Management is using its borrowed funds to enhance the earnings for GPS corporation, Thus option (A) is correct.
What is management?In order to achieve desired goals and objectives, a person or group of people must be challenged and managed, according to the concept of management. Furthermore, the capacity to organize, supervise, and guide people is a component of management.
A fund is a collection of funds set aside for a certain objective. A fund may be created for a variety of objectives, including a city administration setting aside funds to construct a new civic center,
Therefore, Thus option (A) is correct.
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one reason marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that
One of the reasons that marketers of new, innovative products often start out with a price skimming strategy rather than a market penetration strategy is that it is easier to lower prices than to raise them.
What are the skimming strategies?When offering a product or service for the first time, a company may use the price-setting approach known as "price skimming." Skip content that offers explanations, anecdotes, statistics, or other elaboration when you are skimming. The introduction, chapter summaries, first and last sentences of paragraphs, bold words, and text elements should be your primary points of attention rather than reading every word in great detail.
Skim pricing, often referred to as price skimming strategies, is a pricing strategy that establishes high initial costs for new products before lowering them as rivals enter the market. Penetration pricing, which sets low initial prices for newly released products in an effort to attract a large consumer base, is the reverse of skim pricing.
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suppose you are a manager of a firm that operates in a duopoly. recently, the state attorney general fined you and your competitor for price fixing. in your market, firms only set prices, not total quantities to sell. from previous experience, you know your competitor has a marginal cost of $ 7.66 . further, your marginal costs are $ 7.64 . the previous cartel price was $10.00, when you and your competitor were price fixing. what price level do you now choose to maximize profits? $7.66 $10.08 $10.00 $7.64 $7.56 $7.65
The price level that one will choose to maximize profits is $7.65
What is profit maximization?Profit maximization in economics refers to the process by which a firm determines the price, input, and output levels that will result in the highest possible total profit in the short or long run. Profit maximization identifies that point that is, the optimum output at which your company is most profitable.
In other words, at the maximum level of output, the profit-maximizing quantity and price can be determined by setting marginal revenue equal to zero. When the total revenue curve reaches its maximum value, marginal revenue equals zero. A scheduled airline flight is an example.
In this situation, from previous experience, the competitor has a marginal cost of $ 7.66 and the marginal costs are $ 7.64, therefore the ideal price will simply be below the price of the competitor and be above the marginal cost.
This will be $7.65.
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victor valencia is paid $10 per hour. during the week ended 6/30, victor worked 40 hours. assuming a 6.2% social security tax, the company would withhold $ from victor's gross pay for social security taxes.
If the social security tax was 6.2%, Dora's employer would deduct $24.48 from her gross pay as social security taxes.
A social security tax is what?
The federal Old Age, Survivors, and Disability Insurance program, which is run by the Social Security Administration, is commonly referred to as "Social Security" in the United States. The current Social Security Act, as amended, covers a number of social welfare and social insurance programs. The original Social Security Act was passed in 1935. The Federal Insurance Contributions Act (FICA) and the Self-Employed Contributions Act Tax (SECA) are payroll taxes that are primarily used to fund Social Security (SECA).
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the dollar store, dollar general, and dollar tree are discount stores that______ so they can sell goods at lower prices than usual.
The dollar store, dollar general, and dollar tree are discount stores that lower profit margins so they can sell goods at lower prices than usual.
The net profit margin, which is typically expressed as a percentage, is a reliable predictor of a company's overall success. But bear in mind that a single number in a report from a corporation is rarely sufficient to highlight overall company performance. If expenses rise along with sales, the increase in revenue could result in a loss. On the other hand, a drop in income combined with strict cost management measures could increase the company's profit.
A corporation that has a low net profit margin either has an inefficient cost structure or uses bad pricing tactics. Consequently, a low ratio may be caused by:
inadequate managementHigh prices (expenses)Poor pricing tacticsInvestors should utilize the profit margin ratio's figures as a general gauge of a company's profitability performance and, as necessary, start more in-depth investigations into the factors that contribute to profitability increases or decreases.
