Answer:
The answer is:
1 - Underutilization
2 - Efficiency
3 - Unattainability
Explanation:
Efficiency in economics means a situation in which all resources are optimally distributed to serve each entity in the best way while minimizing waste and inefficiency.
Underutilization in economics is also a a situation in which lesser resources are being utilized than the economy is capable of utilizing.
Unattainability is a situation in which what one to accomplish or achieve is not possible.
1 - Underutilization
2 - Efficiency
3 - Unattainability
Wages of $8,000 are earned by workers but not paid as of December 31. Depreciation on the company’s equipment for the year is $11,440. The Office Supplies account had a $350 debit balance at the beginning of the year. During the year, $5,367 of office supplies are purchased. A physical count of supplies at December 31 shows $587 of supplies available. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,800 of unexpired insurance benefits remain at December 31. The company has earned (but not recorded) $700 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5. For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.
Answer:
wages expense 8,000 debit
wages payables 8,000 credit
----------------------------------------------------
depreciation expense 11,440 debit
accumulated depreciation equipment 11,440 credit
----------------------------------------------------
supplies expense 5,130 debit
supplies 5,130 credit
----------------------------------------------------
Insurance expense 3,200 debit
Prepaid Insurance 3,200 credit
----------------------------------------------------
Interest Receivables 700 debit
Interest Revenue 700 credit
----------------------------------------------------
interest expense 5,000 debit
Interest payable 5,000 credit
----------------------------------------------------
Explanation:
We follow the accountign rinciples: Debit = Credit
And one line per account
and all accounts posted must have a balance
Additional calculations:
Supplies
beginning + purchase = used + ending
350 + 5,367 = used + 587
used supplies = 350 + 5,367 - 587 = 5,130
Insurance
Beginning unexpired - Ending unexired = expired
5,000 - 1,800 = 3,200
In January of 2009, the Falwell Company began construction of its own manufacturing facility. During 2009, $6,000,000 in costs were incurred evenly throughout the year. Falwell took out a $2,500,000, 10% construction loan at the beginning of the year. The company had no other interest-bearing debt. What amount of interest should Falwell capitalize in 2009
Answer:
$250,000
Explanation:
Calculation of the amount of interest should Falwell capitalize in 2009
Based on the information given we were told that the company took out the amount of $2,500,000, 10% of the construction loan at the start of the year. Therefore the amount of interest that Falwell should capitalize in 2009 will be calculated as:
Interest = $2,500,000*10%
Interest =$250,000
Therefore the amount of Falwell interest should be $250,000
Leslie goes to a store to buy a dishwasher advertised at a great sale price only to find it is "sold out" (because only a few were available to begin with), and she ends up buying a more expensive dishwasher. This "bait and switch" system is an example of the _____ technique.
Answer: Low - ball
Explanation: The low- ball technique could be explained as a trick used by sellers to lure consumers into making a purchase by offering an exciting and low priced product for sale. This offer gets the buyer or consumer committed to such product. However, these offer isn't one in which the seller really intends to uphold as it is just to get the buyers to commit, then the price is suddenly upped or increased at which point the committed buyer ends up paying the increased fee for such product. In the scenario above, only few low priced products were made
available as the seller does not intend to uphold the low price advertised with the buyer eventually purchasing at an increased price.
In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because:_______.
A) there is expected to be a huge return on investment within this industry
B) entering the aircraft manufacturing industry means violating government policies
C) there is no credible threat of retaliation from the incumbents.
D) entering the aircraft manufacturing industry requires huge capital investments
Answer:
D) entering the aircraft manufacturing industry requires huge capital investments
Explanation:
According to the given situation, Boeing and Airbus are the only rivals in the aircraft production business, at least for the big commercial jets.
There is no big entry hazard, as it requires the big amount of capital for entering into the aircraft manufacturing industry.
Therefore from the above explanation, it is clear that the correct answer is d.
