The increase in property prices in Australia has led to an increase in the wealth of households and firms, which has resulted in an increase in consumption expenditure and firm investment.
According to the Keynesian model of the macroeconomy, an increase in aggregate demand leads to an increase in output. In this case, the increase in consumption expenditure by households and firm investment would increase the aggregate demand, which would result in an increase in output. The increase in consumption expenditure would affect the component of expenditure, C (consumption), while the increase in firm investment would affect the component of expenditure, I (investment). Both of these components of expenditure would lead to an increase in the aggregate demand and, therefore, an increase in output.
The increase in consumption expenditure can be explained by the wealth effect. When the value of properties increases, households feel richer and are more likely to increase their consumption expenditure. On the other hand, the increase in firm investment can be explained by the availability of more funds for investment due to the increased value of their properties.
Overall, the increase in property prices has had a positive impact on the output of the Australian economy due to the increase in consumption expenditure and firm investment, which led to an increase in aggregate demand.
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19- Substitute goods are goods that are:
Question 19 options:
a- jointly consumed.
b- competing for consumer spending.
c- used late in the game.
d- inferior.
e- normal.
Substitute goods are goods that are:
Option b- competing for consumer spending.
Explanation:
Substitute goods are products that can be used as alternatives to each other and are typically in direct competition for consumers' spending. For instance, if beef becomes more expensive, people might opt to buy chicken instead.
What are substitute goods and examples?
Substitute goods are defined as "Products that can satisfy some of the same customers' needs as each other" by the Cambridge Dictionary. The traditional examples of replacement goods include butter and margarine. Those without access to a car can get around by bus or bicycle.to allow device connectivity with age.
What are substitute goods in economics?
A substitute, or substitutable good, is a good that consumers perceive to be significantly similar to or sufficiently equivalent to another item in economics and consumer theory. A product that can be used in place of another is called a replacement.
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Question 2 1 pts How does tax affect a firm's fixed, marginal and average costs? 1. When firm must pay lump sum tax (which is a fixed sum, independent of whether it produces any output): • fixed cos of production will remain the same . increase marginal cost of production will · average cost of production will increase 2. When firm must pay a tax proportional to the number of items it produces: • fixed cost of production will [Select] · marginal cost of production will [Select] - average cost of production will [Select]
When a firm must pay a lump sum tax, the fixed cost of production will remain the same, but the marginal cost of production will increase.
This, in turn, will increase the average cost of production. On the other hand, when a firm must pay a tax proportional to the number of items it produces, the effect on fixed, marginal, and average costs will depend on the specific tax rate and the firm's production levels. Generally, as the tax rate increases, the fixed cost of production will remain the same, the marginal cost of production will increase, and the average cost of production will increase as well. However, the exact impact on each of these costs will vary based on the specific tax rate and the firm's production levels.
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the general environment comprises the actual organizations, groups, and persons with whom an organization interacts and conducts business. true or false
An organization's internal environment consists of the entities, conditions, events, and factors within the organization that influence choices and activities. It exposes the strengths and weaknesses found within the organization. Factors that are frequently considered part of the internal environment include the employee behavior, the organization's culture, mission statement, and leadership styles.
Why the environment comprises the actual organizations?
Terrific Technologies' leadership style is extremely hands-on using a high degree of creativity, ingenuity, and imagination in solving organizational problems. Their managers are concerned about employee morale and welfare and go above and beyond what is necessary to make their employees feel valued and important. Their employees are very loyal to the company and are typically happy with their jobs.The statement "The general environment comprises the actual organizations, groups, and persons with whom an organization interacts and conducts business" is false. The general environment, also known as the macro environment, includes external factors that can impact an organization's performance and success, such as economic, political, technological, social, and legal factors. The actual organizations, groups, and persons with whom an organization interacts and conducts business are part of the task environment or industry environment, which is more specific and directly related to the business's operations.The internal environment of Basic Bolt Company is very different from Terrific Technologies. Basic Bolt Company's leadership is results- and deadline-driven, distant, detached, and generally unconcerned about their employees' welfare or morale. Their employees are not especially dedicated to the company and are happy to leave if the opportunity arises.An organization's external environment consists of the entities, conditions, events, and factors surrounding the organization that influence choices and activities and determine its opportunities and threats. It is also called an operating environment. Examples of factors affecting an organization's external environment include customers, public opinion, economic conditions, government regulations, and competition.The external environment of the Basic Bolt Company and Terrific Technologies will be different as well, but a few external factors will potentially affect both companies. Basic Bolt Company's customers will have very different wants and needs compared to Terrific Technologies' clientele, but both will want a superior product or service at the lowest possible price. Both companies will face governmental regulations, but they will likely be subject to different laws and legislation. The condition of the economy will also affect both companies.
