Answer:
36 billion
Explanation:
The GDP can be calculated using the income approach in which the output of a country is equal to the total income people receive in that country.
GDP= Compensation of employees + Net interest + Rental income + Corporate profits
From this formula, you can isolate the compensation of employees:
Compensation of employees= GDP-Net interest - Rental income - Corporate profits
Compensation of employees= $65-$15-$7-$7
Compensation of employees= $65-$29
Compensation of employees= $36
The wages during 2009 in Sildavida were: $36 billion.
Consider an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. the interest rates in the next three years will be, with certainty, r1 = 8%, r2 = 10%, and r3 = 12%. calculate the bond's (a) yield to maturity and (b) realized compound yield
Answer:
a) YTM = 9.8%
b) realized compound yield is 9.9%
Explanation:
a) PMT = 80
par value FV = 1000
coupon rate = 8%
curent price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) = [tex]\frac{PMT+(FV-PV)/n}{(FV+PV)/2}[/tex] = [tex]\frac{80+(1000-953.1)/3}{(1000+953.1)/2}[/tex]= 9.8%
b) r2 = 10% = 100%+10%=1.1
r3 = 12% = 100%+12%=1.12
Realized compound yield:First, find the future value (FV. of reinvested coupons and principal
FV = ($80 *1.10 *1.12) + ($80 * 1.12) + $1080 = $1268.16
let a be the rate that makes the future value $1268.16
953.1(1+y)³ =$1268.16
(1+y)³=1.33
1+y=1.099
y = 0.099 = 9.9%
The correct statements will be that the yield to maturity of a bond with 8% coupon will be 9.8% and the realized compound yield for such bond will be 9.9%.
Bond yields can be calculated using the simple formulas of the above asked queries in the name of Yield To Maturity and realized compound yield by putting the values in the information provided below.
Bonds are the debt securities subscribed to by such creditors who are assured of a fixed interest rate at a predetermined rate on its maturity given that the conditions of such bond are fulfilled.The Yield to Maturity can be calculated with the following formula,[tex]\rm YTM= \dfrac {PTM+ (Future\ Value\ - Face\ Value)\ /2}{(Future\ Value+ Face\ Value)\ /2}[/tex]Putting the values in the formula we get, [tex]\rm YTM= \dfrac{80\ + (1000-953.1)\ /2}{(1000\ + 953.1)\ /2}[/tex]We obtain the values as[tex]\rm YTM= 0.098[/tex]So, the value of Yield To Maturity interest is 9.8%.Calculating the realized compound yield,[tex]\rm Realized\ Compound\ Yield= Present\ value\ (1 +\ y )^{2}[/tex]We get the values as , [tex]1268.16= 953.1\ \rm x\ (1+y)^2\\\\\\1.33 = (1 + y)^2\\\\\\1+y = 1.099[/tex]We finally get, [tex]\rm y = 0.099[/tex]The realized compounded yield is 9.9%Hence, the correct values for the Yield To Maturity is 9.8% whereas the realized compounded yield is 9.9%
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The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information: Setups Inspections Assembly (dlh) Small Lamps - 4,700 units 4,000 8,850 40,800 Desk Lamps - 10,900 units 8,000 14,750 40,800 Activity Pool Activity Base Budgeted Amount Setups 12,000 $128,400 Inspections 23,600 $127,440 Assembly (dlh) 71,400 $285,600 Calculate the total factory overhead to be charged to desk lamps.
Answer:
The total factory overhead to be charged to the desk lamps is $235,000
Explanation:
solution attached below
Final answer:
The total factory overhead to be charged to desk lamps using activity-based costing is $328,450.
Explanation:
To calculate the total factory overhead to be charged to desk lamps, we need to apply activity-based costing (ABC) by assigning the overhead costs proportionally based on the activities per product. The setup, inspection, and assembly costs must be apportioned to each product according to the respective activity bases provided.