Inspiring and motivating people with a mission or purpose is a ______________ for developing an organization that can learn and adapt. Multiple Choice necessary and sufficient condition necessary but not sufficient condition goal but not a necessary condition goal and a required precondition
The correct answer is B. Necessary but not sufficient condition goal
Explanation:
A necessary condition for a goal refers to a condition or factor that is mandatory to achieve a goal. For example, to obtain a bachelor's degree a necessary condition is to complete a bachelor's program. Besides this, a condition is sufficient if no other conditions are required, this applies to the previous condition as the main requirement for a bachelor's degree is to complete all the courses or program.
In this context, inspiring and motivating people in the goal of making an organization that can learn and adapt is a necessary condition because organizations require cooperation and group work and this is achieved if people of the organization feel inspired and motivated. However, this is not the only condition, and therefore it is not sufficient as other factors such as a budget, a clear plan, etc. are needed.
Broker Freehand and Broker Getrich make a deal that Freehand will take all the listings on the north side of town, which are located near his office and Broker Getrich will take all the listings on the south side near his office. They have agreed not to cross into each other's territories or allow their salespeople to do this. They have also agreed to set their rates at 7% so that the sellers will all pay the same fee. Is this acceptable?
Answer:
It is not acceptable
Explanation:
The office of Broker Freehand is located on the north side of town while the office of Broker Getrich is located on the south side of town but the office location shouldn't make a basis for such agreement because such agreement is a breach of Sherman Anti trust act
Sherman antitrust act is an act that was made to stop monopoly of a businesses by a group of firms or individuals with the aim of dictating prices of goods and services in the market. The agreement between Broker Freehand and Broker Getrich will eliminate fair market competition for other Brokers and will also set the prices of the listing since the rates charged by both would be fixed at 7%
Laura Pine worked as a welder for BCD Company for ten years before it changed its rigid tuition reimbursement policy. This year, the new education support policy will allow her to take any course that interests her, not just a course in her field of employment. She is very excited about this and has enrolled in two management courses. She has always thought she had the ability to become a good manager. Laura is attempting to satisfy her ____ needs.
Answer: self-actualization
Explanation:
From the question, we are informed that Laura Pine worked as a welder for BCD Company for ten years before it changed its rigid tuition reimbursement policy.
We are further informed that this year, the new education support policy will allow her to take any course that interests her, not just a course in her field of employment and that she is very excited about this and has enrolled in two management courses.
She has always thought she had the ability to become a good manager. This shows that Laura is attempting to satisfy her self actualization needs.
Flipco signed a 10-year note payable on January 1, 2018, of $ 800, 000. The note requires annual principal payments each December 31 of $ 80, 000 plus interest at 5%. The entry to record the annual payment on December 31, 2019, includes:___________
A. a debit to Interest Expense for $ 36, 000.
B. a debit to Interest Expense for $ 40, 000.
C. a credit to Notes Payable for $ 80, 000.
D. a credit to Cash of $ 120, 000.
Answer:
A. a debit to Interest Expense for $ 36, 000
Explanation:
Based on the information given we were told that Flipco has note payable on January 1, 2018, of the amount of $800,000 and on December 31 we were told that the loan requires annual principal payments of the amount of $80,000 in addition with 5% interest. This means that the Journal entry to record the transaction on December 31, 2019 will includes a Debit to interest expense for $36,000 calculated as :
Interest expense= $800,000-$80,000
Interest expense=( $720,000* 5%* 12/12)
Interest expense =$36,000
Therefore the Journal entry to record the annual payment on December 31, 2019 will includes :
A Debit to interest expense for $36,000
Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. If these countries remove all restrictions on the free flow of capital and labor among themselves, they represent a Multiple Choice free trade area. common market. political union. preferential trade area. regional cooperation group.
Answer:
Common market.
Explanation:
In this scenario, Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. If these countries remove all restrictions on the free flow of capital and labor among themselves, they represent a common market.
A tariff can be defined as a form of taxation employed by a country and applies to imported goods or services from another country.
