Suppose the government mandates higher interest rates for checking accounts. Claim: The Central Bank can stabilize output in the short run and in the long run by cutting the money supply. (Hint 1: Checking accounts are part of the money stock. So, consider what a higher interest rate on checking does to the desire to hold money. Hint 2: First graph what happens in the short run and the long run as a result of the higher interest rate on checking accounts. Then consider how the Central Bank can stabilize.)
Answers
The claim is false because the Central Bank cannot stabilize output in the short and long run by cutting the money supply in response to higher interest rates on checking accounts.
When the government mandates higher interest rates for checking accounts, it reduces the demand for money because holding money becomes relatively less attractive compared to earning interest. As a result, individuals and businesses will reduce their money holdings, leading to a decrease in the money supply. In the short run, the reduction in the money supply can have a contractionary effect on the economy. It can lead to a decrease in spending, investment, and overall economic activity, potentially causing a recessionary impact on output.
In the long run, the Central Bank's ability to stabilize output solely through cutting the money supply is limited. Monetary policy primarily affects aggregate demand in the short run and cannot address underlying structural issues or supply-side factors that may be influencing output. Long-term output stabilization requires a comprehensive approach that includes fiscal policies, structural reforms, and addressing productivity and labor market dynamics, the claim is false.
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The complete question is:
Please state whether the claim is true or false and explain why
Suppose the government mandates higher interest rates for checking accounts.
Claim: The Central Bank can stabilize output in the short run and in the long run by cutting the money supply. (Hint 1: Checking accounts are part of the money stock. So, consider what a higher interest rate on checking does to the desire to hold money. Hint 2: First graph what happens in the short run and the long run as a result of the higher interest rate on checking accounts. Then consider how the Central Bank can stabilize.)
Related Questions
One common element of all mass media (whether it is a news article, TV commercial, book or anything intended for a large audience) is that the message is:
A. Emotional
B. Objective
C. Constructed
Answers
Answer:
C
Explanation:
most of mass media tries to advertise the people that are watching or looking at it a product of some sort
which of the following methods do economists use to study income differences across countries? check all that apply. the purchasing power parity method, used to compare incomes across countries the bundle of goods method, used to compare types of affordable goods across countries an environmental performance index the gdp deflator method, used to compare incomes across countries
Answers
Following methods economists use to study income differences across countries :
The purchasing power parity method, used to compare incomes across countries
Exchange rate conversion, used to express incomes in the common currency
A common metric used by macroeconomic analysts to compare the currencies of various nations using a "basket of goods" approach is purchasing power parity (PPP). Economists can compare economic productivity and living standards across nations thanks to purchasing power parity (PPP). In order to account for PPP, some nations modify their GDP estimates.
The rate at which one currency can be exchanged for another is known as the exchange rate between two currencies. In other words, the exchange rate is the cost of one currency relative to another.
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multiple answers
These statements are true regarding association with a headhunter or recruiter:
1)referring other hard workers is appreciated by headhunters and recruiters
2) headhunters and recruiters work for you
3) instead of burdening your headhunter or recruiter, you should save time and contact an employer directly
4) headhunters and recruiters work for the employer
Answers
Headhunters and the recruiters both of them work for the employer of the company.
Option fourth is the correct answer.
Who is an employer?An employer is an individual who controls and manages the affairs of a company.
During the recruitment process, the recruiters hired individuals who are new to employment, that is, the freshers. In contrast, the headhunters hire those employees who already have an experience in the concerned field.
Therefore, the employer of the company is associated with both the headhunters and the recruiters.
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What are the barriers to cross-border trade in services? Why do you think more progress has been made in reducing the barriers to trade in physical goods, as opposed to trade in services? (answer with a maximum of 100 words)
Answers
The barriers to cross-border trade in services include regulatory restrictions, lack of transparency, and differences in legal frameworks.
Progress in reducing barriers to trade in physical goods has been greater due to several reasons. Firstly, physical goods are tangible and can be easily inspected for quality and safety. Secondly, trade in physical goods often involves standardized products, making it easier to establish common regulations.
Additionally, services are often more complex and require specific qualifications or licenses, leading to differences in professional standards across countries. Lastly, the intangible nature of services makes it difficult to enforce regulations and ensure consumer protection. Overall, reducing barriers to trade in services requires harmonizing regulations, promoting transparency, and addressing differences in professional standards.
