Answer:2 : 1
Explanation:
current ratio = current asset/current liability
If current liability was $900,000 less $100,000= $800,000
Therefore the current ratio=
$1,700,000/$800,000 =
2 : 1
Answer: The new current ratio is 2.125.
Explanation: The current ratio is expressed as current assets divided by current liabilities. If the company pays $100,000 due to creditors, it means the current liabilities would reduce to $800,000 ($900,000 minus $100,000). Therefore, the new current ratio will be $1,700,000 divided by $800,000 to give 2.125.
The ratio is one of the types of liquidity ratios. It is usually used to know by what extent the company can maximize the use of its current assets to settle obligations falling due within a year.
The result therefore means the company has twice the buffer to settle its obligations falling due within a year, even after paying $100,000 to its creditors.
East Corp., a calendar-year company, had sufficient retained earnings in 20X3 as a basis for dividends, but was temporarily short of cash. East declared a dividend of $100,000 on April 1, 20X3 and issued promissory notes to its stockholders in lieu of cash. The notes, which were dated April 1, 20X3, had a maturity date of March 31, 20X4 and an interest rate of 10%.How should East account for the scrip dividend and related interest?
A. Debit retained earnings for $110,000 on April 1, 20X3.
B. Debit retained earnings for $110,000 on March 31, 20X4.
C. Debit retained earnings for $100,000 on April 1, 20X3, and debit interest expense for $10,000 on March 31, 20X4.
D. Debit retained earnings for $100,000 on April 1, 20X3, and debit interest expense for $7,500 on December 31, 20X3.
Answer:
D. Debit retained earnings for $100,000 on April 1, 20X3, and debit interest expense for $7,500 on December 31, 20X3.
Explanation:
As East declared a dividend of $100,000 on April 1, 20X3, the journal entry to record the transaction -
Retained earnings debit $100,000
Dividend payable credit $100,000
As east issued promissory notes and the maturity date of March 31, 20X4, an interest rate of 10% arose. Seance the physical year ended in December 2004, the interest rate was accrued for December 2004 (9 months). The journal entry is
Interest expense debit $7,500 (Note - 1)
Interest payable credit $7,500
Calculation: $100,000 × 10% × (9 ÷ 12)
Calculation: $10,000 × (9 ÷ 12) = $7,500
Therefore, option D is correct.
The pastor of a new church decides to start prospecting for new members. He focuses first on people who live within a mile radius of the church, and contacts them via mail and by visiting them door-to-door. He then moves on to people who live from one to two miles away from the church, then two to three miles away, and so on, up to a limit of ten miles away. The pastor appears to be focusing on a __________ segmenting dimension.
Answer:
Geographic segmenting dimension
Explanation:
Geographic segmenting dimension -
It refers to the practice of focusing a particular area of people , is referred to as geographic segmenting dimension .
This type of segmentation require the bifurcation on the basis of state , city , region etc.
In this method potential people are targeted on the basis of their location .
Hence , from the given scenario of the question ,
The correct answer is Geographic segmenting dimension .
The pastor is focusing on a geographic segmenting dimension.
Segmentation is when a population is divided into groups based on certain shared characteristics.
Types of Segmentation
Geographic segmentation: a population is grouped based on the state, country or city they reside.Demographic segmentation: a population is grouped based on age, gender, ethnicity and other demographic factors.To learn more about segmentation, please check: https://brainly.com/question/14470350
If a person was sufficiently intoxicated to lack the mental capacity to comprehend the legal consequences of entering into the contract, the contract may be voidable at the option of the intoxicated person. If, despite intoxication, the person understood these legal consequences, the contract will be enforceable.1. True2. False
Answer:
The correct answer is True.
Explanation:
When an intoxicated person enters into a contract, the contract can either be enforceable, meaning held to the fullest extent of the law, or voidable by the intoxicated person. The court will look at two criteria that need to be present in order to make the contract voidable:
The intoxication was severe enough that the person entering into the contract was incapacitated. The other party was aware of the intoxication at the time.
