Answer:
1,006,400
Explanation:
To know the unamortized portion we have to solve for the amount amortizated at the first payment in December 31th,2021.
Under the effective-rate method we will calculate the amortization as follow:
interest expense:
9,080,000 x 8% = 726,400
cash outlay:
8,000,000 x 10% = 800,000
amortization on premium:
800,000 - 726,400 = 73,600
the unamortized bond premium at year-end should be:
1,080,000 - 73,600 = 1,006,400
Dennis is always the most organized member of his group. He frequently
encourages the group to plan ahead. He develops lengthy "To Do" lists of tasks
for the group to follow. Which Myers-Briggs personality trait best describes
Dennis?
a. sensor
b. judger
c. intuitive
d. perceiver
e. thinker
Answer:
B. Judger
Explanation:
The Myers-Briggs personality trait describes the Judger as people who are coordinated and have a structured way of carrying out tasks and achieving their objectives. They are mostly organised and structured in their lifestyles.
Therefore, the attributes noted in Dennis, best describes him as a Judger according to Myers-Briggs personality trait
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2018, the business pays $100,000 in W-2 wages, holds $150,000 of qualified property, and reports $150,000 in net income (all of which is qualified business income). Susan has no other items of income or loss and will take the standard deduction.
What is Susan's QBI deduction?
Susan's Qualified Business Income deduction for her bakery in 2018 would be $30,000, calculated as the lesser of 20% of her qualified business income or the limitation based on W-2 wages and qualified property.
Explanation:The question focuses on calculating Susan's Qualified Business Income (QBI) deduction for her sole proprietorship bakery for the tax year 2018. Under the Tax Cuts and Jobs Act, individuals are allowed to deduct up to 20% of their QBI from a pass-through entity, such as a sole proprietorship. There are limitations based on W-2 wages paid and the unadjusted basis of qualified property immediately after acquisition (UBIA). Since Susan's business is not a specified service trade or business (SSTB), she can potentially qualify for the full deduction. The QBI deduction is the lesser of 20% of QBI or a limit based on W-2 wages and qualified property. Susan's potential QBI deduction is 20% of her net income (20% of $150,000), which equals $30,000. However, this must also be compared against the limitation based on W-2 wages and qualified property (50% of W-2 wages or 25% of W-2 wages plus 2.5% of UBIA of qualified property). 50% of Susan's W-2 wages is $50,000, which exceeds the 20% QBI amount. Therefore, Susan's QBI deduction is $30,000.
During the year, Cathy received the following:_______.
A) Dividends of $4,000 from Lindsay Corporation. Cathy's father owns the stock and directed the corporation to send the dividends to Cathy.
B) A car worth $30,000 for being the 1,000th customer at a car dealership.
C) $5,500 cash gift from her uncle.
D) $10,000 inheritance from her grandmother.
Answer: During the year, Cathy received the following: A) $30,000
Joseph buys a Hummer for $59,000, financing it with a five-year 7.60% APR loan paid monthly. He decides to pay an extra $50 per month in addition to his monthly payments. Approximately how long will he take to pay off the loan under these conditions?
Answer:
57.07 months.
Joseph must decide whether the 57th payment was $1,327, or he can pay a 58th payment of just $92.
Explanation:
The easiest way to calculate a monthly payment is using a payment calculator:
principal = 59,000n = 60APR = 7.6%Monthly payments = $1,185.04
Since Joseph will pay an extra $50 each month, his payment = $1,235.04
By paying that extra amount Joseph will reduce his payments by almost 3 months to 57.07 months
After the 57th payment, Joseph' balance = $91.43, so he can decide to pay a little on the 57th payment or just pay $92 next month.
In many cases, companies that enter a market after innovative products have been introduced can achieve long-term competitive advantages by continuing to develop a better mousetrap. For example, VisiCalc was the first company to introduce a desktop spreadsheet program, but Lotus Notes cornered a large market share when it introduced the 1-2-3 program. Today, however, Microsoft’s Excel is the dominant spreadsheet software program and has continued to endure due to the popularity of the Microsoft Office Suite of products. VisiCalc possessed a ___________ advantage while Microsoft enjoyed a ___________ advantage.
Answer:
First-mover
Second-mover
Explanation:
A first mover is a provider of product, that achieves a market advantage by being the first type of product to be marketed. Generally, being gets the first firm in the market to get the advantage of the strong market and customer satisfaction.
The "second mover's advantage" is the value of joining others into a business or imitating an old product that a new innovative company gets.
