indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)
Answers
Increases Cash by $50,000. Increases Common Stock by $50,000.
Increase the Supplies by $4,000. Increases A/P by $4,000.
Decreases the Cash by $2,300. Decreases A/P by $2,300.
Increases Cash by $13,800. Increase in Commissions Earned $13,800.
Increases Rent Expense - Office and Rent Expense - Equipment by $5,000. Decreases Cash by $5,000.
Increase the Automobile Expense by $1,150. Increase the Miscellaneous Expense by $300. Decrease the Cash by $1,450.
Increases Expense of salary by $2,500. Decrease Cash by $2,500.
Increases Supply Expense by $1,300. Decreases Supplies by $1,300.
Increases A/R by $12,500. Increases Commissions Earned by $12,500
Increase the Dividends paid $3,900. Decrease the Cash by $3,900
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Related Questions
Classify the following scenarios as examples of frictional structural, or cyclical unemployment. a. Ananda just finished her computer science degree and wants to live in San Franciso. There are lots of openings for people with her skills, but she wants to be sure to find a job that is a good fit for her. She moves and crashes on a friend's couch while she interviews for jobs. Ananda is experiencing Jeunemployment. b. A food processing factory decides to increase wages by 50% above what their competitions are paying. They find that fewer workers quit or call in sick and that they have lower spoilage rates as a result of the more consistent, productive workforce. Their competitors respond by raising wages as well. The quantity of labor supplied in the industry increases to take advantage of the higher wages, but the employers do not choose to hire additional workers. The higher wage results in unemployment c. Li Wei owns a homebuilding company. During a severe downturn in the housing market, he has to fire many of his subcontractors. The subcontractors are experiencing unemployment d. Which of the three types of unemployment will always persist even if the wage is at the equilibrium level? unemployment will persist.
Answers
There are different types of unemployment have distinct causes and characteristics, and their prevalence varies depending on the economic conditions.
a. Ananda's situation represents frictional unemployment. She is a recent graduate actively seeking employment in a location with many job openings in her field. The temporary period of unemployment while she searches for the right job is characteristic of frictional unemployment.
b. The scenario describes structural unemployment. The higher wages offered by the food processing factory lead to a more consistent and productive workforce. However, as competitors raise wages and labor supply increases, employers do not hire additional workers. This indicates a structural mismatch between the higher wage level and the available job opportunities.
c. The situation faced by Li Wei's subcontractors reflects cyclical unemployment. The downturn in the housing market leads to a decrease in demand for homebuilding services, causing Li Wei to lay off subcontractors. The unemployment experienced by the subcontractors is a result of the cyclical nature of the housing market.
Frictional unemployment occurs when individuals are temporarily unemployed while searching for suitable jobs. Structural unemployment arises from a mismatch between the skills or qualifications of workers and the available job opportunities. Cyclical unemployment is associated with fluctuations in economic activity and occurs during downturns or recessions. These different types of unemployment have distinct causes and characteristics, and their prevalence varies depending on the economic conditions.
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The advantage of buying a foreign index fund as compared to direct investing in foreign stocks is that it:
Answers
The advantage of buying a foreign index fund as compared to direct investing in foreign stocks is that it reduces risk.An index fund is a type of mutual fund or ETF (exchange-traded fund) with a portfolio of stocks or bonds that tracks a market index.
An index fund seeks to provide the same returns as a specific index by purchasing all or a representative sample of the stocks in the index. The expense ratios on index funds are typically lower than those on actively managed funds because they follow a passive investment strategy.
A foreign index fund is a type of index fund that invests in foreign companies. Foreign index funds are an excellent method to invest in foreign stocks without exposing oneself to the dangers of direct investing in foreign markets. These funds are established to track the performance of a foreign market index, such as the MSCI EAFE (Europe, Australasia, and Far East) Index.
Investing in foreign index funds instead of individual foreign stocks provides a slew of benefits. One of the primary advantages of investing in foreign index funds instead of individual foreign stocks is that it lowers risk by diversifying investments over a more significant number of equities in various countries and industries. It lowers the overall risk of investment while still providing exposure to foreign markets.
Additionally, investing in an index fund rather than individual stocks eliminates the need to choose which equities to invest in, simplifying the investment process. Lastly, foreign index funds are more accessible and cost-effective than investing in individual foreign stocks.