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What are the steps needed to be taken by a company to implement
the balanced scorecard? (100 words)
Answers
Implementing the balanced scorecard involves several key steps. The first step is to define the company's strategy and objectives, which will be used to create the scorecard.
Next, the company should identify key performance indicators (KPIs) that are aligned with its strategy and objectives. These KPIs should be organized into the four categories of the balanced scorecard: financial, customer, internal processes, and learning and growth. Once the KPIs have been identified, the company should develop initiatives to improve performance in each category. Finally, the balanced scorecard should be communicated to all employees, and progress should be monitored and reviewed regularly to ensure that the company is on track to achieve its strategic goals.
To implement the Balanced Scorecard, a company should follow these steps: 1) Define strategic objectives and vision, ensuring they are aligned with overall business goals. 2) Identify key performance indicators (KPIs) to measure progress towards objectives. 3) Develop a strategy map to visualize cause-and-effect relationships between objectives and KPIs. 4) Establish targets and initiatives for each KPI to drive performance improvement. 5) Communicate the Balanced Scorecard to employees, promoting buy-in and understanding. 6) Regularly review and update the scorecard, using it as a management tool to monitor progress and adjust strategy as needed.
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One of the purposes of studying economics is to understand the
Answers
Answer:
Individuals, businesses and governments are all faced with making choices in situations where resources are scarce. This is where a knowledge of Economics is vital. Economics applies to most aspects of everyday life. By studying Economics you will examine topics of obvious importance to human well-being.
Explanation:
Answer:
D: principles that influence the production of goods and services.
Explanation:
on edge! hope this helps!!~ (゜▽゜;)
exercise 12-9 (static) cash flows from investing activities lo p3 equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. paid $89,000 cash for a new truck. sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. stock investments were sold for $60,800 cash, yielding a gain of $4,150. use the above information to determine cash flows from investing activities. note: amounts to be deducted should be indicated with a minus sign.
Answers
The cash flows from investing activities, given the costs of equipment and other fixed assets, are $ 221, 100.
How to find the cash flow from investing activities?The cash flow from investing activities refers to those cash flows that are either made from the sale of fixed assets and capital assets, or lost to the purchase of these same things.
The cash flows from investing activities here is therefore:
= Gain from sale of equipment - purchase of new truck + sale of and + sale of long term investment
= ( 65, 300 - 14, 000 ) - 89, 000 + 198, 000 + 60, 800
= $ 221, 100
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You invest certain amount of money at 4% simple interest. How long will it take for your money to grow n fold (note that when n = 2, it means the money doubles, i.e., increases two-fold; n = 3 means your money triples, i.e., it increases three-fold, and so on)
Answers
It will take approximately 0.693 years for the money to double and 1.099 years for the money to triple at a simple interest rate of 4%.
The time it will take for a certain amount of money invested at 4% simple interest to grow n-fold is given by the formula; t = (1/n) * ln(nf / n0)
where; t = time, n = the fold by which the money is growing, n0 = the initial amount of money, and nf = the final amount of money obtained.
Here's how to use this formula to answer the given question.
1: Determine the value of n-fold
When n = 2, the money doubles, i.e., increases two-fold
When n = 3, the money triples, i.e., it increases three-fold
2: Determine the initial and final amounts of money
Let's say the initial amount of money is P dollars, then;The final amount of money when the money doubles (n=2) is 2P dollars
The final amount of money when the money triples (n=3) is 3P dollars
3: Calculate the time required to grow the money to n-fold
Let's start by calculating the time it will take for the money to double (n=2)
t = (1/2) * ln(2P / P)
t = 0.693 (rounded off to three decimal places)
Now, let's calculate the time it will take for the money to triple (n=3)t = (1/3) * ln(3P / P)t = 1.099 (rounded off to three decimal places)
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The income statement, also known as the profit and loss (PaL) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and common sharcholders. The income statement is prepared using the generally accepted accounting principles (GMAP) that match the firm's revenues and expenses to the period in which they were incumed, not necersarily when cash was received or paid. Investors and analysts use the information given in the income statement and other firancial statements and reports to evaluate the company's finandal performance and condition. Consider the following scenario: Blue Hamster Manufacturing incis income statement reports data for its first year of operation. The firm's cEO would ike sales to increase by 25% next year. 1. Blue Hamster is able to achieve this level of increased soles, but its interest costs increase from 10% to 15% of eamings before interest and taxes (Eam). 2. The company's operating costs (excluding depreciation and amortization) remain at 65% of net wales, and is deprecation and amartization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (E9T). 4. In Year 2, Blue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively, Campiete the Year 2 income statement data for blve Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar: Given the results of the previous income statement caloulations; complete the fossowing statements: in anhisat dividerds. in Year 1 to in Year ? in veapito int Year 2. - It is contribution to notained earange, \$4,194,250 ard 45,121,53, ressectiviy. Tris it because of the ateme nosstied in the income seatement involve payments ans resepes of caahi.
