Answer: Option (b) is correct.
Explanation:
Real GDP is totally based on the base year price level. This means that base year price level remains the same over all the periods. Therefore, Real GDP is generally not affected by the changes occur in the price level. Hence, it only includes the changes in output.
Nominal GDP takes into account the effect of changes in the price level. Therefore, it is affected by the changes in the price level and it is also measured in current U.S dollars. Hence, it doesn't show the true value of the goods and services produced in a given year.
Final answer:
Real GDP is a more accurate representation of an economy's production than nominal GDP because it adjusts for inflation or deflation, providing a true picture of economic growth and changes in production levels over time.
Explanation:
Real GDP is a more accurate measure of an economy's production than nominal GDP because it takes into account the effects of inflation or deflation. Nominal GDP measures the value of all final goods and services produced within a country using current prices without adjustment. This means that an increase in nominal GDP could just indicate rising prices rather than an actual increase in production. Real GDP, on the other hand, is adjusted using a price index, such as the GDP deflator, to reflect the actual volume of goods and services produced, effectively stripping out any price changes.
For example, if a country's only produces apples and the price of an apple increases from one year to the next, the nominal GDP would show an increase even if the same number of apples were produced both years. However, real GDP would remain the same since it would adjust for this price increase, thus accurately representing the static production levels. Therefore, real GDP provides a clearer picture of a nation's economic growth and true changes in production level over time irrespective of price fluctuations. This is crucial for making meaningful comparisons of economic output over different time periods.
Titus Tribble wins the big Powerball lottery which pays $17 million at the beginning of each of the next 30 years. The reported prize is $510 million which is just the total of these 30 annuity payments. What is the present value of this prize today at a 5% annual rate? Express your answer in terms of millions of dollars and round the answer to the nearest tenth of a million, for example 17.0 for 17 million.
Answer:
Present value of the prize today rounded to the nearest tenth of a million:
274.4 millions
Explanation:
We will calculate the present value of the 30 years annuity-due of 17 millions at 5% discount rate
[tex]C \times \frac{1-(1+r)^{-time} }{rate} \times (1+r)= PV\\[/tex]
C 17,000,000
time 30 years
rate 5% = 5/100 = 0.05
[tex]17000000 \times \frac{1-(1+0.05)^{-30} }{0.05} times (1+0.05)= PV\\[/tex]
PV $274,398,250.83
Rounding: 274.4 millions
The additional term (1+ r) is added because the cash received capitalize for an additional period, so it generates a higher present value.
The present value of the $510 million prize is approximately $229.5 million.
Explanation:To calculate the present value of the prize, we need to determine the value of receiving $17 million at the beginning of each of the next 30 years, discounted back to today. We can use the formula for present value of an annuity: PV = PMT * ((1 - (1 + r)^-n) / r), where PV is the present value, PMT is the annual payment, r is the interest rate, and n is the number of years.
In this case, the annual payment is $17 million, the interest rate is 5% (or 0.05 in decimal form), and the number of years is 30. Plugging in these values, we get PV = 17 * ((1 - (1 + 0.05)^-30) / 0.05), which equals approximately $229.5 million. Rounding to the nearest tenth of a million, the present value of the prize is $229.5 million.
Which of the following statements is always true?
A. Absolute advantage implies comparative advantage.
B. Comparative advantage does not require absolute advantage.
C. Absolute advantage requires comparative advantage.
D. Comparative advantage requires absolute advantage.
Answer: Option (B) is correct.
Explanation:
A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.
A country has a absolute advantage in producing a commodity if the resources required to produce a unit of commodity is less than the other country.
Comparative advantage determines the country's specialization by comparing opportunity cost whereas absolute advantage determines country's productivity.
So, comparative advantage doesn't require absolute advantage.
Final answer:
Comparative advantage does not require absolute advantage, which is why option B is the statement that is always true. It emphasizes the gains from trade through specialization and increased productivity.
Explanation:
To address which statement is always true regarding the concepts of absolute and comparative advantages and the benefits of trade, we need to understand what each term means. When an economy or individual can produce more of any good per unit of labor than another, it is said to have an absolute advantage. In contrast, a comparative advantage exists when an economy can produce a good at a lower opportunity cost than others.
Now let's analyze the options given:
A. Absolute advantage implies comparative advantage. (Not always true)B. Comparative advantage does not require absolute advantage. (Always true)C. Absolute advantage requires comparative advantage. (Not always true)D. Comparative advantage requires absolute advantage. (Not always true)Therefore, the correct answer is B. Comparative advantage drives the benefits of trade, as it leads to specialization that enhances productivity and
You are consulting a company that manufactures cell phones. Currently, the company manufactures all portions of the cell phone internally for $22 per unit ($6.85 of direct materials, $11.74 of direct labor, and $3.41 of fixed manufacturing overhead). However, the company is considered outsourcing one part of the phone, its circuit board, to an outside supplier. The supplier quoted a price of $4.50 per circuit board. If the company accepts the supplier's offer, it is estimated that the total direct materials costs would be reduced by 20% and total direct labor costs would be reduced by 15%.
a)If the company decides to outsource the circuit board, the total cost of the cell phone is $ per unit. (Round to the nearest cent.)(Show calculations)
b)Should the company you are consulting accept the outside supplier's offer? why or why not?
c)The maximum price per circuit board that the company should be willing to pay the outside supplier is $ (Round to the nearest cent.)(Show calculations)
Answer:
Instructions are listed below
Explanation:
We are provided with the following information:
Unitary manufacturing cost= 6.85 + 11.74 + 3.42= $22
Outsource circuit board:
$4.50 per circuit board
-20% direct material
-15% direct labor
A) Unitary cellphone cost= (6.85*0.80)+(11.74*0.85)+ 3.42 + 4.5= $23.38
B) The company shouldn't accept the supplier's offer because it increases its costs.