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Who will have the most money to spend on a new car at the end of the 5 years? will have the most money to spend.
The general rule of thumb is to stick to a budget that is no higher than 50% of your annual wage. You can decide whether to take into account gross income or net income. You can accept a budget of Rs. 10 lakhs if your yearly salary is that amount.
How much cash is required to purchase a car?One must make sure that only 10% of the family's annual income and car-related expenses should be taken into account. Poor planning can influence future expenditures and prevent you from making financially irresponsible decisions. Nobody can prevent you from purchasing your ideal vehicle.
What should I spend on a car if I make $100,000?Numerous lenders accept DTIs of around 50% for auto loans (including refinance loans). Using the 36% method, multiply your family's income by 0.36 to get the size of the car you can buy. So, for instance, if you make $100,000, you might, provided you have no other debt, afford to take out a car loan of up to $36,000.
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fred is the chief financial officer for tellcom industries. tellcom is preparing a registration statement to be used in conjunction with a new stock offering. to make the offering attractive to investors, fred provides inflated financial information about the company in the registration statement. samantha purchases the stock, and, when she finds out about the fraudulent information, she sues. to successfully sue tellcom and fred, samantha must prove:
Fred is the chief financial officer for telecom industries.to successfully sue tellcom and fred, samantha must prove: only that there was a material misstatement or omission and that she lost money.
Industry, organization of effective firms or businesses that produce or deliver items, offerings, or assets of earnings. In economics, industries are normally categorized as number one, secondary, tertiary, and quaternary; secondary industries are in addition categorized as heavy and light.
We are a global chief inside the innovative era of overall performance additives, manner solutions, active pharmaceutical ingredients, and chemical intermediates. Our answers are crucial to many various industries and packages, creating exquisite consequences.
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question content area levi company issued $74,000 of 9% bonds on january 1 of the current year at face value. the bonds pay interest semiannually on january 1 and july 1. the bonds are dated january 1 and mature in 5 years on january 1. the total interest expense related to these bonds for the current year ending on december 31 is
The total interest expense related to these bonds for the current year ending on December 31 is $5,180.
The bond has a $74,000 face value, and a 9% interest rate, was issued on January 1 and has a 5-year term. Since the question clearly asks for the entire expense relating to the current year ending December 31, we shall compute the interest expense for one year; the semi-annual interest payment won't affect the calculation in this.
Interest expenses are calculated as follows: Principal * Interest Rate * Period = $74,000 * 9% * 1 = $33,300. Semiannual interest payment = face value of bonds x rate of interest x no. of months/12 = $74000 x 7% x 6/12 = $2,590.
Total interest expense for the current year ending on December 31 = Semiannual interest payment x 2 = 2590 x 2 = $5,180.
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while minimotors has focused on improving production efficiencies, global customers are inquiring about its environmental policies. in light of its strategy to serve european customers, sparky has requested two of its lead engineers to investigate what it would take to meet the environmental standards of its socially responsible customers. the engineers should investigate as best practices for managing a firm's impact on its environment.
The letter "B" is the correct response:ISO 14000.
The ISO 14000 standard, which stands for the International Organization for Standardization, is a set of guidelines for managing environmental systems that deal with protection, prevention, pollution, and social and economic requirements.ISO 14000 aims to strike a balance between reducing environmental damage and saving money.
What is ISO and what does it do?
The ISO (International Organization for Standardization) is an independent, non-governmental organization that creates standards to guarantee products, services, and systems' quality, safety, and effectiveness.
What Kind of ISO Standard Is It?
The manufacturing of wine glasses, food safety regulations, and the calibration of thermometers are all examples of ISO standards.ISO principles additionally cover shoe sizes, melodic pitches, security the executives, and ecological administration.
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KPR Contracting Co. manufacturers and sells tools and equipment for general contractors. Fortheir main product, the Company incurs approximately the following costs:• $5.75 in Direct Materials• $10.90 in Direct Labor• $2.27 in Electricity• $2.48 in Rent Expense for their Retail Storea) Which of the above costs would be including in Manufacturing Overhead? Why?b) What should be the balance in the Manufacturing Overhead Account as of year-end? Why?
