The IS-LM model is a framework used in macroeconomics to analyze the relationship between interest rates, national income, and the equilibrium in the goods and money markets. Let's examine the short-run and long-run effects of changes in national income, interest rates, price level, consumption, and investment using the IS-LM diagram.
Increase in National Income:
In the short run, an increase in national income leads to a rightward shift of the IS curve. This occurs because higher income implies higher consumption, which increases the demand for goods and services. As a result, the equilibrium level of national income increases, leading to an expansion in the economy. The interest rate also rises due to increased demand for investment, depicted by a movement along the LM curve.
In the long run, the increase in national income can lead to inflationary pressures. As prices rise, the real money supply decreases, shifting the LM curve upwards. This leads to a higher interest rate and a decrease in national income, returning the economy to its potential output level.
Decrease in Interest Rates:
In the short run, a decrease in interest rates results in a downward shift of the LM curve. Lower interest rates stimulate investment and increase aggregate demand, leading to higher national income. This is represented by a movement along the IS curve.
In the long run, a decrease in interest rates can have mixed effects. If the decrease in interest rates is a result of increased money supply, it can lead to an expansionary effect on the economy, increasing national income and potentially causing inflationary pressures. However, if the decrease in interest rates is due to a shift in monetary policy or a decrease in investment demand, it may not have a significant impact on long-run output.
Increase in Price Level:
In the short run, an increase in the price level causes a leftward shift of the LM curve. This occurs because higher prices reduce the purchasing power of money, resulting in a decrease in real money supply. As a result, the interest rate rises, leading to a decrease in investment and national income. This is represented by a movement along the IS curve.
In the long run, an increase in the price level is associated with a decrease in real money supply. This causes the LM curve to shift upwards, leading to a higher interest rate and a decrease in national income, eventually returning the economy to its potential output level.
Changes in Consumption and Investment:
Changes in consumption and investment affect the IS curve. An increase in consumption or investment leads to a rightward shift of the IS curve, increasing national income and stimulating economic activity. Conversely, a decrease in consumption or investment causes a leftward shift of the IS curve, decreasing national income and dampening economic activity.
It's important to note that these effects are simplified representations, and real-world dynamics can be more complex. Additionally, the IS-LM model has limitations and assumptions that may not fully capture the complexities of the economy. Nevertheless, the model provides a useful framework for understanding the short-run and long-run effects of various economic changes on key macroeconomic variables.
The IS-LM model illustrates the interaction between the goods market (IS curve) and the money market (LM curve) to determine equilibrium output and interest rates in the economy.
How to explain the information
Increase in government spending (Expansionary fiscal policy):
Short-run effects:
National income: Government spending increase shifts the IS curve to the right, leading to higher national income.
Interest rate: The higher level of output increases the demand for money, shifting the LM curve to the right. This leads to a higher interest rate.
Price level: In the short run, an increase in government spending may not have an immediate effect on the price level.
Consumption: Consumption may increase due to the higher national income and confidence.
Learn more about ISLM on
https://brainly.com/question/15088059
#SPJ4
Sheridan Company uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:
Year ended December 31 Inventory at End-of-year Prices Price Index
2019 $ 648000 1.02
2020 1262000 1.07
2021 1347250 1.12
What is the 2020 inventory balance using dollar-value LIFO? (Round intermediate calculations and final answer to 0 decimal places, e.g. 10,000.)
$1246640.
$1262255.
$1237255.
$1216640.
Dollar-value LIFO method is an accounting technique used to value an inventory in which inventory is kept in terms of monetary values rather than units.
Sheridan Company uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as Year ended December 31 Inventory at End-of-year Prices Price Index2019 $ 648000 1.022020 1262000 1.072021 1347250 1.12
The formula for the dollar-value LIFO method is Opening Inventory + Purchases = Goods available for sale – Sales = Closing inventory ,the LIFO charge by applying the price index to the ending inventory.
The LIFO charge is the amount that the inventory is adjusted due to the change in prices.
Ending inventory at current prices × Price index - Ending inventory at prior year prices × Prior year price index
the 2020 inventory balance using dollar-value LIFO can be calculated as Opening inventory at 2019 prices = $648,000Purchases in 2020 = $1,262,000
Ending inventory at 2020 prices = $1,262,000 - LIFO charge LIFO charge = ($1,262,000 × 1.07) - ($1,262,000 × 1.02) = $63,540
Ending inventory at 2020 prices = $1,262,000 - $63,540 = $1,198,460 the 2020 inventory balance using dollar-value LIFO is $1,198,460.
To know more about inventory visit:-
https://brainly.com/question/31146932
#SPJ11
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials $20.00 per unit 4.00 per unit Direct manufacturing labor $ $ 1.00 per unit Variable manufacturing costs Sales commissions $ 6.00 per part Fixed manufacturing costs $750,000 per year Administrative expenses, all fixed $270,000 per year
In 2017, Achilles Auto made and sold 75,000 batteries at an average selling price of $60 per unit with direct materials cost of $20 per unit, direct labor cost of $4 per unit, and $7 in variable manufacturing costs.
The company also incurred fixed manufacturing costs of $750,000 and fixed administrative expenses of $270,000. Sales commissions amounted to $6 per part.
Achilles Auto produced 100,000 batteries in 2017, of which 75% were sold, resulting in the sale of 75,000 units. The total revenue from battery sales was $4.5 million (75,000 units x $60 per unit).
The cost of goods sold (COGS) for the 75,000 units was calculated as follows: direct materials ($20 x 75,000) + direct labor ($4 x 75,000) + variable manufacturing costs ($7 x 75,000) + fixed manufacturing costs ($750,000) = $3,300,000. Sales commissions were $450,000 (75,000 units x $6 per unit), bringing total operating expenses to $720,000 ($450,000 + $270,000 in fixed administrative expenses).
Operating income was $480,000 (4.5 million - $3.3 million - $720,000). The company's operating margin was 10.67% ($480,000 / $4.5 million), indicating that for each dollar of sales generated, 10.67 cents were earned as operating income.
