A benefit of adopting the euro as a common currency is that it makes it easier to compare prices across Europe.
Explanation:When the same currency type is used in different group of people or different geographic locations, it refers to the common currency. In European Nations the common currency that is being used in Euro and in U.S the common currency used is dollar. There are many benefits that are associated with the usage of common currency.
It helps in reduction of transaction cost, Price transparency, expands markets, enhances the currency stability,etc.In the example given, the prices of roses at different regions of Europe were found to be different. The prices of the rises are expressed in Euros. The use of common currency here facilitates and makes easier to compare prices across Europe.
A benefit of adopting the euro as a common currency is that it makes it easier to compare prices across Europe.
What is Currency?This is defined as a system of money in general use in a particular country at a specific time.
Adoption of the euro made it easier for Tom Smith to compare the prices of the rose in the two European countries.
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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.
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.
Taxes on goods with __________ demand curves will tend to raise more tax revenue for the government than taxes on goods with __________ demand curves.
Answer:
Inelastic; elastic
Explanation:
Goods with inelastic demand curves tend to raise more government revenue compared to goods with the elastic demand curve. An increase in price does not affect the demand of inelastic goods and it remains the same, that is why, governments usually increase the prices of goods that have inelastic demand curve, for example, petrol and toll tax, etc.
Taxes on goods with inelastic demand curves raise more tax revenue for the government than taxes on goods with elastic demand curves. When demand is inelastic, consumers are less responsive to changes in price and will continue buying the good even with higher prices due to taxes. This allows the government to collect more tax revenue.
Explanation:Taxes on goods with inelastic demand curves will tend to raise more tax revenue for the government than taxes on goods with elastic demand curves.
If demand is more inelastic than supply, consumers bear most of the tax burden, and if supply is more inelastic than demand, sellers bear most of the tax burden. When the demand for a good is inelastic, it means that consumers are less responsive to changes in price, so they are more likely to continue buying the good even with higher prices due to taxes. This allows the government to collect more tax revenue.
For example, if a tax is imposed on a good with an inelastic demand curve, consumers may have to pay a higher price, but they will still purchase the good because it is necessary or important to them. On the other hand, if a tax is imposed on a good with an elastic demand curve, consumers may reduce their consumption or switch to substitutes, leading to a decrease in tax revenue for the government.
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There are four partners in the Dallas Pet Taxi company. One of the partners, Devin, decides to dismiss a particularly difficult client from using the company’s services. He doesn't consult with the other three partners in order to take this action. The fact that Devin can make this type of business decision without consulting the other partners is considered to be a disadvantage of what type of business entity?
There are four partners in the Dallas Pet Taxi company. One of the partners, Devin, decides to dismiss a particularly difficult client from using the company’s services. He doesn't consult with the other three partners in order to take this action. The fact that Devin can make this type of business decision without consulting the other partners is considered to be a disadvantage of Limited liability partnership.
Explanation:
In the case of a Limited liability partnership, the liability of all or some partners is limited. limited liability means that the partners are not responsible for other partner negligence.
In this case of the Dallas pet Taxi company, One of the partners dismisses a difficult client without consulting other partners. So in case, any problem arises he will be solely responsible for it. The other partners will not be answerable for his actions. The partner responsible will have to face the consequences and bear the loss if any arises. So, is will act as a disadvantage of a Limited liability partnership where all partners are personally responsible for any misconduct or negligence.
During its first year of operations, the Brown Company incurred the following product costs: Direct materials used in production $200,000 Direct labor $175,000 Manufacturing overhead $145,500 The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?
Answer:
$485,500
Explanation:
The computation of the cost of finished goods manufactured for the year is shown below:
= Direct materials used in production + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory
= $200,000 + $175,000 + $145,500 + $0 - $35,000
= $485,500
To find the cost of finished goods manufactured for the year, use the formula: Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory. In this scenario, the cost would amount to $485,500.
Cost of finished goods manufactured for the year:
To calculate the cost of finished goods manufactured, you can use the formula:
Cost of Finished Goods Manufactured = Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory
In this case, the calculation would be: $0 + $520,500 - $35,000 = $485,500.
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
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.
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.
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
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.
Andrews Company accepted a note receivable from a credit customer who failed to pay their $2,000 Accounts Receivable balance. The customer signed a promissory note which was accepted for 9 months at 5% interest. At the end of the 9 months, the customer does not pay, so it becomes a dishonored note receivable. What is the journal entry for the dishonored note?
Answer:
The journal entry which is to be recorded for the dishonored note is shown below:
Explanation:
The journal entry which is to be recorded for the dishonored note is as follows:
Accounts Receivable A/c..............................Dr $2,075
Notes Receivable A/c...................................Cr $2,000
Interest Revenue A/c......................................Cr $75
Being the note which is received got dishonored
As the note got dishonored so the accounts receivable account will be debited against the notes receivable account and the account of interest revenue is also credited.
Working Note:
Interest revenue = Amount of notes receivable × Rate × Months / Total number of months
= $2,000 ×5% × 9/12
= $75
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
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.
