Elasticity of demand is an economic measure used to describe the responsiveness of consumers to changes in the quantity demanded of a product or service as a result of changes in the price of that product or service.
Elasticity of demand measures the percentage change in quantity demanded for a product or service relative to a percentage change in price for that product or service. The formula for elasticity of demand is given as: Elasticity of demand = (percentage change in quantity demanded) / (percentage change in price)When the elasticity of demand is greater than one, we have an elastic demand.
When the elasticity of demand is equal to one, we have a unit elastic demand. When the elasticity of demand is less than one, we have an inelastic demand.Now let's calculate the elasticity of demand from the given data:Initial quantity demanded
(Q1) = 20,000 unitsFinal quantity demanded (Q2) = 18,000 units
Percentage change in quantity demanded = ((Q2 - Q1) / Q1) x 100%
Percentage change in quantity demanded = ((18,000 - 20,000) / 20,000) x 100%
Percentage change in quantity demanded = (-2,000 / 20,000) x 100%
Percentage change in quantity demanded = -10%
Initial price (P1) = unknown Final price (P2) = unknown
Since we don't know the initial and final prices, we cannot calculate the exact elasticity of demand.
Therefore, none of the options provided is correct.
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Bali beach offers lessons in negative externalities.
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Section: Business Edition: B - Main
I RECENTLY attended a conference in one of Bali's big hotels. Luxuriously decorated, the hotel was a welcome escape from noise, heat and the constant spruiking outside. If you've been to Bali too, you know what I mean: ``Hello? Transport?''
The contrast between hotel and street environments seemed vast. But economic ideas underlying our conference discussions were relevant outside. I'll give you an example.
A friend who visited Bali last year said a beach chair should cost me 10,000 to 15,000 rupiah (90-$1.40) for the day. But despite my hardest bargaining, I couldn't get a price below 20,000. This turned out to be unrelated to my bargaining skills.
Each section of beach is allocated to a local business person, who pays an annual licence fee to the Government for the right to operate. The licence stipulates the maximum number of beach chairs on the site. This year, the Government halved this number. So licence holders doubled the price.
Why would the Government limit chairs? Consider what would happen if they didn't. Licence holders would cover every last centimetre of their section with chairs to get the most revenue possible for their licence investment. This would reduce the beach's scenic value. It would also be harder for beach sellers to wander among the lounging tourists.
In economic parlance, we call these ``negative externalities'' - an increase in production results in uncompensated costs to others. Classic examples are pollution and traffic congestion.
Governments have many policy instruments to deal with negative externalities. For Bali beach chairs, the Government uses licensing with volume restrictions (quotas). In Australia, there are similar examples in fisheries industries. Other options include imposing tariffs or quotas on imports, putting tolls on roads, setting water prices or restrictions, introducing taxes (eg a carbon tax) and issuing tradable permits with a limit on total output (eg emission trading). The intent is the same - reduce negative externalities so that society as a whole is better off.
So who pays for all this? That's a question for case-by-case analysis and usually results in the biggest political arguments. But in our simple Bali beach chair example, the answer is clear: tourists.
But a problem remains: ``You want massage? Braiding? Manicure? Tattoo?'' I'd like a tattoo on my head saying, ``I'm paying a government-imposed premium for peace and quiet here - leave me alone!''
Dr Jennifer Harrison
Southern Cross
Business School
Southern Cross University
Copyright of Gold Coast Bulletin, The is the property of News Limited Australia. The copyright in an individual article may be maintained by the author in certain cases. Content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. Source: Gold Coast Bulletin, The, 10/07/2013, p41
Item: 9X9GCBGCB-20131007-B-041-310459
Read the above news article , "Bali beach offers lessons in negative externalities." and answer the questions.
Questions
1. Do you agree with the author’s point of view? Are the tourists responsible for paying for the negative externalities? Why not?
2. Provide examples of three ways the government could use and respond to this externality. What are the advantages and disadvantages of each of these solutions?
Minimum 400-400 words explanation for both the questions.
You can use the answers and explanation below as an example to write your own essays concerning tourists and the responsibility for externalities.
Regarding the author's point of view, it can be inferred that they agree with the idea that tourists should bear the cost of negative externalities associated with beach chairs in Bali. However, the author does express frustration with the constant solicitation from beach sellers. Whether tourists should be solely responsible for paying for negative externalities is a subjective matter. In some cases, it may be reasonable for tourists to contribute to the costs associated with maintaining the beach and managing externalities. However, it is important to consider other stakeholders and potential solutions to ensure fairness and sustainability.Examples of three ways the government could respond to the externality of beach chairs in Bali are:
Implementing stricter licensing regulations.Introducing a beach chair tax.Implementing a tradable permit system.How can the government respond?The following better explains the three manners in which the government could respond to externality in the given context:
Implementing stricter licensing regulations: The government could establish more stringent rules regarding the allocation of beach chair licenses, including the maximum number of chairs allowed per section. This would help prevent overcrowding and maintain the beach's scenic value. Advantages of this approach include preserving the beach's aesthetics and providing a better experience for tourists. However, a disadvantage could be the potential reduction in revenue for license holders and limited availability of chairs for tourists.Introducing a beach chair tax: The government could impose a tax on beach chair operators based on the number of chairs they have. This tax revenue could be used to mitigate the negative externalities or invest in beach infrastructure and maintenance. Advantages include generating additional revenue for the government and potentially incentivizing more responsible use of beach chair allocations. However, a disadvantage is that the tax burden may be passed on to tourists through higher prices for renting beach chairs.Implementing a tradable permit system: The government could introduce a system where beach chair operators are allocated a specific number of permits to operate. These permits could be traded among operators, allowing for flexibility and efficient allocation of beach chair resources. Advantages include promoting market efficiency and flexibility in responding to demand. However, a disadvantage could be the potential concentration of permits in the hands of a few operators, leading to reduced competition and potentially higher prices for tourists.It is essential to carefully assess the advantages and disadvantages of each solution in the context of Bali's specific circumstances and stakeholder interests. Different approaches may be more suitable depending on factors such as environmental impact, revenue generation, fairness, and sustainability.
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Investing in sectors or companies whose ESG performance is better relative to their peers is referred to as: a. Impact investing. b. Best-in-class sustainable investing. c. Thematic investing. d. Norms-based sustainable investing. e. Greenwashing
Best-in-class sustainable investing is referred to investing in sectors or companies whose ESG performance is better relative to their peers.What is Best-in-Class Sustainable Investing?