In this case VisiCalc is a First-mover and Microsoft is a Second-mover.
Bend Company’s December 31, 2020 balance sheet reports assets of $13,210,000 and liabilities of $4,275,000. The book values of Bend’s assets approximate their fair values, except for land, which has a fair value $600,000 greater than its book value. On December 31, 2020, Blue Corporation paid $11,775,000 to acquire Bend. What amount of goodwill should Blue record as a result of this purchase?
Answer:
Blue should record $2,240,000 of goodwill as a result of this purchase.
Explanation:
Fair value of Assets = $13,210,000 + $600,000 = $13810,000
Liabilities = $4,275,000
Net Asset = Total fair value of asset – Total Liabilities
Net Assets = $13,810,000 – $4,275,000 = $9,535,000
Goodwill = Acquisition price – Net Assets
Goodwill = $11,775,000 - $9,535,000 = $2,240,000
Blue should record $2,240,000 of goodwill as a result of this purchase.
Which term refers to the online means of communication, conveyance, and collaboration among the interdependent and interconnected networks of people, communities, and organizations?
Answer:
social media
Explanation:
social media - it is referred to as a platform of communication where people from different regions get interacted with each other through a communication device or medium like the internet, etc.
Social media is considered to be a faster-growing platform around the globe that helps people to come together and share their culture, tradition, etc.
How is the Environmental Protection Agency (EPA) organized?
Answer:
Environment Protection Agency is the federal authority that is established to preserve, conserve, protect and promote the environment. Specially in matters related to industrialcriviteis and Commerce.
EPA is the monitoring and regulating body of businesses and how their business activities affect the environment. If EPA is not satisfied with any business they can temporary halt the activities and proceed to take legal actions.
Explanation:
Just For Me is a line of hair care products for pre-teenage girls, that is, girls between the ages of eight and twelve. This is the age when many young girls start to care about their looks and want to make their own decisions regarding their grooming. The manufacturer of this brand decided to use television advertising to inform and persuade girls about this line of products. Taylor Swift, a singer and actress who is popular with the target market, appears in the Just For Me commercial claiming the benefits of the product. Swift is well liked, respected, and believable to this target market. The ads are very successful. What is the most likely reason for the success of this campaign
The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.A.TrueB.False
Answer:
Marketing logistics (True)
Explanation:
The process which involves all the stages of a product or material is known as marketing logistics. Marketing logistics process involves ordering the raw material for the product, processing the product, operational stages and then delivering the products to the end-user. These steps are involved in marketing logistics. So, marketing logistics is a critical part of any organisation or a firm.
. A company that manufactures soaps could not sell its products despite spending a good amount on advertisements. Therefore, management decided to use the concept of direct marketing. They thought of appointing a large number of salespersons who would do door-to-door selling of the product. This is an example of a strategic:
Answer:
strategic plan
Explanation:
Strategic plan is a tool used by an organization in strategic planning to ensure the mission and vision of the organization are achieved, which involves implementing, formulation, defining and redefining of strategies as well as deciding how resources are allocated in taking action steps in effecting changes. A strategic plan helps a company to make decisions and also in evaluating the progress of a company. It helps the company in meeting its goals and objectives.
A customer of a RR wants to give the RR two tickets to a local musical worth $150. Which of the following is true? (A) The tickets may be accepted because they are from a satisfied customer. (B) The tickets may be accepted after the prior written approval of FINRA. (C) The tickets may not be accepted because they exceed the $100 limit. (D) The tickets may not be accepted regardless of the value of the tickets.
Answer:
(C) The tickets may not be accepted because they exceed the $100 limit.
Explanation:
There is a restriction on the amount each employee can collect from customers, this is to ensure that gifts are not used as a way to influence employees. This is according to rule of FINRA (Financial Industry Regulation Authority) 3220. The limit is $100 per employee per year.
The tickets worth $150 cannot be accepted by a registered representative since they exceed the $100 limit set by regulatory guidelines, violating the acceptance of gifts and gratuities rules.
The correct answer to the question is (C) The tickets may not be accepted because they exceed the $100 limit. In the context of rules and regulations for registered representatives (RR) set by financial industry regulatory bodies like FINRA, there are strict guidelines regarding the acceptance of gifts and gratuities. FINRA has a limit on the value of gifts that can be accepted by an RR from customers without prior written approval. This limit is traditionally set at $100. As the tickets have a value of $150, accepting them would violate these regulations.
Therefore, despite being offered by a satisfied customer, the RR must adhere to these rules and decline the tickets.
