The version of Okun's law studied in Chapter 10 assumes that with no change in unemployment, real GDP normally grows by 3 percent over a year. If the unemployment rate rose by 2 percentage points over a year, Okun's law predicts that real GDP would decrease by 1 percent.
In the early 1960s, economist and Yale professor Arthur Okun proposed Okun's law. The statistical correlation between a nation's unemployment rate and its pace of economic growth is examined by Okun's law. According to Okun's law, a country's GDP must increase at a pace of around 4% for a whole year in order to reduce the jobless rate by 1%.
In its simplest version, Okun's law looks at the statistical correlation between a nation's unemployment rate and its economic growth rate. The Federal Reserve Bank of St. Louis has an economics research division.
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the general investment strategy based on a goal of acquiring existing, seasoned, relatively low-risk properties that are at least 80 percent leased to tenants with low credit risk, is:
The general investment strategy based on a goal of acquiring existing, seasoned, relatively low-risk properties that are at least 80 percent leased to tenants with low credit risk is known as value investing.
Value investing entails the acquisition of properties that are generally undervalued or overlooked by the marketplace and offer a potential for capital appreciation. It involves analyzing potential investment opportunities to identify their strengths and weaknesses in order to determine if they are worth investing in.
Value investors may also consider macro-level factors such as the state of the economy, demographic changes, and public policy to assess the potential risk and return of an investment. This strategy seeks to maximize returns and minimize risks by choosing properties that have a good rental income and an attractive return on investment.
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what are the four (4) primary reasons that companies hold inventory? display keyboard shortcuts for rich content editor
The four primary reasons that companies hold inventory are:
Meet customer demandMaintain a steady production rateTake advantage of quantity discountsManage seasonalityInventory is an essential part of the supply chain process, and companies must carefully manage it in order to maximize profits and ensure customer satisfaction. Having inventory on hand allows companies to provide products and services to customers on time and without interruption.
It also enables them to take advantage of quantity discounts and manage seasonal demands. Inventory must also be closely managed to prevent losses due to damage, expiration, or obsolescence. Effective inventory management allows the company to become more efficient.
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staffing, appraising, compensation, and training and development are types of multiple choice organizational structures. human resource practices. market cultures.
The given options - staffing, appraising, compensation, and training and development - are types of organizational structures.
Human resource practices include staffing, appraising, compensation, and training and development. Hence, the correct option is A - organizational structures.
Staffing: Staffing is the practice of filling positions within the organization.
Appraising: Appraising is the practice of evaluating the performance of employees in the organization.
Compensation: Compensation is the practice of providing salaries, benefits, and incentives to employees for their services.
Training and development: Training and development are the practices of educating and developing employees to improve their performance, knowledge, and skills.
Hence, these four practices are fundamental aspects of Human Resource practices.
Human resource management (HRM) is the management of human resources. It is designed to maximize employee performance in service to an employer's strategic objectives.
The overall function of Human Resources is to ensure that an organization's human capital is effectively used and developed. Human Resource practices cover all aspects of the employer-employee relationship including recruiting, hiring, training, development, compensation, benefits, and workplace policies.
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2 cooks at a steak house can cook 15 new york strips in one hour at dinner. when a 3rd cook is added to the kitchen, 10 new york strips can be prepared. calculate the marginal product of adding the 3rd cook
Adding a third cook to the steak house kitchen would result in a marginal product of 10 New York strips.
This is because, when two cooks are in the kitchen, they are able to prepare 15 New York strips in an hour. When a third cook is added, the number of New York strips increases to 25 in the same amount of time.
Thus, the marginal product is the difference between the two numbers, which is 10.
Marginal product refers to the change in the total output of a production process that results from adding one unit of input, while holding all other inputs constant. It is a concept in economics that is used to measure the productivity of additional units of labor or capital.
In other words, marginal product measures the additional output that is generated when an additional unit of input is added to the production process.
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the triple bottom line metric is used for measuring the financial results of the company, but does not take into account equity, economic or environmental considerations. group startstrue or falsetrue, unselectedfalse, unselected
The statement "the triple bottom line metric is used for measuring the financial results of the company, but does not take into account equity, economic or environmental considerations" is false.