Best-in-class sustainable investing is a strategy that selects investments based on a company's environmental, social, and governance (ESG) rating relative to its peers. The approach seeks to identify the best-performing companies in terms of ESG criteria within their sectors or industries. Best-in-class investing takes a more qualitative approach, considering a variety of factors, including the quality of a company's governance practices, its labor standards, environmental impact, and management of social and community relationships.Among the five options given, the right option for the answer is b. Best-in-class sustainable investing.What is Impact Investing?
Impact investing refers to investments made in companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return. Impact investing can target a range of returns from below market to market rate, depending on investors' strategic goals.A Thematic InvestingThematic investing is an investment strategy that focuses on identifying and investing in particular themes or trends that the investor believes will perform well in the market.
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The standard direct labor cost per call for Crescent Call Centers (CCC) is $9.25 (= $37 per labor-hour + 4 calls per hour). Actual direct labor costs during the period totaled $150,010. Also during the period, 4,212 labor-hours were worked, and 14,960 calls were handled.
Required:
Compute the direct labor price and efficiency variances for the period.
Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.
Direct labor price variance:
Efficiency variance
Given, Standard direct labor cost per call for Crescent Call Centers (CCC) = $9.25Actual direct labor costs = $150,010Labor hours worked = 4,212Calls handled = 14,960Direct labor price variance:
We have, Standard direct labor cost per call = $9.25 = $37 per labor-hour + 4 calls per houri.e. Direct labor rate per hour = $37/60 minutes= $0.62 per minute Hence, Direct labor cost per call = (60/4) × $9.25= $138.75 per labor-hour.
Direct labor cost for 4,212 labor hours worked = 4,212 × $37= $155,604Direct labor cost per call for 14,960 calls handled = $150,010/14,960= $10.03 per call. Direct labor cost at the standard rate = 14,960 × $9.25= $138,740
Direct labor price variance = Actual labor hours × (Actual rate - Standard rate) = 4,212 × ($0.62 - $37/60) = $3,266 U (Unfavorable)Efficiency variance: Standard labor hours per call = 1 call/4 labor hours = 0.25 labor-hours/call.
Hence, Standard labor hours for 14,960 calls handled = 14,960 × 0.25= 3,740 Actual labor hours worked during the period = 4,212Efficiency variance = Standard labor hours - Actual labor hours = 3,740 - 4,212 = $472 F (Favorable).
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those persons employed by a financial industry regulatory authority (finra)-registered broker-dealer to do nothing other than provide training for its associated persons
Financial Industry Regulatory Authority (F I N R A)-registered broker-dealers, in order to comply with its obligations under federal securities laws and F I N R A rules, are expected to provide education and training
Firms usually employ individuals who are responsible for providing this education and training. These persons are usually required to have relevant experience and expertise to perform their tasks effectively. The role of these individuals is to design, develop, and deliver the training programs that are necessary for the firm's associated persons to conduct their business activities
They must stay current with new developments and changes in the securities laws and regulations, as well as changes in the business practices of the firm, and ensure that the training materials are updated accordingly. These persons should also ensure that the training programs are accessible to all the firm's associated persons, including those who are not physically present in the office.
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Black Ltd provides a range of cleaning services to commercial clients, including office cleaning. On 1 December 20×1, Black Ltd entered into a contract with White Ltd, to clean several of the office buildings managed by White Ltd for 6 months from 1 January 20×2 to 30 June 20×2 for a fee of $6,000. The contract required White Ltd to pay for the services in advance, and on 1 January 20×1, White Ltd paid $6,000 to Black Ltd. Required: 1. Identify the element of the financial statements that should be recognised by Black Ltd on 1 January 20×2 in addition to the increase in Cash at Bank. 2. Justify your answer by applying your knowledge of the Conceptual Framework's definition and recognition criteria of the elements of the financial statements to the facts of the case. Include references from the Conceptual Framework to support your answer where necessary.
Beginning on January 1, 2012, Black Ltd. should add the element of income to its financial in addition to the growth in Cash at Bank.
The payment of $6,000 from White Ltd. is the compensation for the cleaning services that will be rendered over a six-month period, beginning on January 1 and ending on June 30, 2012.In accordance with the definition and recognition criteria in the Conceptual Framework, revenue should be recognised when it is likely that the entity will receive economic advantages and when those benefits can be accurately evaluated. In this instance, Black Ltd and White Ltd have a contract in place for Black Ltd to perform cleaning services for White Ltd for a predetermined amount of time, and Black Ltd has received money in advance, showing that it is likely that economic benefits will
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The GATH carne about after which mayor whatid ksesing WWII WWI O9-Nov The Korean War What is determined in the money matket? the inflation rate the nominal interest rate the price level the real interest rate HoW if a demarnd curve for a foreigh currercy ditwim a horizontal line downward sloping upward sloping a vertical line How is the multiplier calculated? (1−MPC)/1 1 MPC 1/(1−MPC) 1 (change in MPC)
Previous
The correct answer is "WWII". The General Agreement on Tariffs and Trade (GATT) was created after the World War II. The conference took place in Geneva, Switzerland in 1947 with the purpose to encourage free trade by reducing tariffs and other trade barriers. The agreements of GATT helped to build up the international trade by the free flow of goods, money, and people and the rules to control the legal aspects in business.
What is determined in the money matket?
The Nominal interest rate is determined in the money market. It is the rate at which a borrower borrows funds and a lender lends them. It is not adjusted for inflation. It is only the rate that includes the real interest rate plus the expected inflation rate.
In the money market, the nominal interest rate is determined. It is defined as the sum of the real interest rate plus the expected inflation rate.
The nominal interest rate is not adjusted for inflation. It is just the rate at which lenders lend funds and borrowers borrow funds.
The nominal interest rate plays an important role in determining the money supply, and is also important in the determination of other macroeconomic variables.
How is the multiplier calculated?
The multiplier is calculated as 1/(1-MPC).
The multiplier measures the change in output that results from a change in the autonomous spending.
MPC is the Marginal Propensity to Consume which refers to the increase in consumer spending when disposable income increases. The formula for the multiplier is ΔY = k * ΔI where k is the multiplier, ΔY is the change in output, and ΔI is the change in autonomous spending.