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Question 07: Explain the three reasons why competency-based job analysis has become more common. Answer:
Competency-based job analysis has become more common for its Enhanced Performance, Workforce Flexibility and Improved Talent Management.
Competency-based job analysis has become more common for three primary reasons:
1. Enhanced Performance: This approach identifies the specific competencies required for a job, leading to better job performance. By focusing on these competencies, organizations can effectively hire, train, and develop employees to meet their desired goals.
2. Workforce Flexibility: Competency-based job analysis allows organizations to be more adaptable in response to changing business environments. By identifying transferable skills, it becomes easier to move employees between roles or departments, ensuring that workforce resources are used efficiently.
3. Improved Talent Management: This method facilitates a more strategic approach to talent management. By recognizing and measuring competencies, organizations can identify skill gaps, support employee development, and align staff capabilities with organizational objectives, ultimately leading to a more competitive and successful business.
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A business incurred explicit costs of $35,000 and implicit costs of $10,000 last year. If the business sold 500 units of output st price of $100 per unit, its accounting profit and its economic profit were Multiple Choice a. 55.000 and $15.000, respectively b. 510,000 and 535.000, respectively c. $35,000 and $10.000, respectively d. $15.000 and 55.000, respectively
Your answer is: a. $55,000 and $15,000, respectively.
Accounting profit is calculated as total revenue minus explicit costs. In this case, total revenue is 500 units * $100/unit = $50,000. Accounting profit is $50,000 - $35,000 (explicit costs) = $15,000.
Economic profit is calculated as accounting profit minus implicit costs. In this case, economic profit is $15,000 (accounting profit) - $10,000 (implicit costs) = $5,000.
Solution - The correct answer is option A: $55,000 accounting profit and $15,000 economic profit.
Accounting profit is calculated by subtracting explicit costs from total revenue. In this case, total revenue is 500 units x $100 per unit = $50,000. So, accounting profit is $50,000 - $35,000 = $15,000.
However, economic profit takes into account both explicit and implicit costs. Implicit costs are the opportunity costs of using resources that the business already owns rather than selling them in the market. In this case, the implicit costs are $10,000.
So, economic profit is calculated by subtracting both explicit and implicit costs from total revenue. Economic profit is $50,000 - $35,000 - $10,000 = $5,000. Therefore, the business's accounting profit was $55,000 ($50,000 - $35,000) and its economic profit was $15,000 ($50,000 - $35,000 - $10,000).
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If you sell 20% of your company today to an angel investor for $20,000, and your company is acquired a year from now for $5 million, how much will you angel investor receive?
$400,000 $20,000 $1,000,000
The angel investor would receive $1,000,000. Hence, option C would be the correct answer.
An angel investor is an individual who invests their own money in a startup or early-stage company, typically in exchange for equity ownership or convertible debt. Angel investors are often high net worth individuals who provide funding to entrepreneurs and startup companies that are not yet able to access traditional forms of financing, such as bank loans or venture capital. Angel investors typically invest in companies that have high growth potential and are led by experienced and talented management teams.
Here's how the calculation works:
- If the investor bought 20% of the company for $20,000, then the company's total value at that time was $100,000 ($20,000 is 20% of $100,000).
- If the company is acquired a year later for $5 million, that means the company's value has increased by 50x ($5 million / $100,000).
- Therefore, the angel investor's 20% share of the company is now worth 50x more than their initial investment, or $1 million ($20,000 x 50).
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An ABC System classifies inventory based the degree of importance:
The value of inventory items is calculated using the inventory management technique of ABC analysis based on their significance to the company. Inventory managers classify things according on how ABC prioritizes them based on demand, cost, and risk data.
The ABC analysis is a method of inventory classification that divides the products into three groups, A, B, and C, according to their revenue. In the ABC analysis, "A" stands for the most significant inventory, "B" for moderately necessary inventory, and "C" for the least important inventory.
Inventory is divided into three categories—A, B, and C—with A representing the lowest quantity and highest value. This method of inventory control is known as ABC analysis.
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Table 29-7 Bank of Springfield Assets Reserves Loans Liabilities Deposits $19,800 160,200 $180,000 4. Refer to Table 29-7. Assuming the Bank of Springfield and all other banks have the same the value of the money multiplier? reserve ratio, then what is
Assuming that the Bank of Springfield and all other banks have the same reserve ratio, the money multiplier is 10.
The money multiplier is a measure of the amount of money that can be created through the fractional reserve banking system. It is calculated by dividing the amount of money in circulation by the amount of base money, which is the sum of reserves and currency in circulation.
In the case of the Bank of Springfield, the reserve ratio is not given, so it cannot be used to directly calculate the money multiplier. However, if we assume that all banks have the same reserve ratio, we can use the formula for the money multiplier to calculate an estimate.