C) The maximum price will be the one that equals in house production cost with outsourcing cost.
22= (6.85*0.80)+(11.74*0.85)+ 3.42 + Price
Price= 22- (6.85*0.80) - (11.74*0.85) - 3.42
Price= $3.12
The basic difference between macroeconomics and microeconomics is: microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade. microeconomics concentrates on the behavior of individual consumers while macroeconomics focuses on the behavior of firms. microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.
Answer:
The correct answer is: microeconomics concentrates on the behavior of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.
Explanation:
Economics is divided into two different categories: microeconomics and macroeconomics. Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the decisions of countries and governments. They are interdependent and complement one another since there are many overlapping concerns between the two fields.
Microeconomics is the study of decisions made by people and businesses. Microeconomics focuses on supply and demand and other forces that determine the price levels in the economy. Microeconomics tries to understand human choices and resource allocation.
Macroeconomics, on the other hand, studies the behavior of a country and how its policies affect the economy as a whole. It analyzes entire industries and economies. Macroeconomics focuses on aggregates and econometric correlations.
Microeconomics focuses on individual consumers and firms, looking at topics such as demand, supply, and pricing in individual markets. Macroeconomics, however, examines the economy as a whole, with a focus on issues like inflation, unemployment, and national income.
Explanation:The basic difference between microeconomics and macroeconomics lies in the scope they cover. Microeconomics concentrates on the behavior of individual consumers and firms, examining issues like demand and supply in individual markets, price changes, consumer behavior, and the structure of specific industries. On the other hand, macroeconomics focuses on the performance of the entire economy, studying topics such as inflation, unemployment, Gross Domestic Product (GDP), and national income.
For example, if we were to study how a car manufacturing firm decides its production quantity and price, we would be in the domain of microeconomics. Conversely, if we were looking at the total output of all factories in the country or how the central bank's monetary policy affects the overall level of prices in the economy, we would be dealing with macroeconomics.
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On January 1, 2018, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. Assume the truck was totaled in an accident on December 31, 2019. What amount of gain or loss should Jacob Inc. record on December 31, 2019?
A.Loss, $38,000.
B.Loss, $18,000.
C.Loss, $3,000.
D.Gain, $5,000.
Answer:
A.Loss, $38,000.
Explanation:
48,000 acquisition valie 8,000 salvage value
subject to depreciaiton 40,000
useful life 8 years
depreciaiton per year:
(40,000) / 8 = 5,000
At december 2019
It has 2 complete year depreciation:
5,000 x 2 = 10,000
book value: 48,000 - 10,000 = 38,000
This amount will be declared as loss as the truck was totaled in he accident.
We are thinking of buying a new delivery van. It will cost 40000. We will use three years MACRS for depreciation. We think that at the end of the third year we can sell it for 12000. The tax rate is 30%. What would be the effect of selling the van on the third year cash flow?
Answer:
It will be a net gain for 6,325.2 after taxes
Explanation:
Bases on the MACRS at the end of the third year. we will have a book value of 7.41% Remember that under MACRS we have a half year convention so we depreciate for half a year on the assets first year. given a total year of useful life + 1
40,000 x 7.41% = 2.964
sales price: 12,000
we will pay taxes for the difference:
12,000 - 2,964 = 9.036
9036 x (1 - 30%) = 6.325,2
Flurry, Inc., is expanding into China. The company must decide where to locate and how to finance the expansion. Identify the financial statement where these decision makers can find the following information about Flurry, Inc. In some cases, more than one statement will report the needed data.(a) Revenue(b) Dividends(c) Ending cash balance(d) Total assets(e) Selling, general and administrative expenses(f) Adjustments to reconcil net income to net cash provided by operation(g) Cash spend to acquire the building(h) Current liabilities(i) Income tax expenses(j) Net income(k) Common stock(l) Ending balance of retained earnings(m) Income tax payable(n) Long-term debt
Answer Explanation:
(a) Income Statement
(b) Retained Earnings Statements
(c) Cash Flow statemennt or Balance sheet
(d) Balance sheet
(e) income statement
(f) cash flow if Flurry uses indirect method
(g) cash flow statement, investing activities
(h) balance sheet
(i) income statement
(j) income statement or retained earnings statement
(k) balance sheet
(l) retained earnings statemnt or balance sheet
(m) balance sheet
(n) balance sheet
Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be backed at one time. this new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,800 loaves per month. Employees are paid $8.00 per hour. In addition to the labor cost, Charles has a constant utility cost per month of $800 and a per loaf ingredient cost of $0.40.
current multifactor productivity for 640 work hours per month=
To calculate the current multifactor productivity, divide the number of loaves produced per month by the total input, which includes labor cost and utility cost.
Explanation:The current multifactor productivity can be calculated by dividing the output by the total input. In this case, the output is the number of loaves produced per month, which is 1,800. The total input includes the labor cost and the utility cost. Assuming there are 640 work hours per month, the labor cost is 640 hours multiplied by $8.00 per hour. The utility cost remains constant at $800 per month. So the total input would be the sum of the labor cost and the utility cost. Finally, divide the output by the total input to calculate the current multifactor productivity.