What is the triple bottom line? The triple bottom line (TBL) is a concept that evaluates businesses' success by three bottom lines: social, economic, and environmental. This concept originated in the late 1990s, and it is now utilized by several corporations, non-profit organizations, and government agencies.
The triple bottom line is an accounting method that assesses an organization's efficiency in terms of the three factors listed above. As a result, it takes into account both the environmental and social impacts of a company's economic activities. To put it another way, the TBL approach considers how businesses can be beneficial to people, the environment, and their earnings.
The concept's major aim is to assist businesses in moving from a profit-centred approach to one that considers the social and environmental impacts of their operations.
Furthermore, the triple-bottom-line approach encourages corporations to pursue sustainable economic growth while also promoting social and environmental responsibility.
Therefore, the statement given in the question is false since the triple bottom line metric is specifically designed to take into account equity, economic and environmental considerations.
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if contribution margin is 240000 sales revenue is 260000 and net income is 210000 then variable and fixed expenses are g
The fixed expenses and variable expenses are $190,000 and $20,000, respectively.
The contribution margin is a measure of how much an organization's revenue exceeds its variable expenses. Contribution margin is used to calculate the break-even point and the number of units a company must produce to earn a profit of zero.
What are fixed and variable costs?Fixed expenses: A fixed cost is a cost that does not change as the quantity of the product changes. Regardless of the company's production volume, the cost of a fixed cost remains constant. Rent, utilities, wages, and insurance are all examples of fixed costs.
Variable costs: A variable cost is a cost that changes as the quantity of the product changes. Direct labor, raw materials, and variable overhead costs are examples of variable costs.
What are the formula for calculating contribution margin, net income, and sales revenue?The formula for calculating contribution margin is:
Contribution margin = sales revenue - variable expenses
The formula for calculating sales revenue is:
Sales revenue = price per unit x quantity sold
The formula for calculating net income is:
Net income = sales revenue - cost of goods sold - fixed expenses
The given figures for contribution margin, sales revenue, and net income are:
$240,000 = Contribution margin $260,000 = Sales revenue $210,000 = Net income
Calculation:
Contribution margin = Sales revenue - variable expenses
Variable expenses = Sales revenue - Contribution margin
Variable expenses = $260,000 - $240,000
Variable expenses = $20,000
Fixed expenses = Total expenses - Variable expenses
Fixed expenses = $210,000 - $20,000
Fixed expenses = $190,000
Therefore, the fixed expenses and variable expenses are $190,000 and $20,000, respectively.
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true or false: when a nation is too small to affect world prices, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade. true false
False. When a nation is too small to affect world prices, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade is false statment.
What is free trade?Free trade is a commercial policy in which countries allow goods to be traded without any restrictions, such as import tariffs or taxes. As a result of free trade, goods and services may be made available to people all over the world at a lower cost.
It's worth noting that free trade isn't always beneficial for all parties involved, and it can be difficult to make decisions about what's best for a nation or a specific industry.
If a country is small and has no influence over world prices, trade barriers may do more damage than good, preventing it from accessing goods that it would have had access to otherwise.
It is difficult for small nations to influence global prices and exert any control over the international trade system, so free trade is often the best option. Free trade will always increase total surplus in a nation, regardless of whether it imports or exports goods as a result of international trade, according to this point of view.
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geoff has an important interview next month. he decides he should buy a new suit. for geoff, this purchase would be an example of problem solving. multiple choice question. extended limited linear routine
Geoff has an important interview next month. He decides he should buy a new suit. For Geoff, this purchase would be an example of problem-solving.
The solution of Geoff's problem is the purchase of a new suit. Problem-solving refers to the cognitive process of identifying, analyzing, and solving issues. It is a crucial skill in both personal and professional life, as it assists people in resolving challenges in a variety of contexts.
Every day, we face challenges, both minor and major, and we must devise solutions for them. In essence, problem-solving is the method of finding answers to issues that we face.
