phones per day would be twice that of the unit cost of producing 1,000 units per dayb. a production plant with the capacity of producing 5,000 cell phones a day would be most efficientc. the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per dayd. a 2,000-capacity production plant would be less efficient because of increasing diseconomies of scalee. the fixed costs of the firm are more likely to increase with the increase in output
Answer:
the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day.
Explanation:
The costs of producing the 2000 units per day will be lower due to the following reason:
Economies of scale. The company will enjoy the benefits associated with large scale productions. When purchasing raw materials, the company will be a position to bargain for better discounts. The production cost is spread among finished products. A large production keeps the cost per item low.
Some fixed costs may not change. By adding a new plant, the company will increase production activities. Variable costs will increase, but some fixed costs are likely to remain the same. Administrative cost, top management salaries will not be affected. It means a larger number of finished used will absorb the fixed cost.
Efficient machines: The company has invested in new and more efficient machines. Efficiency implies the use of less labor, less power, and faster production. The result is a lower cost of production.
In 2018, Roxanne paid Badlaw University $12,000 for her nephew's tuition and gave her nephew $25,000 in cash. Roxanne is single and did not make any other gifts during the year. What is the amount of Roxanne's taxable gifts for the year?
A) $0.
B) $2,000.
C) $10,000.
D) $24,000.
How does the economy of Cuba differ from the economy of North Korea?
A) In North Korea, the government’s control of the economy has begun to loosen.
B) In Cuba, the government maintains a tight hold over the economy.
C) In Cuba, the government’s control of the economy has begun to loosen.
D) In North Korea, the government maintains a tight hold over the economy.
E) In North Korea, there is economic uncertainty in exchange for individual choice.
F) In Cuba, there is economic security in exchange for government control.
G) In Cuba, there is economic uncertainty in exchange for individual choice.
F) In North Korea, there is economic security in exchange for government control.
Answer:
The correct answer is C) In Cuba, the government's control of the economy has begun to loosen.
Explanation:
Cuba has implemented reforms that allows a few private entreprises to run in the country. It also allows people to hold foreign currency, which come especially from remittances from Florida. In North Korea, on the other hand, citizens cannot hold foreign currency, and those few who earn it, have to report it to the government, and in North Korea, private property is non-existant.
If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization
is achieved when 25 units are produced.
is achieved by setting price equal to 25.
is achieved only by shutting down in the short run.
cannot be determined solely from the information provided.
Answer:
is achieved when 25 units are produced.
Explanation:
profit is maximum at MR = MC
MR = 100 - 4Q
the MR curve is double sloped than the demand curve
since we were not given the MC;
let MC = 0 , then:
100 - 4Q = 0
4Q = 100
Q = 25
Therefore, The profit maximization is achieved when 25 units are produced.
Polo Co. requires higher rates of return for projects with a life span greater than 5 years. Projects extending beyond 5 years must earn a higher specified rate of return. Which of the following capital budgeting techniques can readily accommodate this requirement? Internal Rate of Return Net Present Value A Yes No B No Yes C No No D Yes Yes
Answer:
D) Yes Yes
Explanation:
The internal rate of return measures the profitability of an investment, so if Polo Co. requires a higher rate of return it must use this ration to compare possible projects.
The net preset value determines the current value of future discounted cash flows. Depending on the discount rate, the NPV will change. If Polo Co. requires higher rates of return, it can use a higher discount rate to determine the NPV of a potential project. Only projects with an NPV ≥ 0 should be accepted.
Relevant information for Product A follows: Actual variable overhead cost per hour $8.00 Standard variable overhead cost per hour $7.50 Actual hours 4,500 Standard hours 5,000 What was the variable overhead spending variance for Product A?