Nathan wants to buy a sweatshirt and is trying to determine the better buy. He has a 3030% coupon for the in-store purchase. The store charges $3838 for the sweatshirt he wants. However, he found the same sweatshirt online for $3434 and gets 2525% off as a first-time buyer. There are no shipping charges. Which is the better buy? By how much? Use the Polya problem solving method to solve this problem.
Answer:
It is better online, for 1.1 dollars
Explanation:
Do you understand all the words used in stating the problem?
Yes.
What are you asked to find or show?
The differnece in price bewtween the store T-shirt and the On-line T-shirt
Can you restate the problem in your own words?
Nathan can purchase a Tshirt by $38 with 30% discount or $34 with 25% discount. Which is the cheapest option?
Is there enough information to enable you to find a solution?
Yes, we have the list price for both T-shirt and the discount on each one.
Devise a plan:
Use a formula
list price less discount = net cost
We will calculate the net cost for the T-shirt
in-store purchase scenario
$38 - 30% coupon = 26.6 dollars
on-line purchase scenario
$34 - 25% off = 25,5 dollars
The difference will be:
$26.6 - $25.5 = 1.1 dollar in favor of the online purchase
According to the VRIO (value, rarity, imitability, organization) criteria, which of the following marketing or supply chain activities must be avoided by companies?
a. Activities that are hard to imitate
b. Activities that add value
c. Activities that contribute to organizational capabilities
d. Activities that are followed by other vendors
Answer:
D.
Explanation:
According to VRIO there are 4 questions asked about a resource or capability to determine its competitive potential:
The Question of Value: Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?" (can it add value? )
The Question of Rarity: "Is control of the resource/capability in the hands of a relative few?"
The Question of Imitability: "Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?" (can other vendors do the same activities?)
The Question of Organization: "Is the firm organized, ready, and able to exploit the resource/capability?" "Is the firm organized to capture value?"
With those 4 questions, we analize the statements.
a. It is in accordance with the question of imitability.
b. It is in accordance with the question of value.
c. It is in accordance with the question of organization.
d. It should be avoided. We don't want our activities to be imitated.
Ponderosa Development Corporation (PDC) is a small real estate developer that builds only one style of house. The selling price of the house is $115,000. Land for each house costs $55,000 and lumber, supplies and other materials run another $28,000 per house. Total labor costs are approximately $20,000 per house.
Ponderosa leases office space for $2000 per month. The cost of office supplies, utilities and leased equipment runs another $3000 per month. The one sales person of PDC is paid a commission of $2000 on the sale of each house.
PDC has a seven permanent employees whose monthly salaries is given below
Monthly Salaries
President $10,000
VP, Development $6000
VP, Marketing $4500
Project Manager $5500
Controller $4000
Office Manager $3000
Receptionist $2000
Part A: Write an expression for the cost of building x houses.
Part B: Write an expression for the revenue when selling x houses
Part C: Write an expression for the profit when selling x houses. Simplify your expression to the form P(x)=ax-b
Part D: What is the profit per house?
Part E: What is the breakeven point for monthly sales of houses? Include just the numeric value.
Part F: What is the profit ($) if 12 houses are sold?
Part G: For the breakeven point, what is the unit?
Part H: PDC receives a bid to build 20 units in a new development. Identify the correct response to help the manager make a decision.
Answer:
A) cost of building: land + lumber, supplies and other materials + labor= $55,000+$28,000+$20,000= $103,000
B) sale price x quantity sold
C) profit when selling the houses= price-cost of building-commissions
D) profit per house ($115,000-103,000-2,000=$10,000)
E) 8
F) $80,000
G) The unit is houses, the company do not loss nor win any money if sells 8 houses
H) The price for the bid must be above $107,000 to PDC earn money
Explanation:
A) For the cost of building must be added all direct cost as land, materials and labor
B) Revenue is the income generated from sale of goods or services
C) Profit is the money that is earned in trade or business after paying the costs of producing and selling goods
E) Break-even point is the number of units you need to sell to not loose money and achieve exactly $0 in profit
F) revenues 12*115,000= $1,380,000
- direct cost 12*105,000=$1,260,000
- fixed cost 40,000
---------------------------------
profit $80,000
H) direct cost 20 units*$105,000=$2,100,000
Fixed costs=$40,000
$2,100,000 +$40,000=$2,140,000 is the total of costs to be covered by price diveded for 20 units=$107,000
Final answer:
To assist a real estate development corporation, expressions for cost, revenue, and profit for building x houses are derived. The profit per house and the breakeven point are determined, and profit for a specific number of houses sold is calculated. The steps involve setting up algebraic expressions and solving for the variable x accordingly.
Explanation:
To answer the student's question, let's break down the costs and revenue associated with building x houses:
Part A: Cost of Building x Houses
The cost of building each house includes the cost of land, lumber and materials, labor, and the sales commission. Additionally, there are fixed costs such as office lease, office supplies, utilities, equipment, and salaries. The total cost for building x houses can be expressed as:
C(x) = 55,000x + 28,000x + 20,000x + 2,000x + 2,000 + 3,000 + Sum of salaries
Sum of salaries per month: President (10,000) + VP, Development (6,000) + VP, Marketing (4,500) + Project Manager (5,500) + Controller (4,000) + Office Manager (3,000) + Receptionist (2,000) = 35,000
Therefore, the cost expression is C(x) = (55,000 + 28,000 + 20,000 + 2,000)x + 2,000 + 3,000 + 35,000.