"The average monthly rent for a two-bedroom apartment in City A is $820 with a standard deviation of $86. The average monthly rent for a two-bedroom apartment in City B is $790 with a standard deviation of $75. Based on this data, we can conclude that the rent for two-bedroom apartments in City A is more consistent when compared to City B." Ture/false
Answer:
Explanation:
We shall apply the concept of coefficient of variation to know the consistency of data
coefficient of variation
= standard deviation / mean or average
In case of City A
coefficient of variation = 86 / 820
= .1048
In case of City B
coefficient of variation = 75 / 790
= .0949
Since it is less for city B , rent for this city is more consistence or with less of variation
So the conclusion is false.
City B has more consistent rental prices for two-bedroom apartments because it has a lower standard deviation of $75 compared to City A's standard deviation of $86.
Explanation:The statement that the rent for two-bedroom apartments in City A is more consistent when compared to City B is false. When comparing two sets of data, we look at the standard deviation to determine which set has more consistent data. In this instance, the standard deviation for City A is $86 and the standard deviation for City B is $75. The lower the standard deviation, the more consistent the data. Therefore, City B has more consistent rental prices for two-bedroom apartments because it has a lower standard deviation.
Learn more about Standard Deviation here:https://brainly.com/question/31516010
#SPJ3
Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year? (Round your final answer to nearest whole dollar.)
Answer:
$5
Explanation:
Data provided are as follows
Purchase price of stock one year ago = $27
Now stock price= $32
Total return percentage = 37%
So, The computation of the dollar amount of dividend is:
= Purchase price of stock one year ago × Total return percentage - difference in stock price
= $27 × 37% - $5
= $10 - $5
= $5
The difference would be
= $32 - $27
= $5
Barter is a. illegal in the United States. b. an efficient system of exchange. most useful when there is much specialization and international trade. d. only possible if money is used as a e. the direct exchange of goods without the use of money. c. medium of exchange
Answer:
the direct exchange of goods without the use of money
Explanation:
Trade by barter is the exchange of goods for goods. Money isn't used in a barter system.
Trade by barter has some inefficiencies such as double coincidence of wants, lack of standard unit of account etc
I hope my answer helps you
The manager at East End Burgers regularly speaks with customers to find out what improvements they might suggest to the product and service. The manager is determining if his ________ of what his customers like is accurate.
Answer:
knowledge
Explanation:
When it comes to marketing products, the manager plays a vital role. In order to reach out to customers, he can talk to them regularly whether they like the product and service. He can also ask if they have any suggestions for improvements.
The product and service are seen by the target audience's eyes thus, it is essential that the manager asks them for feedback. This will allow him to determine whether his knowledge on what his customers like is accurate or true. It will also aid him in creating efficient marketing strategies.
Old school publishing inc. began printing operations on january 1. jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. in addition to the materials and labor charged directly to the jobs, $1,030 of indirect materials and $12,430 of indirect labor were used during the month. the cost sheets for the four jobs entering production during the month are as follows, in summary form:
Complete Question:
direct material 10,900
Direct Labor 8,900
Factory Overhead 5785
Total 25,585
Job 302
Direct Material 18,300
Direct Labor 17,700
Factory Overhead 11,505
Total 47505
Job 303
Direct Materials 26,000
Direct Labor 16,000
Factory Overhead -
Job 304
Direct Material 13700
Direct Labor 12300
Factory Overhead -
Required:
Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles.
A. Direct and indirect materials used.
B. Direct and indirect labor used.
C. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
D. Completion of Jobs 301 and 302.
Solution:
S No. Particulars Debit ($) Credit ($)
A. Work in process 68900
Material inventory 68900
(10900+18300+26000+13700)
(Direct materials used)
Factory overhead 1030
Material inventory 1030
(Indirect materials used)
B. Work in process 54900
Wages payable 54900
(8900+17700+16000+12300)
(Direct labor used)
Manufacturing overhead 12430
Wages payable 12430
(Indirect labor used)
C. Work-in-process 35685
Manufacturing overhead 35685
(Note:1)
(Factory overhead applied)
D. Finished goods 73090
Work-in-process 73090
(Total cost of Job 301 & 302)
(25585+47505)
(Completion of Jobs 301&302)
Notes:
1 Consider Job 301
Direct labor=8900
Factory overhead=5785
Factory overhead as a % of direct labor =(5785/8900)*100 = 65%
Total direct labor cost for all four jobs= 54900
Factory overhead=54900*65%
=35685
The business scenario discusses the method of job costing, in which both direct and indirect costs are allocated to individual jobs. Direct costs are allocated directly, while indirect costs need to be spread among all jobs based on a fair method, such as labour or machine hours.