The formula for the money multiplier is:
Money multiplier = 1 / Reserve ratio
Assuming that the Bank of Springfield and all other banks have the same reserve ratio, we can calculate an estimate for the money multiplier. We know that the reserves of the Bank of Springfield are $19,800, and we can assume that its loans are equal to its deposits (since the question does not provide information to the contrary).
Therefore, the total amount of money in circulation is:
Deposits + Currency in circulation = $180,000 + $0 = $180,000
The base money is the sum of reserves and currency in circulation, which is:
Base money = Reserves + Currency in circulation = $19,800 + $0 = $19,800
If we assume a reserve ratio of 10%, then the money multiplier would be:
Money multiplier = 1 / Reserve ratio = 1 / 0.10 = 10
This means that for every dollar of reserves held by the banking system, the money supply can increase by ten dollars.
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Based on Table 29-7, the Bank of Springfield has Reserves of $19,800 and Deposits of $180,000. To calculate the value of the money multiplier, you can use the formula:
Money Multiplier = 1 / Reserve Ratio
Reserve Ratio = Reserves / Deposits = $19,800 / $180,000 = 0.11
Money Multiplier = 1 / 0.11 ≈ 9.09
Springfield is a common name for cities and towns in various parts of the world, including the United States, the United Kingdom, Canada, and Australia. The name "Springfield" typically derives from the presence of natural springs or wells in the area, or from the use of the term "spring" to denote a source of water. Springfield is also a fictional town in the long-running animated television series "The Simpsons," which has become synonymous with the name. The fictional town of Springfield in "The Simpsons" is known for its quirky characters, iconic landmarks, and satirical take on American culture and society.
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What are three essential building blocks of industry?
The three essential building blocks of industry are competition, demand and supply.
The building blocks of an industry can be described as -
Competition - When manufacturers in a industry compete with one another for consumers and market share, this is referred to as competition. Price competition, product differentiation, marketing tactics, are examples of competitive factors. Competition impacts the profitability and sustainability of industry players as well as the characteristics of the industry, including price choices, product offers, and market positioning.
Demand - Consumers' need for products within a sector of economy. It symbolises customers' readiness and capacity to invest in goods and services at a specific cost and volume. Consumer tastes, spending power, economic states, and market movements all affect demand. It is essential for industry participants to comprehend and analyse demand in order to create efficient marketing and sales strategies.
Supply - It speaks to accessibility of commodities created or provided by manufacturers or suppliers within a certain sector. In order to satisfy customer demand, entails producing and distributing commodities. Production capacity, resource accessibility, technology, labor, and capital are only a few examples of the variables that have an impact on the supply of products and services.
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What has to hold for 8 for the strategies described in 430.1 for a SPE to exist. с D EXERCISE 429.1 (Grim trigger strategies in a general Prisoner's Dilemma) Find the EXERCISE 430.1 (Strategies in an infinitely repeated Prisoner's Dilemma) Represent condition on the discount factor & under which the strategy pair in which each each of the following strategies for an infinitely repeated Prisoner's Dilemma in a player uses the grim trigger strategy is a Nash equilibrium of the infinitely re- automaton like we did in class. peated game of the Prisoner's Dilemma in Figure 431.1.C D
C x,x 0,y
D y,0 1,1a. Choose C in period 1, and after any history in which the other player chose C in every period except, possibly, the previous period; choose D after any other history. (That is, punishment is grim, but its initiation is delayed by one period.) b.. Choose C in period 1 and after any history in which the other player chose D in at most one period; choose D after any other history. (That is, punishment is grim, but a single lapse is forgiven.) C. (Pavlov, or win-stay, lose-shift) Choose C in period 1 and after any history in which the outcome in the last period is either (C,C) or (D,D); choose D after any other history. (That is, choose the same action again if the outcome was relatively good for you, and switch actions if it was not.)
In order for the strategies described in exercise 430.1 for a SPE (Subgame Perfect Equilibrium) to exist in an infinitely repeated Prisoner's Dilemma, the discount factor must be sufficiently high.
Specifically, the discount factor must be greater than (1-p)/(1+r-p), where p is the probability that the game will continue after each round, and r is the maximum possible difference between the players' payoffs in one round.
For each of the three strategies described in exercises 429.1 and 430.1, we can represent them using an automaton, which shows the possible actions a player can take based on their own previous actions and the other player's previous actions.
We can then analyze whether the strategy is a Nash equilibrium by looking at whether each player's action is optimal given the other player's action, assuming that the other player will follow the same strategy in subsequent rounds.