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.
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.
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.
Bellbird Corporation acquired an 80% interest in Honey Inc for $130,000 on January 1, 2014, when Honey had Capital Stock of $125,000 and Retained Earnings of $25,000. Bellbird's separate income statement and a consolidated income statement for Bellbird Corporation and Subsidiary as of December 31, 2014, are shown below.
Bellbird Consolidated
Sales revenue $150,000 $235,750
Income from Corporal 12,600
Cost of sales (60,000) (100, 000)
Other expenses (20,000) (50,000)
Noncontrolling interest income ( (3,150)
Net income $81,600 $81,600
Honey's separate income statement must have reported net income of:__________________.
Answer:
$15,750
Explanation:
The calculation of the net income reported by two methods is presented below:
= Income from Corporal + Non-controlling interest income
= $12,600 + $3,150
= $15,750
Or we can one thing also
= Income from Corporal ÷ acquiring percentage
= $12,600 ÷ 80%
= $15,750
All other information listed in the question is not important.
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.At his regular hourly rate, Don had estimated the labor cost of a repair job as $336 and he was paid that amount. However, the job took 4 hours longer than he had estimated and, consequently, he earned $2 per hour less than his regular hourly rate, What was the time Don had estimated for the job, in hours?
Answer: the time is 24 hours
Explanation:
Say the regular hourly rate was $ and estimated time was hours, then we would have:
let r = rate of doing the job
And t = time.
rt = 336
Also, ( r- 2)(t - 4) = 336
Using simultaneous equation and quadratic equation lead to t = 24 hours
Find the attached file for solution
Based on the following data, what is the gross profit for the company?Sales$ 1,000,000Net purchases of raw materials 600,000Cost of goods manufactured 800,000Marketing and administrative expenses 250,000Indirect manufacturing costs 500,000
Answer:
$600,000
Explanation:
Sales = $ 1,000,000
Net purchases of raw materials = 600,000
Cost of goods manufactured = 800,000
Marketing and administrative expenses = 250,000
Indirect manufacturing costs = 500,000
Beginning inventory Ending inventory
Work in process = $500,000 $400,000
Finished goods = $100,000 $500,000
Cost of goods sold:
= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $100,000 + $800,000 - $500,000
= $400,000
Gross profit = Sales - Cost of goods sold
= $ 1,000,000 - $400,000
= $600,000
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
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.
Michael can buy either pizzas or submarine sandwiches. If the prices of pizza and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will
We can conclude that Michael's budget constraint will shift out but remain parallel to the old one.
Explanation:The ability of a person in spending a unit of money in purchasing a product r devices refers to the purchasing ability of that person. Purchasing power determines the quantity if goods and services that can be purchased by the individuals of an economy. The main factor that determines the purchasing power of an individual is the inflation rate.
In the given example, the ability of Michel in purchasing pizzas or submarine sandwiches is explained. When the pizza and submarine sandwiches prices gets doubled, the income of Michel triples. From this we can conclude that Michael's budget constraint will shift out but remain parallel to the old one.
Monopolistically competitive firms: a will set price where MC > MR. b earn a positive economic profit if price is greater than ATC. c engage in collusive activity in order to maximize profit. d are regulated by the government to keep long-run economic profits equal to zero. e are very similar to perfect competitors in producing at the minimum ATC.
Answer:
Monopolistically competitive firms are regulated by the government to keep long-run economic profits equal to zero.
Explanation:
Monopolistic competition is a type of imperfect competition with many sellers selling similar, but not identical products and there are not perfect substitutes.
In the short run, a monopolistically competitive firm will select the rate of output where marginal revenue equals marginal cost. In the long-run monopolistically competitive firms are regulated by the government to keep long-run economic profits equal to zero.
Answer:
B) earn a positive economic profit if price is greater than ATC.
Explanation:
Monopolistically competitive markets are not monopolies, they are markets will many suppliers that provide differentiated products, e.g. restaurants.
In order to maximize their accounting profits, they must sell their products at a price where marginal revenue (MR) = marginal costs (MC). Monopolistically competitive firms do not produce at minimum average total cost, because they generally operate with excess capacity. Excess capacity = quantity produced at minimum ATC - quantity that yields the greatest profits (MR = MC).
Monopolistically competitive firms can earn economic profit if their price is higher than ATC.
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
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.
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.
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.
A company normally sells a product for $25 per unit. Variable per unit costs for this product are: $3 direct materials, $5 direct labor, and $2 variable overhead. The company is currently operating at 100% of capacity producing 30,000 units per year. Total fixed costs are $75,000 per year. The company should accept a special order for 1,000 units which would be sold for $13 per unit because the special order price exceeds variable costs. True or False True False
Answer:
False
Explanation:
Currently the company is working at full capacity and they are selling their total production at $25 per unit. If they accepted the special order, they would be receiving less money per unit sold: normal price per unit - special order price = $25 - $13 = $12, so they would be losing $12 per unit sold. The only way that they could accept this special order is if they can work overtime and produce 31,000 units instead or 30,000.
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.