Explanation:The subject question pertains to Job Costing in business accounting, a method used to accumulate costs of individual jobs. To calculate the costs of Jobs 301 and 302, we need to take into account the direct and indirect costs mentioned and assign them to these jobs. Direct costs are those that can be directly assigned to a job, like labor or materials used specifically for that job. Indirect costs, on the other hand, such as indirect materials and labor, rent and utilities, are costs that are not incurred for a specific job but for the business as a whole. These should be allocated among all jobs.
In the given scenario, Jobs 301 and 302 have finished, while 303 and 304 are unfinished. All costs except factory overhead (presumably including the indirect materials and labour) have been noted down. The overhead costs ($1,030 and $12,430) need to be allocated to these jobs on some equitable basis, possibly based on labour or machine hours used per job. To find the total cost for each job, the allocated share of overhead costs should be added to the initial costs. The result would be the job costs for each job.
Learn more about Job Costing here:https://brainly.com/question/34938833
#SPJ3
A person has decided to construct a frequency distribution for a set of data containing 60 numbers. The lowest number is 23 and the highest number is 68. If 7 classes are used, the class width should be approximately _______.a) 5b) 7c) 9d) 11e) 12
Answer: The correct answer is b) 7
Explanation: Class width refers to the difference between highest and lowest number divided by the number of classes.
In calculating class width, the range of the frequency distribution is first calculated before it is divided by the number of classes.
Therefore, Range = Highest number - Lowest number = 68 - 23 = 45
Class width = Range / Number of classes
= 45 / 7
= 6.428
In rounding up to the nearest whole number it becomes 7.
To construct a frequency distribution with 7 classes for a data set from 23 to 68, the class width should be approximately 7
Explanation:To determine the approximate class width for a frequency distribution, one must subtract the lowest number from the highest number, then divide the resultant by the number of classes. In this case, the lowest number is 23 and the highest number is 68. Therefore, the range of the data set is 68 - 23 = 45.
Then divide this value by the number of classes, which is seven here. So, 45 / 7 = 6.43, which we round up to the nearest whole number to make sure all values are included, resulting in a class width of approximately 7.
Learn more about Frequency Distribution here:https://brainly.com/question/32438359
#SPJ3
Sumner sold equipment that it uses in its business for $30,800. Sumner bought the equipment a few years ago for $79,600 and has claimed $39,800 of depreciation expense. Assuming that this is Sumner's only disposition during the year, what is the amount and character of Sumner's gain or loss?
Answer:
The correct answer is loss of $9,000 and section 1231.
Explanation:
According to the scenario, the given data are as follows:
Purchase amount of equipment = $79,600
Depreciation expense = $39,800
Sold value = $30,800
So, to calculate the amount of gain or loss we use the following formula:
Gain or loss = Sold value - ( purchase value - depreciation expense)
= $30,800 - ( $79,600 - $ 39,800 )
= $30,800 - 39,800
= -$9,000
As the value is in negative, it shows loss.
Hence, It shows the loss of $9,000 under section 1231.
Vaughn Manufacturing reported total manufacturing costs of $450000, manufacturing overhead totaling $98000, and direct materials totaling $116000. How much is direct labor cost?
Answer:
Direct labor cost will be equal to $236000
Explanation:
We have given total manufacturing cost = $450000
Manufacturing overhead totaling is equal to $98000
And direct material totaling is equal to $116000
We have to find the direct labor cost
Direct labor cost is equal to
Direct labor cost = Total manufacturing cost - manufacturing overhead totaling - direct material totaling
= $450000 - $98000 - $116000 = $236000
So direct labor cost will be equal to $236000
When preparing a representative sample from a list of 200 customers who complained about errors in their statements, a _____ could ensure the sample is balanced geographically by selecting five customers from each of four zip codes.
A• Random sample
B• Comprehensive Sample
C• Stratified sample
D• Systematic sample
Answer:
C. Stratified sample
Explanation:
Stratified sample -
It is the method of sampling , where the distribution of the samples are done on the basis of certain partition in the complete population , is referred to as stratified sampling .
The distribution can be done on the basis of the geographical area or conditions , as the division makes the sampling method fast and efficient .
Hence , from the given scenario of the question ,
The correct option is C. Stratified sample .