For example, in the Pavlov or win-stay, lose-shift strategy, a player chooses C in period 1 and after any history in which the outcome in the last period is either (C,C) or (D,D), and chooses D after any other history.
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an agreement when at least one party has the right to withdraw from the promise made without incurring any legal liability is known as a(n) contract.
The agreement described in the question is called a unilateral contract. This type of contract involves one party making a promise or offer to another party, who must perform a specific action to accept the offer.
The party making the offer is obligated to fulfill their promise only if the other party performs the required action. However, the other party has the right to withdraw from the promise without any legal liability.
This type of contract is commonly used in situations such as reward offers or contests, where one party offers a prize or reward for a specific action to be taken by another party.
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a drugstore purchases hand cream at $2 per jar and sells the jars for $15. what is the markup percentage?
The markup percentage can be calculated by using the following formula:
Markup percentage = (Selling price - Cost price) / Cost price x 100
In this case, the cost price of one jar of hand cream is $2 and the selling price is $15. So, the markup percentage would be:
Markup percentage = (15 - 2) / 2 x 100
Markup percentage = 13 / 2 x 100
Markup percentage = 650%
Therefore, the markup percentage for the hand cream sold by the drugstore is 650%.
What is a good markup percentage?
In light of this, figuring out your markup is simple if you know your profit margins (or what you want them to be). You can see that if you want to make a 40% profit, you should mark up your goods or services by around 70%. Alternatively, you need a 100% markup if you want a 50% profit margin.
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Franchising is an attractive method of entering foreign markets because
Franchising is an attractive method of entering foreign markets because it offers many benefits, including reduced risk, faster market entry, local partnerships, and increased brand recognition.
Local Knowledge: Franchisees are usually local entrepreneurs who have a deep understanding of the local market, culture, and consumer preferences. This local knowledge can be invaluable when entering a foreign market as it can help the franchisor to avoid costly mistakes.
Reduced Risk: Franchising allows the franchisor to reduce its risk by leveraging the local knowledge and expertise of the franchisee. The franchisee is responsible for investing in and operating the franchise unit, which reduces the upfront costs and risks for the franchisor.
Faster Market Entry: Franchising allows the franchisor to enter a new market quickly and efficiently. Instead of investing in a new operation from scratch, the franchisor can leverage the existing infrastructure and resources of the franchisee to establish a presence in the foreign market.
Brand Recognition: Franchising can help to build brand recognition in a foreign market quickly. The franchisee is responsible for marketing and promoting the brand, which can help to increase awareness and build a loyal customer base in the new market.
Overall, franchising is an attractive method of entering foreign markets because it offers many benefits, including reduced risk, faster market entry, local partnerships, and increased brand recognition.
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the information in data warehouses is stored in a form more suited to support decision-making tasks than a typical database. to this end, common information forms in data warehouses can include totals, counts, averages, and so on. in this instance, data in these forms are an example of
Data warehouses are specialized databases that are designed to store and analyze large amounts of data that is used to support decision-making tasks.
The information in data warehouses is stored in a form that is more suited for decision-making tasks than a typical database. One of the common information forms used in data warehouses includes totals, counts, averages, and other aggregated data. These forms of data are created through the process of data aggregation, which involves the collection of raw data and the transformation of that data into a more useful format for analysis.
Data in these forms is an example of how data warehouses are designed to provide decision-makers with access to relevant and useful information. By aggregating data into forms that are easy to analyze, decision-makers can quickly identify trends and patterns, make informed decisions, and monitor the performance of their organization.
This type of information is crucial for strategic planning, forecasting, and other business processes that require access to timely and accurate data. Overall, data warehouses are a powerful tool for organizations looking to gain insights and make informed decisions based on their data.
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Export subsidies versus production subsidies Complete the following table by indicating whether each statement about domestic production subsidies and export subsidies is true or false. Statement 1. When the government makes up the difference between a guaranteed minimum price and the lower price at which farmers actually sell their crop, this is a domestic production subsidy. (T/F)2. When the government provides a subsidy to farmers for every ton of wheat produced, this is an export subsidy.(T/F)3. A country's domestic production subsidies have more impact on other countries than do its export subsidies. (T/F)4. Domestic production subsidies in a small country cause greater deadweight losses than do export subsidies. (T/F)
1)True
2)False
3)False
4)True
1)True - A domestic production subsidy is a type of subsidy given to domestic producers to encourage them to produce more goods or services. In this case, the government makes up the difference between the guaranteed minimum price and the lower price at which farmers actually sell their crop. This subsidy aims to support domestic producers, which can result in lower prices for consumers and higher profits for producers.
2)False - An export subsidy is a type of subsidy given to exporters to encourage them to export more goods or services. In this case, the government provides a subsidy to farmers for every ton of wheat produced, which is not necessarily an export subsidy. An export subsidy would be when the government provides a subsidy to farmers for every ton of wheat exported.