Learn more about Achilles Auto produced here.
https://brainly.com/questions/29038461
#SPJ11
Wie Corp's sales last year were $250,000, and its year-end total assets were $355,000. The average firm in the industry has a total asset turnover ratio (TATO) of 2.4. The firm's new CFO believes the firm has excess assets that can be sold to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Do not round your intermediate calculations.
O $250,833
O $263,375
O $268,392
O $206,192
O $228,258
To calculate the reduction in assets needed to bring the Total Asset Turnover Ratio (TATO) of Wie Corp to the industry average, we can use the following formula:
TATO = Sales / Total Assets
First, let's calculate Wie Corp's current TATO:
TATO = Sales / Total Assets
TATO = $250,000 / $355,000
TATO ≈ 0.7042
Next, we can calculate the target Total Assets required to achieve the industry average TATO:
Industry Average TATO = 2.4
Target Total Assets = Sales / Industry Average TATO
Target Total Assets = $250,000 / 2.4
Target Total Assets ≈ $104,166.67
Now, we can calculate the reduction in assets needed:
Reduction in Assets = Current Total Assets - Target Total Assets
Reduction in Assets = $355,000 - $104,166.67
Reduction in Assets ≈ $250,833.33
Therefore, the assets must be reduced by approximately $250,833 to bring the TATO to the industry average, holding sales constant.
The closest option to this value is:
$250,833
So, the correct answer is:
$250,833
to know more about Total Asset Turnover Ratio (TATO) click this link
brainly.com/question/29359229
#SPJ11
To calculate the reduction in assets needed to bring the Total Asset Turnover Ratio (TATO) of Wie Corp to the industry average, we can use the following formula:
TATO = Sales / Total Assets
First, let's calculate Wie Corp's current TATO:
TATO = Sales / Total Assets
TATO = $250,000 / $355,000
TATO ≈ 0.7042
Next, we can calculate the target Total Assets required to achieve the industry average TATO:
Industry Average TATO = 2.4
Target Total Assets = Sales / Industry Average TATO
Target Total Assets = $250,000 / 2.4
Target Total Assets ≈ $104,166.67
Now, we can calculate the reduction in assets needed:
Reduction in Assets = Current Total Assets - Target Total Assets
Reduction in Assets = $355,000 - $104,166.67
Reduction in Assets ≈ $250,833.33
Therefore, the assets must be reduced by approximately $250,833 to bring the TATO to the industry average, holding sales constant.
The closest option to this value is:
$250,833
So, the correct answer is:
$250,833
to know more about Total Asset Turnover Ratio (TATO) click this link
brainly.com/question/29359229
#SPJ11
WHAT IS THE BUSINESS OF AMERICA?
Discuss the pros and cons of what exactly is the business of America. Discuss the pros and cons of why Entrepreneurs (Research a good working definition of the term for quiz one) and the Titans of business industries are continually trumped (out flanked) by politics. Finally, discuss the pros and cons of whether big businesses or small businesses are more important to all overall
The business of America, or in other words, what drives the economy of America is capitalistic. Capitalism is an economic system in which private individuals own and operate companies for a profit. In this system, companies compete with each other in a free market for resources, customers, and profit.
Pros and Cons of the Business of America:
Pros:
1. Competition: The free-market capitalism system in America promotes competition, which helps to create a dynamic economy that is responsive to the changing needs of consumers. It encourages the creation of new products, innovation, and entrepreneurial spirit, resulting in a diverse and expanding economy.
2. Efficiency: The profit-driven nature of American businesses encourages efficiency in production and service delivery. The companies are driven to improve productivity, lower costs, and enhance customer satisfaction. This system results in products and services that are affordable and of high quality.
Cons:
1. Income Inequality: Capitalism may create a wide gap between the rich and the poor. The wealth of the nation is concentrated in the hands of a few wealthy individuals, while the majority of the population struggles to make ends meet.
2. Market Failures: The free-market system can also lead to market failures such as monopoly power, environmental degradation, and unequal distribution of wealth. The government is often required to intervene to regulate the market and protect citizens from the excesses of capitalism.
Pros and Cons of Entrepreneurs and Titans of business industries trumped by politics:
Pros:
1. Political Support: Entrepreneurs and Titans of business industries receive political support from the government. Government policies such as tax incentives, grants, and subsidies are often put in place to support small businesses and startups.
2. Social Responsibility: Entrepreneurs and Titans of business industries are increasingly expected to take social responsibility for their business operations. They are expected to create jobs, provide quality products and services, and contribute to the well-being of the community.
Cons:
1. Regulations: Political policies and regulations can restrict business operations and lead to compliance costs. The government may impose taxes, tariffs, or fees that can increase the cost of production and reduce profits.
2. Corruption: Political corruption can also undermine the competitiveness of businesses. Entrepreneurs and Titans of business industries that do not have political connections may be disadvantaged when competing with those that do.
Pros and Cons of Big Businesses or Small Businesses:
Pros:
1. Job Creation: Big and small businesses create jobs, contributing to the overall economic growth of America.
2. Innovation: Small businesses often promote innovation, while big businesses have the resources to finance research and development.
Cons:
1. Income Inequality: Big businesses may lead to income inequality and monopolies. Small businesses may struggle to compete with big businesses and may be forced out of the market.
2. Economic Cycles: Small businesses are more susceptible to economic cycles than big businesses. Big businesses may have the resources to withstand economic downturns and remain profitable.
The business of America is capitalistic, driven by competition and profit-making. The free-market system promotes efficiency and innovation, but it may also lead to income inequality and market failures. Entrepreneurs and Titans of business industries may receive political support, but they may also be disadvantaged by regulations and political corruption. Big and small businesses create jobs and promote innovation, but they may also lead to income inequality and economic cycles. Therefore, both big and small businesses are important to the overall growth of America.
To know more about Capitalism visit:
brainly.com/question/20515661
#SPJ11
issues could be im-proved through orientation, training, or staff development programming?