Answer:
variable overhead spending variance = $2,250
Explanation:
given data
Actual variable overhead cost per hour = $8.00
Standard variable overhead cost per hour = $7.50
Actual hours = 4,500
Standard hours = 5,000
to find out
variable overhead spending variance
solution
we know Actual hours and Application rate
so Total actual will be here = Actual hours × Application rate ..............1
Total actual = 4,500 × $8
Total actual = $36000
and
Total actual Standard will be = Standard variable × Actual hours .......2
Total actual for Standard will be = 4,500 × $7.50
Total actual for Standard = $33750
so
variable overhead spending variance = Total actual - Total actual for Standard .........3
variable overhead spending variance = $36000 - $33750
variable overhead spending variance = $2,250
The variable overhead spending variance for Product A is calculated by subtracting the standard variable overhead cost from the actual variable overhead cost, and multiplying the difference by actual hours. Here, the variance is $2,250 unfavorable.
Explanation:
The variable overhead spending variance for Product A is determined by analyzing the difference between the actual variable overhead cost incurred and the standard variable overhead cost that should have been incurred for the actual hours worked.
To calculate this, we subtract the standard cost from the actual cost and multiply the difference by actual hours worked. In this scenario, it would be:
Variance = (Actual variable overhead cost per hour - Standard variable overhead cost per hour) x Actual hours
Thus using the data given:
Variance = (($8 - $7.50) x 4500) = $2,250 unfavorable (because the actual variable overhead cost was more than the standard).
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The human resource management activities that are associated with the movement of employees within the company and the relationship between employers and employees within the company are referred to as ________.
Answer:
Employee Relations
Explanation:
Employee relations refers to all activities that are related with the movement of the employees within the organization. A well structured employee relations program promotes employee commitment and loyalty to the organization, thus increases organizational productivity.
A sunk cost is described as which of the following? A. An outlay expected to be incurred in the future B. One that is relevant to a decision because it changes depending on the alternative course of action selected C. A historical cost that is always irrelevant D. A historical cost that may be relevant
Answer: Option C
Explanation: In simple words, sunk cost refers to the cost that a company has already incurred and cannot recover it in future in any way for example- market research cost before introducing a product in the market.
No matter whether the organisation takes the prospective project or not these costs are not recoverable, hence they are considered to be irrelevant with respect to decision making.
Hence we can conclude that the correct option is C.
A sunk cost is a historical cost that is always irrelevant for future decisions. These costs have already been incurred and cannot be recovered, no matter what future actions or decisions a company takes.
Explanation:In business terms, a sunk cost is most accurately described as a historical cost that is always irrelevant to future business decisions, option C. The main characteristic that distinguishes a sunk cost from other types of cost is that it has already been incurred and cannot be recovered, no matter what future action is taken.
For instance, if a company has invested in a piece of equipment that is no longer useful or efficient, that investment is a sunk cost because the capital spent cannot be retrieved or adjusted, regardless of future actions or decisions.
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Larry Rauzer purchased $60,000 of whole life. What will the cash value of his policy be at the following anniversary dates?
1. 10 year
2. 15 year
3. 25 year
Cash Value Of The Insurance Policy
Policy Anniversary --- Cash Value Per Unit
5th year $30.00
10th year $89.00
15th year $160.00
20th year $232.00
25th year $340.00
^This list is what you use^
Step 1. Find number of units purchased. $70,000 ÷ $1,000 = 70 units
Step 2. Multiply the number of units time the cash value. 70 * $30 = $2,100
1. = 5,340
2.= 9,600
3.= 20,400
The cash value of Larry Rauzer policy that will be at the following anniversary dates are:
[tex]1. 10 \ {} year = 5,340\\2. 15 \ {} year = 9,6003. 25 year = 20,400[/tex]
What does policy mean?
A deliberate set of rules designed to direct choices and produce logical results is called a policy. A policy is a declaration of intent that is put into practise through a method or protocol. Usually, a governance board inside a company adopts policies.
They believe that Europe requires a common foreign and security policy. By policy, they mean a collection of ideas or a strategy of what to do in specific situations that has been publicly agreed upon by a group of individuals, a commercial organization, a government, or a political party.