A voidable contract, in this instance, is one in which the intoxicated party can end the agreement under certain terms. To expand on the criteria above, in order for the intoxicated person to void the contract, there needs to be adequate proof that one of the following occurred:
The intoxicated person consumed enough alcohol or drugs to cause impairment in thinking sufficient enough that he could not understand the legal ramifications of entering into the contract. The other party to the contract knew of the intoxication.Answer:
1) True
Explanation:
An intoxicated person can either:
disaffirm the contract: an intoxicated person can void a contract while still being intoxicated or short after becoming sober. If the contract involves basic necessities, it can still be voided but the intoxicated person is still liable for the goods or services consumed.ratify the contract: once sober the person can ratify the contract and it becomes enforceable by all the parties.Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that:_______.A. All three countries will grow at the same rate.
B. Country A will grow the fastest.
C. Country B will grow the fastest.
D. Country C will grow the fastest
Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that: Country A will grow the fastest.
Explanation:Gross domestic product measure helps in determining the economic growth of a country for a given time period. Real GDP refers to the measure that shows the values of all the goods and services that are produced in a country for a specific time period and the measure will be a inflation adjusted one.
Thus real GDP can also be referred as constant price or inflation adjusted GDP. In the given example, the real GDP per person for three countries A,B and C are given whose value is $10,000, $20,000 and $30,000 respectively. There is a similar rate at which the savings gets increased. Other things are said to be equal and hence the result will be Country A will grow the fastest. This is because the real GDP is lesser when compared with other two countries.
The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______.
Answer:
Line extension
Explanation:
Line extension refers to a situation where a company introduces a new product that is related to an existing product line.
Line extension is designed to meet the needs of a particular segment of the market.
The new product could be described with a different flavor, colour, ingredients, size etc.
For instance, Coca-Cola is an existing product, if the company that produces Coca-Cola decides to introduce Coca-Cola with zero sugar.
The ingredients has changed and the new Coca-Cola with zero sugar is now designed to meet the needs of a particular segment of the customers which is the diabetic patient.
If a person was sufficiently intoxicated to lack the mental capacity to comprehend the legal consequences of entering into the contract, the contract may be voidable at the option of the intoxicated person. If, despite intoxication, the person understood these legal consequences, the contract will be enforceable.1. True2. False
Answer:
1) True
Explanation:
An intoxicated person can:
disaffirm the contract: an intoxicated person can void a contract while still being intoxicated or short after becoming sober. If the contract involves basic necessities, it can still be voided but the intoxicated person is still liable for the goods or services consumed. ratify the contract: once sober the person can ratify the contract and it becomes enforceable by all the parties.
Donald buys a subscription to a national magazine that gives him two years for the price of one year. After the two years expire, Donald continues to receive the magazine for six more months, although he has not subscribed again. The magazine then sends Donald a bill for the magazines he received after the expiration of his subscription. Donald:__________.a. owes nothing.b. can be fined for failing to return the magazines.c. owes half of the bill.d. owes the full amount.
Answer: A (Owes nothing)
Explanation:
Donald subscribed to a magazine that gave him two years for a year. Even though after the subscription expired the second year, he was still given the magazine for six months despite the fact that he didn't subscribe, Donald does not owe the national magazine company.
It was not his fault that he was sent magazines after his subscription expired and hence is not liable to pay any amount to the company. It's their loss and mistake and he should not be held responsible for their mistake.
Which of the following is an example of a market expansion growth opportunity? Group of answer choices Opening new stores in new geographic markets Displaying merchandise to increase impulse purchases Engaging in cross-selling Opening more stores in the same market Keeping existing stores open for long hours
Answer:
Option A Opening new stores in new geographic markets
Explanation:
The reason is that market expansion is entering into a new market because the company feels that the revenues in the present market does not reflect any growth or in other words the market is saturated, now the company expands its operations in a new geographical area which is a new market to the company with the same product. So in this scenario, the opening new stores in new geographical market is expansion of operations of company because company feels that the current market is saturated and that the current market at maturity so we must move to a new market.
James consumes pizzas, denoted by x, and sodas, denoted by y. The prices are px=3 and py=2, respectively. Jame’s income for the semester is $100. Can Jame’s afford to buy 25 slices of pizza and 10 sodas this semester?