Part B: Revenue for Selling x Houses
The total revenue for selling x houses is the selling price times the number of houses:
R(x) = 115,000x
Part C: Profit when Selling x Houses
The expression for profit is revenue minus cost:
P(x) = R(x) - C(x)
Therefore, the simplified profit expression is:
P(x) = (115,000 - (55,000 + 28,000 + 20,000 + 2,000))x - (2,000 + 3,000 + 35,000)
Part D: Profit per House
The profit per house would be the profit expression divided by x, so it would be the coefficient of x in the profit expression P(x).
Part E: Breakeven Point
The breakeven point is the value of x where P(x) = 0. To find this, set the profit expression equal to zero and solve for x.
Part F: Profit if 12 Houses are Sold
To find the profit for 12 houses, substitute x with 12 in the profit expression P(x).
Part G: Breakeven Point Unit
The breakeven point is expressed in terms of the number of houses sold.
Part H: Bid on 20 Units
To advise on the bid for 20 units, calculate the profit for selling 20 houses using the profit expression P(x) with x = 20.
The following account titles were drawn from the general ledger of Holt Food Supplies, Incorporated (HFSI): Computers, Operating Expenses, Rent Revenue, Building, Cash, Notes Payable, Land, Utilities Payable, Utilities Expense, Trucks, Gasoline Expense, Retained Earnings, Supplies, Accounts Payable, Office Furniture, Salaries Expense Common Stock, Service Revenue, Interest Expense, Dividends, Supplies Expense.
Required:
A. Create an accounting equation using the elements assets, liabilities, and stockholders’ equity.
List each account title under the element of the accounting equation to which it belongs.
B. Will all businesses have the same number of accounts? Explain your answer.
Answer:
[tex]\left[\begin{array}{ccc}$Assets= &$Liabilities&+$Equity\\$Cash&$Account Payable&$Common Stock\\$Supplies&$Utilities Payable&$Retained Earnings\\$Office Furniture&$Note Payable&$Equity(Revenue)\\$Bulding&&$Service Revenue\\$Land&&$Rent Revenue\\&&$Equity (expenses)\\&&$Operating Expense\\&&$Utilities Expense\\&&$Gasoline Expense\\&&$Salaries Expense\\&&$Interest Expense \\&&$Supplies Expense\\\end{array}\right][/tex]
(B) NO
Explanation:
(b) Each company will have the basic accounts like cash and account payable among other, but thre will be special account according to the taxes ,legislation and industry. A metal factory will not have the same chart of accounts than an internet provider company.
The Defense Acquisition Management System (DAMS) process for major acquisition programs begins with identification through the ""DOTMLPF"" Analysis of a capability need requiring a _________________.
Answer:
The correct answer is Materiel Solution.
Explanation:
The Materiel Solution Analysis (MSA) Phase assesses potential solutions for a needed capability in an Initial Capabilities Document (ICD) and to satisfy the phase-specific Entrance Criteria for the next program milestone designated by the Milestone Decision Authority (MDA). The MSA phase is critical to program success and achieving materiel readiness because it’s the first opportunity to influence systems supportability and affordability by balancing technology opportunities with operational and sustainment requirements. During this phase, various alternatives are analyzed to select the materiel solution and develop the Technology Development Strategy (TDS) to fill any technology gaps.
Copyright reserved
Final answer:
The Defense Acquisition Management System starts with the "DOTMLPF" Analysis to identify the need for a material solution. It forms part of an approach to ensure all capability requirements are considered, potentially leading to the initiation of a new acquisition program when existing solutions are inadequate.
Explanation:
The Defense Acquisition Management System (DAMS) process for major acquisition programs begins with the identification through the "DOTMLPF" Analysis of a capability need requiring a material solution. DOTMLPF stands for Doctrine, Organization, Training, Materiel, Leadership and Education, Personnel, and Facilities. It is an analysis process used by the Department of Defense to ensure that all aspects of providing new capabilities are addressed, not just the equipment. Before a program can move forward, a capability gap is identified, and the DOTMLPF Analysis determines whether changes to Doctrine, Organization, Training, Materiel, Leadership and Education, Personnel, or Facilities are needed to fill the gap. If it is determined that a material solution is required, then other potential solutions involving changes to existing equipment or procedures are generally deemed insufficient, and a new acquisition program may be initiated to develop this solution.
Micromedia offers computer training seminars on a variety of topics. In the seminars each student works at a personal computer, practicing the particular activity that the instructor is presenting. Micromedia is currently planning a two-day seminar on the use of Microsoft Excel in statistical analysis. The projected fee for the seminar is $625 per student. The cost for the conference room, instructor compensation, lab assistants, and promotion is $9900 per 2 days. Micromedia rents computers for its seminars at a cost of $140 per computer per day. Develop a model for the total cost to put on the seminar. Let x represent the number of students who enroll in the seminar. Round your answers to the nearest whole number. For subtractive or negative number use a minus sign even if there is a + sign before the blank. (Example: -300)
Answer:
Total cost= 9900 + 2*(140*X)
Explanation:
Giving the following information:
The projected fee for the seminar is $625 per student.
The cost of the conference room, instructor compensation, lab assistants, and promotion is $9900 per 2 days.