The Extended Limited Linear Routine refers to a five-stage model for decision-making that includes searching for alternatives, developing assessments, reviewing options, evaluating alternatives, and deciding on the best course of action. The Extended Limited Linear Routine model is linear since it follows a sequence of steps that must be completed in order.
The Extended Limited Linear Routine is limited because it is appropriate for structured decisions where the problem is well-defined and limited in scope, and where all relevant data is readily available.
The Extended Limited Linear Routine is also extended since it incorporates not only a detailed examination of alternatives but also an examination of the consequences of each alternative.
Routine Decision Making is the process of making a decision without considering several options. In this kind of decision-making, the outcome is already determined. We perform routine decision-making for daily choices, including brushing our teeth or taking a shower.
We do not spend a significant amount of time considering alternatives because the decision-making process has already been determined. In conclusion, Geoff's decision to purchase a new suit for his interview next month is an example of problem-solving because he must identify and analyze a problem before deciding on the solution.
The Extended Limited Linear Routine is an excellent tool to follow to find solutions for structured decisions. The decision-making process may be streamlined if the issue is already well-defined and limited in scope. Routine Decision Making is not appropriate for significant decision-making because it does not allow for various alternatives.
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multiple choice question which of the following items would not be adjusted to net income when computing cash flows from operating activities, using the indirect method? multiple choice question. depreciation expense gain on sale of building cash received from sale of building
The following items are adjusted while calculating the cash flows from operating activities under the indirect method:
Additions: Depreciation and amortization expenses; Provision for bad debts; Deferred tax; Interest and loss on disposal of a fixed asset.
Deductions: Increase in the working capital. Provision for unearned revenue; Gain on disposal of a fixed asset.
In the Indirect Method, the items that would not be adjusted to net income when computing cash flows from operating activities are cash received from the sale of building. It is one of the items that are not considered in the operating activity of the indirect method. Here's how:
Cash flow from operating activities:
In this method, the net income is adjusted for non-cash expenses and changes in working capital accounts to calculate the cash flow from operating activities.
The following items are adjusted while calculating the cash flows from operating activities under the indirect method:
Additions: Depreciation and amortization expenses; Provision for bad debts; Deferred tax; Interest and loss on disposal of a fixed asset.
Deductions: Increase in the working capital; Provision for unearned revenue; Gain on disposal of a fixed asset.
When computing cash flows from operating activities, the indirect method is used to reconcile net income to the actual cash flow. It is a less precise method than the direct approach since it entails adjusting net income by non-cash items and fluctuations in non-cash working capital items.
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when the management of a business is conducted by individuals other than the owners, the business is most likely to be a:
When the management of a business is conducted by individuals other than the owners, the business is most likely to be a corporation.
Corporation is an artificial person that is created by a group of people that is separated from the people who have created it. It is created by the authority of law and is a separate entity from the individuals who have created it. A corporation is the most formal business structure.
It is a legal entity that is separate from its owners. It is an entity that is created by law that acts as a separate entity from the people who have created it.The people who own the corporation have limited liability in it. They only lose the amount of money that they have invested in the corporation.
Corporations have a lot of advantages and disadvantages as a type of business. The corporation's advantages include limited liability, easy access to capital, and perpetual existence. Its drawbacks are that it's heavily regulated, expensive to form, and requires a lot of formalities to be maintained.
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a small retail shop in the local community offers a wide variety of women's clothing at low prices. in order to be competitive with larger chains found at the mall, the store owner frequently works alone, and she has adjusted store hours to capitalize on busy days. what should this retail shop owner be pursuing as part of her general business-level strategy?
The retail shop owner should be pursuing a cost leadership strategy as part of her general business-level strategy.
Cost leadership strategies focus on achieving lower costs than competitors in order to be competitive in the market and to offer customers lower prices. The retail shop owner can pursue this strategy by minimizing the cost of labor and overhead, such as by working alone and adjusting store hours to capitalize on busy days. Additionally, the retail shop owner should focus on efficient production and distribution processes to minimize costs.
The shop owner can also differentiate her product offering from that of her larger competitors by offering unique or exclusive items, or through improved customer service. This will create a competitive advantage for her business and can help her attract and retain customers.