KPR Contracting Co.'s main product will incur cost of:
a) From the above, electricity should be included in the manufacturing overhead. Factory overhead, also known as manufacturing overhead, work overhead, or factory burden in American English, is the total cost of maintaining all production facilities for a manufacturing firm that cannot be directly tied to a product. Usually, indirect costs and indirect labor are impacted. Manufacturing overhead costs frequently include the depreciation of equipment, wages paid to factory workers, and electricity used to operate the equipment.
b) using the formula,
Total manufacturing cost = Direct materials + Direct labor + Manufacturing overheads.
= 5.75+10.90+2.27
= 18.92
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per unit marshall company purchases a machine for $1,040,000. the machine has an estimated residual value of $100,000. the company expects the machine to produce two million units. the machine is used to make 600,000 units during the current period. if the units-of-production method is used, the depreciation rate is:
Calculating the depreciation per unit is the first step in applying the units-of-production technique.
Depreciation per unit is calculated by dividing the cost-residual value by the estimated life in units.
The formula for depreciation per unit is (1,040,000 - 100,000)/600,000.
Each unit of depreciation costs 1.56 cents.
The second step is to determine the depreciation for the period.
Depreciation for a certain time period is calculated by multiplying the actual units produced during that time by the depreciation per unit.
Depreciation for the time period is equal to 1.56 * 600,000.
Depreciation for this time frame is 936,000.
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question mode multiple choice question a company's payroll register showed total employee earnings of $3,000 for the payroll period ended january 31. the employer's share of the social security tax is $186, and medicare tax is $43.50. the general journal entry to record the employer's payroll taxes for the period will include a debit to the account.
A company's payroll register showed total employee earnings of $3,000 for the payroll period ended January 31. The employer's share of the social security tax is $186, and Medicare tax is $43.50. The general journal entry to record the employer's payroll taxes for the period will include a debit to the payroll taxes expense account.
What are payroll taxes?
Payroll taxes consist of the following:
Wage taxNational insurance contributionsEmployed person's insurance contributionsIncome-dependent contribution pursuant to the Health Care Insurance Act (Zvw)Wage tax:On the wages, you deduct wage tax. Wage taxes are an income tax advance levy. The employee will either not pay income tax or pay less income tax as a result of your wage tax withholding and payment to the Tax and Customs Administration.
National insurance contributions:
The Netherlands' residents and workers are protected against the financial ramifications of old age, death, exceptional medical expenses, and costs associated with raising children through national insurance schemes, which are social security insurance programs in which participation is required by law. The elements of the national insurance programs are:
General Old Age Pensions Act (AOW)Surviving Dependants Act (Anw)Long-Term Care Act (Wet langdurige zorg, Wlz)General Child Benefit Act (AKW)Employed persons' insurance contributions: The employed persons' insurance schemes are:
Sickness Benefits Act (ZW)Invalidity Insurance Act (WAO) / Work and Income according to Work Capacity Act (WIA)Unemployment Insurance Act (WW)You, as the employer, bear the full cost of the contributions.
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in viatical insuracne settlements, people can have protions of their death beefits of life insucance plicies prepaid by the issuing insurance compay tac free if they are within how many months of their death
the benefit is usually income tax-free you should consult with your tax advisor if you receive a death benefit payment.
Assume a simple model with only two countries: Japan and Canada, and two goods: cars and bacon. Suppose that the opportunity cost for Japan to produce 1 car is 2 units of bacon and the opportunity cost for Canada to produce 1 car is 4.5 units of bacon. Which of the following statements is true?
Based on the concrete opportunity cost and the situation described above, the statement that suture regarding Japan and Canada is that Japan would be economically better off if it produced cars and traded with Canada for bacon.
What is Opportunity Cost?Opportunity cost is an economic term that is used to describe the time and money spent time spent in studying and assembling or producing something else.