Required calculations are:
The cash value per unit for [tex]10[/tex] years is [tex]89[/tex] dollars per unit.
[tex]\frac{60,000}{1000} = 60\\60 \times 89 = 5,340[/tex]
The cash value per unit for [tex]15[/tex] years is [tex]160[/tex] dollars per unit.
[tex]60 \times 160 = 9,600.[/tex]
The cash value per unit in [tex]25[/tex] years is [tex]340[/tex] dollars per unit.
[tex]60 \times 340 = 20,400[/tex]
In year [tex]10[/tex], the cash value of the policy is [tex]5,340[/tex].
In year [tex]15[/tex], the cash value of the policy is [tex]9,600[/tex].
In year [tex]25[/tex], the cash value of the policy is [tex]20,400[/tex].
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Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. Your fixed cost is $______, and your marginal cost is $______ÂÂ.
Answer:
fixed cost is $300 and marginal cost is $10
Explanation:
Data provided in the question:
total cost (in dollars) is given by the equation TC = 300 + 10Q,
where Q = the number of t-shirts we make
Now,
Total cost = Fixed cost + Total variable cost
The Fixed cost are the costs that remain constant for the range of products being manufactured
Therefore,
From the given function the constant value is $300
And,
The variable cost = Marginal cost × Number of products made
thus,
From the given equation, Marginal cost = $10
Hence,
The answer is fixed cost is $300 and marginal cost is $10
In the given equation for total cost, the fixed cost is $300, and the marginal cost is $10 per t-shirt, with the fixed cost being the cost at zero production and the marginal cost being the increase in cost for each additional t-shirt produced.
Explanation:The total cost (TC) for producing designer t-shirts as an entrepreneur in your garage is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. In this equation, the fixed cost is the cost that does not change regardless of the quantity produced, which in this case is $300. The marginal cost is the cost of producing one additional unit, which can be derived from the coefficient of Q in the total cost equation, and it is $10 per t-shirt.
The fixed cost is what you would incur even if you didn't produce any t-shirts, which is evident from the total cost being $300 at zero production. As you produce more t-shirts, only the variable costs increase, which are represented by the 10Q part of the equation, and for each additional t-shirt made, the variable cost increases by the marginal cost of $10.
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One idea for reducing cyberloafing is to develop software that recognizes and categorizes Internet sites into sites that employees can always visit, sometimes visit, and never visit.
1) True
2) False
Based on counting the number of galaxies in a small patch of the sky and multiplying by the number of such patches needed to cover the entire sky, the total number of galaxies in the observable universe is estimated to be approximately:
a. 100 million
b. 1 billion
c. 10 billion
d. 100 billion
e. 1 trillion
Answer:
D) 100 billion
Explanation:
This method is used by astronomers all over the world because it is impossible to count all the stars. Even in parts of the sky that seem to be totally dark, there are dozens of galaxies, each with millions of stars.
Our universe is so incredibly huge that even a number as big as 100 billion stars seems to be small. But using that technique, astronomers have calculated that there are 100 billion stars in the universe. I believe that number will change in the future as soon as we are able to build better telescopes, and astronomers will be capable of counting more stars in each patch.
Under which of these market classifications does each of the following most accurately fit?
i. A supermarket in your hometown.
ii. The steel industry.
iii. A Kansas wheat farm.
iv. The commercial bank in which you or your family has an account.
v. The automobile industry.
Answer: i. A supermarket in your hometown. - fits more precisely to the market structure of oligopoly.
ii. The steel industry. - fits more precisely to the market structure of oligopoly.
iii. A Kansas wheat farm. - fits more precisely to the market structure of perfect competition.
iv. The commercial bank in which you or your family has an account. - fits more precisely to the market structure of perfect competition.
v. The automobile industry. - fits more precisely to the market structure of oligopoly.