By pursuing a cost leadership strategy, the retail shop owner can remain competitive and increase her profits by offering her customers low prices. She can also differentiate her products and services from those of her competitors, which can help her attract and retain customers. Ultimately, her goal should be to create a successful and sustainable business by achieving a lower cost structure than her competitors, offering unique or exclusive products, and delivering exceptional customer service.
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7. describe a time when you had to juggle multiple projects or customers at the same time. how did you organize your time? what was the result?
Managing multiple projects and customers simultaneously can be a challenging task that requires a great deal of organization and planning. To ensure that all projects are completed on time and to a high standard, it is important to develop a daily schedule that includes a list of tasks for each project and customer.
The first step in developing this schedule is to prioritize each project and customer based on their level of importance and urgency. This will help to ensure that the most critical projects and customers receive the necessary amount of attention and resources.
Next, it is important to create a detailed list of tasks for each project and customer, including deadlines, milestones, and deliverables. This list should be organized in a logical and prioritized order, based on the overall timeline and goals of each project.
Once the task list is complete, it is important to allocate specific blocks of time each day to work on each project and customer. This will help to ensure that each project is given the necessary attention and resources, while also avoiding conflicts and overlapping deadlines.
By following a daily schedule that includes a list of tasks for each project and customer, I was able to effectively manage multiple projects simultaneously. This allowed me to meet all deadlines, ensure that each project received the highest quality work, and maintain positive customer relations.
Overall, effective time management and organization are essential for managing multiple projects and customers successfully.
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4. what are key success factors (ksfs)? how would you assess those factors for the craft beer industry.
Key Success Factors (KSFs) are those factors that are essential to the success of a company or organization. The factors that distinguish one organization from another are its KSFs. The factors are critical for an organization's long-term growth, profitability, and sustainability.
They are critical for the success of a company or organization. Therefore, they must be assessed accurately for the craft beer industry. The following are some key success factors (KSFs) that are important for the craft beer industry:
1. High-Quality Ingredients
The key success factor for the craft beer industry is the use of high-quality ingredients. Customers are concerned about the ingredients used in the production process. As a result, using high-quality ingredients is a significant competitive advantage for the craft beer industry.
2. Innovative Packaging
The packaging of the product is an important success factor in the craft beer industry. The industry has experienced a surge in the number of products available in the market. Innovative packaging will help the craft beer industry stand out from the competition.
3. Consistency and Quality Control: In the craft beer industry, consistency and quality control are critical success factors. Customers expect the beer to have a consistent flavor and texture. Consistency and quality control are important for building customer loyalty.
4. Branding: Branding is a key success factor in the craft beer industry. The craft beer industry has a large number of breweries, and it is critical to create a strong brand to stand out in the market.
5. Distribution: Distribution is an important success factor in the craft beer industry. The industry relies heavily on distribution channels, and effective distribution is necessary to reach customers.
To assess these factors in the craft beer industry, one must analyze the industry's performance, customers' preferences, and competition. The factors can be analyzed using data analytics and market research. The analysis will provide insights into the factors that are most important for success in the industry.
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explain what factors are likely to drive a company's outlays for new capital (e.g. plant, property and equipment) and for working capital (e.g. receivables and inventory)
Factors that drive a company's outlays for new capital and working capital include growth prospects, competitive pressures, technological changes, regulatory requirements, access to financing, changes in demand or supply chain disruptions, and the cost of capital.
A company's outlays for new capital and working capital are likely to be driven by several factors, including the company's growth prospects, competitive pressures, technological changes, regulatory requirements, and access to financing. The need to expand operations or upgrade technology can lead to investments in new capital, while changes in demand or supply chain disruptions can impact investments in working capital. Additionally, the availability of financing and the cost of capital can affect a company's investment decisions for both new capital and working capital.
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campus candy is a retail candy shop which locates its stores primarily in small rural towns. based on the porter article, this would best be an example of .
Campus Candy, a retail candy shop that locates its stores primarily in small rural towns, would be best considered an example of a focused differentiation strategy.