3)False - Both domestic production subsidies and export subsidies can have an impact on other countries. Domestic production subsidies can result in overproduction, leading to lower prices in the domestic market, which can affect producers in other countries who export to that market. Similarly, export subsidies can result in increased competition in the international market, which can affect producers in other countries who export similar goods.
4)True - Deadweight loss is a loss of economic efficiency that can occur when a subsidy is provided. Domestic production subsidies in a small country can cause greater deadweight losses than export subsidies because they can lead to overproduction and lower prices in the domestic market, which can result in a surplus of goods that are not sold, and resources are not used efficiently. On the other hand, export subsidies can result in increased competition in the international market, which can lead to more efficient use of resources.
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Consider a firm that enjoys economies of scale. • If this firm wants to produce 25% more output, it expects its total cost to be [ Select] 1.25 of the initial cost. • If this firm wants to cut the output by 25%, it expects its total cost to decrease by 25%. ✓ [ Select ] more than less than exactly A company !Thm! can produce theorems by employing mathematicians, physicists or economists. To produce one theorem, they require three mathematicians, or two physicists, or three economists. The firm is able to hire mathematicians at $50 per hour, physicists at $100 per hour, and economists at $60 per hour. • Whom the firm should hire? [Select] • If the company !Thm! wants to produce q theorems, it should it hire [ Select] S [ Select] • The company's cost function is given by Clq) = [ Select]
A firm that enjoys economies of scale has the following characteristics:
- If it wants to produce 25% more output, its total cost will be less than 1.25 of the initial cost.
- If it wants to cut the output by 25%, its total cost will decrease by more than 25%.
For a company to produce one theorem, they can hire:
- Three mathematicians at $50 per hour each
- Two physicists at $100 per hour each
- Three economists at $60 per hour each
To minimize costs, let's calculate the total hourly cost for each option:
- Mathematicians: 3 * $50 = $150
- Physicists: 2 * $100 = $200
- Economists: 3 * $60 = $180
The firm should hire mathematicians, as they have the lowest total hourly cost of $150.
If the company wants to produce q theorems, it should hire 3q mathematicians.
The company's cost function is given by C(q) = 150q, as they will need 3 mathematicians per theorem, each costing $50 per hour.
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Exercise 1 3 8 = M^= M = M = Consider an economy with two consumers, Alexia and Bart, who live two periods, t = 0 and t = 1. In each period they can consume one type of good and their preferences for consumption are given by U(CC) = c(0) i= A, B. Alexia and Bart have the following endowment of good in each period 1 M 4 4 4 In t = 0, Alexia and Bart can exchange a financial contract for the delivery of one unit of consumption good in t = 1 (a bond) Name q the price of the bond and the amount bought by agent i = A.B. (a) Write down each agent i = A, B utility maximization and budget constraints assuming that he/she can trade the bond with restriction, b'> -M (b) Find each agent's optimal quantity b as a function of the bond net return r. (e) Find the equilibrium value of r and the equilibrium demand/supply of each agent. (d) Assume now that both consumers i = A, B are constrained by > 0. How does the equilibrium (allocation and interest rate) change? Answer graphically in the Edgeworth box
Consider an economy with two consumers, Alexia and Bart, who live for two periods, t=0 and t=1. In each period, they can consume one type of good, and their preferences for consumption are given by [tex]U(c^t)[/tex] = [tex]c^t_i[/tex] for i=A, B. Alexia and Bart have the following endowments of the good in each period:
M=(4,4) for Alexia
M=(4,4) for Bart
In t=0, Alexia and Bart can exchange a financial contract for the delivery of one unit of consumption good in t=1 (a bond). Let q be the price of the bond and let bi be the amount bought by agent i=A,B subject to the restriction b'_i>-M.
(a) Write down each agent i=A,B's utility maximization and budget constraints assuming that he/she can trade the bond with the restriction b'_i>-M.
(b) Find each agent's optimal quantity b as a function of the bond net return r.
(c) Find the equilibrium value of r and the equilibrium demand/supply of each agent.
(d) Assume now that both consumers i=A,B are constrained by b_i>0. How does the equilibrium (allocation and interest rate) change? Answer graphically in the Edgeworth box.
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1) If a $2,000 one-year bond pays $170 in annual interest, the interest rate on this bond is (do NOT use decimal)?
2) If the interest rate changes to 19.5%, the bond price will be?
3) If the interest rate changes to 16.5%, bond price will be?
1) The interest rate on this bond is 8.5% (calculated by dividing the annual interest payment of $170 by the bond's face value of $2,000 and multiplying by 100 to convert to a percentage).