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what would we expect to happen to the price of bagels if the price of flour decreased and the price of cream cheese decreased
Answers
The price of bagels if the price of flour decreased and the price of cream cheese decreased ----A decrease in the price of flour would cause the quantity of bagels to increase.
The given two products are substitute, so the demand for cream cheese would shift to the right allowing the equilibrium price to increase. Consequently , a decrease in the price of milk wouldn't satisfy the given condition.
Substituted goods:Substitutes are goods where you can consume one in place of the other. The prices of reciprocal or substitute goods also shift the demand wind. When the price of a good that complements a good diminishments, also the volume demanded of one increases and the demand for the other increases.
Are Pepsi and Coke substitutes?Pepsi and Coke are considered substitutes because they're used to satisfy the same need, and they're both tonics. One of the reasons why people may prefer Coke to Pepsi or vice versa is price differences. When the price of Coke is high, guests tend to switch to Pepsi and vice versa.
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In
, people invest money in a company in exchange for the company’s
.
Answers
Answer:
In equity crowdfunding, people invest money in a company in exchange for the company’s shares
Explanation:
Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.
Startups and early-stage companies use this method to raise capital.
On the average, actively managed mutual funds have an expense ratio of aboutA) 1.5%.B) 2.5%.C) 3%.D) 5%.
Answers
On average, actively managed mutual funds have an expense ratio of about 1.5%.
This expense ratio is a measure of the annual fees charged by the mutual fund company to cover the costs of managing the fund, such as administrative fees, marketing expenses, and portfolio management fees. The expense ratio is deducted from the fund's assets, which can impact the fund's returns. The lower the expense ratio, the higher the potential returns for investors. In comparison, passive index funds, which aim to track the performance of a market index, typically have lower expense ratios, often below 0.5%.
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PLEASE HELP ASAP::::
A tip employee’s earnings most closely resemble those of which of the following?
a.
An employee working on straight commission
b.
An employee working on commission plus salary
c.
An employee working on a piece-rate basis
d.
An employee working on a fixed salary
Please select the best answer from the choices provided
A
B
C
D
Answers
Answer: c. An employee working on a piece-rate basis
fashooo
Help pleaseeee faaaaaastttt
Answers
Answer:
B.
Explanation:
If you decrease the good's price, a large increase occurs in quantity demanded, and total revenue increases. ... Thus, price and total revenue move in opposite directions given the elastic demand.
Eve's Apples opened for business on January 1, 2012, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2012
Answers
Answer:
$18,000
Explanation:
Since the two insurance polices are for 18 months and 2 years respectively, at $36,000 and $12,000 each, we can deduce that by the 31st of December, 2012 a year each has been off the policies.
By that, we can simply deduce that for the $36,000 liability policy, its monthly rate is $2,000 ($36,000 ÷ 18). Same can be said for the crop damage plan at $12,000 for 2 years. If a year is off the plan, the 2nd year is worth $6,000 ($12,000 ÷ 2).
Therefore, from the liability policy, we have $12,000 left for the 6 months left on the plan while we have $6,000 on the crop damage plan for the next year 2013.
Adding both remainders gives $12,000 + $6,000 = $18,000
Cheers.
Is it better to create a product that benefits society or create a product that consumers want?
Answers
Answer:
Benifits society
Explanation:
Businesses are usually interested in promoting growth because it:
A. expands the frontier on their production possibilities curves.
B. weakens productivity for competing businesses.
C. reduces their need to pay a large staff of employees.
D. creates additional marketing value without extra investment.
Answers
Answer: A - expands the frontier on their production possibilities curves
Explanation:
It was correct when checked
Businesses are usually interested in promoting growth because it expands the frontier on their production possibilities curve. Hence, option A holds true regarding business growth.
What is business growth?An expansion in the scope of business, which gives business an opportunity to improve the productivity and increase the sales exponentially, ultimately leading to increased profitability, is known as business growth.
Increased productivity at a constant rate enables a business to assume expanding its production capacities on the production possibilities curve, which can be determined through graphical representation.
Hence, option A holds true regarding the business growth.
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Suppose a 20-year $1,000 7% Treasury note with semiannual coupon payments offers a 5% yield. What price would an investor pay to buy this note?
A. $1,251.03
B. $958.24
C. $768.85
D. $1,164.12
Suppose a 10-year $1,000 5% corporate bond with semiannual coupon payments offers a 7.14% yield. What price would an investor pay to buy this bond?