Issues can be improved through orientation, training, or staff development programming. Orientation is the process of familiarizing new employees with the organization's culture, practices, and policies. It enables new employees to understand their roles, responsibilities, and expectations.
Orientation programs help new employees to adapt to their new jobs quickly and integrate into the organization.Training is the process of providing employees with the knowledge, skills, and abilities necessary to perform their jobs effectively. It helps employees acquire the technical knowledge and skills required to perform their jobs. It also helps employees to develop interpersonal skills, such as communication, leadership, and teamwork. Staff development programming is the process of enhancing employees' knowledge, skills, and abilities through professional development activities. It helps employees to develop new skills and knowledge that can benefit the organization. Staff development programs include workshops, seminars, conferences, and certification programs.
In conclusion, orientation, training, and staff development programming are essential tools for addressing organizational issues. They help employees to adapt to their new jobs quickly, acquire new skills and knowledge, and perform their jobs effectively.
To know more about Staff development visit-
https://brainly.com/question/31452007
#SPJ11
Which of the following would be defined as retaliation under EEO laws?
A.
A dismissed employee files a false complaint of discrimination with the EEOC.
B.
The EEOC targets an employer with a history of unlawful discriminatory practices.
C.
A hospital demotes a nurse who has complained about ethnic discrimination.
D.
An employer fires a supervisor who discriminates against a protected-class member.
EEO laws (Equal Employment Opportunity laws), retaliation refers to adverse actions taken by an employer against an individual for engaging in protected activity, such as filing a complaint or reporting discrimination.
Based on this understanding, the that would be defined as retaliation under EEO laws is:
C. A hospital demotes a nurse who has complained about ethnic discrimination.
Retaliation occurs when an employer takes adverse actions, such as demotion, termination, or other negative treatment, against an employee in response to their complaint or participation in protected activities related to discrimination. In this scenario, the nurse is being demoted after complaining about ethnic discrimination, which can be seen as a retaliatory action by the hospital. Retaliation is prohibited by EEO laws, as it discourages individuals from reporting discriminatory practices and seeking protection under the law.
Learn more about Employment here:
https://brainly.com/question/31913111
#SPJ11
What are the steps involved in Procurement Management? Should procurement processes only be established in large organizations? What options do small businesses have?
Small businesses have options such as establishing streamlined procurement procedures, utilizing electronic procurement platforms, and leveraging supplier relationships.
Procurement Management involves a series of steps to acquire goods, services, or works from external sources. The steps typically include identifying the organization's needs, conducting market research, selecting suitable suppliers, negotiating contracts, placing orders, administering contracts throughout the project lifecycle, and closing contracts upon completion.
While procurement processes are commonly associated with large organizations, small businesses also benefit from establishing efficient procurement procedures.
Small businesses can streamline their procurement activities by clearly defining requirements, maintaining a vendor database, and implementing standardized procurement templates. They can leverage electronic procurement platforms to simplify the procurement process, facilitate communication with suppliers, and track purchasing activities. Additionally, small businesses can focus on building strong supplier relationships to negotiate favorable terms and pricing.
Small businesses may face resource constraints, but they can still implement effective procurement practices by prioritizing their needs, leveraging technology, and optimizing their supplier relationships. By adapting procurement processes to their scale and requirements, small businesses can ensure efficient and cost-effective procurement operations.
Procurement Management, steps, identification of needs, supplier selection, contract negotiation, order placement, contract administration, contract closure, large organizations, small businesses, streamlined procurement, electronic procurement platforms, supplier relationships.
Learn more about Procurement Management: brainly.com/question/31055095
#SPJ11
Ecker Company reports $1,725,000 of net income for 2017 and declares $241,500 of cash dividends on its preferred stock for 2017. At the end of 2017, the company had 290,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders for 2017? Net income preferred stockholders Net income available to common stockholders 2. What is the company's basic EPS for 2017? Basic Earnings per Share Choose Numerator: Choose Denominator: Basic Earnings per Share = | Basic earnings per share Net income available to common stockholdersWeighted-average outstanding shares
The net income available to common stockholders for 2017 is $1,483,500.
The company's basic EPS for 2017 is $5.12.
To determine the amount of net income available to common stockholders for 2017, we need to subtract the preferred stock dividends from the net income.
Net income available to common stockholders = Net income - Preferred stock dividends
Net income available to common stockholders = $1,725,000 - $241,500
Net income available to common stockholders = $1,483,500
To calculate the company's basic earnings per share (EPS) for 2017, we divide the net income available to common stockholders by the weighted-average outstanding shares of common stock.
Basic Earnings per Share = Net income available to common stockholders / Weighted-average outstanding shares
Basic Earnings per Share = $1,483,500 / 290,000
Basic Earnings per Share = $5.12 (rounded to the nearest cent)
Know more about net income here:
https://brainly.com/question/31816607
#SPJ11
Nguyen Corporation's common stock has a beta of 1.38. The risk-free rate is 1.78 percent and the expected return on the market is 14.6 percent. What is the cost of equity? 22.51% 21.93% 17.69% 20.15% 19,47%
The cost of equity for Nguyen Corporation's common stock with given content loaded data can be calculated using the Capital Asset Pricing Model (CAPM)
formula.
CAPM formula E(Ri) = Rf + βi [E(RM) - Rf]
Where E(Ri) = Expected Return on Asset
Rf = Risk-free Rate of Returnβi = Beta of Asset
E(RM) = Expected Return of the Market Given values are:
Beta of Asset = βi = 1.38
Risk-free Rate of Return = Rf = 1.78%
Expected Return of the Market = E
(RM) = 14.6%Cost of equity
= Expected Return on Asset
= E(Ri)Putting the values in the CAPM formula:
E(Ri) = 1.78% + 1.38 × (14.6% - 1.78%)E(Ri)
= 1.78% + 1.38 × 12.82%E(Ri)
= 1.78% + 17.6856%E(Ri)
= 19.4656%
≈ 19.47%Therefore, the cost of equity is 19.47% (approx).
Hence, option E) 19.47% is the correct answer.