A common market refers to a formal organization of countries who have collectively agree to trade freely with one another with reduced or eliminated internal tariffs but imposes a common external tariff on trade with other countries. It was founded in 1958 and was made up of countries like Luxembourg, France, Belgium, Netherlands, West Germany and Italy.
The main purpose and advantage of the common market is that, it avails member countries the opportunity to move goods, people, services and capital freely.
The six sigma approach to quality control: Multiple Choice detects potential problems early to prevent their occurrence. views quality control as a function of the marketing department. allows only 600 defective units per one thousand units produced. relies on a special team of experts to examine every unit of output at the end of the production process.
Answer:
detects potential problems early to prevent their occurrence.
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
This ultimately implies that, the six sigma approach to quality control detects potential problems early to prevent their occurrence.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services. It allows only 3.4 defective features for every million opportunities and as such expects processes to be defect free 99.99966 percent of the time.
Generally, there are two (2) main methods of achieving the six sigma approach;
1. DMAIC: define, measure, analyze, improve and control.
2. DMADV: define, measure, analyze, design and verify.
Suppose that Rihanna sells 1,000 tickets to a concerts at $480 each. If the equilibrium price is $600 per ticket for a fixed supply of 1,000 tickets, what is the value of the additional economic rent that Rihanna could earn if she charged the market clearing price?
Answer:
$120,000
Explanation:
Calculation of the value of the additional economic rent that Rihanna could earn if she charged the market clearing price
The first step to find the total amount of the tickets that Rihanna sold
Since we were told that she sells 1,000 tickets to a concert at $480, this means the total amount will be:
Total amount = 1,000 * $480
= $480,000.
Since the Supply is fixed for 1,000 tickets and equilibrium price per each ticket is $600 which means the total amount will be calculated as :
Total amount = 1,000 * $600
= $600,000.
The last step is to find the additional economic rent
Additional economic rent=$600,000 - $480,000
Additional economic rent=$120,000.
Therefore the value of the additional economic rent will be $120,000
1. An updated schedule is: a. A schedule that reflects new design modifications. b. A revised schedule reflecting project information at a given data date regarding completed activities, in-progress activities, and changes in future work. c. A schedule that incorporates subcontractors’ schedules. d. A schedule with resources and budget.
Answer: A revised schedule reflecting project information at a given data date regarding completed activities, in-progress activities, and changes in future work
Explanation:
An updated schedule is a schedule which has been carefully analysed and revised and hence reflects the information regarding a project at a given data date regarding the activities that have already been completed, the activities that are still in progress and the changes that will be made in the future work.
Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on the market is expected to be 14% while the risk free rate is expected to be 3%. If flotation costs are 4%, then what is the cost of equity
Answer:
Cost of equity = 19.1 %
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1 %
Cost of equity = required rate of return + flotation cost
= 15.1 % + 4% = 19.1 %
Cost of equity = 19.1 %
Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
Sematech is pursuing which strategy?
A) cost-leadership business strategy
B) product-differentiation business strategy
C) cost-leadership corporate strategy
D) product-differentiation corporate strategy
Answer: A) cost-leadership business strategy
Explanation:
Cost leadership business strategy is a
strategy of getting a competitive advantage by having the lowest cost of operation in the entire industry. makes a reasonable profit on each sale because you've reduced costs.Here, To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors .
where as product differentiation is a technique use to differentiate a product from similar offerings on the market.
So, Sematech is pursuing a cost-leadership business strategy.
So, correct option is (A).
Sematech is pursuing the cost-leadership business strategy.
What is Cost leadership business strategy?Cost leadership business strategy is a strategy of having low operating costs across the industry, make a good profit on every sale because you reduce costs.
Here, In order to make more profit than other chipmakers, Sematech focuses on lowering its costs below all of its competitors.
Whereas product classification is the process of distinguishing a product from the same products on the market.
Therefore, Sematech pursues a cost-leadership business strategy. Option A is the correct answer.