$848.89
$1,121.71
$883.98
$1,019.32
Answers
The price an investor would pay to buy the 20-year $1,000 7% Treasury note with semiannual coupon payments, which offers a 5% yield can be calculated as follows:The face value of the bond is $1,000.The coupon rate is 7%. It is paid semi-annually.The maturity period is 20 years.The yield is 5%.
It is the annual rate and is also called the discount rate or the required rate of return.The price an investor would pay to buy this note is calculated as the present value of the future cash flows, which includes the coupon payments and the face value of the bond at maturity.
Using the formula,
PV of bond = Σ(CFt) / (1+r)t,
where
CFt = cash flow in period t, r = required rate of return, and t = time period
The cash flows for the bond are as follows:
Year Cash flow Discount factor
(1+r)t
Present value (CFt / (1+r)t)1 $35 1.025 $34.152 $35 1.051 $32.2703 $35 1.078 $30.3954 $35 1.105 $28.5265 $35 1.133 $26.6636 $35 1.162 $24.8077 $35 1.191 $22.9578 $35 1.221 $21.1139 $35 1.252 $19.27410 $1,035 1.283 $804.9411 $1,035 1.315 $786.4712 $1,035 1.348 $768.34
The present value of the future cash flows is $1,251.03.
The investor would pay $1,251.03 to buy this note.
Hence, the correct option is A. $1,251.03.
Now, let's calculate the price an investor would pay to buy the 10-year $1,000 5% corporate bond with semiannual coupon payments, which offers a 7.14% yield.
Using the formula,
PV of bond = Σ(CFt) / (1+r)t, where CFt = cash flow in period t, r = required rate of return, and t = time period
The face value of the bond is $1,000.
The coupon rate is 5%. It is paid semi-annually.The maturity period is 10 years.The yield is 7.14%. It is the annual rate and is also called the discount rate or the required rate of return.
The cash flows for the bond are as follows:
Year Cash flow Discount factor
(1+r)t Present value (CFt / (1+r)t)1 $25 1.035 $24.2152 $25 1.071 $23.3303 $25 1.108 $22.4564 $25 1.146 $21.5925 $25 1.185 $20.7376 $25 1.225 $19.8917 $25 1.266 $19.0538 $25 1.308 $18.2249 $25 1.351 $17.40210 $1,025 1.394 $737.06
The present value of the future cash flows is $1,121.71.
The investor would pay $1,121.71 to buy this bond.
Hence, the correct option is B. $1,121.71.
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Preparing Flexible Budget for Manufacturing Costs [LO 9-2] Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table. Required: Complete the table by preparing Olive's flexible budget for 5.000. 7,000 and 8,000 units. (Round your intermediate calculations to 2 decimal places.) Master Budget Flexible Budget Flexible Budget Flexible Budget 16,000 Units) (5,000 Units) (7.000 Units) (8.000 Units) Direct materials Direct labor Variable manufacturing overhead Fored manufacturing overhead Total manufacturing cost 1.200 3,600 1,800 17,200 23,800 $
Answers
A flexible budget is a budget that adjusts to changes in production output. It allows for cost variances by taking into account the cost of goods sold and the cost of goods produced.
Olive Company produces silver belt buckles and has a master budget for 16,000 units. The table above shows the flexible budget for 5,000, 7,000 and 8,000 units. As the production output increases, the total manufacturing cost increases as well. The flexible budget for 5,000 units includes $1,200 for direct materials, $3,600 for direct labor, $1,800 for variable manufacturing overhead, and $17,200 for fixed manufacturing overhead.
The flexible budget for 7,000 units is slightly higher, at $1,400, $4,200, $2,100, and $18,800 respectively. Finally, the flexible budget for 8,000 units is $1,600, $4,800, $2,400, and $20,400 respectively. This shows that as production increases, the total manufacturing cost increases as well.
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The explains why individuals would prefer work to leisure time when wages rise. A. income effect B. substitution effect C.money effect OD. complement effect
Answers
Income effect: individuals would prefer work to leisure time when wages rise. Thus, option A is the correct option.
The income effect explains why individuals would prefer work to leisure time when wages rise. When wages increase, individuals have the opportunity to earn more income by working additional hours. As a result, the income effect suggests that individuals may choose to work more because the higher wages provide them with a greater financial incentive to do so. The income effect highlights the impact of changes in income on individuals' preferences and decisions regarding work and leisure time.