Multiplier is the method that measures how the change in spending by one person or group can affect other parts of the economy. It measures the increase in spending that comes as a result of an increase in income.
The multiplier effect comes into play because the increase in spending leads to an increase in income for another group. This increase in income leads to further increases in spending and so on.
This process can be calculated using the Marginal Propensity to Consume (MPC). The formula for the multiplier is
ΔY = k * ΔI where k is the multiplier, ΔY is the change in output, and ΔI is the change in autonomous spending.
The MPC refers to the increase in consumer spending when disposable income increases.
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Conlon Chemicals manufactures paint thinner. Information on the work in process follows: - Beginning inventory, 44,400 partially complete gallons. - Transferred out, 214,500 gallons. - Ending inventory (materials are 20 percent complete; conversion costs are 8 percent complete). - Started this month, 237,400 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method.
Beginning Work in Process = 44,400 Gallons
Transferred Out = 214,500 Gallons
Ending Work in Process = 23,500 Gallons
Percentage Complete = 8% (Conversion Costs)
44,400 gallons + 237,400 gallons = 281,800 gallons281
a. Compute the equivalent units for materials using the weighted-average method. The weighted average method considers the beginning work in process as well as the cost of units started and completed during the period to calculate the equivalent units of materials in the process.
The equivalent units of materials in the process can be calculated as follows: Equivalent Units = Units Completed and Transferred Out + (Ending Work in Process × Percentage Complete)For materials, the equivalent units can be calculated as follows:
Completed and Transferred Out = 214,500 gallons Ending Work in Process = 23,500 gallons × 8% = 1,880 gallons
Equivalent Units = 214,500 gallons + 1,880 gallons = 216,380 gallons
Therefore, the equivalent units for conversion costs using the weighted-average method is 216,380 gallons.
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all else being equal, how would this increase in the expected inflation rate affect interest rates?
Inflation is defined as the rate at which the general level of prices for goods and services is rising, and, subsequently, the purchasing power of currency is decreasing.
All else being equal, interest rates and inflation have an inverse relationship; that is, as the expected inflation rate increases, the interest rates increase. This is due to the fact that lenders must compensate for the reduction in purchasing power caused by inflation, so they demand a higher interest rate as a result. Furthermore, the cost of borrowing increases as interest rates rise, so demand for borrowing falls as a result, which causes economic activity to decrease.
As a result, interest rates have a direct impact on both inflation and economic activity. The following is a sample response that includes the given terms and is more than 100 words:An increase in the expected inflation rate has a direct effect on interest rates, all else being equal. As the expected inflation rate rises, so do the interest rates. This is due to the fact that lenders must compensate for the reduction in purchasing power caused by inflation, so they demand a higher interest rate.
The cost of borrowing increases as interest rates rise, which causes demand for borrowing to fall, resulting in a decrease in economic activity. Interest rates have a direct impact on both inflation and economic activity.
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The following amounts summarize Transeer Company's merchandising activities during 2023. Post the activities in the following T. accounts and calculate the account balances. Assume that the company uses perpetual inventory system.
The merchandising activities of Transeer Company during 2023 are summarized as follows:Sales Revenue: $100,000
Cost of Goods Sold: $60,000
Purchases: $80,000
Freight-In: $2,000
Purchase Returns and Allowances: $3,000
Purchase Discounts: $2,500
Sales Returns and Allowances: $5,000
Sales Discounts: $1,500
To record these activities, we will use the following T-accounts:Sales Revenue: Starting balance $0
Sales Revenue: $100,000 (cr.)
Sales Returns and Allowances: $5,000 (dr.)
Sales Discounts: $1,500 (dr.)
Ending balance: $93,500 (cr.)
Cost of Goods Sold: Starting balance $0Cost of Goods Sold: $60,000 (dr.)
Ending balance: $60,000 (dr.)
Purchases: Starting balance $0
Purchases: $80,000 (dr.)
Purchase Returns and Allowances: $3,000 (cr.)
Purchase Discounts: $2,500 (cr.)
Ending balance: $74,500 (dr.)
Freight-In: Starting balance $0Freight-In: $2,000 (dr.)
Ending balance: $2,000 (dr.)
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The merchandising activities of Transeer Company during 2023 are summarized as follows :Sales Revenue: $100,000
Cost of Goods Sold: $60,000
Purchases: $80,000
Freight-In: $2,000
Purchase Returns and Allowances: $3,000
Purchase Discounts: $2,500
Sales Returns and Allowances: $5,000
Sales Discounts: $1,500
To record these activities, we will use the following T-accounts:Sales Revenue: Starting balance $0
Sales Revenue: $100,000 (cr.)
Sales Returns and Allowances: $5,000 (dr.)
Sales Discounts: $1,500 (dr.)
Ending balance: $93,500 (cr.)
Cost of Goods Sold: Starting balance $0Cost of Goods Sold: $60,000 (dr.)
Ending balance: $60,000 (dr.)
Purchases: Starting balance $0
Purchases: $80,000 (dr.)
Purchase Returns and Allowances: $3,000 (cr.)
Purchase Discounts: $2,500 (cr.)
Ending balance: $74,500 (dr.)
Freight-In: Starting balance $0Freight-In: $2,000 (dr.)
Ending balance: $2,000 (dr.)
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When the value of a company is determined by the trading price of its shares multiplied by the number of shares outstanding, this is referred to as a. contributed surplus. b. other comprehenșive income. c. share capital. d. market capitalization.
The value of a company determined by the trading price of its shares multiplied by the number of shares outstanding is referred to as Market Capitalization. Market capitalization is a financial measure that represents the total value of a company's issued shares in the market.
It's calculated by multiplying the total number of outstanding shares by the current market price of a single share. Companies are typically classified into three groups based on their market capitalization: small-cap, mid-cap, and large-cap. The Market Capitalization is essential to investors who want to know the value of the company before they make investment decisions. For instance, many investors look at the market capitalization of a company when choosing between companies that operate in the same sector.
If you want to invest in the company, you need to know the market capitalization of the company to determine if it's worth the investment or not. In conclusion, the market capitalization of a company is a fundamental measure that represents the total value of a company's issued shares in the market and it's calculated by multiplying the total number of outstanding shares by the current market price of a single share.