Answer:
Pure Competition: A very huge number of firms; uniform products; no rent controls: price takers; no entry barriers; no un-price competition.
Oligopoly: Few companies; uniform or distinguished goods; price controls constricted by mutual interdependence: a great deal of anti-price competition, especially product difference.
i. Supermarkets in hometown - Oligopoly - Supermarkets in every area are few in the total amount.
ii. Steel industry - Oligopoly - Companies are few; their goods are somewhat standardized.
iii. Kansas wheat farm - Pure Competition - there is no price control; there is no non-price competition.
iv. Commercial bank - Oligopoly - the facilities are as distinct as the bank can help them look.
v. Automobile industry - Oligopoly - Imports made the industry more competitive in the past 2 years, dramatically increasing American automakers' market power.
Which of the following statements is CORRECT?
a. Assume that the required rate of return on the market, rM, is given and fixed at 10%. If the yield curve were upward sloping, then the Security Market Line (SML) would have a steeper slope if 1-year Treasury securities were used as the risk-free rate than if 30-year Treasury bonds were used for rRF.
b. An investor who holds just one stock will generally be exposed to more risk than an investor who holds a portfolio of stocks, assuming the stocks are all equally risky. Since the holder of the 1-stock portfolio is exposed to more risk, he or she can expect to earn a higher rate of return to compensate for the greater risk.
c. If investors become more risk-averse but rRF does not change, then the required rate of return on high-beta stocks will rise and the required return on low-beta stocks will decline, but the reared return on an average-risk stock will not change.
d. There is no reason to think that the slope of the yield curve would have any effect on the slope of the SML.
e. If Mutual fund A held equal amounts of 100 stocks, each of which had a beta of 1.0, and Mutual Fund B held equal amounts of 10 stocks with betas of 1.0, then the two mutual funds would both have betas of 1.0. Thus, they would be equally risky from an investor's standpoint, assuming the investor's only asset Is one or the other of the mutual funds.
Answer:
E
Explanation:
As the capital asset pricing model dictates, assest's systematic risk is captured by beta parameter. If we have beta value of asset then we can calculate expected return.
expected return = risk free rate + beta * market risk premiumAs both A and B have same beta hence they have same expected returns.
A vending machine is designed to dispense 8 ounces of coffee into a cup. After a test that recorded the number of ounces of coffee in each of 1000 cups dispensed by the vending machine, the 12 listed amounts, in ounces, were selected from the data above. If the 1000 recorded amounts have a mean of 8.1 ounces and a standard deviation of 0.3 ounces, how many of the 12 listed amounts are within 1.5 standard deviation of the mean?
A. Four
B. Six
C. Nine
D. Ten
E. Eleven
Answer:
The answer is letter E.
Explanation:
Within 1.5 standard deviation means:
{mean-1.5*sd; mean+1.5*sd} = {8.1-1.5*0.3; 8.1 + 1.5*0.3}= {7.65; 8.55}
From the 12 listed amountd, only one (7.51) is out of this rage and 11 is within this rage.
My boss does not get the technical aspect of the job my group is trying to complete. I understand the intricacies of the project and my team come to me and ask questions. What has happened in this work setting?
The given situation is called as “Expectation Management”
Explanation:
"The management of expectations is one of the most powerful weaponry in psychological warfare. In managing expectations people instinctively disregard other people's thoughts and then use the technique intentionally, considering own ideas as they reveal them to other people."
The manager knows just well the essence of your venture, his point of view is a little different from yours and you have to understand his point of view (or even more) because he wants to comprehend yours.
Therefore, the manager is less involved in the execution and the technical aspects of operation than can the performance and how it works to meet its organizational goals. And that's how you should refer to the manager. Clearly, your ability to provide is limited, depending on how many hours you work every day.
Any requests he makes, create scope, calculate the cost (how fast), and ask him to give priority to other demands. On this basis, you can determine when you can provide what.