First, we need to calculate the overhead rate per activity base:
Setup Overhead Rate = $128,400 / 12,000 setups = $10.70 per setupInspection Overhead Rate = $127,440 / 23,600 inspections = $5.40 per inspectionAssembly Overhead Rate = $285,600 / 71,400 direct labor hours (dlh) = $4 per dlhThen, the overhead charged to desk lamps is:
Setup: 8,000 setups × $10.70 = $85,600Inspection: 14,750 inspections × $5.40 = $79,650Assembly: 40,800 dlh × $4 = $163,200The total overhead charged to desk lamps is sum of the three calculated amounts:
Total Overhead for Desk Lamps = $85,600 + $79,650 + $163,200 = $328,450
An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. What is the cost basis to the beneficiary
Answer:
$60
Explanation:
An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. Therefore the cost basis to the beneficiary is
The cost basis by definition is usually equal to the fair market value of the property or asset at the time of the decedent's death or when the actual transfer of assets was made.
However for the purpose to be served to reduce the tax due on the inheritance, we have chosen to opt for the fair market value of the property or asset at the time of the decedent's death which is $60
A datacenter recently experienced a breach. When access was gained, an RF device was used to access an air-gapped and locked server rack. Which of the following would BEST prevent this type of attack?
A. Faraday cage
B. Smart cards
C. Infrared detection
D. Alarms
Answer:
a. Faraday cage
Explanation:
Faraday cage -
It refer to as a shield which helps to block any electromagnetic fields , is referred to as faraday cage .
It is also known as Faraday shield .
In a Faraday cage , a mesh or covering conductive material is added to block any electromagnetic field .
Hence , from the given information of the question ,
The correct answer is a. Faraday cage .
Theodore and James have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Their company, which includes TJ Soft stores, is looking for opportunities in the future that include international operations. A game company in Thailand wants TJ Soft to join it and work together to create a new game that bears the brand name of both companies. What would be an appropriate approach for this venture?
Answer:
a global strategic alliance
Explanation:
A global strategic alliance is established between two or more countries that are established on different countries. In this case, TJ's headquarters are in the US and the other game company's headquarters are in Thailand. This type of alliance is very common when companies want to enter new international markets. For example, Volkswagen Group is the largest car manufacturer in the world, even though its headquarters are located in Germany, around 50% of the cars it sells are produced in China through a series of strategic alliances with Chinese car manufacturers. It was the first western car manufacturer to start producing cars in China and it really paid off for them. Its share of the Chinese car market is currently around 25%.
An appropriate approach for this venture would be to form a joint venture or partnership agreement between TJ Soft and the game company in Thailand. Both companies should conduct market research to understand the target audience and demand for the new game. Effective communication channels and project management systems should be established to ensure smooth collaboration and coordination.
Explanation:An appropriate approach for this venture would be to form a joint venture or partnership agreement between TJ Soft and the game company in Thailand. This would allow both companies to collaborate and combine their resources, expertise, and brand names to create a new game. The joint venture agreement should outline the terms and conditions of the partnership, including the sharing of costs, profits, and intellectual property rights.
Both companies should also conduct market research to understand the target audience and demand for the new game. This will help them determine the strategies and features to incorporate into the game to make it successful in the international market.
Additionally, the companies should establish effective communication channels and project management systems to ensure smooth collaboration and coordination during the game development process. Regular meetings, progress updates, and clear roles and responsibilities should be defined to ensure the project stays on track and meets the desired outcomes.
If inflation is anticipated to be 6 percent during the next year, while the real rate of interest for a one-year loan is 5 percent, then what should the nominal rate of interest be for a risk-free one-year loan
Answer:
11%
Explanation:
Nominal interest rate = real interest rate + inflation rate
6% + 5% = 11%
Anticipated Inflation rate is the rate at which it is expected that price levels would rise.
Real interest rate is the rate of interest that has been adjusted for the effects of inflation.
I hope my answer helps you
Final answer:
The nominal rate of interest for a risk-free one-year loan, with an anticipated inflation rate of 6 percent and a real interest rate of 5 percent, should be 11 percent.
Explanation:
If inflation is anticipated to be 6 percent during the next year, and the real rate of interest for a one-year loan is 5 percent, then the nominal rate of interest for a risk-free one-year loan can be found using the Fisher equation which states that the nominal interest rate is the sum of the real interest rate plus the expected rate of inflation.