To know more about Corporation's common stock visit:
https://brainly.com/question/14692458
#SPJ11
18 A company produces a product which requires a component part. The company currently makes the component part. An outside supplier offers to sell the company an identical component part at the price of $21 per unit. Currently, the company requires 17,000 units of the part per year. The cost of each part made by the company from the company's absorption costing system is $22 per unit. Annual fixed manufacturing overhead (FMOH) related to the production of the part equals $73,100. 70% of the FMOH is avoidable if the parts are bought from the outside supplier. What would be the effect on the company's income if the company stops making the part internally and buys them from the outside supplier? A. S increase in income 17,000 68,170 increase in income B. S C. S 4,930 decrease in income decrease in income D. S 56,100 E. None of the above.
V C. S 4,930 Outsourcing is a significant decision that businesses make to maximize profits and focus on their core competencies. This decision can affect a company's revenue, which can be calculated using a cost-benefit analysis. An external supplier offered a company an identical component at $21 per unit.
The company is currently producing the part for $22 per unit with fixed manufacturing overheads of $73,100. This overhead is related to the production of the component, and 70% of it is avoidable if the company buys from the supplier.If the company buys the component from the supplier, they will save $1 per unit ($22 - $21). The total savings will be $17,000 ($1 * 17,000). However, the company will still have to pay $22,100 ($21 * 17,000 + 30% * $73,100).
Currently, the company spends $374,000 ($22 * 17,000) to produce 17,000 units of the component. If the company buys from the supplier, the cost of goods sold (COGS) will be $359,100 ($22,100 + $68,170 (70% of $73,100)). The new COGS is $14,900 ($374,000 - $359,100) lower than the current COGS.
To know more about competencies visit:-
https://brainly.com/question/28208453
#SPJ11
What type of website would be interested in lead generation?
a. all sites are interested in lead generation
b. a company that sells backpacks
c. a lawyer that prepares trust and estate documents
Lead generation is a crucial aspect of any business looking to gain more customers. It involves the process of finding people or companies that are interested in a product or service that a business offers.
One of the ways a business can do this is through a website. Therefore, all types of websites are interested in lead generation because they require visitors to convert into leads, then customers, to make a profit.However, some websites are more inclined to prioritize lead generation as a crucial goal than others. For instance, companies that sell backpacks would be interested in lead generation. Such a company would have a website that informs people about the backpacks it sells and provides a platform for interested parties to purchase them. Consequently, the website would have various lead capture forms such as email lists, newsletters, product offers, and more, designed to generate leads.The same is the case for a lawyer that prepares trust and estate documents. Such a lawyer would need a website that showcases their expertise, informs visitors about their services, and has various forms where potential clients can contact them. These forms are used to capture information about the visitors and eventually turn them into leads. Therefore, such a website would also be interested in lead generation.In summary, all websites are interested in lead generation as it's crucial to their growth and profit. However, some businesses like companies that sell backpacks and lawyers that prepare trust and estate documents, prioritize lead generation as a key aspect of their website and business strategy.
To know more about newsletters visit:
https://brainly.com/question/30413761
#SPJ11
Discuss the need to select an 'appropriate' quality system for a given environment and compare and contrast the needs of engineering and service industries in terms of their application of quality systems and the critical factors needed for success.
Selecting an appropriate quality system is crucial for achieving success in any given environment. The choice of quality system should align with the specific requirements, characteristics, and objectives of the industry or organization.
Engineering industries typically require robust quality systems that focus on product design, manufacturing processes, and adherence to technical specifications. Quality systems such as ISO 9001 provide a structured approach to quality management, emphasizing standardization, process control, and continuous improvement. The critical factors for success in engineering industries include precise specifications, adherence to regulations and safety standards, rigorous testing and inspection procedures, and efficient supply chain management. In contrast, service industries emphasize customer satisfaction and experience. Quality systems like Six Sigma and Total Quality Management (TQM) are commonly applied in service sectors. These systems focus on understanding customer needs, enhancing service delivery processes, and maintaining consistency in service quality. Critical success factors for service industries include customer feedback and engagement, effective communication, employee training and empowerment, service customization, and continuous evaluation and improvement of service delivery processes.
Learn more about Engineering industries here:
https://brainly.com/question/30635538
#SPJ11
claiming publicly that a particular restaurant is a poorly run business solely because you didn't enjoy your meal is a clear example of ______ of business.
Claiming publicly that a particular restaurant is a poorly run business solely because you didn't enjoy your meal is a clear example of defamation of business.What is defamation of business?Defamation of business is a term used to describe the act of deliberately spreading false and negative information about a company or its products in order to damage the company's reputation. It's also referred to as business disparagement or commercial defamation.When a person spreads untrue rumors about a company, its employees, or its goods or services, it can be harmful to the company's reputation, causing it to lose customers and revenue. As a result, it is illegal, and companies have the right to seek legal action against those who engage in it.Claiming publicly that a particular restaurant is a poorly run business solely because you didn't enjoy your meal is a clear example of defamation of business as it involves spreading false information about a company to damage its reputation.
For more question like Business visit the link below:
https://brainly.com/question/30357766
#SPJ11
Conduct a research on Human Resource Outsourcing and provide answer with overview, purpose of the research, literature review and practical application of the concept.
Human Resource Outsourcing (HRO) is a trend that is becoming increasingly popular. HRO is the practice of delegating certain human resource (HR) functions to a third party to save time and reduce costs. Many companies are increasingly outsourcing their HR activities to external agencies.
This trend has become popular as companies realize that outsourcing non-core functions can be beneficial. This research aims to explore HRO in detail, the literature review, and the practical application of the concept. The purpose of this research is to study the impact of HRO on the company and its employees. The literature review provides a comprehensive analysis of the concept and its benefits. The practical application of HRO is discussed with respect to the various activities that can be outsourced and the challenges that may arise.Overall, HRO can be an effective way to save time and reduce costs. The most commonly outsourced HR functions are payroll, benefits administration, and employee relations. However, some challenges associated with outsourcing HR activities include a lack of control over the outsourced process, lack of quality, and a potential loss of organizational knowledge. Therefore, it is crucial for organizations to carefully assess their HR outsourcing needs before outsourcing any function.