Luke Enterprises has 300,000 shares of $20 par common stock outstanding. On January 19, Luke Enterprises declared a 3% stock dividend. The market price of the stock on January 19 was $28 per share. The journal entry to record the stock dividend would include a.a debit to Stock Dividends Distributable for $252,000.
Answer:
On the day the the dividends are declared, the following journal entries must be made:
Dr Retained Earnings account 252,000Cr Dividends Payable account 252,000When the dividends are paid, the following journal entries should be made:
Dr Dividends Payable account 252,000Cr Cash account 252,000300,000 shares x $28 per share x 3% = $252,000
If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit at month-end, and a check for $600 was erroneously charged by the bank against the account, the correct balance in the bank account at month-end is :
a) $29,400
b) $30,000
c) $30,600
d) $41,400
Answer:
c) $30,600
Explanation:
Bank statement balance = $36,000
Outstanding checks = ($10,000)
Deposit in transit as at month end = $4,000
Erroneous check charged = $600
Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600
= $30,600
The right option is c) $30,600
Clint's salary increased from $22 comma 000 to $35 comma 200 over a three-year period. Helen's salary increased from $28 comma 000 to $44 comma 800 over the same period. Whose salary increased more in absolute terms? In relative terms? Explain. Whose salary increased more in absolute terms? Select the correct choice below and fill in the answer box(es) to complete your choice. A. Helen's salary increased more, because her salary increased by $ nothing. This is more than $ nothing, the amount that Clint's salary increased.B. Clint's salary increased more, because his salary increased by $ nothing. This is more than $ nothing, the amount that Helen's salary increased.C. Neither person's salary increased more, because both of their salaries increased by $ nothing.
Answer:
a
Explanation:
Helen salary increased more, because her salary increased by 16,800 dollars this is more than 13,200 dollars ,the amount Clint's salary increased.
Which of the following is correct?
a. Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced.
b. Equality can be judged on positive grounds whereas efficiency requires normative judgments.
c. Efficiency is more difficult to evaluate than equality.
d. Equality and efficiency are both maximized in a society when total surplus is maximized.
Answer: (A)
Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced.
Explanation:
According to Gregory Mankiw, resources are scarce and therefore every society must use its scarce resources to derive as much benefits as it can. It is this derived benefits he calls the "economic pie"
The more efficient a society is, the more the benefits (or the larger the economic pie) it can derive from its resources.
According to Mankiw, equality means fairness in distributing the benefits (or slicing the pie) among the people in that society.
Kim's Retail had 800 units of inventory on hand at the end of the year. These were recorded at a cost of $15 each using the lastminusin, firstminusout (LIFO) method. The current replacement cost is $11 per unit. The selling price charged by Kim's Retail for each finished product is $18. In order to record the adjusting entry needed under the lowerminusofminuscostminusorminusmarket rule, the Merchandise Inventory will be ________.
A. credited by $11,200
B. debited by $11.200
C. debited by $1,600
D. credited by $1.600
Answer:
D. credited by $1.600
Explanation:
Market value lowering = ($11 - $15)*800/2 units = $1,600
Therefore, The Merchandise Inventory will be credited by $1,600.
Monterey Corporation reports net income of $550,000 that includes depreciation expense of $76,000. Also, cash of $53,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are:______
A) $603,000
B) $679,000
C) $626,000
D) $474,000
Answer:
C) $626,000
Explanation:
‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.
Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.
Examples: Revenue earned, expenses incurred etc.
There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.
The two methods of presenting cash flow statement are:
1. Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.
2. Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.