Answers
The income statement provides a summary of a company's financial performance during a specific period. It includes gross income, expenses, net income, and income available for distribution to shareholders.
The statement is prepared using generally accepted accounting principles (GAAP) to match revenues and expenses to the period incurred. Investors use the income statement to evaluate a company's financial condition. Blue Hamster Manufacturing wants to increase sales by 25% in Year 2. Interest costs increase from 10% to 15% of Earnings Before Interest and Taxes (EBIT). Operating costs remain at 65% of net sales, and depreciation and amortization expenses remain constant. The tax rate stays at 25% of pre-tax income. In Year 2, the company expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively.
The Year 2 income statement data for Blue Hamster is not provided.
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What is one big decision you have made in the last few months? How did you make that decision?
Answers
Answer:
Decided to setup my new pc. The urge of having something new is what made me do it.
Explanation:
100% :-)
Answer:decided to go into construction
Explanation:
The adjusting entry to record the amortization of a discount on bonds payable is?.
Answers
The adjusting entry to document the amortization of a Discount on Bonds Payable is credited in place of Interest Expense.
What is Amortization?The practize of paying off a debt over time with a series of instalments is called amortization. Both the principle and interest portions of each payment are applied to the loan balance. As the loan is repaid, a little amount is initially set aside each month for principal, and this amount grows significantly each month.
A business may spread out the expense of a patent throughout the course of its usefulness. Consider a scenario in which a corporation holds the sole rights to a patent for ten years with no option for renewal.
The principal balance of a loan is reduced over time as the total principal and interest payments rise, as shown by amortization schedules. As the loan is repaid, less interest is paid and more of each payment is allocated to the main debt outstanding.
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You just borrowed money for four years to buy a car. The payments are $218 a month and the APR is 7 percent. How is the EAR computed?
Answers
Answer:
EAR= 0.072 = 7.2%
Explanation:
Giving the following information:
Nominal interest rate= 7%
Number of periods= 12 months
To calculate the Effective Annual Rate (EAR), we need to use the following formula:
EAR= (1 + nominal rate/number of periods)^number of periods
EAR= [(1 + 0.07/12)^12] - 1
EAR= 0.072 = 7.2%
With a(n) _______, the full amount of the loan is received when the contract is signed, but only the interest is paid over the life of the loan. The principal is then paid on the date that the loan is due. Question 14 options: retirement loan balloon loan line of credit installment loan
Answers
Answer:
Balloon loan
Explanation:
Balloon loan is a type of a relatively short term loan common in the commercial lending where only a portion of the principal amount , the interest is amortized over that period and the total outstanding amount , the principal is the final payment at the end of the loan period.
This makes the final payment to be significantly high compared to the other payments made over the entire loan period , hence the name balloon (inflated ) name given to it.
PLEASE HELP-AFTER THIS QUESTION I ONLY HAVE 10 POINTS LEFT, AND I DON'T WANT TO HAVE TO ASK THIS AGAIN!!!!!!!!!!!! I WILL GIVE BRAINLIEST, 5 STARS, AND THANKS TO ANYONE WHO CAN HELP ME!!!!!!!!!!!!!!!!!
Will thinks he is a good listener. He holds consistent eye contact whenever his colleagues speak and lets them share without interrupting. He always concentrates on what they are saying, doesn’t ask any questions, and tries to show them support by repeating what they’ve said and making judgments about it. Haley says that though Will exhibits some behaviors of a good listener, he could do better by changing a thing or two about his approach. What would Haley MOST likely suggest that Will should change about his behavior in order to become a better listener?
He should ask questions and stop making judgments.
He should stop repeating what his colleagues have said.
He should stop making judgments and repeating what his colleagues have said.
He should ask questions and stop holding so much eye contact.
Answers
Answer:
sup
Explanation:
Answer: He should ask questions and stop making judgments.