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JesterBoards is a small snowboard manufacturing company with fixed costs of $219 per day and total cost of $4,211 per day for a daily output of 19 boards. What does the average cost per board tend to as production increases? Round to the nearest cent. $ per board
As production increases, the average cost per board tends to decrease. This is because the fixed costs are spread over a larger number of boards, reducing the cost per unit.
In the case of JesterBoards, the fixed costs are $219 per day, which do not change regardless of the number of boards produced. The total cost, however, is $4,211 per day for a daily output of 19 boards.
To calculate the average cost per board, we divide the total cost by the number of boards produced. In this case, the average cost per board is approximately $221.63.
Now, as production increases, let's say the number of boards produced per day doubles to 38. The fixed costs of $219 per day remain the same, but the total cost would likely increase due to variable costs associated with producing more boards.
However, since the fixed costs remain constant and are spread over a larger number of boards, the average cost per board would decrease. This is because the fixed costs have a smaller impact on the cost per unit when production increases.
Therefore, as production increases, the average cost per board for JesterBoards would tend to decrease, reflecting economies of scale and the spreading of fixed costs over a larger production volume.
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if+workers'+nominal+wages+have+risen+by+50%+over+10+years,+and+prices+have+increased+by+40%+during+that+period,+then+we+can+safely+conclude+that+the+goods+and+services+workers+can+buy+have:
without information about the inflation rate, we cannot safely conclude whether the goods and services workers can buy have increased or decreased in real terms.
If workers' nominal wages have risen by 50% over 10 years, and prices have increased by 40% during that period, we cannot make a definitive conclusion about the purchasing power of workers based solely on these figures. The relationship between nominal wages and prices does not directly determine the change in the real purchasing power of workers.
To determine the change in real purchasing power, we need to consider the inflation-adjusted or real wages. Real wages take into account the changes in nominal wages and adjust them for the effects of inflation. If nominal wages have increased by 50% and prices have increased by 40%, the real wage increase would depend on the inflation rate over the same period.
If the inflation rate is lower than 40%, it is possible that workers' purchasing power has increased. On the other hand, if the inflation rate is higher than 40%, workers' purchasing power may have decreased despite the nominal wage increase.
Therefore, without information about the inflation rate, we cannot safely conclude whether the goods and services workers can buy have increased or decreased in real terms.
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Which of the following statements are true?
a) a transaction is an unit of work
b) a customer can execute a single transaction in a session
c) all transactions instructions are completed or not
d) transactions can't be concurrently executed
A transaction is a unit of work in the context of databases and information systems.
a) A transaction is indeed a unit of work in the context of databases and information systems. It represents a logical operation or a series of operations that should be treated as a single, indivisible entity.
b) A customer may execute multiple transactions within a single session. A session refers to the period of interaction between a user (customer) and a system (e.g., a database system or an application). Each transaction within a session can involve multiple operations and may be separate and distinct from other transactions.
c) Transactions follow the principle of atomicity, which means that either all the instructions within a transaction are completed, or none of them are. A transaction is an all-or-nothing proposition. If any part of a transaction fails or encounters an error, the entire transaction is rolled back or aborted, ensuring that the data remains consistent.
d) Transactions can be concurrently executed in many systems. Concurrency control mechanisms and protocols are employed to manage and coordinate multiple transactions executing simultaneously to ensure data consistency and prevent conflicts or inconsistencies resulting from concurrent operations.
Therefore, the true statements are a) a transaction is a unit of work and c) all transaction instructions are completed or not.
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How did Leadership Through Quality radically change the way
Xerox did business?
Leadership Through Quality radically changed the way Xerox did business in a number of ways.The first way in which LQ changed Xerox was by encouraging employees to work collaboratively across departments.
Xerox was able to develop a more comprehensive understanding of its customers' needs and expectations, which helped the company design products and services that better met those needs.The second way in which LQ changed Xerox was by introducing a more systematic approach to quality management. Instead of relying on ad hoc methods for ensuring quality, Xerox began to use statistical techniques to monitor and improve its production processes. This helped the company identify problems earlier and make improvements more quickly.The third way in which LQ changed Xerox was by introducing a new culture of innovation. By encouraging employees to take risks and experiment with new ideas, Xerox was able to develop a number of breakthrough products, including the first desktop computer.
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collective agreement contained an article that provided as follows: In making promotions, demotions, and transfers, the required knowledge, ability, and skill for the position as outlined within the appropriate class specification shall be the primary consideration; and where two or more applicants are capable of filling the position applied for, seniority shall be the determining factor. In all the instances, present qualified employ. ees shall be given preference. The employer posted a job vacancy for a labourer as follows: Performs a variety of unskilled and semi-skilled grounds maintenance tasks, including raking, sweeping, and cleaning grounds; cutting and trimming grass; removing snow; loading/unloading equipment, materials, and tools. Operates and maintains manual and power-operated equipment. Applies fertilizers, pesticides, etc. as directed. Performs other related duties as assigned. Qualifications: Several years' grounds-related experience. Ability to perform repetitive manual tasks for an extended period; to lift heavy objects; to work in all weather conditions. Knowledge of and ability to perform minor repairs and maintenance on grounds- related small machinery, tools, and equipment. Possession of or willingness to obtain pesticide applicator ticket within a specified time. Training in practical horticulture is an asset. Knowledge of WHMIS. Safe work practices. Valid driver's licence and safe driving record. The contract also provided that an employee who moved to a new position would have a trial period of three months to determine his or her suitability. There were two applicants, Franks and Martin. Franks had 10 years of seniority, had worked as a labourer, and had been assigned to grounds duties approximately 40 percent of the time. Martin had five years of seniority, had worked as an assistant to the gardener, and had filled in when the gardener was absent. Martin had also taken courses in horticulture and completed training in pesti- cide use. The foreman described the work done by grounds labourers as "simple, dirty, .. shovelling, raking, levelling,. loading, moving, and assisting the gardener." It was esti mated that each of the tasks involved in the job could be mastered within a day or less of work. Martin was awarded the job.