The formula for calculating the nominal interest rate is:
Nominal Interest Rate = Real Interest Rate + Expected Inflation Rate.So, if we plug in the numbers we get:
Nominal Interest Rate = 5% (Real Interest Rate) + 6% (Expected Inflation Rate) = 11%.Therefore, the nominal rate of interest that should be applied to a risk-free one-year loan would be 11 percent.
Fontana Manufacturing provided the following information for the month ended March 31: Sales Revenue $26,000 Beginning Finished Goods Inventory 8000 Ending Finished Goods Inventory 13,500 Cost of Goods Manufactured 15,600 Compute cost of goods available for sale.
Answer:
The correct answer is $23,600.
Explanation:
According to the scenario, the given data are as follows:
Beginning Finished goods = $8,000
Cost of Goods Manufactured = $15,600
So, we can calculate the cost of goods available for sale by using following formula:
Cost of goods available = Beginning Finished goods + Cost of Goods Manufactured
By putting the value we get,
Cost of goods available = $8,000 + $15,600
= $23,600
Hence, the cost of goods available for sale is $23,600.
Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any underapplied or overapplied manufacturing overhead is closed to Cost of Goods Sold at the end of each month. Additional information is available as follows: ° Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month: ° Jobs 102, 103, and 104 were started during February. ° Direct materials requisitions for February totaled $26,000. ° Direct labor cost of $20,000 was incurred for February. ° Actual manufacturing overhead was $32,000 for February. ° The only job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor. The cost of goods manufactured for February was: (Points : 2) A. 77,700 B. 78
The cost of goods manufactured for February is $78,000.
Explanation:To calculate the cost of goods manufactured, we need to consider the direct materials, direct labor, and manufacturing overhead. Direct materials for February totaled $26,000, and direct labor cost was $20,000. The predetermined rate for manufacturing overhead is 150% of direct labor cost, so the applied manufacturing overhead is $30,000 (150% of $20,000). The actual manufacturing overhead is $32,000. To find the underapplied or overapplied manufacturing overhead, we subtract the applied manufacturing overhead from the actual manufacturing overhead, which gives us $2,000 overapplied overhead. Therefore, the cost of goods manufactured for February is $78,000 ($26,000 + $20,000 + $30,000 - $2,000).
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(A) 77,700 ; The cost of goods manufactured for February was $77,700, calculated using the predetermined overhead rate and direct material and labor costs.
Calculate the predetermined manufacturing overhead rate:
150% x $20,000 = $30,000.Determine the total manufacturing overhead applied:
$30,000 x 500% = $15,000.Calculate the cost of goods manufactured:
Direct materials + Direct labor + Applied overhead =
$26,000 + $20,000 + $15,000 = $61,000.Add the beginning Work in Process (Job 101) costs of $16,700 to get the total cost of goods manufactured for February:
$61,000 + $16,700 = $77,700.Suppose you are a manager of a factory. You purchase four (4) new machines at one million dollars each. If you can resell two of the machines at $500,000 each and the other two machines at $200,000 each, what are the sunk costs of purchasing the machines
Answer:
$2,600,000
Explanation:
Sunk cost refers to the costs that cannot be recovered by the businesses.
Sunk costs:
= Cost incurred - Cost recoverable
= (4 × $1,000,000) - [(2 × $500,000) + (2 × $200,000)]
= $4,000,000 - ($1,000,000 + $400,000)
= $4,000,000 - $1,400,000
= $2,600,000
Therefore, the sunk costs of purchasing the machines is $2,600,000.
Sarah just made a purchase on an online shopping site (such as amazon) and completed the checkout process by paying with her credit card. Which protocol was most likely used for the transmission of her information
Answer:
cryptographic protocol
Explanation:
Complete the following MRP record and provide the planned order releases for Week 1. Lead time is 2 weeks. Safety stock is 3. Use LFL lot sizes.