Answer:
Since the total cost of 25 slices of pizza and 10 sodas is $95,James can afford to buy 25 slices of pizza and 10 sodas from his $100 income
Explanation:
In determining whether James can afford to buy 25 slices of pizza and 10 sodas this semester, we calculate the cost of 25 slices of pizza and 10 sodas based on the current of price of $3 per slice of pizza and $2 per soda.
The total cost is then compared with Jame's income of $100,with the assumption that he would spend the entire amount in purchasing pizzas and sodas.
Expected total cost=$3*25+$2*10
Expected total cost=$95
Answer:
Explanation:
Given
Pizza is denoted by x
Soda is denoted by y
Px=$3
Py=$2
Qx=25
Qx=10
Budget constraints
PxQx+PyQy
(3×25)+(2×10)
$75+$20
=$95
Total expenditure = $95
Surplus of $100-$95= $5
James can afford to buy 25 quantities of pizza at $3 each and 10 quantities of soda at $2 each this semester and still have a remainder of $5
International Toys (IT) manufactures toys in South Carolina and sells them to stores around the world. A customer in Europe is injured when one of the toys malfunctions and severs the customer's hand. The customer files suit in the United States. If IT is found liable, does its Commercial General Liability (CGL) Coverage Form cover the customer's claim?
Answer:
Yes
Explanation:
Commercial General Liability (CGL) Policy is a standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.
The policy was introduced in 1986 and replaced the "comprehensive" general liability policy.
Embedded in its definition i that it covers primarily liability claims for bodily injury.
Apricot Corporation has decided to buy a new glazing machine for its factory. The machine's cost is $50,000 and the expected income from the machine for next 3 years are $19,000, $25,000 and $30,000. If the machine's expected rate of return is 8%, then its net present value is _____.
Answer:
$12,841.03
Explanation:
Given:
Initial Investment = $50,000
1st year expected income = $19,000
2nd year expected income = $25,000
3rd year expected income = $30,000
Expected rate of return = 8% = 8/100 = 0.08
Net present value = ?
Computation of net present value:
Net present value = [tex]C0 + \frac{C1}{(1+r)^1}+ \frac{C2}{(1+r)^2}+ \frac{C3}{(1+r)^3}[/tex]
[tex]50,000 + \frac{19,000}{(1+0.08)^1}+ \frac{25,000}{(1+0.08)^2}+ \frac{30,000}{(1+0.08)^3}\\\\50,000 + \frac{19,000}{(1.08)^1}+ \frac{25,000}{(1.08)^2}+ \frac{30,000}{(1.08)^3}\\\\50,000 + \frac{19,000}{(1.08)}+ \frac{25,000}{(1.1664)}+ \frac{30,000}{(1.259712)}\\\\50,000 + 17,592.5926+ 21,433.4705+ 23,814.9672\\\\112,841.03\\\\[/tex]
Net present value = $112,841.03
5) What is the main idea of this passage? A) In order to help preserve and protect our environment, builders should construct more "green" buildings. B) One way a building can be more green is by the use of passive solar heating to decrese the use of electricity. C) Reducing the amount of fresh water used in building is another way that builders can help protect the environment. D) One way a building could be more green is through the use of green roofs and walls to reduce heating and cooling costs.
Answer:
In order to help preserve and protect our environment, builders should construct more "green" buildings.
Explanation:
The reason is that the greener planet is only possible if whatever we do doesn't harms our present and future environment and this is only possible if the operations of businesses and individuals are greener. So the main idea was that the businesses must move to greener planet which in other words was sustainability. Sustainability is meeting present generation needs without compromising future generation needs.
When one party breaches a contract, the other party can choose from one or more of several_____________ . Generally, a court will grant money, a remedy at___________ , unless money is not sufficient. If that is the case, the court will grant a remedy in____________ .
Answer: remedies, law, equity
Explanation: When one party breaches a contract, the other party can choose from one or more of several remedies. Generally, a court will grant money, a remedy at law , unless money is not sufficient. If that is the case, the court will grant a remedy in equity .