2) If the interest rate changes to 19.5%, the bond price will decrease (because the higher interest rate makes the bond less attractive to buyers) and can be calculated using the following formula: Bond price = Annual interest payment ÷ Interest rate = $170 ÷ 19.5% = $871.79 (rounded to the nearest cent).
3) If the interest rate changes to 16.5%, the bond price will increase (because the lower interest rate makes the bond more attractive to buyers) and can be calculated using the same formula: Bond price = Annual interest payment ÷ Interest rate = $170 ÷ 16.5% = $1,030.30 (rounded to the nearest cent).
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For a given level of output, higher fiscal deficit can never be accompanied by
a. By a lower current account, by higher aggregate private savings, and by higher investment
b. By a higher current account, by lower aggregate private savings and by higher investment
c. By a lower current account, by higher private investments, and by a higher investment
d. By a higher current account, by lower aggregate private savings and by a lower investment
e. c and d are true
The correct answer is d. By a higher fiscal deficit, the government is spending more than it is earning, which puts pressure on the economy and can lead to higher interest rates. This in turn can discourage private investment and lower aggregate private savings. A higher fiscal deficit can also lead to inflation, which can further decrease investment. A higher current account, on the other hand, would require the economy to be exporting more than it is importing, which is unlikely to happen in conjunction with a higher fiscal deficit. Option a is incorrect because a lower current account would require increased exports, which would not likely occur with a higher fiscal deficit.
Option b is incorrect for the same reason as option a. Option c is incorrect because while higher private investments are possible, it is unlikely to occur in conjunction with a lower current account and a higher fiscal deficit. Therefore, option e is also incorrect.
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in the AK model, there can be sustained growth in the standard of living because ofSelect an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.a. exogenous technological progress.b. positive externalities.c. constant returns to capital.d. a research sector.
In the AK model, there can be sustained growth in the standard of living because of exogenous technological progress.
The AK model, also known as the endogenous growth model, suggests that sustained economic growth can be achieved through technological progress, which is exogenous, meaning that it comes from outside the economy. In this model, increases in capital and labor inputs do not necessarily lead to long-term growth, but improvements in technology can lead to increased productivity and economic growth over time. Positive externalities, constant returns to capital, and a research sector can all contribute to economic growth, but they are not the central focus of the AK model.
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Question 6 [11 points] The supply of gazebos bas given by P=2.0.50 centand a given by 14. Aspecte tax or per inte typened and that is the supply cut so P1+0.50 *) Solve for the equilibrium price and quantity before and after the Equilibrium price before tax-30 equilibrium quantity before tako Equilibrium price after tax 50 Equilibrium quantity w b) Draw the demand curve and we supply Curves Demand
a) Equilibrium price before tax is $73.33 and the equilibrium quantity before tax is 11.67 units.
b) Equilibrium price after tax is $31 and the equilibrium quantity after tax is 16.25 units.
c) The graph would look like:
|
| / Demand
P | /
| /
| /
|/
-------------- Q
|\
| \
| \ Supply (after tax)
| \
| \
|
-------------- Q
|
| Supply (before tax)
P | /
| /
|/
|
-------------- Q
How to briefly evaluate each part of the question?a) To find the equilibrium price and quantity before tax, we need to set the quantity demanded equal to the quantity supplied and solve for P.
Quantity demanded = Quantity supplied
140 - 2P = 2Q + 50
Substituting Q = (140 - 2P - 50)/2, we get
140 - 2P = 2[(140 - 2P - 50)/2] + 50
Simplifying, we get
3P = 220
P = 73.33
Substituting P = 73.33 in the supply function, we get
73.33 = 2Q + 50
Q = 11.67
Therefore, the equilibrium price before tax is $73.33 and the equilibrium quantity before tax is 11.67 units.
b) To find the equilibrium price and quantity after tax, we need to add the tax to the supply function and set the quantity demanded equal to the quantity supplied.
Quantity demanded = Quantity supplied
140 - 2P = 2(Q - 0.5) + 50
Substituting Q = (140 - 2P - 50 + 1)/4, we get
140 - 2P = (Q - 0.5) + 50
Simplifying, we get
3P = 93
P = 31
Substituting P = 31 in the supply function, we get
31 = 2(Q - 0.5) + 50
Q = 16.25
Therefore, the equilibrium price after tax is $31 and the equilibrium quantity after tax is 16.25 units.
c) To draw the demand and supply curves, we can plot the quantity on the x-axis and the price on the y-axis.
Demand curve: Q = 140 - 2P
Solving for P, we get P = 70 - 0.5Q
Plotting this equation on the graph, we get a downward sloping line.
Supply curve (before tax): P = 2Q + 50
Plotting this equation on the graph, we get an upward sloping line.