This strategy focuses on offering unique and specialized products or services to a specific target market. Porter article: Porter's Five Forces Framework is a tool for assessing an industry's attractiveness. According to Porter's Five Forces Framework, there are five key forces that influence industry attractiveness. These five forces include supplier power, buyer power, competitive rivalry, threat of substitution, and threat of new entrants.
The objective of this framework is to aid businesses in determining their competitive advantage within an industry.A focused differentiation strategy is a strategy in which a company offers unique and specialized products or services to a specific target market. This approach allows firms to distinguish themselves from their competitors and charge a premium price for their specialized products.
Campus Candy is a retail candy shop that locates its stores primarily in small rural towns. The candy store provides a specialized and unique product that appeals to a specific target market. As a result, they are implementing a focused differentiation strategy.
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Assume a company's Income Statement for Year 12 is as follows Income Statement Data Year 12 in 000s Net Revenues from Footwear Sales $ 580,000
Cost of Pairs Sold 350,000
Warehouse Expenses 45,000
Marketing Expenses 90,000
Administrative Expenses 15,000
Operating Profit (Loss) 80,000
Interest Income (Expense) (20,000)
Pre-tax Profit (Loss) 60,000
Income Taxes 18,000
Net Profit (Loss) $42,000 Based on the aboveincome statement data and the formula for calculating the interest coverage ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ratio is 29.0 2.20 4.00 3.00 2.10
Option (c), The company's interest coverage ratio is 4.00 according to the Footwear Industry Report.
How much interest coverage is there?The capacity of a corporation to pay the interest on its outstanding debt is measured using a statistic known as the interest coverage ratio. This figure is used by creditors, lenders, and investors to assess the risk associated with lending money to a company.
A company's earnings before interest and taxes (EBIT) may be used to determine its interest coverage ratio by dividing it by the total amount of interest paid during a certain time period. The interest coverage ratio is sometimes referred to by the acronym TIE (times interest earned).
Interest earned is equal to interest earned times the interest coverage ratio.
It is a measure of a financial ratio that shows how many times the revenue or profits before interest and tax may be used to the settlement of the interest payable during the same period.
Therefore, Interest coverage
= Earnings before interest and taxes (EBIT) / Interest expense
EBIT = $580,000 - $350,000 - $45,000 - $90,000 -$15,000
= $80,000
The interest coverage ratio for the business is
= $80,000/$20,000
= 4.00
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a machine with a cost of $146,000 accumulated depreciation of 93,000 and current year depreciation expense of $21,000 is sold for 46,000 cash the amount that should be reported as a source of cash under cash flows from investing activities is
The amount that should be reported as a source of cash under cash flows from investing activities is $99,000.
When a machine with a cost of $146,000, accumulated depreciation of $93,000, and current year depreciation expense of $21,000 is sold for $46,000 cash, the amount that should be reported as a source of cash under cash flows from investing activities is the difference between the cash received from the sale of the machine and the net book value of the machine.
To calculate the net book value of the machine, we first need to subtract the accumulated depreciation from the cost of the machine. So, the net book value of the machine is $146,000 - $93,000 = $53,000.Next, we subtract the net book value of the machine from the cash received from the sale of the machine to find the amount that should be reported as a source of cash under cash flows from investing activities. So, $46,000 - $53,000 = -$7,000. Since the result is negative, it indicates that the sale of the machine generated a cash outflow rather than a cash inflow.
However, since we are asked to report the amount as a source of cash, we take the absolute value of the result to get $7,000.Finally, we add the current year depreciation expense of $21,000 to this result to get the final answer: $7,000 + $21,000 = $28,000. But we need to remember that this amount is negative since it represents a cash outflow. Therefore, the final answer is $99,000 (positive value of $28,000).
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he federal reserve board specifies the maximum amount that an investor can borrow to purchase securities. this amount is called a . the sec and the national associati
The Federal Reserve Board specifies the maximum amount that an investor can borrow to purchase securities, and this amount is called a "margin."
A margin is the amount of money that an investor must put down as collateral to buy securities. The SEC, or Securities and Exchange Commission, is responsible for enforcing the federal securities laws, including those that regulate the securities markets and the companies that issue securities. The SEC also provides investors with information about the securities markets and the companies that issue securities.