In other words, opportunity cost simply means the value of what a business or individuals have to give up to choose something else.
For example, as in this case, if Japan chooses to make a car, the opportunity cost is giving up 2 units of bacon. And if Canada chooses to make this one car, it uses 4.5 units of bacon.
This implies that Japan can easily provide cars at a cheaper cost than Canada.
Hence, in this case, it is concluded that the statement is correct in that Japan would be economically better off if it produced cars and traded with Canada for bacon.
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the following sales and cost data (in thousands) are for two companies in the transportation industry:
Sales and cost data are for two companies in the transportation industry:
1 a. The following information is required to calculate degree of operating leverage for company A
The contribution margin is $90,000
The operating profit is $57,600
The degree of operating leverage is calculated below
Degree of operating leverage = Contribution / operating profit
=$90,000 / $57,600
=1.5625 or 1.56 rounding off to 2 decimals
The degree of operating leverage is 1.56 for company A
b) The following information is required to calculate degree of operating leverage for company B
The contribution margin is $126,000
The operating profit is $64,600
The degree of operating leverage is calculated below
Degree of operating leverage = Contribution / operating profit
=$126,000 / $64,600
=1.9505 or 1.95 rounding off to 2 decimals
The degree of operating leverage is 1.95 for company B
1b) if the sales increase from current level the company B will have higher contribution and operating income in terms of percentage growth than Company A. This is because the DOL is higher for company B than company A.
2)The following information is required to calculate the percentage increase in profit for company A
The increase in sales turnover is 20%
The degree of operating leverage is 1.56 for company A
The change in profit percentage is calculated below
Change in profit percentage = increase in sales percentage x degree of operating leverage
= 20% x 1.56
=31.20 %
The increase in profit percentage would be 31.20% for company A
The following information is required to calculate the percentage increase in profit for company B
The increase in sales turnover is 20%
The degree of operating leverage is 1.95 for company B
The change in profit percentage is calculated below
Change in profit percentage = increase in sales percentage x degree of operating leverage
= 20% x 1.95
=39 %
The increase in profit percentage would be 39% for company B
The company will have greater increase than company B because of higher degree in operating leverage
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amco airlines decides to lower its price in response to un airlines' price reduction. in game theory, this response is:
amco airlines decides to lower its price in response to un airlines' price reduction. in game theory, this response is a stretegy.
What does the idea of game theory mean?The study of mathematical models of tactical encounters between rational agents is known as game theory. It has uses in computer science, logic, and all branches of social science. Game theory is the study of how interdependent decisions made by economic agents lead to outcomes that are related to their preferences (or utilities), even when none of the actors may have intended the results in issue.
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malcolm’s employer automatically deducts 37.7% from his paycheck every month for taxes, insurance premiums, retirement accounts, and so on. he ends up taking home $39560.50. what was his gross pay?
The gross pay of the malcolm’s employe is $ 104,935.0133.
Gross pay is what an employee earns before taxes, benefits and other withholdings are deducted from pay. the amount that is final after taking into account all deductions is the net salary or household salary.
Calculation:-
net pay = $39560.50
gross pay × 37.7 % = net pay
X × 37.7 /100 = $39560.50
X = $39560.50 × 100 ÷ 37.7
= $ 104,935.0133
Basic income is the salary agreed between the company and the employee and now does not include overtime or bonuses. Gross wages, but this is the amount paid before taxes or other deductions, consisting of overtime wages and bonuses.
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Leading business writers emphasize that __________ is one of the most important and challenging tasks in the decision-making process. (a) Escalation of commitment (b) Rational maximization (c) Translating decisions into action (d) Confirmation bias (e) Bounded rationality
Leading business writers emphasize that execution—translating decisions into action—is one of the most important and challenging tasks in the decision-making process.
What do you mean by the decision-making process?Making decisions involves identifying a course of action, acquiring data, and weighing potential answers. By gathering pertinent data and outlining options, a step-by-step decision-making process can assist you in making more careful, considered decisions.