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Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $64,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department’s expenses to the two operating departments on the basis of the number of ads placed that promoted a department’s products, and (4) the administrative department’s expenses to the two operating departments based on the amount of sales.
Answers
Question Completion:
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments.
Answer:
Marathon Running Shop
Allocation of service departments' costs to the operating departments:
Service Departments Operating Departments Total
Advertising Administrative Shoes Clothing
Departmental $18,000 $25,000 $103,000 $15,000 $161,000
Utilities 5,120 6,400 32,640 19,840 64,000
After Utilities 23,120 31,400 135,640 34,840 $225,000
Advertising -23,120 17,340 5,780 0
Administrative -31,400 24,492 6,908 0
Total allocated costs $177,472 $47,528 $225,000
Explanation:
a) Data and Calculations:
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
Total $161,000 14,000 $350,000
Allocation of Utilities Expense of $64,000
Rate
Advertising (1,120/14,000 * $64,000) = $5,120
Administrative (1,400/14,000 * $64,000) = $6,400
Shoes (7,140/14,000 * $64,000) = $32,640
Clothing (4,340/14,000 * $64,000) = $19,840
Advertising $ 18,000 + $5,120 = $23,120
Administrative 25,000 + $6,400 = $31,400
Shoes 103,000 + $32,640 = $135,640
Clothing 15,000 + $19,840 = $34,840
Advertising expenses consumed by:
Shoes 90/120 * $23,120 = $17,340
Clothing 30/120 * $23,120 = $5,780
Administrative expenses consumed by:
Shoes $273,000/$350,000 * $31,400 = $24,492
Clothing $77,000/$350,000 * $31,400 = $6,908
what is irrecoverable debts and what is the use of it?
Answers
Amounts that are due to a company that the company feels will never be paid back to them. When a company offers its products or services to clients on a credit basis, the two parties come to an agreement that payment will be postponed for a certain amount of time—typically thirty days—before being made.
This is further explained below.
What are irrecoverable debts?Generally, Amounts that are due to a company that the company feels will never be paid back to them.
In conclusion, When a company offers its products or services to clients on a credit basis, the two parties come to an agreement that payment will be postponed for a certain amount of time—typically thirty days—before being made.
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4. What is a private enterprise system? What four rights are
critical to the operation of capitalism? Why would capital-
ism function poorly in a society that does not ensure these
rights for its citizens?
1
Answers
The four rights that are critical to the operation of capitalism are:
the right to own private property, the right to own a business and keep all that business's profits, the right to freedom of choice, the right to freedom of competition.The main reason why capitalism would function poorly in a society that does not ensure these rights for its citizens is that they would not be able to do business in a free way.
What is a private enterprise system?
This refers to the capitalist, market-based economy, rather than a command economy
Hence, we can see that The four rights that are critical to the operation of capitalism are:
the right to own private property, the right to own a business and keep all that business's profits, the right to freedom of choice, the right to freedom of competition.The main reason why capitalism would function poorly in a society that does not ensure these rights for its citizens is that they would not be able to do business in a free way.
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Your store sales average $162,000 per month. Your triple net lease has the following monthly terms: rent is 3% of sales, insurance is $210, maintenance is $100, utilities total $425, and taxes are $90. You expect next year's sales to increase 7%, but your lease terms will remain the same. Calculate next year's ANNUAL lease payment. Round your answer to the nearest dollar.
Answers
Answer:
=$72, 302
Explanation:
The tenant agrees to pay all real estate taxes, building insurance, and maintenance (the three "nets") plus the normal monthly rent in a triple net lease agreement.
Rent is 3% of sales. Sales will grow by 7%.
Current sales are equivalent to 100%; increased sales will be 100% + 7% = 107%
This year's monthly sales are 162,000: next year's monthly sales will be 107% of $162,000
=107/100 x $162,000
=1.07 x $162,000
=$173,340
Monthly sales will be $173,340. Monthly rent is 3% of sales
=3/100 x $173,340
=$5,200.2
The monthly lease will be monthly rent, plus insurance plus maintenance plus, utilities total plus taxes
= $5,200.2 + $210 + $100 + $425 + $90.
=$6,025.2
monthly lease = $6,025.2
Annual lease =$6,025.2 x 12
=$72,302.40
=$72, 302
Answer: 72,302
Explanation:
Why Strategic Planning is an Important Life Skill?
Answers
Answer:
Explanation:
Because if you're able to plan things, its a useful skill for jobs, family planning etc. Its a useful skill to have.
