Answer:
D
Explanation:
The activities of the chicken firm constitutes a negative externality to the environment
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality. This is the solution employed here.
Anya owns land with an adjusted basis of $305,000, subject to a mortgage of $175,000. Anya sells her land subject to the mortgage for $325,000 in cash, and a note for $300,000. What is Anya's amount realized on this sale
Answer: $800,000
Explanation:
Alice's realized amount from the sale is a sum of all the amounts that the seller gets it for as well as any mortgages assumed.
Alice therefore realized:
= Mortgage assumed by seller + Cash + Note
= 175,000 + 325,000 + 300,000
= $800,000
Tarnopol Learning Services (TLS) offers tutoring to high school students, college students, and adults returning to school. TLS's major product offerings include academic tutoring, standardized test preparation, and admissions consulting. Demand for standardized test preparation, which accounts for the majority of TLS's revenues, peaks before the most popular test dates. Demand for admissions consulting peaks late in the year, just before application deadlines. Demand for tutoring services varies less than demand for other TLS services, but it is highest near the end of academic semesters. Staff shortages during these times have been a persistent problem. In response, TLS is considering whether to 1) recruit and train a greater number of temporary workers during peak demand times; or 2) partner with a tutoring and testing outsourcing firm that would provide services to TLS customers using the TLS brand. An executive at TLS believes that the best way to measure the number of extra employees that TLS needs is to estimate the number of extra employees each product category requires and then add all of those estimates together. Which of the following points out a flaw in this approach??A. The largest growth area for TLS is governmental contracts, which have buying procedures that are very different from those of other customers.B. TLS currently maintains separate accounting departments in each of its regions. C. To be effective, TLS managers need to be experts in at least one of the products that TLS sells. D. TLS hopes to build sustained relationships with customers, selling the same person academic tutoring standardized test preparation, and admissions consulting. E. Communication between different marketing departments in different regions has been substandard.
Answer:
D. TLS hopes to build sustained relationships with customers, selling the same person academic tutoring standardized test preparation, and admissions consulting. E. Communication between different marketing departments in different regions has been substandard.
Explanation:
The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exporting activities result in receivables. (LCU represents the local currency unit of the foreign entity.)
Required:
If the direct exchange rate increases, does the dollar weaken or strengthen relative to the other currency? If the indirect exchange rate increases, does the dollar weaken or strengthen relative to the other currency?
Answer:
The Hi-Stakes Company
a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.
b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.
Explanation:
When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions. However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.
The income expenditure model predicts that if the marginal propensity to consume is 0.75 and the federal government increases spending by $100 billion, real GDP will increase by:_______
a) $100 billion.
b) $750 billion.
c) $400 billion.
d) $300 billion.
Answer:
Option c ($400 billion) is the correct answer.
Explanation:
According to the question,
Government expenditure,
G = 100
Marginal propensity to consume,
c = 0.75
Now,
The autonomous spending multiplier will be:
⇒ [tex]\Delta Y = \frac{1}{1-c}\times \Delta G[/tex]
By substituting the values, we get
[tex]=\frac{1}{1-0.75}\times 100[/tex]
[tex]=4\times 100[/tex]
[tex]=400[/tex]
What is the beta for a 2 stock portfolio with a 0.43 weight in Walmart stock and the remainder in Amazon
Answer: 0.82
Explanation:
From the given formulas, the beta of Walmart is 0.3616 and the beta of Amazon is 1.1634.
The portfolio beta is going to be a weighted average of these two betas:
= (0.43 * 0.3616) + ( (1 - 0.43) * 1.1634)
= 0.155488 + 0.663138
= 0.82
Which form of business entity is NOT a legal entity separate and apart from its owner?
A. S corporation.
в.Sole proprietorship
C. Corporation
D. Partnership
Answer:
B Sole proprietorship
Explanation:
A sole proprietorship there is no separation between the owner and the business structure thus the business does not have its own legal entity.
One of the growers is excited by the price increase caused by the blight because he believes it will increase revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market.Using the midpoint method, the price elasticity of demand for soybeans between the prices of
Full question attached
Answer:
Not elastic
Explanation:
The formula for demand elasticity= percentage change in quantity/percentage change in price
Therefore demand elasticity = Q2-Q1/Q2+Q1/2/P2-P1/P2+P1/2
Using graph of demand attached
= 12-15/12+15/2/21-15/21+15/2
= -3/27/2/6/36/2
=-2/9/1/3
=-2/3
=-0.67
Elasticity is less than one and so demand is inelastic
The expenditure and income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP:
1. Daesun pays Awesome Foods Market $1,100 to cater his daughter's engagement party. He's attracted by Awesome Foods Market's guarantee that he'll be happy with the catering, or he'll get his money back.