Why is decision-making so important?Decision-making is crucial since it enables you to select from a variety of possibilities. Gathering all relevant data and weighing its benefits and drawbacks are necessary steps before reaching a decision. In order to make the best judgments, it is essential to concentrate on the actions that can assist.
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pinkin incorporated needs to determine a price for a new phone model. pinkin desires a 25% markup on the total cost of the phone. pinkin expects to sell 30,000 phones. additional information is as follows: variable costs per unit fixed costs (total) direct materials $ 22 overhead $ 85,000 direct labor 47 general and administrative 65,000 overhead 27 general and administrative 57 using the total cost method what price should pinkin charge?
Using the total cost method, the price that Pinkin Incorporated should charge per the new phone model is $197.50.
What is the total cost method?The total cost method involves adding variable and fixed costs to compute the total cost.
The markup is then applied to the total costs to get the total markup cost before dividing it by the number of units expected to be sold.
The result of the division operation above is the expected selling price per unit.
Desired markup on total cost = 25%
Expected sales units = 30,000 phones
Per unit Total Costs
Variable costs:
Direct materials $22 $660,000
Direct labor $47 1,410,000
Variable overhead per unit $27 810,000
General and administrative costs $57 1,710,000
Fixed costs:
Factory overhead 85,000
General and administrative costs 65,000
Total costs $4,740,000
Markup (25%) 1,185,000
Total markup costs (estimated sales revenue) = $5,925,000 ($4,740,000 x 1.25)
The selling price = $197.50 ($5,925,000 ÷ 30,000)
Thus, the selling price of each phone, based on the total cost method, is $197.50.
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Which of the following statements are correct concerning diversifiable risks? I. Diversifiable risks can be essentially eliminated by investing in thirty unrelated securities II. There is no reward for accepting diversifiable risks. III. Diversifiable risks are generally associated with an individual firm or industry IV. Beta measures diversifiable risk. A. I and III only B. II and IV only C. I and IV only D. I, II and III only E. I, II, III, and IV
It is correct to choose option (d), i.e.,
I. Investing in thirty unrelated assets effectively eliminates diversifiable risks.
II. There is no compensation for taking risks that can be diversified.
III. Diversifiable hazards are typically linked to a specific company or industry.
What is a diversifiable risk?Diversifiable risk is the possibility that a security's price will change due to its special characteristics. This kind of risk can be decreased and finally eliminated by diversifying an investor's portfolio.
As part of the risk management strategy known as diversification, the investments in a portfolio are combined in a wide range. A diversified portfolio incorporates a range of several asset classes and investment vehicles in order to lessen exposure to any one asset or risk.
Unsystematic risk is risk that is particular to a firm (also known as diversifiable risk). A strike, a natural disaster like a fire, or even something as mundane as falling sales could all pose this kind of risk. Two common categories of unsystematic risk are business risk and financial risk.
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It is 2019, and you work in finance for a large international media company. Your firm took out a $500m amortizing fixed-rate commercial mortgage on your U.S. corporate headquarters two years ago. The coupon rate on the mortgage is 5%, and the loan initially had a 25 year amortization period, and a 10 year balloon payment. (Note: Since two years have passed, this balloon payment will now occur in eight years time) c. Calculate the monthly payment on this mortgage and the current face value on this mortgage.
It's far 2019, and we figure in finance for a huge worldwide media organization. Our company took out a $500m amortizing fixed-charge commercial mortgage on 876|cutting-edge Face fee of the loan .|$ _478,853,476.13 |.
{869| unique mortgage amount $ _500,000,000.00
{870|Coupon fee five%
871 | original term 25|
872/ month-to-month payment [$ 2,922,950.21 |
1873| Years to balloon charge 10|
{874[ Balloon payment amount $ 369,622,377.91
{875 contemporary years to balloon price 3
876|modern-day Face value of mortgage __|$ _478,853,476.thirteen
A business loan is a loan secured via business assets, inclusive of an office constructing, purchasing center, industrial warehouse, or condo complicated. The proceeds from a commercial mortgage are usually used to acquire, refinance, or redevelop the business property.