To learn more about cost-leadership, refer:
https://brainly.com/question/25594563
In the consumer purchase decision process for Coppertone products, the problem recognition stage is typically triggered either by "going somewhere" like a vacation, beach, or pool, or through what
Answer:
heightened awareness of the need to protect skin regularly.
Explanation:
There are five stages in the consumer purchase decisions, they are; Problem recognition stage, information search, evaluation of alternatives, purchase decision and post purchase evaluation.
The problem recognition stage is where the consumer have a need hence recognizes that such need or problem could be met by a product or service in the market. In this stage, the consumer or buyer knows exactly the difference between his or her actual need and some need that needed to be met. Consumer's need in this stage could be heightened through internal action such as being thirsty or hungry and then external factors such as spoken words.
With regards to the above scenario, the customer have a specific need which is heightening awareness of the need to protect his or her skin regularly but knew quite well that such need could be met either by going to a pool, beach or go for a vacation.
"ABC Corporation has declared a rights offering to stockholders of record on Friday, December 10th. Under the offer, shareholders need 10 rights to subscribe to 1 new share at a price of $19. Fractional shares can be rounded up to purchase 1 full share. As of the ex date, the stock is trading at $24. The value of the right is:"
Answer:
$0.50
Explanation:
Calculation for the value of the right
Based on the information given we were told that As of the ex date, the stock was trading at $24 which means that the market price of the amount of $24 have been adjusted on the ex date by the exchange where the stock trades.
Using this formula
Value of the right =(Trading stock- Price of shares to subscribe)/Right to subscribe
Let plug in the formula
Value of the right=($24-$19)/10
Value of the right÷$5/10
Value of the right=$0.50
Therefore the value of the right will be $0.50
BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost
Complete Question:
BrainTrust company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?
a. 50%
b. 75%
c. 30%
d. 100%
Answer:
a. 50%
Explanation:
In this scenario, BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is 50% of total distribution cost.
In supply chain management, the total distribution cost can be defined as the overall expenses incurred by a manufacturer in the process of delivering finished goods and services from the production stage to the final consumer. The total distribution cost can either be direct or indirect expenses incurred on insurance, handling, storage, shipping, packing and logistics.
Generally, the total amount spent on the movement of goods and services from one location to another, usually accounts for half (50%) of the overall expenses incurred in total distribution cost.
Susan is a new sales rep who does not yet possess a great deal of product knowledge. She is often asked questions to which she does not know the answer. By being up-front with her customers about not knowing the answers, Susan builds trust because she is perceived as:
Answer:
candid
Explanation:
By being up-front with her customers about not knowing the answers, Susan builds trust because she is perceived as candid. An individual that is candid, is known to be truthful and straightforward. These individuals are seen by others to be trustworthy since they seem to always tell the truth even if it is hard for the other individual to hear and/or even if it gets themselves into trouble, such as is the case with Susan, since by saying that she does not know much about the product she may potentially lose clients or even get fired.
An American company wants to launch a new product in Madrid. Freda asks her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences there before introducing the product. Freda is attempting to reduce the degree of economic and/or social risk, also known as ________, associated with product use.
Answer: Trialability
Explanation: An American company wants to launch a new product in Madrid. Freda asks her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences there before introducing the product. Freda is attempting to reduce the degree of economic and/or social risk, also known as ________, associated with product use.
A. billability B. docibility C. invincibility D. trialability E. partibility
Freda by distributing samples of her new product to potential customers in order to gauge their preferences before introducing the product to market is involved in trialability which describes the ease with which potential customers or adopters can try a new product, service or innovation. As it serves to reduce the degree of economic and/or social risk, it is also quite important for innovative products that have to be experienced in order to see or feel their value.
Memoryjet, Inc has developed a new technology for high-volume jump drives. In order to manufacture their new devices they will need to gear up a new production line, which will cost about $85 million. What kind of bond instrument could they use to help secure the funds they need for their new line
Answer: Corporate bond
Explanation:
From the question, we are informed that Memoryjet, Inc has developed a new technology for high-volume jump drives and that in order to manufacture their new devices they will need to gear up a new production line, which will cost about $85 million.