Part X Week
1 2 3 4
Gross Requirements 32 16 34 40
Scheduled Receipts 10
Projected On-Hand inventory 46
Planned Order Releases
a. 29
b. 26
c. 14
d. 34
Answer:
The correct answer is "a" = 29
Explanation:
The workings are attached:
Marcy owns a trucking company that hauls goods all over the country. Wilson contracts with Marcy's company to transport ten tractor-trailer loads of goods from Ohio to Texas. After delivery of the goods, Marcy learns that all the goods were stolen. The contract:_______.
a. is unenforceable, because the goods were stolen and Marcy's company cannot collect its fee.
b. is enforceable, because Marcy's company was justifiably ignorant of the fact that the goods were stolen.
c. is unenforceable unless Marcy's company can return the goods.
d. is unenforceable, and Marcy's company is now liable for the stolen goods.
Answer:
b. is enforceable, because Marcy's company was justifiably ignorant of the fact that the goods were stolen.
Explanation:
Marcy owns a trucking company that hauls goods all over the country. Wilson contracts with Marcy's company to transport ten tractor-trailer loads of goods from Ohio to Texas. After delivery of the goods, Marcy learns that all the goods were stolen. The contract: is enforceable, because Marcy's company was justifiably ignorant of the fact that the goods were stolen..
The contract that existed between Wilson and Marcy was that of delivery of Goods and that has been done by Marcy, hence Marcy is not liable under the contract agreement because he has fully discharged his responsibilities under the contract.
A party can only sue if he is involved in a contract and the other party fails to live up to their end of the contract.
If the goods were stolen in transit Wilson would have had the option of suing for breach of contract.
"A merger transaction is not supported by the target firm's management," forcing the acquiring company to try to gain control of the firm by buying shares in the marketplace. This is an example of ________. A. hostile takeover B. financial merger C. strategic merger D. congeneric formation
Answer:
A. hostile takeover
A hostile takeover is the acquisition of one company (called the target company) by another (called the acquirer) that is accomplished by going directly to the company's shareholders in a bid to secure shares
A merger transaction not approved by the target company's management that forces the acquiring firm to buy shares in the marketplace is termed as a hostile takeover.
a is correct
Explanation:The situation where a merger transaction is not supported by the target firm's management, forcing the acquiring company to attempt to gain control by buying shares in the marketplace is known as a hostile takeover. In a hostile takeover, the acquiring company purchases the majority of the outstanding shares of the target company in the open market in an attempt to gain control.
This is mostly against the will of the target company's management. Unlike a friendly merger, where both companies' managements approve the deal, a hostile takeover happens without the endorsement of the target company's board.
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A broker learns that one of his institutional clients is about to enter a buy order for 10,000 shares of ABC stock. The broker tells one of the principals of the broker-dealer and the broker-dealer immediately enters a proprietary buy order for 10,000 shares of ABC stock ahead of the client's order. This trade is generally prohibited as front running but would be permitted if:
[A] The firm can demonstrate that the trade is unrelated to the customer's block order
[B] The trade was made to fill or facilitate the customer's block order
[C] The trade is executed on a national stock exchange and in compliance with its rules
[D] All of the above.
Answer:
[D] All of the above.
Explanation:
Front running is the process by which a party to a share purchase has initial knowledge of the future market value of shares that are yet to be issued and makes a proprietary buy order for stock ahead of the client's order.
Normally this can be as a result of insider information which is prohibited, but the options above all allow this practice.
-If the firm can demonstrate that the trade is unrelated to the customer's block order
-If the trade was made to fill or facilitate the customer's block order
-If the trade is executed on a national stock exchange and in compliance with its rules
A member firm receives a large block order to buy 100,000 shares of XYZ stock, which is not actively traded. Which customer(s) of the firm can buy XYZ stock prior to the filling of the block trade?
A. The registered representative who received the order
Correct Answer
B. Other customers of the firm who place buy orders, if the firm has information barriers in place
Incorrect Answer
C. Any customer of the firm who places an unsolicited order
D. No customer can buy the stock until the block order to buy is filled
Answer:
Other customers of the firm who place buy orders, if the firm has information barriers in place.