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because our flight monitor product is the best on the market, we are certain you will place an order next month. one of our representatives will be coming by next tuesday to complete your order. too pushy too general too timid
Because our flight monitor product is the best on the market, we are certain you will place an order next month. one of our representatives will be coming by next Tuesday to complete your order too pushy. The correct option is (A).
What do you mean by the product?The object being sold is referred to as a product. A service or an object both qualify as products. It could take on a physical, virtual, or cyber form.
Every product has a cost associated with it, and each one has a price. The market, the quality, the marketing, and the group that is being targeted all affect the price that can be charged.
A product is anything that can be supplied to a market in order to satiate a customer's need or desire. In marketing, a product is an item, system, or service that is made accessible for consumer usage in response to consumer demand.
Therefore, Without considering the buyer's point of view or giving them chance to ask the questions related to product, they are sending a representative to complete the order. So, the correct option is too pushy.
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Large firms may create a secure website known as a ____________ to link to suppliers and key business partners.
Private industrial networks—secure websites made by large businesses—might be developed. to connect with suppliers and important business partners.
what is The definition of a privately held exchange?Private exchanges are run and owned by a single organization. The exchange is only used by the owner to exchange data with reputable suppliers and clients. Through those exchanges, customers can organize and control their purchases from favored providers.
what is An example of a virtual private company?The same technology is used by public operator-run LTE networks and private LTE networks for regular mobile phones. One significant distinction is that the private broadband network is totally on-site in the business's own operating environment and is managed by the business.
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Management by measurement is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
True
False
It is false that management by measurement is a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.
A control principle known as "corrective action" suggests that managers should only be made aware of a situation if data reveal a considerable departure from norms.
Management through measurement is the process of identifying key performance indicators that managers may use to measure how successfully their teams are achieving predetermined goals.
Establishing the performance standard that will be regulated is the first stage in any control procedure. A standard is a benchmark that can be used to compare processes or performance.
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on november 1, alan company signed a 120-day, 12% note payable, with a face value of $19,800. what is the adjusting entry for the accrued interest at december 31 on the note? (use 360 days a year.).
The interest accrual adjusting entry On the note, $198 is due as of December 31.
Interest rate equals 9900 x ((12% / 360) x 60) = $198
Interest expense Dr. $198
To Interest payable $198
The expense of interest is the price of borrowing money. It's the charge a lender makes to a borrower for using the lender's funds. The interest rate on the income assertion can be the cost of borrowing money from banks, bond holders, and other assets.
An entity's cost for obtaining borrowed funds is known as an interest expense. A non-working cost that is demonstrated at the profits declaration is interest expense. It stands for the interest that must be paid on all borrowings, including bonds, loans, convertible debt, and credit lines.
Finally, the cost of borrowing is the interest.
value or financial benefit that the company experiences
While it rents an asset or borrows money.
The amount due at the end of an accounting year or work cycle is known as interest payable. This amount is a current obligation since current obligations are due within a year.
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tomas takes out josefina to a very nice restaurant broadway blues, and puts his coat on the coat rack by the front door. when tomas finishes his dinner, he returns for his coat but it is missing. he talks to the manager of the restaurant who claims broadway blues is not responsible for the coat. he is correct.
Tomas takes out Josefina to a very nice restaurant broad way blues, and puts his coat on the coat rack by the front door. When Tomas finishes his dinner, he returns for his coat but it is missing. He talks to the manager of the restaurant who claims broad way blues is not responsible for the coat. He is not correct. A manager who is responsible for managing and taking care of the restaurant, and the restaurant broad way blues is responsible for the coat.
Who is a Manager?A manager is a professional who takes a leadership role in an organization and manages a team of employees.
Thy are the line of communication between a company's employees and it's high-level executives or between the high level executives and the customers.
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in addition to sanctions imposed by the maryland real estate commission, serious violations of real estate license laws can result in what?