Micromedia rents computers for its seminars for $140 per computer per day.
We have to determine the formula of the total cost:
X= number of students
N= number of days
Total cost= fixed cost + F*(variable cost*X)
Total cost= 9900 + 2*(140*X)
Organizational demography suggests that attributes such as age or the date of joining should help the organization in ________.A) promoting diversity and multiculturalismB) reducing discrimination in the workplaceC) determining appropriate compensation packagesD) assessing the training needs at an occupational levelE) predicting employee turnover in the company
Answer:
The correct answer to the question: Organizational demography suggest that attributes such as age or the date of joining should help an organization in:____, would be, E: Predicting employee turnover in the company.
Explanation:
Organizational demography, also known as Organizational ecology, or Population ecology of organizations, is an empirical and theoretical approach of social sciences that deals with the different factors: human, environmental and economic, that play a role in the way that an organization (company, corporation, etc.,) works. Because organizations are such complex reunions of human characteristics, personalities and qualities, organizational demography becomes vital in guiding the different policies and strategies that organizations can use to maintain themselves stable throughout time. Now, from the different characteristics of employees that corporations and organization must always take into account, we find that age and date of joining are really important attributes to keep in mind when predicting employee turnover in a company because these two variables show: the first, age of retirement and thus need for replacement, and the second, date of joining, because this shows the level of engagement of a person and the likelihood that they will need to be replaced, or not.
tamarisk, Inc. has the following inventory data:
Nov. 1 Inventory 31 units @ $6.20 each
8 Purchase 125 units @ $6.70 each
17 Purchase 62 units @ $6.55 each
25 Purchase 94 units @ $6.90 each
A physical count of merchandise inventory on November 30 reveals that there are 104 units on hand. Assuming that the specific identification method is used and that ending inventory consists of 31 units from each of the three purchases and 11 units from the November 1 inventory, cost of goods sold (rounded) is
Answer:
cost of goods sold (rounded) is $1392
Explanation:
Date Q Cost U.Cost Sold Inventory Cost
nov-01 31 192,2 6,2 20 11 124
nov-08 125 837,5 6,7 94 31 630
nov-17 62 406,1 6,55 31 31 203
nov-25 94 648,6 6,9 63 31 435
312 208 104 1392
At a young age, Ebony's coaches were confident she had the potential to be a world-class swimmer with a future coaching career. After four years on an athletic scholarship and Olympic experience under her belt, she chose a different path. With her savings and personal connections, she rented a corner building in a bustling San Francisco neighborhood and pursued her dream: a surf shop business. Ebony's dream was rooted in which basic right of free-market capitalism?
Answer:
The right to freedom of choice.
Explanation:
The four basic rights that form the foundation of capitalism are:
The right to own private property.The right to own a business and keep all that business's profits.The right to freedom of competition.The right to freedom of choice.Her dream was to have a Surf shop business instead of being a world-class swimmer
So she used her ability as a way to get the scholarship a learn how to carry out a businnes and then chose to do what was her real dream.
she used the RIGHT OF CHOICE.
Good Luck!
Ebony's dream of owning a surf shop business is rooted in the basic right of private property ownership in free-market capitalism. By renting a building and starting her surf shop business, she exercised her right to own and operate a business in a competitive market.
Explanation:Ebony's dream of owning a surf shop business is rooted in the basic right of private property ownership in free-market capitalism. In a free-market system, individuals have the right to own and control property and pursue their own economic ventures. By renting a building and starting her surf shop business, Ebony exercised her right to own and operate a business in a competitive market.
If the market price of a good is more than the opportunity cost of producing it, a. the market price of the product will increase in the long run. b. producers will increase supply in the long run. c. resources will flow away from production of the good, causing supply to decline with the passage of time. d. the situation will remain unchanged as long as supply and demand remain in balance.
Answer:
B.
Explanation:
If the price of a good or service is higher than its opportunity cost (what producers sacrify when they produce the good), the producers are having positive benefits. Economic benefits are measure by the sum of total income minus the sum of total expenses. In this case, producer’s income is price and producer’s expense is the opportunity cost. In a perfect competitive market, there is complete information and no barriers to entry, so if people notice that producers are having positive benefits, they will like to enter to the market. In the long-run there would be more firms than before and for instance total supply will increase.
Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $8 comma 000 for his CD investment. If the bank is offering a 3% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. three-year investment period? b. five-year investment period? c. eight-year investment period? d. twenty-year investment period? a. How much will the $8 comma 000 CD investment at 3% interest rate be worth at maturity if Jonathan picks a 3-year investment period?
Answer:
A) FV= $8714.816
B) FV= $9274.193
C) FV= $10134.16
D) FV= $14449
Explanation:
Giving the following information:
Jonathan has $8000 for his investment.
The bank is offering a 3% interest rate, compounded annually.
To calculate the ending value if the investment, we need to use the Final Value formula.
FV= Present value* (1+interest rate)^number of years
FV= PV*(1+i)^n
A) FV= 8000*(1,03)^3= $8714.816
B) FV= 8000*(1,03)^5= $9274.193
C) FV= 8000*(1,03)^8= $10134.16
D) FV= 8000*(1.03)^20= $14449
Final answer:
Using the compound interest formula, the future value of Jonathan's $8,000 CD at a 3% annual interest rate for a 3-year investment period will be $8741.82.