Explanation:
FINRA has strict rules against front running, and this is the process by which interested parties place orders for shares beforehand because they have insider information on how a share is going to perform in the future.
This rule is binding on any registered representative.
However if the firm has information barriers in place, any other customers that places a buy order will be assumed not to have insider knowledge of the share's expected performance. The FINRA rule is not binding on them.
Read the passage. Then answer the question that follows.
Jimena recently took out a fixed-rate loan from a bank in order to purchase a new car. She agreed to repay the loan within five years. Unexpectedly, the inflation rate rose dramatically shortly after she took out the loan.
Will this situation provide more financial benefit to Jimena or the bank? Why?
A Jimena, because the value of the money she was loaned will increase
B the bank, because the value of the money it loaned to Jimena will increase
C Jimena, because she will repay the loan with money worth less than the money she was loaned
D the bank, because it will be repaid with money worth more than the money it loaned to Jimena
Answer:
C Jimena, because she will repay the loan with money worth less than the money she was loaned
Explanation:
In simple terms, inflation shows how money value decreases over time. If the inflation rate rose dramatically, that means the value of money will decrease at a higher rate.
In this case, the present value of money will be much higher than the future value. Jimena gets loaned as the present value, but she will pay it at the future value which worth less than the present.
The hotel chain Ritz-Carlton uses the phrase "Ladies and gentlemen taking care of ladies and gentlemen" to demonstrate the company's cultural commitment to take care of both employees and customers. Which of the following is the Ritz-Carlton using to express its corporate culture?a. The company is expressing its key corporate value with a slogan.b. The company is using a ceremonial demonstration of its values.c. The company is conveying the value of its employees with a story.d. The company is illustrating its heroes with strong company values.
The company is expressing its key corporate value with a slogan is the Ritz-Carlton using to express its corporate culture.
Explanation:
The fundamental beliefs about which your organisation and your actions are founded are corporation values, also recognised as corporate values or fundamental values.
They are the concepts that your company uses to control its internal investigations and customer interactions.
Your core values if established must be strong and uncompromising – a guideline instead of a suggestion. They might affect each aspect of your business, from benefits for employees and culture throughout the work environment to marketing techniques and customer support.
The team that is planning the annual company sales meeting has members in several offices. They need to have a conversation about the agenda for the sales meeting. Which of the following will they most likely use?a. e-mail. b. blog posts. c. a conference call. d. social networking.
Answer:
C
Explanation:
The question is asking what method of communication will be used by a team having to plan for the annual sales meeting.
This can be achieved by having a conference call. A conference call will provide the necessary framework needed by the members of the committee to communicate their thoughts effectively to all other members of the group. With conference call, opinions of each member can easily be passed or related to the other group members instantly
The Smith family takes out a $10,000 loan for their son’s college education. Their son, Adam, completes college in 4 years. When he does the Smith family owes the $10,000 they originally borrowed plus the $2000 accrued in interest over the 4 years Adam was in school. What kind of loan did the Smith family take out?
A.Private Loan
B.Standard Loan
C.Subsidized Loan
D.Unsubsidized Loan
The Smith family likely took out an unsubsidized loan because interest accrued on their loan while their son was in college and had to be paid back in addition to the original amount after he graduated.
Explanation:The Smith family took out a loan for their son's college education, and after completing college, they owed the original amount plus accrued interest. Given that the interest accrued over the 4 years while Adam was in school, it suggests that loan payments were deferred until after graduation. This characteristic aligns with a federal Direct Unsubsidized Loan, where interest accumulates from the time the loan is disbursed, but payments can be deferred while the student is in school. Conversely, with a subsidized loan, the government pays the interest while the student is in school, so that would not align with the situation described. Therefore, the Smith family likely took out an unsubsidized loan.
For any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits. Suppose there is a sharp improvement in the technology for controlling pollution.
Illustrate the effect of this development on the demand for pollution rights.
Answer:
Usually, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with pollution permits for any given demand curve for the right to pollute. But If there is a sharp improvement in the technology for controlling pollution for any given demand curve for the right to pollute, the effect of this development is a change in the demand for tradeable pollution rights as illustrated below.