Supply curve (after tax): P = 2(Q - 0.5) + 50
Simplifying, we get P = 2Q - 49
Plotting this equation on the graph, we get an upward sloping line parallel to the original supply curve but shifted downward by $49.
The graph would look like:
|
| / Demand
P | /
| /
| /
|/
-------------- Q
|\
| \
| \ Supply (after tax)
| \
| \
|
-------------- Q
|
| Supply (before tax)
P | /
| /
|/
|
-------------- Q
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The peaks and toughs that we observe in the business cycle are the result of
The peaks and troughs that we observe in the business cycle are the result of fluctuations in aggregate economic activity.
Which are caused by various factors such as changes in consumer spending, investment, government spending, and international trade. These fluctuations can be amplified by factors such as changes in interest rates, inflation, and technological advancements.
During a peak, economic activity is at its highest and unemployment is low. Inflation may also start to rise during a peak. A trough, on the other hand, represents a period of economic contraction, with high unemployment and low economic activity.
An economy may experience several cycles of expansion and contraction over time, and understanding these cycles is important for policymakers and businesses in making decisions about economic policy, investments, and resource allocation.
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the judgment concerning whether an item's size is large enough to matter to decision-makers is called?
The judgment concerning whether an item's size is large enough to matter to decision-makers is called materiality. Materiality is a crucial concept in accounting and finance, as it helps decision-makers determine the significance of financial information when making decisions.
In a financial context, an item is considered material if its omission or misstatement could influence the decisions of users relying on that information.
To assess materiality, decision-makers need to evaluate the size and nature of an item, as well as its potential impact on the overall financial statements.
The materiality threshold varies depending on the organization and the specific decision being made, as what might be considered material for one decision may not be for another.
In summary, materiality helps decision-makers focus on relevant and significant information, thereby improving the quality of their decisions.
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Because the aggregate expenditures model assumes that taxes are a lump sum and independent of income, the change in taxes is
Because the aggregate expenditures model assumes that taxes are a lump sum and independent of income, the change in taxes is assumed to have a direct impact on autonomous expenditures and is not influenced by changes in income or output.
In the aggregate expenditures model, taxes are treated as a fixed amount that is subtracted from disposable income to determine consumption spending. Since taxes are assumed to be independent of income, any change in taxes will affect autonomous expenditures, which are expenditures that do not vary with changes in income, such as government spending, investment, and exports.
Therefore, a change in taxes will have a direct impact on the level of autonomous expenditures and will shift the aggregate expenditures curve. For example, if taxes are decreased, disposable income will increase, which will lead to an increase in consumption spending and a shift in the aggregate expenditures curve upward. On the other hand, if taxes are increased, disposable income will decrease, which will lead to a decrease in consumption spending and a shift in the aggregate expenditures curve downward.
It is important to note, however, that in reality, taxes are not completely independent of income, and changes in income can have an effect on tax revenue. Additionally, the aggregate expenditures model is a simplification of a complex economy and should be used with caution when making policy decisions.
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ifyou were rewriting the constitution today, would you keep theelectoral college or would you move to a direct election of thepresident? Why?
The decision to keep the electoral college or move to direct election would depend on the values and priorities of the people who are rewriting the constitution.
The electoral college is a system that has been in place since the United States' founding, where the president is elected indirectly by electors who represent each state based on its population. The winner of the majority of electoral votes becomes the president.
On the other hand, direct election of the president means that the person who receives the most popular votes nationwide would become the president, without the need for electors.
If the constitution were to be rewritten today, whether to keep the electoral college or move to direct election would depend on the values and priorities of the people who write it.
Those who support the electoral college argue that it balances the power between small and large states and ensures that every state has a say in the election. They also argue that it provides stability and certainty by preventing challenges to election results in close races.
However, those who support direct election argue that it is more democratic because it gives equal weight to every individual vote, regardless of their location. They also argue that it would eliminate the possibility of electing a president who did not win the popular vote, as happened in the 2000 and 2016 elections.
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Steel is traded in a highly competitive world market, and the world price is $160 per ton. Unlimited quantities are available for import into the United States at this price. The supply of steel from domestic U.S. mines and mills can be represented by the equation: QS = (4/5)P where QS is the quantity supplied in tons and P is the domestic price. The domestic demand for the metal is given as: QP = 994 - 2P where QP is the quantity demanded in tons. In recent years the U.S. industry has been protected by a tariff of $200 per ton. Under pressure from foreign governments, the United States plans to reduce this tariff to zero. a. Under the $200 tariff, what was the U.S. domestic price of steel? b. If the United States eliminates the tariff, what will be the increase in the level of imports?