Both you and your broker might be penalized for significant offenses when they were known to them, and both of you could have your licenses suspended or revoked.
If you are found guilty of a significant offense in Pennsylvania and it is discovered that your broker knew about it, what is the worst-case scenario?Both you and the broker might get fines and have your licenses revoked or suspended.
What is the maximum fine that the Maryland real estate commission will impose?The most severe penalty will consist of a real estate license being revoked and a hefty fine exceeding $10,000. This could occur if a Maryland real estate broker collects rental income on the client's behalf but does not give the client access to the funds.
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bill and jill evaluate your performance. the consistency between these two raters who evaluate you is known as:
These two raters' consistency is referred to as inter-rater or inter-observer reliability.
How can we determine whether raters are trustworthy?The percentage of items that the judges agree on can be calculated as a straightforward technique to assess inter-rater reliability. This is referred to as percent agreement, and it always falls between 0 and 1, with 0 denoting complete disagreement among raters and 1 denoting perfect agreement.
Which phrase best sums up an evaluation measure's consistency?The degree to which an evaluation instrument yields reliable and consistent results is known as reliability. Test-retest reliability is a metric of dependability that is acquired by giving a group of people the same test more than once throughout time.
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refer to scenario 13-3. what is the total opportunity cost of the day that farmer ziva spent in the field planting lettuce?
Based on scenario 13-3, the total opportunity cost of the day that Ziva spent in the field planting lettuce is $380.
Opportunity cost shows the value someone has to lose to choose another option. In Ziva's case, there are 2 types of costs incurred can be categorized into the opportunity costs: Implicit and explicit costs.
Implicit costs are the opportunity cost of using already owned resources. In Ziva's case, implicit cost is related to the profit Ziva could make if she works as a consultant for the day, or equals to $250 ($25 x 10 hours).
Explicit costs are the payment that are actually made. In Ziva's case, explicit cost appears in the form of the lettuce seed's cost, $130.
Hence, the total opportunity costs of Ziva's decision to spend the day in the field planting lettuce is:
Total opportunity cost = Implicit costs + Explicit costs
Total opportunity cost = $250 + $130
Total opportunity cost = $380
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Complete Question:
Scenario 13-3.
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce.
refer to scenario 13-3. what is the total opportunity cost of the day that farmer ziva spent in the field planting lettuce?
why does the shortrun aggregate supply curve shift to the left in the long run, following an increase in aggregate demand?
The aggregate supply curve shifts to the left as the price of key inputs rises, making a combination of lower output, higher unemployment, and higher inflation possible.
When an economy experiences stagnant growth and high inflation at the same time it is referred to as stagflation.
whilst the charge degree modifications and corporations produce more in reaction to that, we circulate along the SRAS curve. but, any alternate that makes manufacturing special at every possible fee level will shift the SRAS curve. occasions like these are called “shocks” because they are not predicted.
the short-run aggregate supply curve will shift to the left. If oil prices rise unexpectedly, the short-run aggregate supply curve will shift to the left.
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the cyclically adjusted budget deficit: adjusts the deficit for inflation. estimates what the deficit would be if the economy were operating at the natural rate of output. accounts for assets as well as liabilities. measures the impact of fiscal policy on the lifetime incomes of individuals of different ages.
A cyclically adjusted deficit is a fiscal deficit caused by a slowing economy rather than by fiscal policies such as increased discretionary spending or lower tax rates.
The cyclically adjusted price/earnings ratio, commonly known as the CAPE, Shiller P/E, or P/E 10 ratio, is a valuation metric typically applied to the U.S. S&P 500 stock market. It is defined as the inflation-adjusted price divided by the 10-year average return (moving average).
A cyclical adjustment deficit is a fiscal deficit caused by a slowing economy rather than by fiscal policies such as increased discretionary spending or lower tax rates.
A cyclically adjusted budget is the budget that would result if the economy were operating at full employment. A periodically adjusted budget is also known as a full employment budget.
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