In conclusion, HRO is a concept that is gaining popularity as it helps companies save time and reduce costs. The practical application of HRO varies depending on the organization's needs. However, before outsourcing any function, companies should assess their needs carefully.
To know more about HR Outsourcing visit-
https://brainly.com/question/31782359
#SPJ11
deadweight losses result from a tax on a good
and which one is right answer.
it reduces exchanges between consumers and producers or imposes more losses for consumers than the loss on sellers.
Deadweight losses result from a tax on a good. It reduces exchanges between consumers and producers or imposes more losses for consumers than the loss on sellers. Deadweight loss is a term used in economics to describe the loss of economic efficiency that occurs when a tax or a price control causes the quantity of a good or service to be below the efficient or optimal level
.In general, deadweight losses result from a tax on a good, as it reduces exchanges between consumers and producers or imposes more losses for consumers than the loss on sellers. When a tax is levied on a good, the price of the good rises by the amount of the tax, causing some consumers to switch to a substitute product or not purchase the good at all.The loss of economic efficiency caused by the tax is the deadweight loss, which is the area of the triangle between the supply and demand curves, and the point where the price has been raised by the tax.In other words, the deadweight loss is the sum of the lost consumer surplus and the lost producer surplus. Deadweight losses can be caused by a variety of factors, including taxes, price ceilings, and other forms of government intervention in the economy.
To know more about consumers visit:
https://brainly.com/question/27773546
#SPJ11
points Save Answer Question 11 CASE: Batelco, STC and Zain are the largest internet providers in Bahrain and are known as the "Big Three". These companies always compete and make sure their products, prices, and services are always the same or better than each other. QUESTION: What type of market are those companies involved in? OUTFIR ALTEN-F10 Mac
The type of market that Batelco, STC, and Zain are involved in is an oligopoly.
Oligopoly is a market type where a small number of firms control the market and are the major players. These companies can control the price of goods and services due to their high market share. An oligopoly is distinct from a monopoly because it is composed of several businesses rather than just one. A few of the characteristics of an oligopoly market are as follows: Market demand and supply are determined by just a few businesses.
Interdependence among firmsFirms’ behavior determines the market's equilibrium level. Hence, oligopolies are capable of determining market prices and policies in their respective sectors. An oligopoly is when a few companies exert significant control over a given market. Together, these companies may control prices by colluding with each other, ultimately providing uncompetitive prices in the market.
To learn more about Oligopoly visit here:
brainly.com/question/28273841
#SPJ11
suppose a financial manager buys call options on 50,000 barrels of oil with an exercise price of $57 per barrel. she simultaneously sells a put option on 50,000 barrels of oil with the same exercise price of $57 per barrel. consider her gains and losses if oil prices are $52, $55, $57, $59, and $62.
The financial manager's gains and losses if oil prices are $52, $55, $57, $59, and $62 are as follows: Oil Prices Gains / Losses$52 Loss on call options and gain on put options$55 Loss on call options and gain on put options$57 No gains or losses$59 Gain on call options and loss on put options$62 Gain on call options and loss on put options.
A call option is the right but not the obligation to buy the underlying asset at a specified price, whereas a put option is the right but not the obligation to sell the underlying asset at a specified price. Here, the financial manager buys call options on 50,000 barrels of oil with an exercise price of $57 per barrel, and she simultaneously sells a put option on 50,000 barrels of oil with the same exercise price of $57 per barrel.Suppose the oil prices are $52, $55, $57, $59, and $62. Let's calculate the gains and losses for each scenario:1. Oil price is $52 If the oil price is $52, then the call option becomes worthless since the market price is lower than the exercise price. Therefore, the financial manager suffers a loss on the call option. At the same time, the put option is exercised since the market price is lower than the exercise price. Therefore, the financial manager gains on the put option. The overall gains and losses are:Loss on call options = $5 x 50,000 = $250,000 Gain on put options = $5 x 50,000 = $250,000 Net gains and losses = $0.2. Oil price is $55 If the oil price is $55, then the call option is still worthless since the market price is lower than the exercise price. Therefore, the financial manager suffers a loss on the call option. The put option is not exercised since the market price is higher than the exercise price. Therefore, the financial manager gains on the put option. The overall gains and losses are:Loss on call options = $2 x 50,000 = $100,000 Gain on put options = $2 x 50,000 = $100,000 Net gains and losses = $0.3. Oil price is $57 If the oil price is $57, then the call option is still worthless since the market price is equal to the exercise price. Therefore, the financial manager suffers a loss on the call option. The put option is not exercised since the market price is equal to the exercise price. Therefore, the financial manager gains on the put option. The overall gains and losses are:Loss on call options = $0 Gain on put options = $2 x 50,000 = $100,000 Net gains and losses = $100,0004. Oil price is $59 If the oil price is $59, then the call option is exercised since the market price is higher than the exercise price. Therefore, the financial manager gains on the call option. The put option is not exercised since the market price is higher than the exercise price. Therefore, the financial manager suffers a loss on the put option. The overall gains and losses are:Gain on call options = $2 x 50,000 = $100,000 Loss on put options = $2 x 50,000 = $100,000 Net gains and losses = $0.5. Oil price is $62 If the oil price is $62, then the call option is exercised since the market price is higher than the exercise price. Therefore, the financial manager gains on the call option. The put option becomes worthless since the market price is higher than the exercise price. Therefore, the financial manager suffers a loss on the put option. The overall gains and losses are:Gain on call options = $5 x 50,000 = $250,000 Loss on put options = $0 Net gains and losses = $250,000.
To learn more about "Financial Manager" visit: https://brainly.com/question/27559649
#SPJ11
what key factor made borrowing money very easy in the 1920s?
During the 1920s, the key factor that made borrowing money very easy was the availability of credit.
In the 1920s, the availability of credit allowed people to borrow money with ease. The concept of credit meant that people could purchase items and pay for them in installments. Credit was made available to people through a variety of means such as banks, retailers, and manufacturers.