Remedies at law are limited to payments of money or property as damages, furthermore, remedy at law enforces a right, imposes a penalty, or makes another court order to impose its will in order to compensate for the harm of a wrongful act inflicted upon. while Remedies in equity is available only when there is no adequate remedy at law.
A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units
Answer:
$4,800
Explanation:
At 100 units output
Fixed cost= $500
Total cost=$4,500
At 101 units output
Fixed cost=$500
Fixed cost remains constant during production process
Marginal cost= $300
Total cost(101 units)= TC(100 units) + marginal cost of 101 units
= $4,500+$300
TC(101 units)= $4,800
Final answer:
To calculate the total cost of producing 101 units, add the variable cost of producing 100 units to the marginal cost of producing the 101st unit.
Explanation:
To calculate the total cost of producing 101 units, we need to understand the concepts of total cost and marginal cost. Total cost is the sum of fixed costs and variable costs. Marginal cost is the additional cost incurred by producing one more unit of output.
In this case, the fixed cost is $500. When the firm produces 100 units, the total cost is $4,500. Therefore, the variable cost of producing 100 units is $4,500 - $500 = $4,000.
The marginal cost of producing the 101st unit is given as $300. Since the marginal cost is the cost of producing one more unit, the total cost of producing 101 units would be the sum of the variable cost of producing 100 units ($4,000) and the marginal cost of producing the 101st unit ($300). Thus, the total cost of producing 101 units would be $4,000 + $300 = $4,300.
Bags Galore, a leading online retailer, uses the services of Data Safe Inc., a small startup that helps companies manage and keep their electronic data safe. This helps Bags Galore keep a backup of its proprietary information in case of virus attacks or any sort of damage to property. This is an example of:_______. a. supply chain management.b. contingency planning.c. enterprise resource planning.d. value chain management.e. materials requirement planning.
Answer: Contingency planning
Explanation:
Contingency planning is a method of planning for the worst possible outcome, incase it happens. Bags galore plan to store vital data on Data inc. is a form of contingency plan, done to back-up their vital data in case of a virus attack on their systems.
Bags Galore's engagement with Data Safe Inc. to manage and secure their electronic data for backup purposes is an example of option b. contingency planning, which is a key aspect of risk management in protecting proprietary information and ensuring business continuity.
Bags Galore's use of Data Safe Inc. to manage and secure their electronic data, ensuring a backup in case of virus attacks or property damage, is an example of contingency planning.
Companies aim to safeguard their data to ensure continuous operation even in the event of unforeseen disruptions or threats.
This form of risk management is essential for maintaining the integrity and availability of proprietary information in today's digital landscape.
By employing Data Safe Inc., Bags Galore not only secures their information but also potentially signals to competitors that they are well-prepared for any cyber threats, deterring would-be attackers and mitigating risks associated with data loss or corruption.
Commercial companies often have intricate systems for data storage, and it is crucial that during the generation and initial handling stages when data is most vulnerable, protective measures are in place to prevent loss.
The maintenance of large-scale online security and the utilization of off-site data management practices increasingly adopted by both commercial enterprises and academic institutions to prevent large-scale breaches and ensure data reliability.
In the context of data protection and business resilience, contingency planning involves strategies that allow a company to respond effectively to significant failures or disruptions in their normal processes.
Effective data management and backup solutions are critical components of such planning, ensuring that a company like Bags Galore can maintain operations even in the face of threats to its digital infrastructure.
Which of the following is true of a dividend payout? A. When a stock begins to trade ex dividend the share price will fall. B. When a firm announces that it will increase its dividend, the share price usually decreases on that news. C. When a stock begins to trade ex dividend there is no impact on the share price if the market. is efficient D. Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued.
Answer: Option A
Explanation:
Dividends affect the stock price in many ways. The stock price is marked down by the investors as they think the dividends paid out is a source of investment. But the company which issues the dividend to the shareholders does it as a an act of gratitude for investing in their business. They share the profits with the shareholders by paying out dividends.
Companies with substantial profits issues dividends regularly. Dividends are either paid in the form of money per share or by issuing additional shares.
Within the framework of the Keynesian model, which of the following would most likely occur if the federal government increased its spending and enlarged the size of the budget deficit during a period of full employment
Answer:
the rate of inflation would rise.