The employer posted a job vacancy for a labourer. However, there were two applicants, Franks and Martin. In making promotions, demotions, and transfers, the required knowledge, ability, and skill for the position as outlined within the appropriate class specification shall be the primary consideration
; and where two or more applicants are capable of filling the position applied for, seniority shall be the determining factor. In all the instances, present qualified employees shall be given preference.
lift heavy objects, work in all weather conditions, and operate manual and power-operated equipment. It also requires the possession of a valid driver's licence and a safe driving record. Martin had five years of seniority, had worked as an assistant to the gardener,
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Nifty Nail Salon Limited is trying to determine the standard labour cost of a manicure. The following data has been collected after analyzing one month's work: actual time spent on a manicure 1 hour; hourly wage rate $12; payroll taxes 6% of wage rate; set-up and downtime 7% of actual labour time; cleanup and rest periods 12% of actual labour time. Determine the standard direct labour hours per manicure. (Round answer to 2 decimal places, e.g. 15.25.) Determine the direct labour cost per direct labour hour. (Round answer to 2 decimal places, e.g. 15.25.) If a manicure took 1 hour at the standard hourly rate, what is the direct labour quantity variance on that one manicure? (Round answer to 2 decimal places, e.g. 15.25.) Quantity variance $ If one employee has an hourly wage rate of $12.50 and she worked 30 hours on completing manicures for the week, what is the direct labour price variance? (Round answer to 2 decimal places, e.g. 15.25.)
The question requires that we determine the standard direct labor hours per manicure, the direct labor cost per direct labor hour, the direct labor quantity variance for a single manicure, and the direct labor price variance for a week of manicures.
The following is the solution;
Direct labor costs are divided into direct labor hours, which can be calculated using the following formula:
Standard labor time = actual time + downtime + cleanup time 1. 7% of actual labor time is required for setup and downtime.
Since 1 hour was spent on the manicure, this equates to 0.07 x 1 hour = 0.07 hours
2. 12% of actual labor time is spent on cleaning and rest periods. This equates to 0.12 x 1 hour = 0.12 hours
Therefore, the standard labor time per manicure is calculated as follows:
Standard labor time = Actual time + Setup and downtime + Cleanup time= 1 + 0.07 + 0.12= 1.19 hours
Standard direct labor hours per manicure is 1.19 hours.
Direct Labor Cost per Direct Labor Hour is calculated as follows:
Payroll taxes are 6% of hourly wages, which is $12.
This equates to 0.06 x $12 = $0.72.
Labor cost per hour = hourly wage rate + payroll taxes= $12 + $0.72= $12.72
Therefore, the direct labor cost per direct labor hour is $12.72.
Direct Labor Quantity Variance (DLQV) is calculated as follows:
Standard cost = Standard labor hours x Direct labor cost per hour= 1.19 x $12.72= $15.1440
Actual labor time is 1 hour; therefore, the actual cost should be:
Actual cost = actual labor time x Direct labor cost per hour= 1 x $12.72= $12.72
The DLQV is calculated as follows:
DLQV = Standard cost - Actual cost= $15.1440 - $12.72= $2.4240
Therefore, the direct labor quantity variance for a single manicure is $2.42.
Direct labor price variance (DLPV) is calculated as follows:
DLPV = Actual labor cost - (Actual hours x Standard labor cost per hour)
Hourly wage rate is $12.50 and actual hours worked are 30. Actual labor cost is 30 x $12.50 = $375.
Standard labor cost per hour is $12.72.
Therefore, the standard labor cost for 30 hours is 30 x $12.72 = $381.60
Therefore, DLPV = $375 - $381.60= -$6.60
Therefore, the direct labor price variance for one week is -$6.60.
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Please give a different answer then what is already posted .
Most firms use graphs to present profit and loss information to
key stakeholders. What are the limitations of these graphical
representatio
Graphs are one of the most powerful tools in data visualization. They are a great way of representing complex data, especially financial data such as profit and loss information.
Most firms use graphs to present financial information to key stakeholders. Here are some of the limitations of graphical representations of profit and loss information:
1. Limited information: Graphs are limited in the amount of information they can represent. They are usually not able to represent the full range of data in a given dataset.
2. Lack of detail: Graphs are generally unable to provide detailed information about the data points. This is especially true when dealing with large datasets.
3. Subjectivity: Graphs can be subjective. They can be designed to show data in a particular way that might be misleading.
4. Misleading: Graphs can be misleading if they are not properly designed. They can be used to exaggerate or understate the data. This can lead to incorrect conclusions.
5. Lack of context: Graphs can sometimes lack context. They may not provide enough information to understand the data points.
6. Time-consuming: Creating graphs can be time-consuming. They require a lot of effort to create and are not always easy to modify. In conclusion, while graphs are a powerful tool for data visualization, they do have their limitations. One should be aware of these limitations before deciding to use them to present financial information to key stakeholders.
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Discuss the importance of teaching online graduate students how
to think critically and creatively?
Teaching online graduate students how to think critically and creatively is significant. The following are the reasons why:
1. Enhance their problem-solving skills: Critical thinking is critical to effective problem-solving. When students learn to approach issues using logic and evidence-based practices, they can come up with creative solutions that others might overlook. These abilities are beneficial in the workplace and in everyday life.
2. Encourage innovation: When students learn to think creatively, they can come up with fresh and original solutions to issues, products, and ideas. They'll be better prepared to succeed in business settings, where innovation and originality are prized. They can develop creative new products and services, identify emerging trends, and develop strategies that benefit their organizations.
3. Improve their research skills: Teaching online graduate students how to think critically also helps to improve their research abilities. They will learn how to evaluate sources of information, assess data quality, and interpret findings. This knowledge will be useful in academic, professional, and personal settings.
4. Boost their communication skills: Learning to think critically also enhances graduate students' communication abilities. They will learn how to present their ideas in a clear and concise manner, with evidence to support their arguments. They will also learn how to persuade others, negotiate, and listen actively to others' views. These skills are essential in the workplace and in personal relationships.
5. Increase their confidence and self-esteem: Finally, learning how to think critically and creatively can boost students' confidence and self-esteem. As they become more proficient in these areas, they will be better prepared to tackle challenges and succeed in their professional and personal lives. This increased confidence can help them to develop better relationships with others, take on new challenges, and lead fulfilling lives.
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Selma Shalom had the following income for the year of assessment ending 28 February 2022.