Explanation:
To calculate the future value of a certificate of deposit (or CD) with compound interest, we use the formula A = P(1 + r/n)^(nt), where:
A is the amount of money accumulated after n years, including interest.P is the principal amount (the initial amount of money).r is the annual interest rate (decimal).n is the number of times that interest is compounded per year.t is the time the money is invested for in years.In Jonathan's case, his principal amount P is $8,000, the annual interest rate r is 3%, which is 0.03 in decimal form, and interest is compounded annually, so n is 1.
If Jonathan picks a 3-year investment period, the formula with his values plugged in becomes:
A = 8000(1 + 0.03/1)^(1*3)
Calculating this gives us:
A = 8000(1 + 0.03)^(3)
A = 8000(1.03)^(3)
A = 8000 * 1.092727
A = $8741.82
So, after a 3-year investment period at a 3% interest rate, compounded annually, the certificate of deposit would be worth $8741.82 at maturity.
A university spent $1.7 million to install solar panels atop a parking garage. These panels will have a capacity of 300 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero. Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even? 10,472.99 17,454.99 5,818.33 11,636.66 If the solar panels can operate only for 10,473 hours a year at maximum, the project break even. Continue to assume that the solar panels can operate only for 10,473 hours a year at maximum. In order for the project to be worthwhile (i.e., at least break even), the university would need a grant of at least
Answer:
the solar panels need to operate 11,636.66 hours to brak even
at 10,473 hours per year the project don't break-even It will need a grant for 170.026,74 dollars to do so.
Explanation:
300 kilowatts x 0.1 = 30 dollars of saving per hour:
we need to find the couta of a present value of 1,700,000 for 20 years at 20% discount rate:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV $1,700,000.00
time 20
rate 0.2
[tex]1700000 \div \frac{1-(1+0.2)^{-20} }{0.2} = C\\[/tex]
C $ 349,106.102
Each hour saves 30 dollars
so 349,106.10/30 = 11.636,87 hours
IF the solar panels operate 10,473 hours per year then:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 314,190
time 20
rate 0.2
[tex]314190 \times \frac{1-(1+0.2)^{-20} }{0.2} = PV\\[/tex]
PV $1,529,973.2565
the present value of the panel is 1,529,973.26
The university would need a grant for 170.026,74
Final answer:
Explanation of break-even calculation and grant needed for a solar panel installation project.
Explanation:
Break-even calculation:
Calculate the annual electricity generation: 300 kW x 10,473 hours = 3,142,900 kWh
Calculate the present value of operating the solar panels for 1 hour per year: PV = 300 kW x $0.10/kWh / (1 + 0.20) = $2.50
Find the break-even hours per year: $1.7 million / $2.50 = 680,000 hours
Grant needed: At least $1,700,000 to cover the initial investment cost
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (2) QUESTIONS: Copeland Company's inventory records for the month of March reveal the following: Mar. 4 Purchase 250 units @ $18.50 Mar. 7 Sale 300 units @ $42.00 Mar. 13 Purchase 220 units @ $18.90 Mar. 18 Purchase 150 units @ $19.00 Mar. 22 Sale 380 units @ $42.00 Mar. 24 Purchase 200 units @ $19.20 Mar. 28 Sale 110 units @ $42.00 Copeland began the month of March with 300 units at a cost of $18.00 each. Required: Calculate cost of goods sold using periodic FIFO: $_______________ *when recording your answer, do not use commas or dollar signs.
Answer:
Total cost of goods sold= 14563
Explanation:
Giving the following information:
Copeland Company's inventory records for March
Beginning inventory: 300 units $18.00 each.
Mar. 4 Purchase 250 units $18.50 each.
Mar. 7 Sale 300 units $42.00 each.
Mar. 13 Purchase 220 units $18.90 each.
Mar. 18 Purchase 150 units $19.00 each.
Mar. 22 Sale 380 units $42.00 each.
Mar. 24 Purchase 200 units $19.20 each.
Mar. 28 Sale 110 units $42.00 each.
Inventory method: FIFO (first in, first out).
Cost of goods sold:
March 7: Revenue= 300u*$42= 12600
COGS= 300*18= 5400
Mar 22: Revenue= 380u*42= 15960
COGS= 250*18.5 + 130* 18.90= 7082
Mar 28: Revenue= 110*42= 4620
COGS= 90*18.90 + 20*19= 2081
Total cost of goods sold= 5400 + 7082 + 2081= 14563
Some people believe that government should guarantee its citizens a basic standard of living by raising the minimum wage, providing housing assistance to the poor, and offering health care coverage to everyone. What type of economist would favor this view?(A) Classical economists(B) Keynesians(C) Monetarists(D) All would favor this view
Answer:
The correct answer is option B.
Explanation:
The classical economists believed in Laissez-faire. They had the opinion that the economy can reach equilibrium on its own through the working of the market forces. They advocated no government intervention in the market.
The monetarists hold the belief that the government can affect the performance of the economy by controlling the money supply.
Keynesian economists believe that a government is necessary for the smooth functioning of the economy. They hold the view that market forces do not always work efficiently and there are situations where the market forces fail inefficient allocation of goods and services. In such situations government intervention is necessary.
Keynesians
Explanation:The type of economist who would favor the view of guaranteeing a basic standard of living by raising the minimum wage, providing housing assistance to the poor, and offering health care coverage to everyone is Keynesians. These economists believe in the importance of government intervention in the economy to stimulate aggregate demand and eliminate recessionary gaps. They view government policies, such as raising the minimum wage, as necessary to address income inequality and promote economic stability.