Given:
Net income = $550,000
Depreciation = $76,000
Net cash flows from operating activities = Net income + Depreciation expense
Net cash flows from operating activities = $550,000 + $76,000
Net cash flows from operating activities = $626,000
Jon, a U.S. petroleum engineer, moved his family to Saudi Arabia for a two-year assignment. The company provided him a travel allotment of $.10 a mile, a food allowance of $500 a month, and $2000 a month for housing to maintain his standard of living. What kind of pay factor was used?A. Base payB. DifferentialsC. BonusesD. IncentivesE. Assistance programs
Answer:
differentials
Explanation:
Based on the information provided within the question it can be said that the the kind of pay factor being used is called differentials. This term refers to the additional payments made by an employer in order to make up for the difference in costs of labor or living between different geographical location. Which in this case would be the U.S and Saudi Arabia.
These are selected 2022 transactions for Flounder Corporation: Jan. 1 Purchased a copyright for $96,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $39,000. Sept. 1 Purchased a small company and recorded goodwill of $126,000. Its useful life is indefinite.
Prepare all adjusting entries at December 31 to record amortization required by the events.
(Credit account titles are autom entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the
Date Account Titles and Explanation Debit Credit
Dec. 31 |Amortization Expense 16000
16000
(To record amortization of Copyrights)
Dec. 31 Amortization Expense
(To record amortization of Patents)
Dec. 31 (To record amortization of Goodwill)
Answer:
amortization expense 16,000 debit
copyright 16,000 credit
amortization expense 8,125 debit
patent 8,125 credit
-no entry required-
Explanation:
copyright: 96,000 dollars
over 6 years of useful life: 96,000 / 6 = 16,000
patent: 39,000 over a 4 years year of useful life period
39,000 / 4 = 9,750
From March 1st to December 31th
9,750 x 10/12 = 8,125
goodwill:
we aren't given with any information about the need to check for impairment or information of loss in the goodwill value by providing the acquired company's assets or book value. Thus, we perform no entry for the period.
The copyright and patent will be amortized over their useful lives of 6 years and 4 years respectively, while no amortization will be made for the goodwill due to its indefinite life. The annual amortization of the copyright is $16,000, and that of the patent is $9,750.
Explanation:The transactions performed by the Flounder Corporation require different accounting treatments. The copyright is a finite-life intangible asset and therefore its cost will be spread evenly over its 6-year useful life, resulting in a $16,000 annual amortization ($96,000/6 years).
A journal entry would be made on December 31 debiting Amortization Expense and crediting Copyrights for $16,000.
The patent is also a finite-life intangible asset, so it will be similarly amortized over its 4-year useful life. This results in a $9,750 ($39,000/4 years) annual expense.
The journal entry on December 31 will debit Amortization Expense and credit Patents for $9,750.
Finally, the goodwill is an indefinite-life intangible asset. Current accounting standards prohibit the periodic amortization of such assets; instead, they are tested annually for impairment. Therefore, no adjusting entry is required for the goodwill as at December 31.
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Beginning in 2008, the Federal Reserve and the US Treasury Department responded to the financial crisis by intervening in the financial markets in unprecedented ways. Briefly summarize the action of the Fed and the Treasury.
Answer:
The Fed mainly used two monetary policy tools to respond to the crisis: the discount rate, and open-market operations.
The Fed lowered the discount rate so that banks could borrow from the Fed at a lower price. This helped inject liquidity in the financial system, and revitalize the economy,
Secondly, the Fed implemented a policy known as quantitative easing, which is a type of open-market operation, but with much greater scope. Quantitative easing is a policy whereby the Fed buys goverment bonds for a longer period of time instead of the short-term government bonds it usually buys. These longer-term bonds have lower interest rates, and help increase the money supply. The Fed resorted to quantitative easing because inflation was very low, unemployment was very high, the economy was in recession, and traditional expansionary monetary policy would have probably not been enough.
Years later, the European Central Bank followed these steps when the soverign debt crisis several european countries.
Explanation:
Kaldon, Inc. acquired 2,500 of its own shares at $30 per share. The shares are to be held in treasury. The par value of Kaldon’s common stock is $4 per share. If Kaldon were to resell all its treasury stock at $32 per share, what journal entry would Kaldon make?