Item
Salary
Amount N$
84 000
Director's Fee
60 000
Interest from FNB
11 000
Interest from ABSA (SA)
23 000
45 000
Dividends
35 000
Legacy received
15 000
Gift from a friend
40 000
18 000
Profit on sale of a house Share premium receipt
Subsidy on soil erosion
30 000
Annuity from a UK Insurance company
10 000
Lump sum from employer
50 000 22 000
Profit from business branch Kenya
Compensation for damages to office block
120 000
Owned by a property investor Sale of shares held as:
Investment
80 000
Trading Stock
65 000
Bet win on results of a soccer match
7 500
15 000
Interest from Bank Windhoek
Restraint of trade payment received
Profit from Namibian Business branch
25.00
Gross income
55 000
?
Calculate the gross income of Selma Shalom for the year of assessment ending at 28 February 2022. As part of your answer provide a reason for every item excluded from gross income.
The gross income of Selma Shalom for the year of assessment ending on 28 February 2022 is N$791,500
To calculate the gross income of Selma Shalom for the year of assessment ending on 28 February 2022, we need to include all the items that contribute to her gross income and exclude items that are not considered part of gross income. Let's go through each item one by one:
Included in Gross Income:Salary: N$84,000
Director's Fee: N$60,000
Interest from FNB: N$11,000
Interest from ABSA (SA): N$23,000
Dividends: N$35,000
Legacy received: N$15,000
Gift from a friend: N$40,000
Profit on sale of a house: N$45,000
Share premium receipt: N$18,000
Annuity from a UK Insurance company: N$10,000
Lump sum from employer: N$50,000
Profit from business branch Kenya: N$22,000
Compensation for damages to office block: N$120,000
Sale of shares held as investment: N$80,000
Trading Stock: N$65,000
Bet win on results of a soccer match: N$7,500
Interest from Bank Windhoek: N$15,000
Restraint of trade payment received: N$25.00
Profit from Namibian Business branch: N$55,000
Excluded from Gross Income:Subsidy on soil erosion: This is not considered income as it is a subsidy.
Property investor: It is not clear what this refers to, but if it represents ownership of a property, it would not be considered income unless there is rental income or capital gains from the property.
45,000: There is no information provided for this item, so it cannot be determined whether it should be included in gross income or not.
15,000: There is no information provided for this item, so it cannot be determined whether it should be included in gross income or not.
N$25.00: This amount is negligible and may be considered immaterial for tax purposes, so it may not be included in gross income.
Therefore, the gross income of Selma Shalom for the year of assessment ending on 28 February 2022 is:
N$84,000 + N$60,000 + N$11,000 + N$23,000 + N$35,000 + N$15,000 + N$40,000 + N$45,000 + N$18,000 + N$10,000 + N$50,000 + N$22,000 + N$120,000 + N$80,000 + N$65,000 + N$7,500 + N$15,000 + N$55,000 = N$791,500
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On October 7, 2022 (Friday), you purchased $100,000 of the
following T-bill: Maturity Bid Asked Chg Asked Yld
1/26/2023 3.408 3.398 +0.015 ??? Calculate your purchase price,
and the Asked Yield.
The purchase price and asked yield of T-bills worth $100,000 with maturity dates of January 26, 2023, bid of 3.408, asked of 3.398, and an increase of 0.015 are to be calculated.
The asked yield is the percentage yield at which a dealer is willing to sell a Treasury bill. The difference between the bid and ask prices is the bid-ask spread. The bid price is the price that a dealer is willing to pay for a Treasury bill.The purchase price of the T-bill can be calculated using the following formula
:P = (FV x (1 - R x T/360))where,
P = Purchase Price
FV = Face Value
R = Interest Rate
T = Number of Days until MaturitySubstituting the values:
P = (100000 x (1 - 3.398 x 111/360))
= 98,757.30.
Therefore, the purchase price of the T-bill is 98,757.30.The yield can be calculated as follows:
Yield = ((FV-P)/P) x (360/T)) x 100Substituting the values:
Yield = ((100000-98757.30)/98757.30) x (360/111)) x 100Yield
= 2.39%Therefore, the asked yield is 2.39%.
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under macrs, an asset which originally cost $10,000 is being depreciated using a 5 year normal recovery period. what is the depreciation expense in year 3?
Under MACRS, an asset which originally cost $10,000 is depreciate being using a 5-year normal recovery period. The depreciation expense in year 3 is given below. The Modified Accelerated Cost Recovery System (MACRS) is a cost recovery method that is used to depreciate assets.
It is mainly used in tax law in the United States. MACRS allows taxpayers to claim larger deductions for assets that have a shorter recovery period, thereby reducing their taxable income. For an asset with a recovery period of five years, the depreciation percentage rates for the first three years are 20%, 32%, and 19.2%, respectively.
Thus, the depreciation expense for year 3 is calculated as follows; Depreciation expense in year 1 = $10,000 x 20% = $2,000Depreciation expense in year 2 = ($10,000 - $2,000) x 32% = $2,560Depreciation expense in year 3 = ($10,000 - $2,000 - $2,560) x 19.2% = $1,213.44Therefore, the depreciation expense for year 3 is $1,213.44.
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3. Given the following data for Water's Beginning firm: Yield to maturity of the bond is 9% The risk-free rate is 4%, and analysts' expected return for the market is 14%. Water's Beginning stock has a beta of 1.2 and is in the 24% marginal tax bracket. The firm uses 40% debt and 60% df equity. Calculate the WACC for the firm?
[tex]WACC = (0.60 x 16.8%) + ((0.40 x 9%) x (1 - 24%))[/tex]
[tex]WACC = (0.60 x 16.8%) + (0.40 x 6.84%)[/tex]
[tex]WACC = 10.08% + 2.74%WACC = 12.82%[/tex]
Therefore, the WACC for Water's Beginning firm is [tex]12.82%.[/tex]
WACC refers to the weighted average cost of capital. It is used to determine the cost of financing a company's investments.
This calculation is essential in the capital budgeting process, which involves evaluating and choosing long-term investments for the company.
The formula for WACC is:
[tex]WACC = (E/V x Re) + ((D/V x Rd) x (1-Tc))[/tex]
where: [tex]E = Market value of the firm's equity[/tex] [tex]D = Market value of the firm's debt[/tex] [tex]V = Total value of capital (equity + debt)[/tex][tex]Re = Cost of equity[/tex] [tex]Rd = Cost of debt[/tex] [tex]Tc = Corporate tax rate[/tex]
To calculate WACC for Water's Beginning, we must use the given data. Using the formula, we can find each part of the equation:
[tex]E/V = 0.60D/V[/tex]
[tex]= 0.40Re[/tex]
[tex]= 4% + 1.2(14% - 4%)[/tex]
[tex]= 16.8%Rd[/tex]
[tex]= 9%Tc[/tex]
[tex]= 24%[/tex]
The values are now plugged into the formula.