Explanation:
During a period of full employment people are fully employed and earning Salar. If the government increases spending there will be excess cash in the economy.
Consumers will be willing to spend more to buy goods and services. The supply will not be able to meet up with demand and goods become scarce, resulting in increase in price of goods.
Eventually inflation results as general prices of goods and services rises.
All else equal, a dollar received sooner is worth more than a dollar received at some later date, because the sooner the dollar is received the more quickly it can be invested to earn a positive return. True False
Answer:
True
Explanation:
The time value of money involves the relationship of equivalence between cash flows occurring at different dates.
The later a cash flow is received the less worthier it is as cash flow received earlier than that can be invested to earn return coupled with the fact that the later a cash flow is expected the higher the chances that there would a default on the party of the person making the cash available.
This uncertainty then makes a dollar received sooner worth more than the one received at some later time.
A company has decided that it no longer needs to extensively count and inspect the products it buys from a particular supplier. This suggests that the buying company has is in the volume consolidation stage of developing procurement strategy.
Answer: False
Explanation:
The VOLUME CONSOLIDATION Stage is where a company attempts to reduce the number of suppliers that it has and consolidates the volume of sales it does through them.
This strategy helps in having a better relationship with suppliers as well as earning a claim on their business which would go a long way in price negotiation.
Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So, she applies the ______________ process to estimate the present value of her gift.
Answer:
discounting
hope it helps :0
Marketers provide value to the consumer and other stakeholders by doing all of these with their offerings except which?
Answer:
Financing
Explanation:
The reason is that all the other options are the knowledge and information which the company wants to operate in the market and the marketers provide this information. Whereas on the other hand, Financing is not an information and the company never seek finance from the marketers. The company has better options to seek finance and these options include raising funds through bank or stock exchange.
Which of the following costs would continue to be incurred even if a segment is eliminated? A. Direct fixed expenses B. Variable cost of goods sold C. Common fixed costs D. Variable selling and administrative expenses
Answer:
The correct answer is C. Common fixed costs.
Explanation:
A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.
This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.
Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.
g McGuire was an employee of First National Bank of Grayson (FNBG). FNBG participated in a Kentucky Housing Corporation (KHC) program in which KHC loaned money to financial institutions. The institutions would then make low-interest loans to low-income individuals who qualified for purchase of a home. FNBG received the funds and produced bogus paperwork for 80 loans but never loaned the money. Instead, they invested the money at a high rate of interest. Eventually the money was returned to KHC, but McGuire was charged with making false records and fraud. Can McGuire, as an employee, be held liable?
Answer:
The court concluded truthfully, as he had done all the analysis and acknowledged the documentation and investment purposes.
The program scammed funds which might have been used for small-income housing by the government agency.
United States v. McGuire, 744 F.2d 1197 (Cir. 11, 1984).
Final answer:
An employee such as McGuire can be held liable for fraud and making false records if they were directly involved in or knowledgeable about the fraudulent activities. The degree of liability depends on their specific actions and level of involvement in the fraud.
Explanation:
Whether McGuire, as an employee of First National Bank of Grayson (FNBG), can be held liable for making false records and fraud, depends on various factors including their level of involvement and knowledge of the fraudulent activities.
In the scenario presented, FNBG's engagement in the production of bogus paperwork for 80 loans, while never actually loaning the money as intended, but instead investing it for a higher rate of interest, constitutes fraudulent activity and misuse of funds intended for low-income individuals seeking home loans under the Kentucky Housing Corporation (KHC) program.
Employees like McGuire can be held personally liable if they had a direct role in or knowledge of these fraudulent activities and took part in the execution or cover-up of the same.
Liability in legal terms can extend to individuals within an organization who participate in or are complicit in unlawful acts, even under the directive of superiors or the company as a whole. This is particularly true in cases of fraud and making false records, crimes that fundamentally rely on the deceit and manipulation of factual information for unlawful gain. It's vital to assess the specifics of McGuire's role to determine their legal accountability.
How long would it take for the price level to double if inflation persisted at the following percentages?