Explanation:
brainliest please
"I can't believe it! We've spent 18 months developing a relationship with that client. Our families have even socialized together. We've become friends. And they use a one-sentence memo to tell us that we were not selected for the big contract! Not a word of thanks, not a clue as to why we were not selected. I'm very disappointed" said Hugh, Vice President of Sales. Hugh was particularly disappointed because:__________.
i. a personal text message would have been the richest medium for communicating this information memos are the least rich medium for communicating this information
ii. a personal note would have been the richest medium for communicating this information
iii. a face-to-face meeting would have been just as rich as an electronic mail message.
iv. a phone call would have been a richer medium for communicating than a face-to-face conversation
Answers
Answer:
ii. a personal note would have been the richest medium for communicating this information
Explanation:
ii. a personal note would have been the richest medium for communicating this information
In the given passage, Hugh was particularly disappointed because a personal note would have been the richest medium for communicating this information. Therefore, option B is the correct option.
When does a person face disappointment?
A person faces disappointment when his or her expectations or desires are not accomplished. Disappointment means unhappiness which is caused when some desire or wanted thing is lost or can not be obtained.
In the given passage, since Hugh and his family spent so much time with the client and his family, he expected them that they should at least inform them informally about their being rejected for the contract. The reason behind his disappointment is the expectation and not fulfilling the same as he wanted. Disappointment is the consequence of thoughts and expectations which are different from reality.
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I need to find the social security and Medicare. Please let me know how you got your answer as well!
Answers
Answer:
See below
Explanation:
Social security and medicare per period
1. Otto:
Pay per period = 76,432/ 12
=6,369.33
social security = 6.2% of 6,369.33
=6.2 /100 x 6,369.33
=394.898
=394.9
medicare = 1.45 % of 6,369.33
=1.45/100 x 6,369.33
=92.355
=92.36
2. G. Hernandez :
Pay per period= 43,902 / 26= 1,688.54
social security =6.2% of 1,688.54
=6.2/100 x 1,688.54
=104,689
=104.69
medicare=1.45 of 1,688.54
=1.45/100 x 1,688.54
=24.48
A.Toms:
Pay per period = 20,235 /12 =1,686.25
social security = 6.2 % of 1,686.25
=6.2/100 x 1,686.25
=104.55
Medicare = 1.45 % of 1,686.25
=1.45/100 x 1,686.25
=24.45
please help me quick :( (sorry meant to put chem not business)
Answers
Why might'some people still prefer manually saving their money
manually transfer or deposit money into their savings account?
Answers
People prefer to do things the way they want. A lot or some people still prefer manually saving their money because;
They do not know much about banking or the importance of having a savings account.They need Emergency funds.So as to Keep track of their spending. Avoid using credit to pay one's billsWhy do people find it difficult saving money? Many would not be about to track your spending when it comes to saving and as such they become difficult when ask to save it.A lot of people do not want to pay the bank charges and so do not want to open an account. Many also are not aware of the importance of saving in a bank. Awareness to the people therefore will handle the issue of manual savings.
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ben sold his small online business for $100,000. the purchaser will pay him $20,000 today, then $20,000 every year for the next four years. assume that ben could invest a lump-sum payment today in an account yielding an interest rate of 4% annually. find the total present value of all five payments.
Answers
The total present value of all five payments is $92,554.99. This means that if Ben invests this amount today at an interest rate of 4%, it would be equivalent to receiving all the future payments of $20,000. Therefore, the buyer paying Ben in installments is equivalent to a lump-sum payment of $92,554.99 today.
To find the total present value of all five payments, we need to calculate the present value of each individual payment and then add them together.
1. Calculate the present value of the first payment of $20,000 received today. Since there is no time delay, the present value is simply $20,000.
2. Calculate the present value of the second, third, fourth, and fifth payments of $20,000 received every year for the next four years. Since these payments are received in the future, we need to discount them back to their present value using the interest rate of 4%.
To calculate the present value of each future payment, we can use the formula: PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
For the second payment:
PV = $20,000 / (1 + 0.04)^1 = $19,230.77
For the third payment:
PV = $20,000 / (1 + 0.04)^2 = $18,518.52
For the fourth payment:
PV = $20,000 / (1 + 0.04)^3 = $17,783.05
For the fifth payment:
PV = $20,000 / (1 + 0.04)^4 = $17,021.65
3. Add up all the present values:
Total present value = $20,000 + $19,230.77 + $18,518.52 + $17,783.05 + $17,021.65 = $92,554.99
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The total present value of all five payments is $96,923.08.