People were encouraged to spend money, and banks made it easy for them to borrow money. Furthermore, the Federal Reserve maintained low interest rates to stimulate economic growth. The availability of credit played a significant role in the economic boom of the 1920s as it allowed for a rapid expansion of consumer goods, which in turn drove up economic growth.
Learn more about borrowing money here: https://brainly.com/question/31546701
#SPJ11
1. Arguably Keynes’s ideas were not a paradigm break, but extended the Neoclassical tradition of the Marginalist Subjectivists, Marshall, and Clark because Keynes a). argued that both supply and demand had an impact on output. b). emphasized the role of psychology in determining the interest rate and effective demand. c). recognized that the disutility of labor was a major factor in determining unemployment. d). emphasized that wage cuts could bring an economy to full employment. e). All of the above. 11. For Keynes, which of the following did not affect the interest rate? a). Households’ saving preferences. b). Borrowers’ assessments of risk. c). Lenders’ concern that they would not be repaid. d). Central Bank injections of money into the economy. 3. Which of the following argued that rising wages would lead to faster population growth and end up reducing wages to a subsistence level?
a). Ricardo
b). Marx
c). Marshall
d). Keynes
e). None of the above
1. Arguably Keynes's ideas were not a paradigm break, but extended the Neoclassical tradition of the Marginalist Subjectivists, Marshall, and Clark because Keynes emphasized the role of psychology in determining the interest rate and effective demand. Therefore, the correct option is b).
2. For Keynes, Central Bank injections of money into the economy did not affect the interest rate. Therefore, the correct option is d).
3. Thomas Malthus argued that rising wages would lead to faster population growth and end up reducing wages to a subsistence level. Therefore, none of the above (option e) is the correct answer.
The correct answers are as follows:
a). emphasized the role of psychology in determining the interest rate and effective demand. Therefore, the correct option is b).
d). Central Bank injections of money into the economy did not affect the interest rate. Therefore, the correct option is d).Thomas Malthus argued that rising wages would lead to faster population growth and end up reducing wages to a subsistence level. Therefore, none of the above (option e) is the correct answer.
To know more about rate , visit
https://brainly.com/question/25565101
#SPJ11
18. New car sales for a dealer in Cook County, Illinois, for the past year are shown in the following table, along with monthly indexes (seasonal relatives), which are supplied to the dealer by the regional distributor. Units Month Sold Index Jan. 640 0.SO Feb. 648 0.80 Mar. 630 0.70 Apr. 761 0.94 May 735 0.89 Jun. 850 1.00 Jul. 765 0.90 Aug. 805 1.15 Sept. 840 1.20 Oct. 828 1.20 Nov. 840 1.25 Dec. 800 1.25 a. Plot the data. Does there seem to be a trend? b. Deseasonalize car sales. c. Plot the deseasonalized data on the same graph as the original data. Comment on the two graphs. d. Assuming no proactive approach on the part of management, discuss (no calculations necessary) how you would forecast sales for the first three months of the next year. e. What action might management consider based on your findings in part b?
A. The plot of data shows the trend of new car sales for a dealer in Cook County, Illinois, over the past year. The trend is generally increasing with seasonal variations.
B. To deseasonalize the car sales, the following formula is used:
Deseasonalized value = Actual value / Index
The table below presents the computed deseasonalized sales values:
\[
\begin{tabular}{|c|c|c|}
\hline
\text{Month} & \text{Actual Sales (Units)} & \text{Index} & \text{Deseasonalized Value} \\
\hline
\text{Jan.} & 640 & 0.50 & 1280 \\
\text{Feb.} & 648 & 0.80 & 810 \\
\text{Mar.} & 630 & 0.70 & 900 \\
\text{Apr.} & 761 & 0.94 & 810 \\
\text{May} & 735 & 0.89 & 826 \\
\text{Jun.} & 850 & 1.00 & 850 \\
\text{Jul.} & 765 & 0.90 & 850 \\
\text{Aug.} & 805 & 1.15 & 700 \\
\text{Sept.} & 840 & 1.20 & 700 \\
\text{Oct.} & 828 & 1.20 & 690 \\
\text{Nov.} & 840 & 1.25 & 672 \\
\text{Dec.} & 800 & 1.25 & 640 \\
\hline
\end{tabular}
\]
C. The graph displays the actual data along with the deseasonalized data. It is evident from the data that there is a regular seasonal pattern in new car sales for the dealer in Cook County, Illinois, throughout the year.
D. To forecast sales for the first three months of the next year, a moving average can be used. Since there are 12 months of data available, a 3-month moving average will be utilized.
The predicted sales for January, February, and March are as follows:
\[
\begin{aligned}
& \text{Jan:} \quad \frac{640 + 648 + 630}{3} = 639.3 \approx 639 \\
& \text{Feb:} \quad \frac{648 + 630 + 761}{3} = 679.7 \approx 680 \\
& \text{Mar:} \quad \frac{630 + 761 + 735}{3} = 708.7 \approx 709 \\
\end{aligned}
\]
E. Based on the findings from part (B), management may consider revising their sales forecasts by considering seasonal variations. They can prepare sales campaigns and provide incentives to the dealer and salespeople to promote more car sales during off-season months.
To learn more about the sales:
https://brainly.com/question/17165367
#SPJ11
In 2018, Philip Morris reported inventory of $8.804 billion and annual sales of $29.625 billion Assume 365 days per year and round your answer to one decimal place What were the days of supply for Phillip Morris? days 47
The days of supply for Philip Morris in 2018 was approximately 108.4 days.
To calculate the days of supply for Philip Morris, we need to determine how many days the inventory would last based on the average daily sales.
First, we calculate the average daily sales:
Average Daily Sales = Annual Sales / Number of Days in a Year
Average Daily Sales = $29.625 billion / 365
Average Daily Sales ≈ $81.16 million
Next, we divide the inventory by the average daily sales to get the days of supply:
Days of Supply = Inventory / Average Daily Sales
Days of Supply = $8.804 billion / $81.16 million
Days of Supply ≈ 108.38
Rounding the answer to one decimal place, we find that the days of supply for Philip Morris in 2018 was approximately 108.4 days.