Explanation:
Trading pollution rights has opened up a thriving market system for its demand by firms that emit carbon di oxide and other forms of air/water pollution to the environment.
This is where the exchange of permits or "rights" to release pollution residuals into the environment takes place.
These pollution permits is be bought and sold in by industries and government respectively .
Prices would vary according to the forces of supply and demand The total number of permits would be based on the amount of permissible pollution residuals that can be safely released into the environment during a given period of time. These permits could be given away or auction off to potential polluters, in most cases the highest bidder.
Suppose there is a sharp improvement n Technology for controlling pollution such as
industrial process machines that eliminates air pollution by collecting and recycling the harmful substance that should have escaped into the atmosphere for use or even for sale when the need for it has been discovered thereby reducing or controlling pollution.a mechanism that protects the environment by conserving and protecting natural resources while strengthening economic growth through more efficient production in industry and less need for households, businesses and communities to handle waste.The demand for pollution rights will drastically reduce.
Answer:
We will try to study this as the market for pollution rights.
The government supplies pollution rights and industries demand pollution rights. A sharp improvement in pollution controlling technology will cause a similar effect to a technological improvement that increases productivity in any other type of industry.
This technological improvement shifts the supply curve to the right, increasing the quantity supplied at every price level. The increase in the quantity supplied will result in a lower equilibrium price (lower tax) and an increase in the quantity demanded (more pollution rights demanded).
Puff Co. acquired 40% of Straw, Inc.'s voting common stock on January 2, Year 1, for $400,000. The carrying amount of Straw's net assets at the purchase date totaled $900,000. Fair values equaled carrying amounts for all items except equipment, for which fair values exceeded carrying amounts by $100.000. The equipment has a five-year life. During Year 1, Straw reported net income of $150,000. What amount of income from this investment should Puff report in its Year 1 income statement if Puff uses the equity method to account for the investment?
Answer:
Investment revenue = $52,000
Explanation:
Since Puff uses the equity method, the original journal entry to record the purchase of 40% of the shares should have been:
Dr Investment in Straw 400,000
Cr Cash 400,000
After one year, Straw earned $150,000 in net income, but it also had equipment with a fair market value higher than carrying value also depreciable by $100,000. So the net income must be adjusted = $150,000 - ($100,000 x 20%) = $130,000. The journal entry to record the adjusted income should be ($130,000 x 40%):
Dr Investment in Straw 52,000
Cr Investment revenue 52,000
Puff Co. should report $52,000 as income from the investment in Straw, Inc. on its Year 1 income statement under the equity method, accounting for its share of Straw's net income and adjusting for the amortization of the fair value excess of equipment.
Puff Co. acquired 40% of Straw, Inc.'s voting common stock for $400,000 when the carrying amount of Straw's net assets was $900,000. The fair value of the equipment was $100,000 more than its carrying amount. Since Puff Co. uses the equity method for accounting for this investment, it must recognize its share of Straw's net income and adjust for the excess of fair value over carrying amount.
Straw's net income for Year 1 is $150,000. Puff Co. would record 40% of this, which is $60,000, as its share of Straw's net income. However, we also need to factor in the excess fair value of equipment which is $100,000. Since the equipment has a five-year life, this excess should be amortized over five years. Thus, Puff Co. needs to recognize an additional $20,000 ($100,000/5 years) each year as additional expense. Subtracting 40% of $20,000 (which is $8,000) from Puff Co.'s share of Straw's net income ($60,000), we get $52,000 as the income from the investment Puff Co. should report in its Year 1 income statement.
Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing?
a. electronic marketing
b. social networking
c. digital retailing
d. mobile marketing
e. digital marketing
Answer:
a. electronic marketing
Explanation:
The electronic marketing refers to the strategic processing of the distribution and promotion and pricing of the products and discovery of the desires of the customers and users of their digital media in digital marketing to develop a strategic plan for the promotion of the marketing.If the production function exhibits decreasing returns to scale in the steady state, an increase in the rate of population would lead to:______________. 1. no growth in total output or in output per worker. 2. growth in total output but no growth in output per worker. 3. growth in total output but a decrease in output per worker. 4. growth in total output and growth in output per worker
Answer:
3. growth in total output but a decrease in output per worker
Explanation:
A production function depicts a functional relationship between production and factors of production such as land, labor, capital and entrepreneur.