To find the total present value of all five payments, we need to calculate the present value of each individual payment and then sum them up.
Let's start by finding the present value of the $20,000 payment that Ben will receive today. The present value formula is:
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.
In this case, the future value (FV) is $20,000, the interest rate (r) is 4% (or 0.04 as a decimal), and the number of periods (n) is 0 (since it's the present value). Plugging these values into the formula, we get:
PV1 = $20,000 / (1 + 0.04)^0 = $20,000
Next, let's find the present value of the four annual payments of $20,000. Since these payments occur in the future, we need to discount them to their present value.
Using the same present value formula, the future value (FV) is $20,000, the interest rate (r) is 4% (or 0.04 as a decimal), and the number of periods (n) is 1 (since it's one year from now). Plugging these values into the formula, we get:
PV2 = $20,000 / (1 + 0.04)^1 = $19,230.77 (rounded to the nearest cent)
We need to discount each of the four annual payments, so the total present value of these four payments is:
PV3 = PV2 + PV2 + PV2 + PV2 = $19,230.77 + $19,230.77 + $19,230.77 + $19,230.77 = $76,923.08 (rounded to the nearest cent)
Finally, to find the total present value of all five payments, we sum up the present value of the payment received today (PV1) and the present value of the four annual payments (PV3):
Total present value = PV1 + PV3 = $20,000 + $76,923.08 = $96,923.08 (rounded to the nearest cent)
Therefore, the total present value of all five payments is $96,923.08.
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a plan for the national government’s revenues and spending for the coming year
Answers
The plan for the national government's revenues and spending for the coming year is known as the budget. It is a comprehensive document that outlines the government's financial plan, including how much money it expects to receive from taxes and other sources of revenue, and how it plans to spend that money.
The budget typically includes information about the government's priorities and goals, as well as specific details about how it plans to allocate resources to achieve those objectives. This might include funding for programs such as education, healthcare, national defense, infrastructure, and social services.
The process of creating a budget is complex and typically involves input from a range of stakeholders, including elected officials, government agencies, and citizens. It usually begins with the development of revenue estimates, based on projections of economic growth, tax revenue, and other factors.
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20. One way the federal government can control inflation is to increase
A) the money supply.
B) public spending.
C) the tax rate.
D) bank regulation
Answers
One way the federal government can control inflation is to increase public spending.
Therefore, Option B is the correct option.
What is Inflation?In the field of economics, inflation is the broad term for a rise in the cost of goods and services across an economy. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
In conclusion, inflation is the term used to describe a long-term, widespread increase in the cost of goods and services throughout the economy, which reduces both consumer and company purchasing power. In other words, a dollar (or whatever currency you choose to pay with) will not buy as much today as it did yesterday.
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The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking of expanding his sales by hiring high school students, on a commission basis, to sell sweatshirts bearing the name and mascot of the local high school.
These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and they could not be returned because of the unique printing required. The sweatshirts would cost Hooper $16.00 each with a minimum order of 203 sweatshirts. Any additional sweatshirts would have to be ordered in increments of 203.
Since Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $32.00 each. Hooper would pay the students a commission of $7.00 for each shirt sold.
Required:
1. What level of unit sales and dollar sales is needed to attain a target profit of $7,308?
2. Assume that Hooper places an initial order for 203 sweatshirts. What is his break-even point in unit sales and dollar sales? (Round your intermediate calculations, round "Break-even point in unit sales" up to the nearest whole unit and round "Break-even point in dollar sales" to the nearest whole dollar.)
3. How many sweatshirts would Hooper need to sell to earn a target profit of $8,222? (Round final answer up to the nearest whole unit.)
Answers
1. The unit and dollar sales levels needed to attain a target profit of $7,308 are 812 and $25,984.
2. The break-even point with 203 sweatshirts is $4,669.
3. The unit sales level needed to attain a target profit of $8,222 is 914.
What is the break-even point?The break-even point represents the required sales units for no profit or loss to be achieved.
At the break-even point, the total revenue equals the total costs (fixed and variable).