This means that, based on the average daily sales, Philip Morris had enough inventory to sustain its operations for around 108.4 days. This metric provides an indication of how long the company's inventory could cover its sales if no new inventory was acquired. It is important for companies to manage their inventory levels effectively to ensure they have sufficient stock to meet customer demand without excessive carrying costs or risk of obsolescence.
To know more about Philip Morris, please click on:
https://brainly.com/question/32092426
#SPJ11
Detailed Summary of Management Information System (MIS) integration into the organization Jack's of Fiji.
Jack's of Fiji integrated a Management Information System (MIS) into their organization to improve data management, decision-making, and operational efficiency.
Jack's of Fiji, a company in the retail industry, recognized the need to enhance their data management, decision-making processes, and operational efficiency. To achieve these goals, they implemented a Management Information System (MIS) within their organization. The MIS integration involved the deployment of software and hardware systems that facilitated the collection, storage, processing, and analysis of data relevant to the company's operations. The MIS provided real-time information on sales, inventory, customer preferences, and other critical business metrics, enabling management to make data-driven decisions. It also streamlined internal communication and collaboration among departments, improving overall efficiency and productivity. The integration of MIS into Jack's of Fiji allowed them to optimize their business processes and gain a competitive edge in the market.
learn more about Management Information System here:
https://brainly.com/question/14279199
#SPJ11
Will you invest a project that requires a $200,00 today and returns $50,000 at the end of the first year, $70,000 at the end of the second year and $100,000 at the third year? Assume a discount rate of 5%
Because NPV is negative, it indicates that the project is not expected to generate a positive return, and therefore, it may not be a good investment at a discount rate of 5%.
To determine whether it is a good investment, we need to calculate the net present value (NPV) of the project.
The NPV is the sum of the present values of the cash flows, taking into account the discount rate of 5%. If the NPV is positive, it indicates that the project is expected to generate a positive return and can be considered a good investment.
To calculate the NPV, we discount each cash flow to its present value using the discount rate. The present value of each cash flow is calculated by dividing it by (1 + discount rate) raised to the power of the respective year.
For this project, the cash flows are $50,000, $70,000, and $100,000 at the end of the first, second, and third year, respectively. The discount rate is 5%.
Calculating the present value of each cash flow:
PV1 = $50,000 / (1 + 0.05)^1 = $47,619.05
PV2 = $70,000 / (1 + 0.05)^2 = $65,843.62
PV3 = $100,000 / (1 + 0.05)^3 = $86,383.81
Calculating the NPV:
NPV = PV1 + PV2 + PV3 - Initial Investment
= $47,619.05 + $65,843.62 + $86,383.81 - $200,000
= -$100,153.52
Since the NPV is negative (-$100,153.52), it indicates that the project is not expected to generate a positive return, and therefore, it may not be a good investment at a discount rate of 5%.
Learn more about investment here :
https://brainly.com/question/14682309
#SPJ11
It has been proposed that natural monopolists should be allowed to determine their profit-maximizing outputs and prices, and then government should tax their profits away and distribute them to consumers in proportion to their purchases from the monopoly, Is this proposal as socially desirable as requiring monopolists to equate price with marginal cost or average total cost? Explain. No, it does not consider that the output of natural monopolists would still be at the suboptimal level where P> MC. Yes, it is more socially desirable than equating price with average total cost. No, it does not consider that the output of natural monopolists would still be at the suboptimal level where P < MC. Yes, it has the same outcome as fair-return pricing.
The correct answer is: No, it does not consider that the output of natural monopolists would still be at the suboptimal level where P < MC.
The proposal of allowing natural monopolists to determine their profit-maximizing outputs and prices and then taxing their profits away and distributing them to consumers does not address the issue of inefficiency that arises from the monopolistic market structure. Natural monopolies have declining average total costs and can produce at a lower cost than other firms in the market. However, allowing them to set prices above marginal cost (P > MC) would result in a suboptimal level of output.
Equating price with marginal cost or average total cost ensures allocative efficiency and maximizes social welfare by setting prices at the level that reflects the true cost of production. This promotes economic efficiency and avoids the deadweight loss associated with monopoly power. Therefore, the proposal of taxing monopolists' profits does not provide the same level of social desirability as pricing mechanisms based on marginal cost or average total cost.
Learn more about marginal cost here:
https://brainly.com/question/14923834
#SPJ11
Single entity ownership is best for the players because they are able to negotiate freely with all teams in the league competing for their services. O True False Question 19 If you are starting a large corporation, the SBA can help you secure money to start your business. O True False Question 20 The secondary ticket market refers to fan-to-fan transactions, rather than team-to-fan transactions. True O False Question 21 Accounts payable allow for more flexible business relationships between two firms. O True False
Single entity ownership is best for the players because they are able to negotiate freely with all teams in the league competing for their services. O True False. The given statement is false.
Question 2: If you are starting a large corporation, the SBA can help you secure money to start your business. O True False. The given statement is true.
Question 3: The secondary ticket market refers to fan-to-fan transactions, rather than team-to-fan transactions. True O False. The given statement is true.
Question 4: Accounts payable allow for more flexible business relationships between two firms. O True False. The given statement is true.
To know more about Single Entity visit:
https://brainly.com/question/32224718
#SPJ11
(b) Differential Piece Rate
(c) Halsey Premium System
(d) Rowan System
Number of working hours per week — 48
Wages per hour — Rs. 3.75
Normal time per piece — 20 Min
Normal output per week — 120 pieces
Actual output for the week — 150 pieces
Differential piece rate — 80% of the piece rate when output is below standard and 120% above standard.
The worker's earnings for the week using the Differential Piece Rate system would be Rs. 540.00.