Pools manufactures swimming pool equipment. Falmouth estimates total manufacturing overhead costs next year to be $ 1 comma 500 comma 000. Falmouth also estimates it will use 46 comma 875 direct labor hours and incur $ 1 comma 250 comma 000 of direct labor cost next year. In addition, the machines are expected to be run for 50 comma 000 hours. Compute the predetermined manufacturing overhead rate for next year under the following independent situations: 1. Assume that the company uses direct labor hours as its manufacturing overhead allocation base. 2. Assume that the company uses direct labor cost as its manufacturing overhead allocation base. 3. Assume that the company uses machine hours as its manufacturing overhead allocation base. 1. Compute the predetermined manufacturing overhead rate for next year assuming that the company uses direct labor hours as its manufacturing overhead allocation base. Identify the formula and compute the predetermined manufacturing overhead rate for next year using direct labor hours as the manufacturing overhead allocation base.
Answer:
1.- $ 32.00
2.- $ 1. 20
3.- $ 30.00
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
To calculate the predetermined manufacturing overhead rate we divide the expected overhead cost over the cost driver.
1.- In this case 46,875 hours will be the cost dirver:
1,500,000 / 46,875 = 32
2.- if we use labor cost:
1,500,000 / 1,250,000 = 1.2
3.- using machien hours as cost driver:
1,500,000 / 50,000 = 30
Christopher is an unpaid, stay-at-home father who works as a volunteer at the local Habitat for Humanity chapter. Currently, Christopher is not looking for a paid job. The Bureau of Labor Statistics counts Christopher as...
a. neither in the labor force nor unemployed.
b. unemployed and in the labor force.
c. unemployed but not in the labor force.
d. in the labor force but not unemployed.
Answer:
The correct answer is option a.
Explanation:
The bureau of labor statistics calculates the data regarding the unemployment rate in the US economy. It calculates the unemployment rate as the ratio of total unemployed to the total labor force.
Those people who are having a job or business and are working for profit or those who are currently unemployed and looking for jobs are included in the labor force. Students, retirees, and discouraged workers are not included in the labor force.
Here, Christopher is neither working for profit nor looking for work so he will not be considered unemployed or in labor force.
Final answer:
Christopher is classified as neither in the labor force nor unemployed by the Bureau of Labor Statistics because he is not looking for a paid job and is not currently available to work. Hence, the correct option is A.
Explanation:
The question concerns how the Bureau of Labor Statistics (BLS) classifies individuals in the labor force. According to the BLS, someone who does not have a job, is not currently available to work, and has not actively looked for work in the last four weeks is not in the labor force. In the given scenario, Christopher is an unpaid, stay-at-home father who is not looking for a paid job. Hence, he is neither employed for pay nor actively seeking employment. Therefore, Christopher would be classified as neither in the labor force nor unemployed, which corresponds to option (a).
Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cook's time. Vincent can bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour. Please answer the four questions below. Which cook has the absolute advantage in baking cakes? Which cook has the absolute advantage in making pizzas? Which cook has the comparative advantage in baking cakes? Which cook has the comparative advantage in making pizzas?
Answer:
Absolute advantage in baking cakes: Jean
Absolute advantage in making pizzas: Jean
Comparative advantage in baking cakes: Vincent
Comparative advantage in making pizzas: Jean
Explanation:
Absolute advantage refers to the amount that can be produced using the same resources. Here the main resource in question is time. For the same amount of time (1 hour) Jean can bake 12 cakes while Vincent can bake 10 cakes.
Similarly, for the same amount of time (1 hour), Jean can make 8 pizzas while Vincent can make 5 pizzas.
Thus, Jean has the absolute advantage in both baking cakes and making pizzas.
Comparative advantage is related to the opportunity cost to produce one product over another.
The opportunity cost for Jean to bake a cake is 2/3 of a pizza, while the opportunity cost for Vincent is 1/2 pizza. The opportunity cost for Jean is greater, so Vincent has the comparative advantage in baking cakes.
The opportunity cost for Jean to make a pizza is 1.5 cakes, while the opportunity cost for Vincent is 2. The opportunity cost for Vincent is greater, so Jean has the comparative advantage in making pizzas.
To maximize production, Vincent should bake cakes and Jean should make pizzas.
Vincent has the absolute advantage in making pizzas, and Jean has the absolute advantage in baking cakes. Comparatively, Vincent has the advantage in baking cakes, and Jean in making pizzas, based on their respective opportunity costs.
Explanation:When considering Vincent and Jean, two cooks in a village, and their abilities in baking cakes and making pizzas, we need to determine who has the absolute and comparative advantages in producing these items. Vincent can bake 10 cakes or make 5 pizzas in an hour, whereas Jean can bake 12 cakes or make 8 pizzas in an hour. An absolute advantage exists when a producer can create more of a good than another with the same resources. Vincent has an absolute advantage in making pizzas since he can produce more than Jean in the same amount of time. Jean has an absolute advantage in baking cakes, as he produces more than Vincent. A comparative advantage exists when a producer can create a good at a lower opportunity cost than another. To find this, we compare the opportunity costs of both activities for each cook.