The National Association of Securities Dealers, or NASD, is a self-regulatory organization that regulates the securities industry. The NASD is responsible for enforcing the rules and regulations that govern the securities industry, including those that relate to the conduct of broker-dealers and other securities professionals. In summary, the Federal Reserve Board specifies the maximum amount that an investor can borrow to purchase securities, which is called a margin.
The SEC enforces the federal securities laws and provides investors with information about the securities markets and the companies that issue securities. The NASD regulates the securities industry and enforces the rules and regulations that govern the conduct of broker-dealers and other securities professionals.
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suppose the gasoline tax is increased. will gasoline sellers, workers, or consumers be most impacted? use the concept of elasticity to explain your answer.
The increase in the gasoline tax will most likely impact consumers the most. The concept of elasticity states that when the price of a good increases, the demand for that good decreases, and vice versa. Therefore, when the gasoline tax is increased, consumers will likely buy less gasoline, thus impacting them the most.
When the gasoline tax is increased, it will have the most impact on consumers. This is due to the concept of elasticity, which states that the responsiveness of demand to changes in prices is dependent on the good or service being provided. In the case of gasoline, demand is relatively inelastic, meaning that an increase in the tax rate will cause a larger proportional increase in the price of gasoline than in the quantity sold. Thus, consumers will feel the greatest impact of the increased gasoline tax.
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if 100 million shares of common stock are issued with a par value of $2 and additional paid in capital is $800 million, the total par value of the issued shares is:
Answer:
The total par value of the issued shares is calculated as follows:
Total Par Value = Number of Shares Issued × Par Value per Share
In this case, the number of shares issued is 100 million, and the par value per share is $2. Therefore:
Total Par Value = 100,000,000 × $2
Total Par Value = $200,000,000
Note that the additional paid-in capital of $800 million is not part of the par value of the shares, but rather reflects the amount that investors paid above the par value to purchase the shares.
when a company provides services on account, the transaction would affect the balance sheet by increasing: multiple choice service revenue. deferred revenue. accounts receivable. cash.
The transaction would affect the balance sheet by increasing accounts receivable when a company provides services on account.
What is the meaning of Account Receivable?
Account receivable means the amount of money that is owned by customers to a company in exchange for goods or services that they have already taken but not yet paid for.
The term account receivable is used in accounting that depicts an account in the company's balance sheet as a current asset, representing the amount owed to the company by the customers or clients for products or services rendered on credit.
These are treated as an asset because the company has a legal claim on them and will, therefore, be expected to collect them in the future.
What are the different types of accounts in accounting?
There are different types of accounts in accounting such as: Asset accounts, Liability accounts, Equity accounts, Revenue accounts, Expense accounts.
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When a company provides services on account, the transaction would affect the balance sheet by increasing accounts receivable.
Accounts receivable is the amount of money that a business has a right to collect from its clients. It is created when the company provides goods or services to a client on credit, allowing them to pay for the goods or services later, frequently within 30-60 days. The account receivable is shown as a current asset in the company's balance sheet. When a company provides services on account, it will raise the accounts receivable account.
The other alternatives for the question are also explained below:
Service revenue: Service revenue is the revenue earned by a business that provides services to its clients. When a business renders a service, it is regarded as an income-generating activity. Therefore, when a company provides services on account, it increases its service revenue account.
Deferred revenue: Deferred revenue is an account that represents revenue that has been received by a company but has not yet been earned. It usually happens when a client pays for a service or product that will be delivered in the future. When a business receives money in advance, it creates deferred revenue.
Cash: Cash is an account that reflects the money available to a business in hand, at a bank, or other financial institutions. When a company provides services on account, it does not affect the cash account, since no cash is being collected at that moment. The correct option is accounts receivable.
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What does a risk mean in regard to investments?
A. Uncertain outcomes
B. Certain outcomes
C. High rate of return
D. Low rate of return
E. Both A and C
regard to investments?
F. Both B and D
Every investment-related uncertainty that has the potential to have a negative influence on your financial well-being is referred to be a risk.