2. Awesome Foods Market pays JoAnn's Catering $950 to cater the party.
3. JoAnn's Catering buys plasticware worth $200 from Kostko.
Required:
Compute contributions to GDP, using the expenditure approach.
Answer:
Only the amount spent by Manuel would be in included in the calculation of GDP
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
the airplane purchased by the airline would be used to provide services for airline customers. Also, the packing boxes bought by Amazon would be used in delivering goods to customers
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Which of the following is NOT an accurate description of modern marketing?
Marketing involves managing profitable customer relationships.
Marketing involves satisfying customers' needs.
O Marketing is the creation of value for customers.
Marketing emphasizes selling and advertising exclusively.
O Marketing is building value-laden exchange relationships with customers.
I'm stuck between
Marketing is the creation of value for customers and
Marketing emphasizing selling and advertising exclusively l.
When Social Security was first instituted by President Franklin Roosevelt in 1935, the payroll tax rate on wages used to fund the program was
Answer: Social security retirement program .
Explanation:
A company pays $20,000 for the rights to a well with 5 million gallons of water. If the company extracts 250,000 gallons of water in the first year, what is the total depletion in year 1
Answer: $1,000
Explanation:
The cost of the well is $20,000
The capacity of the well is 5 million gallons
The cost of one gallon is therefore:
= Cost of all gallons / Number of gallons
= 20,000 / 5,000,000
= $0.004
If 250,000 gallons were extracted in the first year, the depletion is:
= Number of gallons extracted * Cost per gallon
= 250,000 * 0.004
= $1,000
On November 1st, Neiman Marcus at the Florida Mall signed a $100,000, 2%, eight-month note payable with all of the principal and interest due at maturity eight months later on July 1. Neiman Marcus' Store at Florida Mall should report interest payable at (year-end) December 31, in the amount of:
The contribution margin ratio is interpreted as the percent of: Multiple choice question. each variable cost dollar that remains after deducting fixed costs each sales dollar that remains after deducting fixed costs each sales dollar that remains after deducting unit variable cost
Answer: each sales dollar that remains after deducting unit variable cost
Explanation:
The contribution margin ratio is interpreted as the percent of each sales dollar that remains after the deduction of unit variable cost.
The contribution margin ratio refers to the difference between the sales that a company makes and its variable costs which is expressed as a percentage. The ratio simply indicates the amount of money that is available to cover the fixed costs.
U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of Group of answer choices
Answer: consumer needs, political and legal structures, and social norms vary by country.
Explanation:
It should be noted that different countries have different customer needs, values and social norms with regards to how business is done.
Therefore, it's vital for any company that's moving into the international market to always have this in mind and therefore should be sensitive to these needs in order to achieve its goals.
If monthly demand for a product is 1,000 units, the ordering cost is $6 per order and the holding cost is $2.50 per unit per year, how many units would be the order quantity that minimizes annual ordering and holding costs
Answer:
240 units
Explanation:
The Economic Order Quantity (EOQ) is the order quantity that minimizes annual ordering and holding costs. It is calculated as :
EOQ = √(2 x annual demand x cost per order) ÷ holding cost per unit
therefore,
EOQ = √(2 x 1,000 x 12 x $6) ÷ $2.50
= √57,600
= 240 units
Thus, 240 units would be the order quantity that minimizes annual ordering and holding costs
Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters, plumbers, and electricians. All else constant, we can predict, with certainty, that in the market for new homes the equilibrium:
Answer:
Lower price for new houses.
Explanation:
The decrease in the income of people will decrease the demand for houses and the demand curve will shift leftwards. Meanwhile, the decrease in the wages for carpenters, plumbers, etc will decrease the cost of production so the producer will supply more when the cost of production decreases. So supply curve will shift rightwards. Resulting there will be lower prices due to shifts in the leftward demand curve and rightward supply curve.
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. Instructions: In part a, round your answers to 2 decimal places. Enter positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? $ billion. How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion. b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (because it maintains a balanced budget, G = T).
Answer:
a-1. Amount of rise in government expenditure required = $6.25 billion
a-2. Tax multiplier = -3
b. The combination is as follows:
Increase in spending = $25 billion
increase in taxes = $25 billion
Explanation:
a-1. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? $ billion.