In the long run, all factors of production are variable. Herein, an increase in factors of production leads to less than proportionate increase in a firm's output, it is referred to as decreasing returns to scale.
An increase in the population would lead to rise in the availability of a factor of production i.e labor. But such an increase would only increase the total output and output per worker won't increase and would keep falling owing to the operation of decreasing returns to scale.
Final answer:
An increase in the rate of population in the context of a production function with decreasing returns to scale leads to growth in total output but a decline in output per worker. This follows from the diminishing contribution each additional worker makes to output as more labor is added to a fixed amount of capital or land.
Explanation:
If the production function exhibits decreasing returns to scale in the steady state, an increase in the rate of population would lead to growth in total output but a decrease in output per worker. This outcome results from the fact that while more workers can produce more total goods, the efficiency by which each worker contributes to output declines. Hence, while the overall 'pie' is larger, the slices (output per worker) become smaller when divided among more people.
Diminishing returns occur when additional units of labor or other factors of production add steadily less to total output when other factors remain constant. This concept is particularly evident in scenarios where labor is added to a fixed quantity of land or capital, a situation famously discussed by Malthus, where he predicted a Malthusian trap due to the uncontrolled population growth outpacing the agricultural production needed to sustain it.
Returns to scale are an important aspect of production functions, assessing whether an increase in all inputs leads to a proportionate increase in output. With decreasing returns to scale, the percent growth in outputs is less than the percent increase in inputs, indicating that each additional input adds less to the output than the previous ones, exemplified by increased population not increasing output per worker equivalently.
what is a(n) economic model?
Explanation:
It is an simplified version which makes us to understand and observe the "economic behavior"
It purely uses mathematical concepts and simplify the information and show only important or highlighting information.
You can alternatively use "economic theory" instead of "economic model"
A good economic model, will make the user to understand the complex information with the help of key pointers.
There are 2 broad classification of Economic model:
1. Theoretical
2. Empirical.
The commonly used economic model is the classic model, which constitutes of "The law of demand and the law of supply"
Final answer:
An economic model is a theoretical framework that simplifies and represents complex economic activities to help understand and predict economic outcomes utilizing variables and their quantitative relationships.
Explanation:
Economic Models Explained
An economic model is a simplified, theoretical representation of economic processes. These models are constructed using variables and their relationships to illustrate complex aspects of the economy. They often utilize mathematical tools to analyze and fit theories to economic scenarios with the goal of making predictions and explaining economic phenomena. In essence, they provide a framework to help economists and policymakers understand how different factors in an economy interact with each other.
Economists reason with models by removing non-essential details, thereby creating a clearer view of economic relationships and outcomes. Economic models may take various forms, including graphical illustrations such as supply and demand curves, or mathematical equations. While these models are based on assumptions that do not perfectly reflect reality, they are crucial for breaking down complex economic activities into more manageable and understandable components.
As tools for simplification, economic models are not without limitations. They cannot account for every aspect of economic behavior or every individual interaction. However, they serve an invaluable purpose by highlighting essential trends and patterns that enable better decision-making and forecasting in the realm of economics.
A 68-year old new customer has investment objectives of preservation of capital and income in retirement. The customer has a low risk tolerance and is in the 35% marginal federal tax bracket and is in the 10% state tax bracket. Which investment recommendation would be most suitable for this client
Answer:
C) Pre-funded general obligation funds.
Explanation:
Since this customer is looking to preserve his capital and income in retirement (he is 68 years old, if he isn't retired, he will soon be). Since his tax bracket is very high, he should invest in bonds that do not pay federal income taxes, like pre-funded municipal bonds. These are very safe investments that generally have shorter maturity dates. That way, both of the client's needs will be met: secure investments and income.