True or False: according to our lecture, doing research into industry trends is one way for a professional sales representative to position his/herself as an "equal" in a sales meeting
Answers
TRUE/FALSE. generally accepted accounting principles require that organizations report all assets at their current fair market values
Answers
The statement which says that generally accepted accounting principles require that organizations report all assets at their current fir market price or value is FALSE.
The rules and regulations that businesses and firms should to abide when reporting any financial data or statistics are referred to as accounting principles. The language and procedures that accountants must employ are standardised by these guidelines, making it simpler to analyse financial data. With adoption in 167 jurisdictions, the International Financial Reporting Standards (IFRS) are the most commonly utilised set of accounting principles. General Accepted Accounting Principles are an alternative set of accounting standards used in the US (GAAP). As a result, it is simpler for investors to examine and glean valuable information from the company's financial statements, such as historical trend data.
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What do you mean by technical occupations ? write with examples
Answers
Answer:
I think techical occupation means the worker who work through laptops and computers
software engineer game designer publisher etc....What do behaviorist and cognitivist theories have in common?
a. Praise is an important aspect of learning in both of them.
b. They both rely on a simple stimulus-response system.
c. Repetition is an important aspect of learning in both of them.
d. They both accept that the mind has a conscious role in learning.
Answers
What are some positive and negative Impacts of globalization
Answers
Answer:
Globalization goal is 100% percent control of the people
Explanation:
Evidence of this is Charles Swab saying you will own nothing and be happy
Negative impacts are:
Outsourcing services, decrease in wages, workers' rights and interdependent economy.
What was one effect of these actions on the united states? question 5 options: the signing of the treaty of guadalupe hidalgo international criticism of the monroe doctrine the expansion of manufacturing increased profits from international commerce.
Answers
One effect of these actions on the United States was the international criticism of the Monroe doctrine. Option B.
What was the Monroe doctrine?The Monroe Doctrine eventually became a cornerstone of American foreign policy, while being at first ignored by the European superpowers. In 1823 U.S. James Monroe declared the United States to be the defender of the Western Hemisphere and forbade other European nations from acquiring more lands in the Americas.
The United States would pledge not to get involved in conflicts between European powers and to refrain from meddling in the internal affairs of European states. 2. The United States would acknowledge the current European colonies in the Western Hemisphere and refrain from meddling in their internal affairs.
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A cost remains unchanged when the volume of activity changes within the relevant range.a. Trueb. False
Answers
A cost remains unchanged when the volume of activity changes within the relevant range. This, statement was true. Thus, option (a) is correct.
What is the cost?The term cost refers to the actual money are spent on the manufacturing of the product. The product are manufacture to spend on money are raw material, transportation, wages, salary, and other expenses add. The all expenses are added to identify the cost.
Fixed costs are expenses was no to the changed. Cost remains unchanged such as rent on a building, cost of insurance, and the salaries of employers. It was the cost unchanged when the mass of activity alterations.
As a result, the significance of the statement is true are the aforementioned. Therefore, option (a) is correct.
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Sellers set the demand for a product, while the buyers set the supply. Click or tap "True" or "False" to answer the question True False
Answers
The price of a good or service in a market is influenced by the forces of supply and demand.
Is there a supply or demand for the number of sellers?
The quantity of sellers is one of the five supply factors that, when they change, affect how the supply curve looks. The final four are other pricing, production technology, sellers' expectations, and resource prices. The total supply is influenced by the number of purchasers that are ready and able to buy a good.
The demand is made by who?
purchasers' earnings depending on the situation, the expenses of additional or substitute goods or services that are purchased in place of a given commodity. The preferences or tastes of the consumer will determine demand.
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What resource outlines documentation requirements for MTM services, participation guidelines and other critical program information for OutcomesMTM
Answers
Answer: Policy & Procedure Guide
Explanation:
It should be noted that the MTM services can be performed by licensed pharmacist who have completed an outcomesMTM training or the students who are sounder a licensed pharmacist supervision.
Policy & Procedure Guide outlines documentation requirements for MTM services, participation guidelines and other critical program information for OutcomesMTM.
The largest human relocation in the history of the world took place during
Answers
Answer: The largest documented voluntary emigration in history was the Italian diaspora, which migrated from Italy 1861 and 1970 with 13 million people leaving the country. Mass migration may be forced migration such as the Atlantic slave trade.