Spending multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 4
Amount of rise in government expenditure required = Change in aggregate demand / Spending multiplier = $25 / 4 = $6.25 billion
a-2. How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion.
Tax multiplier = - MPC / (1 - MPC) = - 0.75 / (1 - 0.75) = -3
Amount of tax cut required = Change in aggregate demand / Tax multiplier = $25 / (-3) = $8.33 billion
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (because it maintains a balanced budget, G = T).
The amount is the amount of the balanced budget, which has a multiplier of one. This indicates that spending and taxes need be increased by $25 billion each to boost GDP by $125 billion. Therefore, the combination is as follows:
Increase in spending = $25 billion
increase in taxes = $25 billion
Suppose a third firm enters the market. If they all don't cheat, then they split the profits three ways so that each firm gets 2 million. If one firm cheats, he steals profits from the other two firms and earns 5.5 million while the other firms incur losses of 1 million. Will it be harder or easier to sustain cooperation?
Answer: Harder to sustain cooperation
Explanation:
When the number of firms in an oligopolistic market increases as is the case here, cooperation becomes harder because profits become smaller so companies start to become more selfish.
Also in this scenario, the cheating firm has the incentive to do so because the profit is so much higher than sharing so companies will always be looking to cheat in order to make this profit. The other firms would reply by reducing prices and all of them would suffer.
Joe believes in providing a work setting and culture that encourage workers to be creative and inspire employees to work hard to achieve company goals. Joe is a(n) _______ manager.
Assume that Jerome's available-for-sale portfolio had a total cost of $50,000 and a fair value of $46,000 on December 31 at the end of the first year it held the AFS securities . Make the necessary adjusting entry.
Answer:
Sep.15
Dr Investments in Available for sale securities 8900
Cr Cash 8900
30-Dec
Dr Other Comprehensive Income -(Unrealised loss-AFS) 4000
Cr Fair value adjustment-Stock 4000
31-Dec
Dr Fair value adjustment-Stock 1000
Cr Unrealised gain-Income 1000
Explanation:
Preparation of the journal entries
Books of Jerome Inc.
Sep.15
Dr Investments in Available for sale securities 8900
Cr Cash 8900
(Purchase of Notes of Topper Inc.)
30-Dec
Dr Other Comprehensive Income -(Unrealised loss-AFS) 4000
Cr Fair value adjustment-Stock 4000
(50000-46000)
31-Dec
Dr Fair value adjustment-Stock 1000
Cr Unrealised gain-Income 1000
(6000-5000)
(Unrealised holding period gain on Melina corporation stock hed as Trading securities)
legal advisor and marketing researcher are examples of
Answer:
White-collar jobs.
Explanation:
A white-collar worker is a term used since the mid-20th century to describe any individual or social group engaged in a job that requires higher education and professional qualifications, or little or no physical work. Depending on the context, the term white collar may be synonymous with new forms, that is, the working class layer - as opposed to the traditional forms used for the term blue collar - or the middle class, and sometimes the upper class.
White collars are generally better educated and better paid than blue collars. They are characterized by individualism and a greater propensity for liberal ideas as opposed to blue-collar workers who prefer collectivism and conservative values.
Scottie Adams Bird Supplies issued 15% bonds, dated January 1, with a face amount of $310,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021
Answer:
a. $326,421.
Explanation:
Missing word "Some relevant and irrelevant present value factors:
* PV of annuity due of $1: n = 20; i = 7% is 11.33559
* PV of ordinary annuity of $1: n = 20; i = 7% is 10.59401
**PV of $1: n = 20; i = 7% is 0.25842
Multiple Choice $326,421. $361,100. $572,732. $292,814."
Semi annual cash interest = 23250 (310,000*15%*6/12)
n = 20
I =7%
Cashflows Amount PVF Present value
Semi annual cash interest 23250 10.59401 246,310.70
Maturity value 310,000 0.25842 80,110.20
Price of bonds $326,420.90
If you wanted to build a structure on a river bank, you should build the structure __________ to maximize its lifetime.
Answer:
Above the point bar
Explanation:
channelization
Straightened sections of the river channel are lined with concrete to increase the rate of flow and reduce bank collapse
Advantages of channelization
Improves rate of flow
Benefits transportation
Reduces bank collapse
When corporate taxes and the cost of financial distress are taken into consideration, the market value of a firm is equal to the value of the all-equity firm _____ the PV of the tax shield _____ the costs of financial distress
Answer:
rise and decrease
Explanation:
Corporate tax is also called as company and is directly imposed by law on the incomes of capital and many countries imposed such taxes at the national levels and on the state level. Financial distress is a condition which the company make sufficient revenue and has higher fixed losses. This takes place due to some downturns.At the end of business on September 1, the total displayed on the cash register tape shows $1,059 of cash sales for the day. However, when the clerk and the supervisor count the cash in the register, the count reveals that $1,050 was actually collected from customers.