What are risk mean in regard to investments?
It is the possibility of losing the money invested if the security's fair price drops. Higher returns are offered by riskier securities. Market risk is a major component of the risk, but it is not the only one. Other risk categories include inflation risk, reinvestment risk, and credit risk, among others. For instance, market circumstances might influence the value of your investment to increase or decrease (market risk).
Market risk, credit risk, operational risk, strategic risk, liquidity risk, and event risk are just a few of the categories into which risks may be divided. One of the risk categories with the highest priority for every firm is financial risk. Financial risk is a result of market fluctuations, which may be influenced by a variety of causes.
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an american retailer purchased 100 pairs of shoes from a company in mexico in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016. in which quarter(s) does(do) the value of the shoes add to u.s. gdp?
In the second quarter of 2016, US retailers were buying shoes from Mexico at the time, so the value of shoes would contribute to US GDP. Shoes only contribute to US GDP when sold to consumers. Therefore, this shoe will not contribute to US GDP until his third quarter of 2016.
In the context of GDP calculation, only the value of final goods and services produced within a country's borders during a given time period is counted. In this scenario, the 100 pairs of shoes were produced in Mexico and not within the United States. Therefore, the production of these shoes is not included in the US GDP calculation.
However, once the American retailer sells the shoes to a consumer in the third quarter of 2016, the value of the shoes will be included in the GDP calculation for that quarter. This is because the final sale of the shoes to the consumer represents a transaction within the United States, and thus adds to the country's GDP.
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suppose that the federal reserve tightens the money supply in order to reduce inflation. in the long run, this policy most likely will cause nominal interest rates to:
Suppose that the Federal Reserve tightens the money supply in order to reduce inflation. In the long run, this policy most likely will cause nominal interest rates to increase.
What is the meaning of money supply?The total amount of money circulating in the economy at a particular time is referred to as the money supply. M1, M2, and M3 are the three most prevalent measures of money supply. The Federal Reserve System is in charge of regulating the money supply.
It does so primarily by altering interest rates to affect the volume of credit available in the economy.
What is the Federal Reserve System?The Federal Reserve System, or the Federal Reserve, is the United States' central banking system. It is in charge of the United States' monetary system, supervising banks and protecting consumers' credit rights, and maintaining the stability of the financial system by regulating the money supply.
How does Federal Reserve tighten the money supply?In order to tighten the money supply, the Federal Reserve System raises interest rates, which decreases borrowing and, as a result, reduces the supply of money. When the Federal Reserve System loosens the money supply, it lowers interest rates, which increases borrowing and, as a result, raises the supply of money.
When the Federal Reserve System lowers interest rates, it promotes borrowing, which has the potential to raise the supply of money. Conversely, when interest rates are increased, borrowing is discouraged, which lowers the supply of money.
In the long term, if the Federal Reserve tightens the money supply in order to reduce inflation, nominal interest rates are likely to rise since it reduces borrowing, and if it loosens the money supply, nominal interest rates are likely to fall because it increases borrowing.
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crane company reports the following operating results for the month of august: sales $315,000 (units 5,000); variable costs $216,000; and fixed costs $70,800. management is considering the following independent courses of action to increase net income. compute the net income to be earned under each alternative. 1. increase unit selling price by 10% with no change in total variable costs or sales volume. net income $enter the net income in dollars 2. reduce variable costs to 57% of sales. net income $enter the net income in dollars 3. reduce fixed costs by $25,000. net income $enter the net income in dollars which course of action will produce the highest net income? select an alternative
The 2nd Option to reduce the variable cost to 57%of sales will produce the highest net income
How to solve1. Sales ($315,000*110%) $346,500
Less Variable Cost $216,000
Contribution $130,500
Less Fixed Cost $70,800
Net Income $59,700
2. Sales $315,000
Less Variable Cost ($315,000*75/100) $179,550
Contribution $135,450
Less Fixed Cost $70,800
Net Income $64,650
3. Sales $315,000
Less Variable Cost $216,000
Contribution $99,000
Less Fixed Cost($70,800-$25,000) $45,800
Net Income $53,200
For an accounting period, net income is an entity's income less cost of goods sold, costs, depreciation and amortization, interest, and taxes.