The Differential Piece Rate system is a method of wage payment where different piece rates are applied based on the worker's output compared to the standard output. In this case, the standard output is 120 pieces per week, and the worker has produced 150 pieces, which is above the standard. To calculate the earnings using the Differential Piece Rate system, we need to determine the piece rate for the actual output. If the output is below the standard, the worker receives 80% of the regular piece rate, and if the output is above the standard, the worker receives 120% of the regular piece rate. The regular piece rate is calculated by dividing the wages per hour by the normal time per piece:
Regular Piece Rate = Rs. 3.75 / (20/60) = Rs. 11.25 per piece
Since the actual output of 150 pieces is above the standard, the worker will receive 120% of the regular piece rate for each piece:
Piece Rate for Actual Output = 120% * Rs. 11.25 = Rs. 13.50 per piece The worker's earnings for the week can be calculated by multiplying the actual output by the piece rate for the actual output:
Earnings = Rs. 13.50 * 150 pieces = Rs. 2025.00 Therefore, the worker's earnings for the week using the Differential Piece Rate system would be Rs. 2025.00.
Learn more about Differential Piece Rate system here
https://brainly.com/question/30854208
#SPJ11
The fact that our beliefs and expectations often influence our sensory experiences is known as
Select one:
a. bottom-up processing.
b. parallel processing.
c. subliminal processing.
d. top-down processing.
The correct answer is d. top-down processing.
Top-down processing refers to the influence of our beliefs, expectations, and prior knowledge on our interpretation of sensory information. It involves using higher-level cognitive processes, such as context, memory, and experience, to make sense of incoming sensory data.
Our sensory experiences are not solely determined by the information received through our senses (bottom-up processing), but are also heavily influenced by our existing mental frameworks and expectations. For example, if we expect to see a certain object in a particular context, we may be more likely to perceive it, even if the sensory input is ambiguous or incomplete.
This phenomenon is evident in various aspects of perception, such as visual illusions, where our preconceived notions can override the actual sensory input. It also plays a role in other sensory modalities, such as hearing and touch.
Overall, top-down processing highlights the active role of our beliefs and expectations in shaping our perception of the world, demonstrating the complex interaction between our cognitive processes and sensory information.
To know more about erception of the world, click this link-
https://brainly.com/question/29898664
#SPJ11
What payroll service does QuickBooks NOT recommend?
Answer:
A.
Manual
B.
Basic
C.
Enhanced
D.
Full Service
QuickBooks does not recommend the manual payroll service.
QuickBooks offers different payroll service options to meet the varying needs of businesses. The payroll services provided by QuickBooks include Basic, Enhanced, and Full Service. However, QuickBooks does not recommend the manual payroll service.
The manual payroll service requires businesses to manually calculate and process their payroll, including calculating tax deductions, filing payroll taxes, and issuing paychecks. This process can be time-consuming and prone to errors if not handled accurately. QuickBooks discourages the use of manual payroll service because it lacks the automation and integration features provided by their other payroll service options.
Learn more about payroll here:
https://brainly.com/question/32005122
#SPJ11
Fill in the blank in the following sentence:
_______ job sites can help you find open positions in a particular field, such as technology, federal service, or temporary positions.
Specialized job sites can help you find open positions in a particular field, such as technology, federal service, or temporary positions.
Specialized job sites are online platforms or websites that focus on specific industries, fields, or job types. They cater to individuals who are seeking job opportunities within a particular niche or sector. These sites provide a more targeted approach to job searching, offering a range of benefits:
1. Industry-specific Focus: Specialized job sites are tailored to specific industries or fields, such as technology, healthcare, finance, or creative industries. They curate job listings that are relevant to those industries, allowing job seekers to explore opportunities that match their expertise and interests.
2. Access to Niche Opportunities: These job sites often feature job openings that may not be as prominently advertised on general job boards or websites. Employers looking for specialized skills or experience often turn to industry-specific platforms to find suitable candidates.
3. Enhanced Search Filters: Specialized job sites typically offer advanced search filters that allow job seekers to narrow down their search based on specific criteria. These filters may include factors such as job type (full-time, part-time, contract), location, salary range, required qualifications, and more.
4. Industry Insights and Resources: Some specialized job sites provide additional resources and insights related to the specific industry or field. This can include articles, news updates, career advice, and networking opportunities, offering a comprehensive platform for job seekers to stay informed and connected within their desired industry.
5. Targeted Networking: Specialized job sites often attract professionals and employers within a specific industry. This creates opportunities for networking and connecting with like-minded individuals, industry experts, and potential employers who are actively engaged in that particular field.
6. Tailored Application Process: These platforms may offer customized application processes that align with the requirements and preferences of the industry or field. This can streamline the application process and make it more efficient for both job seekers and employers.
Overall, specialized job sites provide a focused and efficient way to explore job opportunities within a specific field or industry. They offer a range of features and resources that can significantly enhance a job seeker's chances of finding relevant positions and connecting with the right employers.
Learn more about technology here:
https://brainly.com/question/28288301
#SPJ11
Which of the following is not one of the three basic questions that the Project Manager may face?
a) How can we find the necessary resources?
b) What work will be done?
c) How should assignments be made to Functional Managers?
d) When should the work be done?
The answer to the question is c) How should assignments be made to Functional Managers? This is not one of the three basic questions that the Project Manager may face.
What are the basic questions that the Project Manager may face? The three basic questions that the Project Manager may face are: What work will be done? When should the work be done? How can we find the necessary resources?Project Manager plays an important role in a project as it is his/her responsibility to ensure that the project is completed on time, within the budget and meets the requirements of the stakeholders. The Project Manager is also responsible for managing resources, schedules, and deliverables. A Project Manager has many responsibilities, but the three basic questions mentioned above help to simplify the role. The Project Manager must answer these questions before starting any project, as they are the foundation of a successful project. They help to provide clarity and direction throughout the project and ensure that everyone is working towards a common goal.In conclusion, c) How should assignments be made to Functional Managers? is not one of the three basic questions that the Project Manager may face. The three basic questions are: What work will be done? When should the work be done? How can we find the necessary resources?
learn more about Project Manager Refer: https://brainly.com/question/29518010
#SPJ11