Answer:
World War II
Explanation:
In equilibrium, with diminishing marginal products, the slope of the ppf is equal to?
Answers
Answer:
the ratio of prices for the products, the slope of the highest possible indifference curve, and the ratio of the marginal products of labor
Explanation:
In equilibrium, with diminishing marginal products, the slope of the PPF is equal to the ratio of prices for the products, the slope of the highest possible indifference curve, and the ratio of the marginal products of labor. Thus, option D is correct.
An economic principle that managers frequently take into account while managing productivity is the law of diminishing marginal productivity. The general idea is that advantages gained from small improvements on the input side of the production equation will only advance somewhat per unit and may level off or even diminish after a certain point.
With marginal gains in output return per unit generated, the law of declining marginal productivity is involved. There are several names for it, including the law of diminishing marginal product and the law of diminishing marginal return.
It is consistent with the majority of economic theories that employ marginal analysis. In economics, marginal increases are frequently seen, demonstrating a declining rate of pleasure or gain from increasing units of consumption or output.
Therefore, option D is the ideal selection.
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Your question seems to be incomplete, but most probably the complete question was:
In equilibrium, with diminishing marginal products, the slope of the PPF is equal to:
A
the ratio of prices for the products
B
the slope of the highest possible indifference curve
C
the ratio of the marginal products of labor
D
the ratio of prices for the products, the slope of the highest possible indifference curve, and the ratio of the marginal products of labor
A) A drought kills off some potato crops. Use a supply and demand graph, provide a brief explanation and indicate what happens to the following: -The market for potatoes. -The market for French fries. -The market for ketchup. -The market for rice. B) Explain the difference between a change in demand and a change in quantity demanded. Use two of the examples from part A to illustrate the difference. C) The government is considering imposing a new law to improve health that French fries have to be sold for at least $4. (this question is unrelated to part A) -In order to be binding would this be a ceiling or floor? -Use a supply and demand graph to explain the impact of this policy. Use both positive and normative analysis and describe the pros and cons of the policy.
Answers
A) A drought kills off some potato crops, which will impact the supply of potatoes. Let's analyze the effects on the market for potatoes, French fries, ketchup, and rice:
1) The market for potatoes:- Due to the decreased supply of potatoes, the supply curve will shift to the left. This will cause a decrease in the quantity of potatoes supplied and an increase in the equilibrium price of potatoes. 2) The market for French fries:- French fries are made from potatoes, so the decrease in potato supply will affect the supply of French fries. The decrease in potato supply will lead to a decrease in the supply of French fries. As a result, the supply curve for French fries will shift to the left. This will cause a decrease in the number of French fries supplied and an increase in the equilibrium price of French fries. 3) The market for ketchup:- Ketchup is a condiment commonly used with French fries. As the supply of French fries decreases, the demand for ketchup will also decrease. This will cause a decrease in the demand for ketchup. The demand curve for ketchup will shift to the left, decreasing the equilibrium quantity and price of ketchup. 4) The market for rice:- Rice is not directly affected by the drought that killed off the potato crops. Therefore, the supply and demand for rice will remain unaffected by this event. There will be no shift in the supply or demand curves for rice. B) The difference between a change in demand and a change in quantity demanded is as follows:- Change in demand refers to a shift in the entire demand curve due to factors such as changes in consumer preferences, income levels, or the prices of related goods. It represents a change in the quantity demanded at every price level. For example, the decrease in the supply of potatoes (as mentioned in Part A) may decrease the demand for French fries and ketchup, leading to a leftward shift of their respective demand curves.
Change in quantity demanded refers to a movement along the existing demand curve in response to a change in price. It represents a change in the amount of a good required at a specific price. For example, if the price of French fries increases due to the decrease in potato supply, the quantity demanded of French fries will decrease along the same demand curve. C) If the government imposes a law stating that French fries must be sold for at least $4, this would be a price floor. A price floor is a government-imposed minimum price set above the equilibrium price. The impact of this policy can be analyzed as follows:- Positive analysis: The price floor will increase the price of French fries, ensuring that producers receive a higher price for their product. This could lead to an increase in the quantity supplied of French fries. Normative analysis: However, the price floor may result in a surplus of French fries, as the higher price may reduce consumer demand. This surplus could lead to wasted resources and higher costs for producers. Overall, the pros of this policy include higher revenue for producers, while the cons include a potential surplus of French fries and increased costs for consumers.
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