Complete the journal entry.
Answer:
Date Account Title Debit Credit
Sept. 1 Cash $1,050
Cash short and over $ 9
Sales $1,059
Cash short and over is calculated thus:
= 1,059 - 1,050
= $9.00
Refer to the following information about the Finishing Department in the Gallagher Factory for the month of June. Gallagher Factory uses the FIFO method of inventory costing.
Beginning Work in Process inventory:
Physical units..... 5000
% complete for materials 70%
% complete for conversion costs 25%
Materials cost from May 7350
Conversion costs from May 3125
Product started:
Physical units 44000
Ending Work in Process inventory:
Physical units 4000
% complete for materials 40%
% complete for conversion costs 10%
Manufacturing costs for June:
Materials 96975
Conversion costs 79470
Compute equivalent units for direct materials for June.
Answer:
the equivalent units for direct material is 43,100 units
Explanation:
The computation of the equivalent units for direct material is shown below:
= Ending work in process units + units started and completed + opening work in process units
= 40% of 4,000 units + (44,000 - 4,000) + 30% of 5,000
= 1,600 units + 40,000 units + 1,500 units
= 43,100 units
hence, the equivalent units for direct material is 43,100 units
The short-run cost function of a company is given by the equation TC=10000+50q, where TC is the total cost and q is the total quantity of output.
a. What is the company's fixed cost?
b. If the company produced 2,000 units of goods what would be its average variable cost?
c. What would be its marginal cost of production?
d. What would be its average fixed cost?
e. Suppose the company borrows money and expands its factory. Its fixed cost rises by $5,000 but its variable cost falls to $45/unit. The cost of interest also enters the equation. Each 1 point increase in the interest rate raises costs by $250. Write the new cost equation.
Answer:
a. 10000
b. 50
c. 50
d. 5
e. TC = 15000+5Q+250r
Explanation:
TC = 10000+50Q
a. the fixed cost Is 10000
b. variable cost, VC = 50Q
at q =2000 units,
average variable cost = [tex]\frac{VC}{Q}[/tex]
= 50Q/Q
= 50
C. Marginsal cost = d(tc)/dq = 50
d. the average fixed cost = 10000/q
= 10000/2000
= 5
e. the final cost would be = 10000+5000= 15000
the variable cost woul be calculated as= (50-45)Q = 5Q
Interest rate = 250r
the new cost equation = TC = 15000+5Q+250r
Lei Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.2 percent, a par value of $1,000, and a current price of $1,030. The bonds make semiannual payments. What must the coupon rate be on these bonds
Answer:
Coupon rate= 19.1%
Explanation:
Giving the following information:
Years to maturity= 12.5 years
YTM= 7.2 percent
Par value= $1,000
Current price= $1,030
To calculate the coupon, we need to use a financial calculator:
Function= CMPD
n= 12.5
I%= 7.2
PV= -1,030
PMT= solve = $191
FV= -1,000
Now, the coupon rate:
Coupon rate= 191/1,000
Coupon rate= 19.1%
You are given the following data on US Treasury. The maturity date is May 15, 2041. The asked yield-to-maturity is 2.128%. The coupon rate is 2.35%. You agree to buy the bond June 21, 2021. Assume T 2. Par is $1,000. What is the clean (flat) price
Answer:
$1,035.84
Explanation:
Number of years to maturity (Nper) = 20
Annual Coupon payment (PMT) = 1000*2.35% =$23.50
Payment at maturity (FV) = $1000
Yield to maturity (Rate) = 2.13%
Using the MsExcel Present value function
Clean(flat) price = PV(Nper, PMT, FV, Rate)
Clean(flat) price = PV(20, 23.50, 1000, 2.13%)
Clean(flat) price = 1035.8436
Clean(flat) price = $1,035.84
Lập danh mục chi phí hoạt động của 1 toà nhà cho thuê hạng C
Chi phí hoạt động là chi phí liên tục để duy trì và duy trì hoạt động đầu tư bất động sản cho thuê. Nói cách khác, chúng là những chi phí ảnh hưởng đến hoạt động hàng ngày của khoản đầu tư và được coi là cần thiết để duy trì dòng doanh thu.