The kind of bond instrument could they use to help secure the funds they need for their new line is the corporate bond. This is used by an organization in order for them to raise capital.
NorthStar Inc. and The Royal Group have together established The Royal Star Group of hotels. NorthStar owns 49 percent and The Royal Group has a 51 percent share in The Royal Star Group of hotels. However, the management of The Royal Star Group of hotels is separate from its parent companies. What alliance type does this scenario best illustrate?
Answer: Joint venture
Explanation:
From the question, we are informed that the NorthStar Inc. and The Royal Group have together established The Royal Star Group of hotels and that the NorthStar owns 49 percent and The Royal Group has a 51 percent share in The Royal Star Group of hotels.
This is a joint venture. A joint venture is a form of business arrangement whereby the resources of two or more parties are used together in order to accomplish q particular goal.
Suppose the price for one gallon of gasoline rises from $3.50 to $4.00 and the price of one gallon of milk rises from $3.00 to $3.20 . If the CPI rises from 120 to 132, then people likely will buy:_________.
a. more gasoline and more milk.
b. more gasoline and fewer milk.
c. less gasoline and more milk.
d. less gasoline and fewer milk.
Answer:
c. less gasoline and more milk.
Explanation:
The increase in price of gasoline = $3.50 to $4
The increase in price of milk = $3 to $3.20
The increase in CPI = 120 to 132
Current price as per CPI of Gasoline should be = (132 /120) * $3.5 = ($3.85)
The price of milk considering the CPI = (132/120) * $3 = 1.1*3 = $3.3
Since the actual price of milk is lower than the price of $3.3. thus more of milk will be demanded. So option c. “less gasoline and more milk” is correct.
In the long run, the monopolistically competitive firm's demand curve will:______.
a. become tangent to the ATC curve somewhere to the left of its minimum point.
b. intersect the ATC at its minimum point.
c. intersect the ATC curve somewhere past the minimum point.
d. become tangent to the ATC curve at its minimum point.
Answer:
a. become tangent to the ATC curve somewhere to the left of its minimum point.
Explanation:
In the long-run, monopolistically competitive firms make zero economic profit, because the free entry and exit of firms that is characteristic of this market structure will result in the reduction of economic profits to zero.
However, the reason why the demand curve becomes tangent to the ATC curve somewhere to the left of its minimum point is because the monopolistically competitive firm will still charge a price that is above minimal average cost.
Finally, the exact location of the tangent point is determined by the intersection of marginal revenue and marginal cost, the tangent point being the price that is exactly above this intersection, in other words, the profit-maximizing price.
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 65,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 9.00 Overhead 10.00 Total costs per unit $ 24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 65,000 units of RX5 for $18.00 per unit. Required: 1. Determine the total incremental cost of making 65,000 units of RX5. 2. Determine the total incremental cost of buying 65,000 units of RX5. 3. Should the company make or buy RX5
Answer:
1. The total incremental cost of making 65,000 units of RX5
Total Direct Material + Total direct Labour + Variable Overhead cost
Total Direct Material = 65,000 units * $5 = $325,000
Total Direct Labour = 65,000 units * $9 = $585,000
Variable Overhead cost = $65,000 * 10 = $650,000. $650,000 *(1- 80%) = $650,000 *20% = $130,000
Hence, The total incremental cost of making = $325,000 + $585,000 + $130,000 = $1,040,000
2. The total incremental cost of buying 65,000 units of RX5 =
The cost to buy the units = 65,000 units * $18 = $1,170,000
3. The company should be making the RX5 because the total cost of making the 65,000 unit of RX5 is lesser than cost of buying the 65,000 units of RX5
During 2014 Carne Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2015. Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne. In 2015 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan.