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DO NOT COPY FROM OTHER CHEGG ANSWER
Refer to the Chapter 23 textbook reading, which discusses the aggregate demand curve and reasons it might shift.
Additionally, find an article using your subscription to the Wall Street Journal pertaining to the shift in aggregate demand for some product or service.
In your post, summarize the article and discuss the following:
Review Section 23-3b, Table 1 in the textbook, which lists four specific factors that might cause a shift in aggregate demand. Which of the four factors explain the shift occurring in the WSJ article?
Discuss what aggregate demand factors are seen at work in today's economy?
What might this mean for prices? For quantity of output?
The aggregate demand curve refers to the quantity of total output, which the economy is willing and able to purchase at different price levels. The curve slopes downwards as the price of output increases, all other things constant. This is due to the income effect and the substitution effect:
the income effect states that when prices rise, consumers have less disposable income, so they reduce their purchasing power. The substitution effect is the process of finding cheaper alternatives as prices rise, which causes people to switch away from the more expensive goods and services.In the WSJ article "Amid Covid-19 Surge, Arizona and Texas Orders More Restrictions," it explains how the rise in Covid-19 cases and hospitalizations has led to the imposition of further restrictions on economic activity. Many individuals and companies are unable or unwilling to travel, engage in entertainment activities, and engage in other discretionary spending as a result of the pandemic.
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Dmitri is a manager at a local pizza parloc, One day, you hear him say to his employees, "We provide the best service of any delivery service in the areal" Dmitri is expressing Jake works as a financial analyst for Walmart. Ha feeis that Walmart has a toxic environment because many of the senior executives share the values of people who are only in business to make money. Jake feeis that business should beneht society - not just making money for shareholders, but also giving money back to the community. When you ask Jake how he determined Walmart's culture, he telis you that he listens to the stories that managers tell everyday in the cafeteria. These stories are and they are a story a belief an assumption a value he assumptions is en artifacts beliefs values assumptions visible invisible invisible
The first scenario involving Dmitri, the pizza parlor manager, indicates that he is expressing a belief or assumption about the quality of service provided by the establishment. The statement, "We provide the best service of any delivery service in the area," represents a belief held by Dmitri.
In the second scenario, Jake, the financial analyst at Walmart, is using stories shared by managers in the cafeteria to determine the culture of the company. These stories represent artifacts, as they are observable and tangible manifestations of the company's culture.
Beliefs, assumptions, values, and artifacts are all components of organizational culture. Beliefs are the convictions or ideas held by individuals, while assumptions are underlying notions taken for granted. Values represent the principles and standards that guide behavior and decision-making. Artifacts are the observable elements of culture, such as stories, symbols, rituals, or physical objects.
In the context of the scenarios, Dmitri's statement reflects his belief about the quality of service, indicating a particular perception or mindset. On the other hand, Jake's use of stories as indicators of Walmart's culture highlights the role of artifacts in understanding and assessing organizational culture. By paying attention to these cultural components, individuals can gain insights into the values, norms, and beliefs that shape an organization's identity and practices.
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Alan is hoping for a healthy year, meaning that he would have zero health costs. Given his habits, there is a 40% chance that Alan will develop a health issue resulting in $50,000 in health costs. Assume these are the only two conditions that could exist for Alan in the coming year. Given the fact that Alan has a 40% chance of developing a health problem, what is the expected value of Alan's health care costs for the coming year?
The expected value of Alan's health care costs for the coming year can be calculated by multiplying the probabilities of each possible outcome by the corresponding costs, and then summing them up.
In this case, there are two possible outcomes for Alan's health care costs: either he develops a health issue with $50,000 in costs, or he remains healthy with $0 in costs.The probability of Alan developing a health issue is given as 40%, or 0.4. The corresponding cost is $50,000.The probability of Alan remaining healthy is the complement of developing a health issue, which is 1 - 0.4 = 0.6. The corresponding cost is $0.
Expected value = (Probability of developing a health issue * Cost of developing a health issue) + (Probability of remaining healthy * Cost of remaining healthy). Expected value = (0.4 * $50,000) + (0.6 * $0). Expected value = $20,000 + $0. Expected value = $20,000. Therefore, the expected value of Alan's health care costs for the coming year is $20,000. This means that, on average, he can expect to spend $20,000 on health care expenses.
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free and secure trade is only applicable for free and secure trade-lane shipments originating in _________.
Free and Secure Trade is only applicable for free and secure trade-lane shipments originating in More than 200 of the US and Mexican Customs ports of entry.
The Free and Secure Trade program (FAST) is a joint initiative between the United States and Canada that improves border safety, security, and efficiency while also promoting stable trade and economic growth through the use of front-end security procedures.
This program is also in place between the United States and Mexico. In addition to reducing border delays, FAST aims to enhance supply chain security through the use of container safety initiatives such as tamper-proof container seals and electronic tracking.
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if qualls quality airline cuts its domestic fares by 30%, question 24 options: 1) its fixed costs will decrease. 2) profit will increase by 30%. 3) a profit can only be earned by decreasing the number of flights. 4) a profit can be earned either by increasing the number of passengers or by decreasing variable costs.
The quality airline cuts its domestic fares by 30% ,(option 4) a profit can be earned either by increasing the number of passengers or by decreasing variable costs.
Among the provided options, option 4) "a profit can be earned either by increasing the number of passengers or by decreasing variable costs" is the most accurate statement.
When Qualls Quality Airline cuts its domestic fares by 30%, it will likely impact the company's profitability and various cost elements. However, the exact impact on fixed costs and profit cannot be determined solely based on the information provided. Let's analyze each option:
1."Its fixed costs will decrease": The reduction in fares does not directly affect fixed costs, as fixed costs typically remain constant regardless of changes in sales or pricing.
2."Profit will increase by 30%": It is incorrect to assume that profit will automatically increase by 30% when fares are reduced. Profit depends on various factors, including the change in revenue and costs, which are not specified in the given information. Therefore, this statement cannot be concluded based solely on the fare reduction.
3."A profit only be earned by decreasing the number of flights": This statement is not supported by the information provided. Profitability be influenced by various factors, including passenger demand, pricing strategies, and cost management. Decreasing the number of flights is just one possible approach to improving profitability, but it is not the only option.