For Vincent, the opportunity cost of baking one cake is half of a pizza (5 pizzas/10 cakes) and for Jean, it is 2/3 of a pizza (8 pizzas/12 cakes). Therefore, Vincent has a comparative advantage in baking cakes since he gives up less pizza per cake than Jean. Conversely, for making pizzas, Vincent's opportunity cost is two cakes per pizza (10 cakes/5 pizzas) and Jean's is 1.5 cakes per pizza (12 cakes/8 pizzas), hence Jean has a comparative advantage in making pizzas as he sacrifices fewer cakes per pizza than Vincent.
Consider an economy with only two businesses, called OrangeInc and JuiceInc. OrangeInc owns and operates orange groves. It sells some of its oranges directly to the public, making $10,000. It sells the rest of its oranges to JuiceInc, making $25,000. JuiceInc uses the oranges it acquires to produce and sell orange juice to the public. The total revenue of JuiceInc is $40,000. What is the value added by each business? Compute GDP using the Product Approach and using the Expenditure Approach.
Answer: (a) $35,000 and $15,000
(b) $50,000
(c) $50,000
Explanation:
Given that,
OrangeInc sells some of its oranges to the public and making = $10,000
Remaining oranges sells to JuiceInc, making = $25,000
Total revenue of JuiceInc = $40,000
(a) Value added by OrangeInc = $10,000 + $25,000
= $35,000
Value added by JuiceInc = Total revenue - Oranges purchased from OrangeInc
= $40,000 - $25,000
= $15,000
(b) GDP using the Product Approach:
GDP = Value added by OrangeInc + Value added by JuiceInc
= $35,000 + $15,000
= $50,000
(c) GDP using the Expenditure Approach:
In our case, the final consumers of oranges are households. Households purchases oranges worth of $10,000 from OrangeInc and juice worth of $40,000 from JuiceInc.
Therefore,
GDP = $10,000 + $40,000
= $50,000
Boehm Incorporated is expected to pay a $2.20 per share dividend at the end of this year (i.e., D1 = $2.20). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 13%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
stock price $22
Explanation:
We use the dividend grow model to evaluate the stock
[tex]\frac{divends}{return-growth} = Intrinsic \: Value[/tex]
D1 = 2.20
grow = g = 3% = 3/100 = 0.03
return = 13% = 13/100 = 0.13
we calculate:
[tex]\frac{2.20}{0.13-0.03} = Intrinsic \: Value[/tex]
value of the stock 2.2/0.1 = 22
unland Company uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
Units Per unit price Total
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742
An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?
Answer:
Ending inventory= $1706
Explanation:
Giving the following information:
Units Per unit price Total
1/1/2017: 290 *$5.00= $1450
1/15/2017: Purchase, 140*$5.10= $714
1/28/2017: Purchase, 140*$5.30= $742
At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)
Ending inventory= 140*5.30+140*5.10+50*5= $1706
A student spends a majority of his weekend playing and watching sports, thereby tiring him out and leading him to oversleep and often miss his Monday 8 AM math class. Suppose that the tuition per semester is $25,000 and the average semester consists of 15 units. If the math class meets three days a week, one hour each day for 15 weeks, and is a four-unit course, how much does each hour of math class cost the student? Design an algorithm that computes the cost of each math class.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Suppose that the tuition per semester is $25,000.
The average semester consists of 15 units.
The math class meets three days a week.
One hour each day for 15 weeks, and is a four-unit course.
First, we need to calculate the cost of each unit:
Cost of unit= 25000/15= $1666.67
Now, we calculate the number of hours of each math unit:
Hours per unit of math= (3hours*15 weeks)/4 units= 11.25 hours
this means that each hour of math costs= 1666.67/11.25= $148.15
Formula= Hourly cost*hours= $148.15*hours
The cost per hour of math class is $14.81.
Explanation:To determine the cost of each hour of math class, we need to calculate the cost per semester and then divide it by the number of hours the class meets.
Given that the tuition per semester is $25,000 and an average semester consists of 15 units, we can calculate the cost per unit by dividing the tuition by the number of units:
Cost per unit = $25,000 / 15 units = $1,666.67
Since the math class is a four-unit course, we can multiply the cost per unit by four to get the total cost of the math class:
Total cost of math class = $1,666.67 * 4 units = $6,666.67
Finally, to find the cost per hour of math class, we divide the total cost by the number of hours the class meets:
Cost per hour of math class = $6,666.67 / (3 days * 1 hour/day * 15 weeks) = $14.81
Balance Sheet The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $705,555 Office expense 162,280 Miscellaneous expense 14,110 Wages expense 338,665 Accounts payable 17,640 Accounts receivable 49,390 Cash 222,485 Common stock 135,000 Land 226,000 Supplies 8,465 Cash dividends of $26,800 were paid during the year. Retained earnings as of June 1, 20Y5, were $190,000. Prepare the balance sheet as of May 31, 20Y6. When entering assets, enter them in order of liquidity. Paradise Travel Service Balance Sheet May 31, 20Y6
Answer:
Assets Liabilities
Current Assets Acount Payable 17,640
Cash 222,485 Equity
Account receivable 49,390 Common Stock 135,000
Supplies 8,465 Retained Earnings 353,700
Total Current Assets 280,340 Total Equity 488,700
Land 226,000
Total Assets 506,340 Toal Liab+ SE 506,340
Explanation:
RE will be calculate using the accounting equation as is quicker than calculate net income and do the RE statement
Assets = Liab + Equity
Where: Equity = Common Stock + RE
506,340 = 17,640 + 135,000 + RE
RE = 506,340 - 17,640 - 135,000 = 353,700