The correct sampling method for a sample that is balanced geographically is a stratified sample. Cluster sampling and systematic sampling are other types of sampling methods used in different scenarios.
Explanation:When preparing a representative sample from a list of 200 customers who complained about errors in their statements, a stratified sample could ensure the sample is balanced geographically by selecting five customers from each of four zip codes. This method divides the population into smaller groups, or strata, based on shared characteristics - in this case, geographic location. Each stratum is then sampled proportionally, ensuring that all groups are represented in the final sample.
In the department store employee satisfaction survey example, selecting four departments at random and interviewing all employees in those departments is an example of cluster sampling. Here, entire groups, or clusters, are randomly selected, and all members within those selected clusters are included in the sample.
Similarly, if a health club wanted to understand member usage and decided to ask every tenth customer on a specified day to complete a survey, this would be an example of systematic sampling. In this method, members of the population are selected at regular intervals to form the sample.
Samantha needs to purchase something that economists would label as "labor" to help her produce court documents for her law firm. Which of the following is an example of labor?
A. Stenography machine to type courtroom proceedings.
B. The ability to see that organizing courtroom documents is an unfilled market need.
C. Filing cabinets to store the typed courtroom documents.
D. A stenographer who can type courtroom proceedings.
Answer:
D) A stenographer who can type courtroom proceedings.
Explanation:
There are four factor of production:
land: includes any raw materials and natural resources used to produce other goods labor: human work involved in the production process. A stenographer is a human that works. capital: physical tools and equipment involved in the production processentrepreneurship: person that combines all the other 3 factors of productionWith an emphasis on the rapidly changing business landscape, which organizational culture can be beneficial in requiring adaptability?
Answer:
Learning culture
Explanation:
A learning culture in an organization is one that involves the employees being subjected to different types of training on a regular basis, by the organization to update their knowledge and keep up with changes in the business environment.
An organizational culture that can be beneficial in requiring adaptability are agile, learning, and customer-centric cultures.
Explanation:Adaptability is a crucial skill in the rapidly changing business landscape, and an organizational culture that promotes and requires adaptability can be highly beneficial. One such culture is an agile culture. In an agile culture, employees are encouraged to be flexible, responsive to change, and willing to quickly adapt their strategies and approaches.
Another organizational culture that can promote adaptability is a learning culture. In a learning culture, there is a strong emphasis on continuous learning and improvement. Employees are encouraged to acquire new skills, stay updated with industry trends, and adapt their workflows based on new information and insights.
Lastly, a customer-centric culture can also foster adaptability. In a customer-centric culture, the focus is on meeting the evolving needs and expectations of customers. This requires organizations to be flexible, innovative, and responsive to market changes to ensure customer satisfaction and maintain a competitive edge.
Learn more about Organizational culture here:https://brainly.com/question/33753839
#SPJ3
The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate? $10.00 per machine-hour $12.50 per machine-hour $8.00 per machine-hour $6.00 per machine-hour
Answer:
$6.00 per machine-hour
Explanation:
Total estimated manufacturing overhead = $300,000
Estimated machine hours = 50,000 hours
Predetermined overhead rate = Total estimated manufacturing overhead / Estimated machine hours
Predetermined overhead rate = $300,000 / 50,000 machine hours
Predetermined overhead rate = $6 per machine hour
So, The correct asnwer is $6.00 per machine-hour.
Answer:
$10 per MH
Explanation:
Estimated total overhead cost = $300,000 + ($4 per MH × 50,000 MHs) = $500,000
Predetermined overhead rate = Estimated total overhead cost of $500,000 ÷ 50,000 MHs = $10 per MH
Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activities of $2,000. If the beginning and ending cash balances for the company were $4,000 and $11,000, then net cash change from investing activities was_____________.A. an outflow or decrease of $1,000. B. an inflow or increase of $2,000.C. an inflow or increase of $1,000.D. zero.
Answer:
A. an outflow or decrease of $1,000.
Explanation:
Ending balance of cash = Opening balance of cash + Net cash flow of the period
Ending balance of cash = Opening balance of cash + ( Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities )
$11,000 = $4,000 + $10,000 + cash flow from investing activities - $2,000
$11,000 = $12,000 + cash flow from investing activities
Cash flow from investing activities = $11,000 - $12,000
Cash flow from investing activities = -$1,000
Paragraph Styles Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term risk-free government bonds were yielding 8.7 percent at the time. The current risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the risk- free long-term government bonds are currently yielding 7.8 percent, then at what interest rate should Rolling Coast expect to issue new bonds? Group of answer choices 7.8% 8.79 9.2% 10.2% 12.9%
Answer:
Explanation:
The risk premium two years back = 11.5 - 8.7 = 2.8 %
current risk premium = 2.8/2 = 1.4%
Current risk free bond yields 7.8 %
So Rolling Coast expected rate of interest on bonds = 7.8 + 1.4
= 9.2 %
Gambling appeals to basic human instincts: the desire for wealth, fascination with random events and beliefs in luck. in moderation , gambling can be simple escapist fun . a lottery , however isa poor way to gamble. the best ,easure for any game of chance is it payout ratio; for every dollar put in, how much is paid back? states lotteries
Answer:
True
Explanation:
Remember, gambling is a game of chance, meaning there is no 100% certainty of winning.
A random chance event occurs when gambling because for every dollar put in, how much is paid back is uncertain. However, because of the basic human instincts:
the desire for wealth, fascination with random events and beliefs in luck.people gamble.
The more you can do, the more is expected of you." Josh already had his hands full managing just one of his father's retail stores. He didn't doubt his ability to do well managing an entire region but still he was reluctant to accept the assignment. He is likely afraid of:_______________
Answer:
SUCCESS
Explanation:
Josh is likely afraid of: Success
Because of his success managing one of his father's retail store, he sure would feel there's every possibility of his success in future management position.
Without trade, the farmer produced and consumed 2 pounds of pork and 4 pounds of tomatoes and the rancher produced and consumed 4 pounds of pork and 2 pounds of tomatoes. then, each person agreed to specialize in the production of the good in which he has a comparative advantage and trade 4 pounds of pork for 6 pounds of tomatoes. as a result,
Answer:
the farmer gained 6 hours worth of production and the rancher gained 8 hours worth of production.
Explanation:
Labor Hours to Make 1 lb. of lbs. Produced in 24 Hours
Pork Tomatoes Pork Tomatoes
Farmer 6 3 4 8
Rancher 4 4 6 6
If both decide to specialize in producing only one good, the farmer will produce 8 pounds of tomatoes per day and the rancher will produce 6 pounds of pork per day.
This way when the rancher trades 4 pounds of pork in exchange for 6 pounds of tomatoes, he is gaining 2 pounds of pork which is equivalent to 8 labor hours.
When the rancher trades 6 pounds of tomatoes in exchange for 4 pounds of pork, he is gaining 2 pounds of tomatoes which is equivalent to 6 labor hours.
Final answer:
The student's question is focused on how specialization and trade, based on comparative advantages, improve production and consumption for individuals or countries. By producing what they are relatively better at and trading for other goods, all involved parties can benefit and consume more than they would without trade.
Explanation:
The student's question is about the impact of specialization and trade on the production and consumption patterns of two hypothetical individuals, a farmer and a rancher. Prior to trade, each produced and consumed a combination of pork and tomatoes. After agreeing to trade, each individual specialized in producing the good for which they had a comparative advantage. As a result of this specialization and the subsequent trade, both individuals were able to consume more than they could without trading. The example illustrates how trade can lead to an increase in consumption for both parties when they specialize according to their comparative advantages.
The surplus in world production mentioned suggests an increase in total output as a result of specialization and trade. For instance, when two countries specialize based on their comparative advantages and then trade, such as in the cases of France and the United States with cheese and wine, Mexico and the United States with shoes and refrigerators, or the hypothetical farmers with apples and oranges, they are all able to consume more than they could in autarky, which is the economic situation where each entity produces everything it consumes without engaging in trade.
This process not only applies to individual traders but also extends to international trade between countries, where the production possibilities frontier can shift outward, indicating the potential for greater production and consumption levels.
A manager finds out that the productivity of her workers has declined. Therefore, she creates a new social setting for the workers, where they share pleasant social relations with one another and receive special attention from the supervisor. The manager has implemented lessons from _____ to improve the productivity of her workers.
Answer:
The Hawthorne Effect
Explanation:
The delight that comes from special attention motivates workers to increase their productivity. The Hawthorne effect is therefore the phenomenon that employees will perform better when they feel singled out for special attention or feel that management is concerned about employee welfare.
Example of Hawthorne Effect in Businesses
Example of Hawthorne effect is seen in business everyday. if a promotion opportunity is made available, those in the organization who wants the promotion would change their behavior by working harder, stay a little later and try to be outstanding.
once the promotion is given to the qualified person, those that didn't get it would likely return to their behavior. They know that they are being watched while the promotion decision is being made so they step up their performance.