Data and Calculations:Selling price per sweatshirt = $32
Variable cost per unit = $23 ($7 + $16)
Contribution margin per unit = $9 ($32 - $23)
Contribution margin ratio = 0.28125 ($9/$32)
Fixed costs = $0
Target profit = $7,308
1. Sales level to attain a target profit of $7,308 = 812 units ($7,308/$9)
And $25,984 ($7,308/0.28125)
2. Break-even point with 203 sweatshirts = $4,669 ($23 x 203)
3. Target profit = $8,222
Sales level to attain a target profit of $8,222 = 914 units ($8,222/$9)
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Which of the following describes what is identified by a supply schedule?
a How much suppliers will profit at various prices
b How much consumers will save at various supply levels
c How much suppliers will raise prices as production varies
d How much of a product suppliers will produce at various prices
Answers
What is identified in a supply schedule is how much of a product suppliers will produce at various prices (option D).
What is a supply schedule?A supply schedule is a table that shows the price and quantity supplied of suppliers. It shows the total number of goods that would be supplied at various prices.
There is a positive relationship between price and the quantity supplied. This is because as price increases, there would be an increase in the quantity supplied. When price declines, there would be a decrease in the quantity supplied. This explains why the supply curve is positively sloped.
The supply schedule can be an individual schedule or a market schedule. When its an individual schedule, it contains information on only one supplier. If it is a market schedule, it aggregates the information of all the suppliers in the market.
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Explain how the sneaker resale industry is an example of CAPITALISM at work (Include words : profit, free market, capital, competitive, supply and demand
Answers
The sneaker resale industry is an example of capitalism at work because it operates based on the principles of supply and demand.
What does the concept of capitalism means?In a capitalist system, individuals and businesses are free to buy and sell goods and services at prices that are determined by the market.
In the sneaker resale industry, people are willing to pay higher prices for limited-edition or rare sneakers, and the resale market responds to this demand by buying the sneakers at the original price and then reselling them for a profit.
The resale market creates value for its customers by providing them with access to hard-to-find sneakers, and the market operates efficiently by balancing supply and demand through the pricing mechan
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as the size of a tax rises, the deadweight loss a. rises, and tax revenue first rises, then falls. b. rises as does tax revenue. c. falls as does tax revenue. d. falls, and tax revenue first rises, then falls.
Answers
As taxes increase, the deadweight loss from the tax increases. In fact, as taxes increase, the deadweight loss rises greater rapidly than the dimension of the tax.
What motives deadweight loss to increase?Deadweight losses particularly occur from an inefficient allocation of resources, created by using a range of interventions, such as fee ceilings, charge floors, monopolies, and taxes. These factors lead to the charge of a product now not being precisely reflected, meaning items are both overestimated or undervalued.
What does deadweight loss of tax depends on?Deadweight loss of taxation measures the ordinary economic loss precipitated by means of a new tax on a product or service. It analyses the limit in production and the decline in demand brought on through the imposition of a tax. It is a lost possibility cost.
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https://brainly.com/question/29802816#SPJ4Bryant Company sells a wide range of inventories, which are initially purchased on account. Occasionally, a short-term note payable is used to obtain cash for current use. The following transactions were selected from those occurring during the year. a. On January 10, purchased merchandise on credit for $25,500. The company uses a perpetual inventory system. b. On March 1, borrowed $55,000 cash from City Bank and signed a promissory note with a face amount of $55,000, due at the end of six months, accruing interest at an annual rate of 6.50 percent, payable at maturity. Required: 1. For each of the transactions, indicate the accounts, amounts, and effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) 2. What amount of cash is paid on the maturity date of the note?
Answers
1. On January 10
Effects on the Accounting Equation:
Assets (+) $25,500 = Liabilities (+) $25,500
On March 1
Effects on the Accounting Equation:
Assets (+) $55,000 = Liabilities (+) $55,000
2. The total amount of cash paid on the maturity date of the note is $55,000 + $1,787.50 = $56,787.50.
For each of the transactions, here are the accounts, amounts, and effects on the accounting equation:
a. On January 10, purchased merchandise on credit for $25,500. The company uses a perpetual inventory system.
Accounts:
Increase in Inventory: $25,500
Increase in Accounts Payable: $25,500
Effects on the Accounting Equation:
Assets (+) $25,500 = Liabilities (+) $25,500
b. On March 1, borrowed $55,000 cash from City Bank and signed a promissory note with a face amount of $55,000, due at the end of six months, accruing interest at an annual rate of 6.50 percent, payable at maturity.
Accounts:
Increase in Cash: $55,000
Increase in Notes Payable: $55,000
Effects on the Accounting Equation:
Assets (+) $55,000 = Liabilities (+) $55,000
2. The maturity date of the note is after six months. On the maturity date, the company will need to repay the principal amount of the note and the interest accrued over the six-month period.