Answer:
inflation rate = 17.5 percent per year ⇒ it will take 4 years to double
inflation rate = 35 percent per year ⇒ it will take 2 years to double
inflation rate = 3.5 percent per year ⇒ it will take 20 years to double
Explanation:
we can use the rule of 70 to determine the amount of time it would take the general price level to double.
the rule of 70 is a simple way we can use to estimate the number of years it will take an investment to double given a certain growth rate.
70 / 17.5 = 4 years
70 / 35 = 2 years
70 / 3.5 = 20 years
An independent grocer who wants to know if cocktail and tartar sauce would sell better if the two products were moved from the salad dressing section of the store to a display next to the seafood selection would most likely use ________ research.
Answer:
Causal
Explanation:
An independent grocer who wants to know if cocktail and tartar sauce would sell better if the two products were moved from the salad dressing section of the store to a display next to the seafood selection would most likely use causal research. Causal research is also known as explanatory research, where we investigate the nature and extent of cause and effect relationship between certain variables. We try to evaluate the effect of one variable on another variable as it has been seen in this given scenario. In this type of research, we focus to evaluate a situation or particular issue and problem under a controlled settings and environment and explain the relationship between the different variables involved in that issue or problem
Final answer:
The independent grocer likely needs to conduct market research, potentially through an experiment or cross-sectional research, to assess the impact of moving cocktail and tartar sauce next to the seafood selection on sales.
Explanation:
An independent grocer who wants to know if cocktail and tartar sauce would sell better if moved next to the seafood selection is likely to use market research. This type of research involves gathering information about consumers' needs and preferences. It can take various forms, such as surveys, questionnaires, observations, or analyzing sales data before and after the change in product placement.
To understand the potential impact of the product move, the grocer might conduct an experiment by placing the products next to the seafood selection for a set period and measuring any changes in sales against a control period where the sauces remained in the salad dressing section.
Additionally, methods such as cross-sectional research could provide insight into customer preferences by comparing different customer segments at the same time. This approach can offer a snapshot of customer behavior and preferences regarding product placement.
You are planning to place your money in safe government securities, which currently offer a 4% riskless rate of return. Before making this investment, an entrepreneur approaches you and asks you to purchase her new business venture, FastDrop, a delivery service for legal documents that would produce a single cash inflow of $80,000 at the end of the year. You have determined that 6% is an appropriate risk premium for this investment. How much would you be willing to pay for Fast Drop? Please enter only the number of your answer. Do not use the dollar sign or commas.
Answer:
72727
Explanation:
The first step is to determine the opportunity cost.
Opportunity cost = Risk free rate + Risk Premium
10% = 4% + 6%
The second step, given the opportunity cost of 10%, is to determine that the economic value of this investment is:
80,000/1.10 = 72,727
Answer:
$72,727.27 ≈ 72727.27
Explanation:
we can use the present value formula to calculate the current value of FastDrop:
present value = future value / (1 + required interest rate)ⁿ
future value = $80,000n = 1required rate of return = risk free rate + risk premium = 4% + 6% = 10%present value = $80,000 / (1 + 10%) = $80,000 / 1.1 = $72,727.27
*the required rate of return (RRR) = risk free rate + [β x (market rate of return - risk-free rate of return)]. In this case we were given the risk premium.
James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?
Answer:
$22,000
Explanation:
Given that
1st house rented = 10,000
2nd house estimated rent = 12,000
Therefore,
The two houses would contribute
= 10,000 + 12000
= $22,000
Note: Rent is considered as consumption and as a result, rent is added into the GDP. Also, in GDP estimation, imputed rent which is the amount a house owner is willing to rent a house away for if he decides to is calculated as part of the GDP.
Final answer:
The two houses owned by James contribute $22,000 to GDP; this includes $10,000 from actual rent and an estimated $12,000 that represents the potential rent of the house he occupies.
Explanation:
James owns two houses: one that he rents to the Johnson family for $10,000 per year and another in which he lives that, if rented out, would earn $12,000 per year.
To determine how much the housing services provided by the two houses contribute to GDP, we must add the actual rent received for the first house and the potential rent of the second house.
According to the Department of Commerce, when calculating GDP, the rental value of owner-occupied homes is estimated and included, even if those services were not exchanged in the marketplace.