__________ is a strategy for the protection of information assets that uses multiple layers and different types of controls (managerial, operational, and technical) to provide optimal protection.
Answer:
Defense in depth
Explanation:
Defense in depth is secure strategy used for the protection of information assets that employs the use of multiple layers and different types of controls to provide optimal protection.
The phrase "defense in depth" is often associated with the field of cyber-security. It is a sure and secure way of storing data in a database. This methodology is an information assurance procedure that creates a multi-layered approach to avoid security breaches in handling of data.A consumer is consuming at a point on her budget line. Her income is $50 a week, and she purchases hamburgers and grilled cheese sandwiches. Hamburgers cost $4, and she consumes 10 of them. She consumes eight grilled cheese sandwiches. How much do grilled cheese sandwiches cost?
Answer:
Each grilled cheese costs $1.25
Explanation:
Giving the following information:
Her income is $50 a week. Hamburgers cost $4, and she consumes 10 of them. She consumes eight grilled cheese sandwiches.
To calculate the price of the grilled cheese sandwiches, we need to use the following equation:
Income= cost of hamburgers*number of units + cost of grilled cheese*number of units
50= 4*10 + x*8
10=8x
$1.25= x= grilled cheese
Every customer that exited the store was subjected to close scrutiny of their shopping cart and receipt by a highly trained inspector. This activity would be represented on a process map with which symbol?
Answer:
O
Explanation:
To record on a map the activity of every customer that exited the store, who was subjected to close scrutiny of their shopping cart and receipt by a highly trained inspector, the symbol to use in this scenario is ○.
Cheers
When sport leagues do not expand into a market that can support a franchise, or when they create rules to limit the movement of existing franchises, what economic concepts is being applied?
Answer:
scarcity
Explanation:
Based on the information provided within the question it can be said that this scenario is causing the economic concept of scarcity to be applied. In the context of economics, this term refers to something that is being limited and thus creating a gap between the limited resource and the possible limitless wants/demand that may exist.
Tenants in common vs joint tenants with rights of survivorship
Answer:
When two or more people own community property like a home, either as joint tenants or tenants in common, each individual owns a share (or interest) of the entire property
Explanation:
SIMILARITY
When two or more people own community property like a home, either as joint tenants or tenants in common, each individual owns a share (or interest) of the entire property. This means that specific areas of the property are not owned by one individual, but rather shared as a whole.
DIFFERENCE
1. Ownership Interest : Tenants in common may be created at different times; so an individual may obtain an interest in the property years after the other individuals have entered into a tenancy in common ownership BUT Joint tenants, on the other hand, must obtain equal shares of the property with the same deed at the same time.
2. Right of Survivorship : One of the main differences between the two types of shared ownership is that Joint tenants have right of survivorship and tenants in common do not.
One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies.
In Joint Tenants the interest of a deceased owner automatically gets transferred to the remaining surviving owners but not the case in tenants in common.
Tenants in common allows individual owners to pass their share through a will or intestacy, while joint tenancy includes a right of survivorship, where the deceased's share automatically passes to the surviving owners.
Differences Between Tenants in Common and Joint Tenants with Rights of Survivorship
When considering property ownership, particularly in real estate, understanding the types of joint ownership is crucial. The terms tenants in common and joint tenants with rights of survivorship refer to different arrangements of co-owning property, and the choice affects how property is transferred upon the death of one of the owners.
Tenants in common is a form of joint property ownership where each party has an undivided share in the property. Upon the death of one tenant, their share does not automatically transfer to the other tenants; instead, it becomes part of their estate and can be bequeathed to their heirs through a will or passed on according to state intestacy laws.
In contrast, joint tenants with rights of survivorship means that the property is owned jointly in equal shares, and upon the death of one joint tenant, the surviving joint tenants automatically inherit the deceased's share. This right of survivorship bypasses the probate process and often trumps provisions in a will or intestacy laws.
Understanding the implications of these two forms of property ownership helps avoid potential disputes, ensures clarity in the transfer of ownership, and helps individuals make informed decisions aligned with their estate planning goals.