To calculate the amount of cash paid on the maturity date, we need to determine the interest accrued on the note. The interest is calculated using the formula: Interest = Principal * Rate * Time.
Principal = $55,000
Rate = 6.50% per annum
Time = 6 months
Interest = $55,000 * 0.065 * (6/12)
Interest = $1,787.50
On the maturity date, the company will need to pay back the principal amount of $55,000 and the accrued interest of $1,787.50.
Therefore, the total amount of cash paid on the maturity date of the note is $55,000 + $1,787.50 = $56,787.50.
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Profitability Index A project has an initial cost of $45,000, expected net cash inflows of $10,000 per year for 12 years, and a cost of capital of 8%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
Answers
The project's profitability index is 1.67, which indicates that for every dollar invested, $1.67 in present value is anticipated to be generated. The project is okay because PI is higher than 1.
To calculate the profitability index (PI) of the project, we need to find the present value of all the expected cash inflows and divide it by the initial investment. Here's a step-by-step solution:
Construct a timeline of the project's cash flows:
bash
Copy code
0 1 2 12
|--------------|---------------|------------------|
-$45,000 $10,000 $10,000 $10,000
Calculate the present value (PV) of each cash flow using the formula:
PV = CF / (1 + r)^n
where CF is the cash flow, r is the discount rate (cost of capital), and n is the number of periods.
For the initial investment, n=0, so PV = -$45,000.
For the annual cash inflows, n=1 to n=12, so we can use a calculator or spreadsheet to find the PVs:
PV = $10,000 / (1 + 0.08)^n
PV(Year 1) = $9,259.26
PV(Year 2) = $8,564.25
PV(Year 3) = $7,924.41
PV(Year 4) = $7,334.78
PV(Year 5) = $6,791.72
PV(Year 6) = $6,291.87
PV(Year 7) = $5,831.18
PV(Year 8) = $5,406.87
PV(Year 9) = $5,016.44
PV(Year 10) = $4,657.59
PV(Year 11) = $4,328.28
PV(Year 12) = $4,026.68
Add up all the present values of the cash flows:
PV of cash inflows = $9,259.26 + $8,564.25 + $7,924.41 + $7,334.78 + $6,791.72 + $6,291.87 + $5,831.18 + $5,406.87 + $5,016.44 + $4,657.59 + $4,328.28 + $4,026.68
= $75,161.36
Calculate the project's PI by dividing the PV of cash inflows by the initial investment:
PI = PV of cash inflows / Initial investment
= $75,161.36 / $45,000
= 1.67 (rounded to two decimal places)
Therefore, the project's profitability index is 1.67, which means that the project is expected to generate $1.67 in present value for every $1 invested. Since PI is greater than 1, the project is acceptable.
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If you are relying on self-control, commitment, and shared influence to manage your team, which form of structural control are you using
Answers
If you are relying on self-control, commitment, and shared influence to manage your team is clan control.
Clan control is when the values and beliefs of the organization operates more like a family than a company. It should be noted that in clan control, there are few rules and policies that are out in place by the organization.
If you are relying on self-control, commitment, and shared influence to manage your team is clan control. It mostly relies on the trust of the employees. This is different from bureaucracy.
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Your professor is considering purchasing a self-driving car that can figure out the best route and the optimum safe way to drive there without human intervention. What kind of analytics is the car using to do this?.
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The self-driving car is using prescriptive analytics to figure out the best route and the optimum safe way to drive there without human intervention.
What is prescriptive analytics?Prescriptive analytics is a kind of analytics that identifies the most excellent method to take in a situation, and it is designed to solve particular business challenges.
Prescriptive analytics relies on artificial intelligence and machine learning algorithms, which are programmed to identify what happened, why it happened, and what can be done to solve it. Examples of prescriptive analytics: Optimizing production processes in manufacturing organization.
Prescribing the best course of treatment to medical patients based on their medical history and genetic information. Augmenting customer service by forecasting customer needs and offering the appropriate products to satisfy those needs.
In conclusion, the self-driving car is using prescriptive analytics to figure out the best route and the optimum safe way to drive there without human intervention.
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#1 You are driving down the highway when one of your tires suddenly blows out. You should
Pump your brakes rapidly, and steer your vehicle to control any skids.
Avoid using your brakes. Slow down gradually and concentrate on steering.
Press hard on your brake pedal and stop as quickly as you can.