(a) The cost of steel domestically is $240. (b) The price of steel domestically will drop if the United States removes the tax.
a. Under the $200 tariff, the domestic price of steel would have been $240 per ton. This is because the tariff effectively adds $200 to the world price of $160 per ton, resulting in a domestic price of $360 per ton.
Using the equation for domestic supply, QS = (4/5)P, substitute P with $360 to find that the quantity supplied domestically is 288 tons.
b. If the United States eliminates the tariff, the domestic price of steel will decrease to $160 per ton to match the world price.
Using the equation for domestic demand, QP = 994 - 2P, substitute P with $160 to find that the quantity demanded domestically is 674 tons. Since the domestic supply is only 288 tons, the United States will need to import the remaining 386 tons.
This represents an increase in imports of 386 tons from zero imports under the $200 tariff.
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What is a Device that allows its holder to buy goods and have the payment deducted from a checking account
A device that allows its holder to buy goods and have the payment deducted from a checking account is called a debit card.
What's Debit card?Debit cards are issued by banks and financial institutions, and they are linked to the cardholder's checking account.
When making purchases with a debit card, the payment is immediately withdrawn from the associated account, providing a convenient and secure method of payment.
Debit cards come with a unique Personal Identification Number (PIN) to ensure the security of transactions. Cardholders can use their debit cards at Point of Sale (POS) terminals, online retailers, and even to withdraw cash from Automated Teller Machines (ATMs).
Many debit cards also offer additional features, such as fraud protection and contactless payment options. Overall, debit cards are a popular, efficient, and safe way to access and manage funds in a checking account.
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Suppose the United States imposes tariffs on Canadian goods. As a result, U.S. firms believe that Canada will retaliate. Because Canada is an important export market for many U.S. industries, fear of a trade war causes firms to reduce investment spending. In addition, suppose consumers reduce spending on goods imported from Canada because prices have become higher because of the tariffs. In the IS/LM model, this shock is most likely to affect the A. LM curve. B. FE line. C. IS curve.
The scenario described would likely affect the IS-curve in the IS/LM model.
In the short run, when tariffs are imposed on Canadian goods, the price of these goods in the United States will increase, causing a decrease in the demand for Canadian goods by U.S. consumers.
This would shift the IS curve to the left, as aggregate demand in the United States would decrease. The reduction in demand for Canadian goods would also reduce the demand for Canadian dollars, causing the exchange rate to depreciate, which would shift the LM curve to the right.
Furthermore, the fear of retaliation by Canada may cause firms to reduce investment spending, which would cause a further leftward shift of the IS curve. This would cause a decrease in output and increase in the interest rate.
Instead of modelling equilibrium, the Keynesian IS-LM model represents disequilibrium. The IS curve does not depict the situation where supply and demand for commodities are equal. Instead, the IS curve illustrates the scenario in which demand and output are equal. With less demand and more available product, there is an excess supply.
Complete question:
Suppose the United States imposes tariffs on Canadian goods. As a result, U.S. firms believe that Canada will retaliate. Because Canada is an important export market for many U.S. industries, fear of a trade war causes firms to reduce investment spending. In addition, suppose consumers reduce spending on goods imported from Canada because prices have become higher because of the tariffs. In the IS/LM model, this shock is most likely to affect the
A. LM curve.
B. FE line.
C. IS curve.
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cost of goods sold allyson ashley makes jet skis. during the year, allyson manufactured 68,500 jet skis. finished goods inventory had the following units: january 1 18,495 december 31 24,968 required: 1. how many jet skis did allyson sell during the year? fill in the blank 1 units 2. if each jet ski had a product cost of $2,000, what was the cost of goods sold last year? $fill in the blank 2
The cost of goods sold last year was $126,054,000.
Allyson sold 43,027 jet skis during the year.
The cost of goods sold can be calculated as follows:
Beginning inventory = 18,495 unitsUnits manufactured = 68,500 unitsTotal units available for sale = 87,995 unitsEnding inventory = 24,968 unitsUnits sold = Total units available for sale - Ending inventory = 63,027 unitsCost of goods sold = Units sold × Product cost per unit
Cost of goods sold = 63,027 units × $2,000 per unit = $126,054,000.
Therefore, the cost of goods sold last year was $126,054,000.
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In the event that an organizational license terminates, the organization may continue to transact insurance under the former license if a new application for an organizational license is submitted within (?) days.
In the event that an organizational license is terminated, the organization may continue to transact insurance under the former license if a new application for an organizational license is submitted within a certain time frame.
This time frame varies by state and is typically a matter of days or weeks, depending on the state's regulations. The purpose of this provision is to provide a grace period for the organization to reapply for a new license and to avoid any lapse in coverage or service to customers. It is important for organizations to be aware of the specific time frame in their state and to promptly submit a new application if their license is terminated.
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