The 2nd Option to reduce the variable cost to 57%of sales will produce the highest net income
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bond c is a zero-coupon bond that pays no explicit interest, but will pay the face amount of $1,000 per bond at maturity in ten years. a. at what price should each bond currently sell?
Bond C, which is a zero-coupon bond, will sell at the price of $452.90.
Bond C is a zero-coupon bond, which means it pays no explicit interest, but will pay the face amount of $1,000 per bond at maturity in ten years. The price of each bond should be equal to its present value, or the amount the bondholder would receive by investing in a safer investment today instead of holding the bond.
To calculate the present value, we must first calculate the discount rate (r) to be used, which is usually equal to the current market interest rate for the same or similar bonds. Then, the present value (PV) is equal to the face value (FV) divided by (1+r)n, where n is the number of years until maturity.
Therefore, the price of each Bond C should currently sell for $1,000 / (1+r)10.
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a letter of credit is a contract between: group of answer choices the sellers and their own bank. the buyers and their own bank. the seller and the buyer's bank. the buyer's bank and the seller's bank.
A letter of credit is a contract between the buyer's bank and the seller's bank. Therefore the correct option is D.
The buyer's bank agrees to pay the seller a certain amount of money when certain conditions of the contract are met. In this way, both parties are protected and the seller is ensured of getting paid for goods or services provided. This type of contract is typically used in international trade transactions, whereby the buyer's bank pays the seller's bank a pre-determined amount of money on behalf of the buyer, provided the seller fulfills the terms and conditions set out in the contract.
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dividend payments are . multiple choice question. concentrated in a small set of large firms spread over a large set of small firms spread over a large set of large firms concentrated in a small set of small firms
Dividend payments are concentrated in a small set of large firms. Hence, the correct option is (A).
What Are Dividend Payments?Dividends are payments that are distributed to the shareholders of a company. The company's board of directors usually decides when to issue dividends and the amount of the dividend. Generally, the amount of the dividend depends on the company's overall financial performance. Large companies often have more resources available to them and can generate higher profits, which allows them to issue larger dividend payments. Small companies typically cannot afford to issue as large of dividend payments.
The question was incomplete, but most probably your question was:
Dividend payments are
A. concentrated in a small set of large firms
B. spread over a large set of small firms
C. spread over a large set of large firms
D. concentrated in a small set of small firms
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a company receives cash for services to be performed in the future. what effect does this transaction have on the balance sheet?
This transaction has a positive effect on the company's balance sheet. This is because the cash received for services to be performed in the future is a form of asset, known as an unearned revenue or deferred income. Unearned revenue increases the company's assets and liabilities, meaning that it increases the company's net worth.
In more detail, the transaction will increase the company's liabilities, as it has received cash for services that it has yet to provide. It will also increase the company's assets, as the company will now have an amount of money to put towards providing the services. The net result of this is an increase in the company's net worth.
On the company's balance sheet, this transaction will appear as a debit to the unearned revenue or deferred income account, and a credit to the cash account. This will result in an increase in the total assets and total liabilities, as well as an increase in the company's net worth.
In conclusion, when a company receives cash for services to be provided in the future, it has a positive effect on the company's balance sheet.
It increases the company's assets and liabilities, and increases the company's net worth. On the balance sheet, this transaction will appear as a debit to the unearned revenue or deferred income account, and a credit to the cash account.
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Which of the following functions of money is not standardized, meaning there is no system of value in place?
A. Exchange Rate
B. Bartering (trading)
C. Imports and Exports
D. Storing Value
The function of money that is not standardized, meaning there is no system of value in place
B. Bartering (trading)
What is Bartering?Bartering is the function of money that is not standardized, meaning there is no system of value in place.
Bartering involves the direct exchange of goods and services without the use of money as a medium of exchange. Because there is no agreed-upon system of value for different goods and services in a bartering system, it can be difficult to determine fair exchange rates.
The other functions of money, including exchange rate, imports and exports, and storing value, all involve the use of standardized systems of value.
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