Therefore, the contribution of the two houses to the GDP is the sum of the actual rent received and the estimated rent that could be received if the owner-occupied house was rented out.
This means the houses contribute $10,000 + $12,000 = $22,000 to the GDP.
Suppose that when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity demanded falls from 800 to 600 reams per day. Using the midpoint formula, what is the price elasticity of demand (in absolute value) over this range? Group of answer choices
Answer: The answer is -2.42
Explanation:
P1 = $4 Q1 = 800
P2 = $4.50 Q2 = 600
Using the midpoint formula, we have:
For price:
P2 - P1/(P2 + P1)/2
= 4.5 - 4/(4.5 + 4)/2
= 0.5/4.25
= 0.12
For quantity:
Q2 - Q1/(Q2 + Q1)/2
= 600 - 800/(600 + 800)/2
= -200/700
= -0.29
Price elasticity of demand = change in quantity/change in price
= -0.29/0.12
= -2.42.
Answer:
2.43
Explanation:
Given that
P1 = 4
P2 = 4.50
Q1 = 800
Q2 = 600
Recall that
Using midpoint formula
% change in quantity = [Q2 - Q1/(Q2 + Q1) ÷2] × 100
= 600 - 800/600 +800 ÷ 2 × 100
= -200/700 × 100
= 28.57%
% change in price = [P2 - P1/(P2 + P1) ÷ 2] × 100
= 4.50 - 4/4.50 + 4 ÷ 2 × 100
= .50 / 4.25 × 100
= 11.76%
Price elasticity of demand = %change in quantity ÷ % change in price
= 28. 57 ÷ 11.76
= 2.429
= 2.43
Suppose one has data for the following categories: net interest, government spending, corporate profits, net exports, gross private domestic investment, rental income, and personal consumption expenditures. Which measure of GDP can be calculated?
Answer:
Expenditures approach
Explanation:
Under expenditures approach:
GDP = C + I + G + NX
Where,
GDP = Gross Domestic Production
C = Personal Consumption - household spending
I = Private Investment
G = Government Consumption and investment
NX = Net Exports(Total export - Total import)
Under the Income approach:
GDP = Wages + Compensation of employees + Rents + Profits + Interest + Indirect business taxes + Depreciation
Note: Sufficient data is not provided for the Income approach so, GDP is calculated under the expenditures approach.
Final answer:
GDP can be calculated using the given data by aligning personal consumption, gross private domestic investment, government spending, and net exports to the corresponding components of the GDP equation (GDP = C + I + G + Xn).
Explanation:
The student has provided data for different categories which can be used to calculate a measure of Gross Domestic Product (GDP). In economic terms, GDP can be measured using an expenditure approach or an income approach. The given categories align more with the income approach, specifically Gross Domestic Income (GDI), which is theoretically equivalent to GDP. The components required to calculate GDP using the income approach are typically wages (employee compensation), profits, rental income, net interest, depreciation, and indirect taxes. The given data includes net interest, government spending, corporate profits (part of total profits), net exports, gross private domestic investment, rental income, and personal consumption expenditures, which correspond to some of the necessary components needed to calculate GDP using the income approach as detailed in Equation 21.1. To calculate GDP using these data, one could align the components as follows:
Personal consumption expenditures (C) - corresponds to consumptionGross private domestic investment (I) - corresponds to private investmentGovernment spending (G) - corresponds to government purchasesNet exports (Xn) - corresponds to exports minus importsAdding these components together as per the GDP equation GDP = C + I + G + Xn would give us the total GDP for the economy in question.
Metals are good conductors of electric current for what reasons?
Answer: Metals are good conductors of electric current because they have an atomic arrangement which enables electric charges to move freely in a specific direction.
Explanation: The uniqueness of metal’s atomic arrangement which involves having one to three valence electrically charged particles which are known as electrons in the external orbital shell of the atoms behaves as carriers of electric current. This permits the metals to conduct electrical charges in every part of its arrangement with small opposition. However, these valence electrons are totally disconnected from the middle hence move freely when an electric charge is applied to it and indiscriminately when there is no electric charge is applied to it.