4."A profit can be earned either by increasing the number of passengers or by decreasing variable costs": This statement is the most accurate and plausible. Profitability improved by increasing the number of passengers, which achieved through lower fares attracting more customers. Additionally, profitability also be enhanced by reducing variable costs associated with each flight, such as fuel costs, maintenance expenses, or operational efficiency.
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Windsor, Inc.'s general ledger at April 30, 2017, included the following: Cash $5,900, Supplies $590, Equipment $28,320, Accounts Payable \$2,480, Notes Payable \$11,800, Unearned Service Revenue (from gift certificates) $1,180, Common $ tock $5,900, and Retained Earnings $13,450. The following events and transactions occurred during May. May 1 Paid rent for the month of May $1,180. 4 Paid $1,300 of the account payable at April 30. 7 Issued gift certificates for future services for $1,770 cash. 8 Received $1,420 cash from customers for services performed. 14 Paid $1,420 in salaries to employees. 15 Received $940 in cash from customers for services performed. 15 Customers receiving services worth $830 used gift certificates in payment. 21 Paid the remaining accounts payable from April 30. 22 Received $1,180 in cash from customers for services performed. 22 Purchased supplies of $830 on account. All of these were used during the month. 25 Received a bill for advertising for $590. This bill is due on June 13. 25 Received and paid a utilities bill for $470. 29 Received $2,010 in cash from customers for services performed. 29 Customers receiving services worth $710 used gift certificates in payment. 31 Interest of $60 was paid on the note payable. 31 Paid $1,420 in salaries to employees.
Windsor, Inc.'s general ledger at April 30, 2017, contained the following: Cash $5,900, Supplies $590, Equipment $28,320, Accounts Payable $2,480, Notes Payable $11,800, Unearned Service Revenue (from gift certificates) $1,180, Common Stock $5,900, and Retained Earnings $13,450.
The subsequent events and transactions took place during the month of May. Paid $1,180 for rent for May 1. On May 4, a payment of $1,300 was made on the account payable. On May 7, $1,770 in cash was earned from the sale of future services by the issuance of gift certificates.
On May 8, $1,420 in cash was earned from customer services. On May 14, $1,420 in salaries was charged to workers. On May 15, $940 in cash was earned from customer services. Customers who got $830 in services paid for it using gift certificates. Paid off the balance on April 30's accounts payable on May 21.
On May 22, $1,180 in cash was earned from customer services. On May 22, $830 in supplies were purchased on credit. During the month, all of the supplies were utilized. On May 25, an advertising bill for $590 was received and will be due on June 13. Paid off a $470 utility bill on May 25.
On May 29, $2,010 in cash was earned from customer services. Customers who got $710 in services paid for it using gift certificates. Paid $1,420 in salaries to employees on May 31. On May 31, interest of $60 was paid on the note payable.
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QUESTION 6 Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy to move from the new short-run equilibrium eventually to a long-run equilibrium? A. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the left B. LRAS will shift to the left C. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the right D. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the left E. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right
Previous question
In the short-run, the economy moves from the short-run equilibrium to the long-run equilibrium because of the changes in nominal wages, prices, and perceptions (that affect the short-run aggregate supply). The correct option in the given question is "E.
Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right."The long-run equilibrium is achieved when the long-run aggregate supply (LRAS) intersects the aggregate demand (AD) curve. In the short-run, the SRAS curve is upward sloping, which indicates that the changes in nominal wages, prices, and perceptions affect the short-run aggregate supply. Therefore, when the government decreases taxes, it reduces the firms' costs of production and encourages them to increase their output.
The increase in production leads to higher employment and output levels and a decrease in the prices level. This short-run equilibrium shifts the SRAS curve to the right.However, as the prices level decreases, the real value of the money supply increases. It leads to an increase in the demand for goods and services, shifting the AD curve to the right.
The rightward shift in the AD curve continues until it intersects the new LRAS curve, establishing the long-run equilibrium. Thus, nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right. The correct option in the given question is "E.
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An investment project costs $18,100 and has annual cash flows of $3,700 for six years.
a. What is the discounted payback period if the discount rate is zero percent?
b. What is the discounted payback period if the discount rate is 5 percent?
c. What is the discounted payback period if the discount rate is 18 percent?
a)When the discount rate is 0 percent, the discounted payback period can be calculated by dividing the initial cost by the annual cash flows. Here, initial cost is $18,100 and annual cash flows is $3,700.DPP = Initial Cost / Annual Cash Flows= $18,100 / $3,700= 4.89 years).
When the discount rate is 5 percent, the discounted cash flows for each year and cumulative discounted cash flows at the end of each year can be calculated as follows: Discounted Cash Flows:|Year| Cash Flows| PVF (5%, year)|Discounted Cash Flows[tex]|1|$3,700|0.9524|$3,525.08|2|$3,700|0.907|[/tex] [tex]$3,352.9|3|$3,700|0.8638|$3,184.06|4|$3,700|0.8227|$3,018.19|5|$3,700|0.7835|$2,855.38|6|[/tex]|Cumulative Discounted Cash Flows:|Year| Cumulative Cash Flows Cumulative Discounted Cash.
Flows[tex]|1|$3,700|$3,525.08|2|$7,400|$6,877.98|3|$11,100|$10,062.05|4|$14,800|$1[/tex] |The discounted payback period is the year before the cumulative discounted cash flows exceed the initial cost. In this case, that happens during year 5. So the discounted payback period when the discount rate is 5% is: DPP = Year 4 + (Initial Cost - Cumulative Discounted Cash Flows in Year 4) / Discounted Cash Flows in Year [tex]5= 4 + ($18,100 - $13,080.24) / $2,855.38= 4.63 years).[/tex]
Flows|1[tex]|$3,700|$3,137.25|2|$7,400|$5,795.66|3|$11,100|$8,048.17|[/tex]The discounted payback period is the year before the cumulative discounted cash flows exceed the initial cost. In this case, that happens during year 6. So the discounted payback period when the discount rate is 18% is: DPP = Year 5 + (Initial Cost - Cumulative Discounted Cash Flows in Year 5) / Discounted Cash Flows in Year [tex]6= 5 + ($18,100 - $11,575.63) / $1,372.63= 5.08[/tex] years.
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