Answer:
The journal entries Kaldon, Inc. needs to make are as followed:
Dr Cash 80,000
Cr Common share 75,000
Cr Paid-in capital 5,000
(to record the sale of repurchase share)
Explanation:
Calculation notes:
As Kaldon, Inc. sell 2,500 shares at $32, the cash proceed the company gets is 2,500 x 32 = $80,000.
As Kaldon, Inc. had previously repurchased the shares at $30, the value of common shares should be recorded at $30 per share in the sell of repurchased shares transaction. Thus, total value of common share repurchased is 30 x 2,500 = $75,000.
The difference amount between Cash Receipt and Value of common share recorded will be recorded in Paid-in capital account : 80K - 75K = 5,000.
Monetary neutrality means that a change in the money supply ____.
a. does not change real variables. Most economists think this is a good description of the economy in the short run and in the long run. b. does not change real variables. Most economists think this is a good description of the economy in the long run but not in the short run
c. does not change nominal variables. Most economists think this is a good description of the economy in the short-run and the long run
d. does not change nominal variables. Most economists think this is a good description of the economy in the long run but not in the short run
Monetary neutrality is the concept that changes in the money supply do not affect real variables in the economy. This is generally accepted as true in the long run, but not in the short run.
Explanation:Monetary neutrality refers to a concept in economics that states an increase or decrease in the money supply does not affect real variables in the economy. Among the choices, option B correctly defines this concept. A change in the money supply does not change real variables. Most economists accept this as an accurate description of the economy in the long run, but not in the short run.
Real economic variables like production output and employment are unaffected by the money supply in the long run as per this theory.
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Monetary neutrality is the concept that changes in the money supply do not influence real variables like GDP and employment in the long run. Many economists agree that this is true for the long run, but not the short run, as an increased money supply can stimulate short-term spending and employment.
Explanation:In the field of economics, Monetary neutrality is a concept that contends that changes in the money supply do not have real effects on the economy in the long run. This means that a change in the money supply does not impact real variables such as employment levels, real GDP, or real consumption. It is connected with the concept of economics where 'real' refers to values that have been adjusted for inflation.
The correct answer to your question is 'Monetary neutrality means that a change in the money supply does not change real variables. Most economists think this is a good description of the economy in the long run but not in the short run'. This is because in the short run, an increase in money supply can stimulate spending and employment. However, in the long run, the economy adjusts, and we return to the original levels of output and employment, but with a higher price level i.e, more inflation. Hence, the general consensus among economists is that money is 'neutral' in the long run but 'non-neutral' in the short run.
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_______________, which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country. Trade balance Inflation Education Economic growth
Answer: Economic growth
Explanation:
The economic growth is basically refers to the increase in the economical capacity for producing the various types of product and the services as compared to the specific period of the time.
The economic growth can be measured in real and the nominal terms. There are four main factors of the economic growth are as follows:
Labor Land Entrepreneurship CapitalThe Economical growth rate is basically determined by the ratio of the GDP to the per capital income or the population. When the economical growth get increased then, the labor, material and the physical capital are automatically get increased.
Bubba is a shrimp fisherman who can catch 4,000 pounds of shrimp per year. Bubba is considering hiring his cousin Bobby to work for him. Bobby can catch 3,000 pounds of shrimp per year. If Bubba hires Bobby, what will be the total output of his shrimp business?
Answer:
7,000 pounds
Explanation:
Data provided in the question:
Shrimps Bubba catches per year = 4,000 pounds
Shrimps that Bobby can catch per year = 3,000 pounds
Therefore,
The marginal contribution of Bobby in the output if Bobby is hired is 3,000 pounds of shrimp
Hence,
The total output of his shrimp business is Bubba hires Bobby will be
= Output of Bubba per year + Output of Bobby per year
= 4,000 pounds + 3,000 pounds
= 7,000 pounds