On whose books should the cost of the inventory appear at the December 31, 2014balance sheet date?
a. Carne Corporation
b. Nolan Corporation
c. Norwalk Bank
d. Nolan Corporation, with Carne making appropriate note disclosure of the transaction
Answer:a. Carne Corporation rtdfrtfv xcvbn
Explanation:
Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne.
Here, goods are temporarily transferred to Nolan corporation to handle financial requirements and agreed to repurchase the merchandise early in 2015, thus the cost inventory will be recorded by Carne corporation.
This is a kind of product financing arrangement.
Hence, the cost of the inventory will appear Carne Corporation at the December 31, 2014 balance sheet date.
Thus, the correct option is a. Carne Corporation.
Many store brands use packaging and labeling that is similar to the more expensive national brand. The hope is that the look-alike package will elicit a similar response in consumers that encourages them to purchase the cheaper store brand. This is an example of Group of answer choices
Answer:
Stimulus generalization
Explanation:
Stimulus generalization defines that it is the process of call up for a reason by giving responses. For example we call dog by using the bell so that dog can come for food.
Therefore according to the given situation, Many store brands use similar packaging and labeling to the more expensive big company. The idea is that in customers, the look-alike kit would evoke a similar reaction that allows them to buy the affordable store brand so this is an example of Stimulus generalization
Q 8.32: The financial statements of the Otter Company report net sales of $800,000 and accounts receivable of $40,000 and $20,000 at the beginning of the year and end of year, respectively. What is the accounts receivable turnover for the Otter Company
Answer:
26.67 times
Explanation:
The financial statements of the Otter company reports a net sales of $800,000
The account receivables at the beginning of the year is $40,000
The account receivables at the end of the year is $20,000
Therefore, the account receivable turnover for the Otter company can be calculated as follows
= $800,000/($40,000+$20,000/2)
= $800,000/($60,000/2)
= $800,000/$30,000
= 26.67 times
Hence the account receivable turnover for the Otter company is 26.67 times
If the distribution of the gains from growth matters, growth in median income is: Multiple Choice the same as growth in per capita income. a less informative measure of growth than growth in per capita income. a more informative measure of growth than growth in per capita income when the distribution of income is equitable. a more informative measure of growth than growth in per capita income when the gains from growth are concentrated on a small segment of the population.
Answer:
a more informative measure of growth than growth in per capita income when the gains from growth are concentrated on a small segment of the population.
Explanation:
Average earnings will look greater than even smaller parts of the community earn big, however, the average will give the appropriate impression on the ground because it is not biased with excessive ends.
Therefore in the case when there is benefit allocation arise from the growth in the median so it would lead to a concentration on the small population segment
The federal budget is balanced and the economy is on the upward-sloping portion of the Laffer curve. Then, tax rates are cut and government purchases are increased. Is a budget deficit inevitable?
Answer:
Yes, the budget deficit is inevitable.
Explanation:
When the economy is on the upward-sloping portion of the Laffer Curve, any increase in tax rates will produce more revenue, and any decrease in tax rates will produce less revenue. This is because tax rates are not yet at the optimal point of the Laffer curve.
In this case, the federal budget was balanced, but the goverment cut tax rates while being on the upward-sloping portion of the Laffer curve, which means that tax revenue decreased. However, at the same time the government increased government purchases, and the combination of less tax revenue and more government spending will naturally result in a budget deficit.
Victor Lorenz realizes that he needs a new car, so he has read through Consumer Reports and has visited selected dealerships to gather more information. According to the steps involved in a purchase decision, he is ready to
Available Options Are:
A) weigh the various options that have come to light.
B) make a choice.
C) acknowledge that a problem exists.
D) look for information that may include brand names and product characteristics.
E) acquire the car.
Answer:
Option A. Weigh the various options that have come to light
Explanation:
Victor Lorenz is in the phase of option analysis which is weighing each available options to find the best option and opt it. The customer analyzes the features, capabilities, financial and non financial implications of the product and then take decision to choose the right one. Usually knowledgeable customers have this attitude and their choices are far much better as they research for better options to opt.