a. Wallace's total long-term debt in 2015 was $770,000, Wallace's total liabilities in 2015 were $1,210,000. b. The new long-term debt financing needed in 2016 is $94,000.
a. To calculate Wallace's total long-term debt in 2015, we need to determine the proportion of total assets that corresponds to long-term debt. We can use the following formula:
Total Liabilities = Total Assets - (Common Stock + Retained Earnings + Accounts Payable)
Given:
Total Assets = $1.8 million
Common Stock = $390,000
Retained Earnings = $200,000
Accounts Payable = $440,000
Total Liabilities = $1.8 million - ($390,000 + $200,000 + $440,000)
= $1.8 million - $1,030,000
= $770,000
Therefore, Wallace's total long-term debt in 2015 was $770,000.
b. To calculate the new long-term debt financing needed in 2016, we can use the formula:
Additional Funds Needed (AFN) = (Increase in Assets - Increase in Liabilities) - (Net Income * Retention Ratio)
Given:
Sales increase in 2016 = 20%
Net Profit Margin on Sales = 7%
Retention Ratio = 1 - Dividend Payout Ratio
Dividend Payout Ratio = 50%
Increase in Assets = Sales increase * Total Assets in 2015
= 20% * $1.8 million
= $360,000
Increase in Liabilities = Increase in Assets * Proportion of Liabilities to Sales
= $360,000 * (Total Liabilities in 2015 / Sales in 2015)
= $360,000 * ($1,210,000 / $2,400,000)
= $182,000
Net Income = Sales in 2015 * Net Profit Margin
= $2.4 million * 7%
= $168,000
Retention Ratio = 1 - Dividend Payout Ratio
= 1 - 50%
= 50%
AFN = ($360,000 - $182,000) - ($168,000 * 50%)
= $178,000 - $84,000
= $94,000
Therefore, the new long-term debt financing needed in 2016 is $94,000.
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Your uncle Ben has applied for a loan of $240,000 from a local bank, and he thinks he will get a loan. However, he is not confident that he will get the loan for the entire $240,000. Also, he is not certain of the interest rate. Based on his current financial obligations, he is confident the bank will loan him at least $120,000. Also, he thinks the interest rate could be in the range of 12% to 15%. You do not know what interest rate the bank would charge. In this situation, how would you use the chart given above? Explain.
Answer:
Follows are the responses to these question:
Explanation:
Please find the complete question in the attached file.
Uncle Ben will have to select industrial machinery for customized furnishings, as the NPV of the project have result show to the S loan, such that uncle Ben can gain it if he opts to invest throughout the C loan of just $120,000 from the bank.
In Which only a $240,000 credit by Uncle Ben has also been issued by the bank, it can choose either local furniture exaggerations or regular fabric as Project C and Project S both are positively Verdict.
Madison wants to buy a car that will cost 15160 if Madison plans to save 1684 per month how many months will be necessary to save?
What should a company do to get immediate customer feedback about a product
Answer:
ig it would be email lol i need points
Case Study #2
BUS 162 - Someone is Almost Always Watching You
Read the Someone is Almost Always Watching You Case study from pages 279 & 280 in Chapter 7.
Please prepare your answers to the questions in advance, approximately 100 words per answer
Please reference all materials sourced in an APA format
Questions:
1. Do you think organizations should be able to track who visits their websites and monitor their online behavior?
Yes, organizations should be able to track and monitor who visits their websites and the behavior of those visitors.
Organizations need to track who visits their website and monitor their online behavior for various reasons such as providing relevant advertising, improving user experience, tracking sales leads, and preventing cyber attacks. By tracking visitors’ behavior, organizations can analyze user preferences and use this information to provide targeted advertising, personalized web content, and customized offers to users.
Additionally, user tracking helps organizations to detect cyber threats, phishing scams, and other malicious activities that can harm their business.
Therefore, I believe that organizations should be able to track who visits their websites and monitor their online behavior, as long as they follow ethical practices and respect users’ privacy.
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Suppose the price of apples increase by 20%, resulting in consumers to purchase 15% more pears. Given this information, it appears that
Given the information provided, it appears that the increase in the price of apples by 20% has led to consumers purchasing 15% more pears. Let's break it down step by step to understand why this is the case.
1. Price increase of apples:
When the price of apples increases by 20%, it means that the cost of apples has gone up by 20% compared to the original price.
2. Substitution effect:
When the price of one good increases, consumers tend to substitute it with a relatively cheaper alternative. In this case, due to the higher price of apples, consumers might choose to buy more pears, which are now comparatively cheaper.
3. Quantity demanded:
The increase in the quantity of pears purchased by consumers is referred to as the quantity demanded. In this scenario, consumers are buying 15% more pears as a result of the price increase in apples.
To summarize, the price increase in apples has caused consumers to buy more pears as a substitution effect.
This means that as the price of apples goes up, consumers tend to shift their demand towards purchasing more pears.
It is important to note that this explanation is based on the assumption that the price increase is the only factor affecting consumer behavior.
Other factors such as taste preferences and income levels could also influence the final outcome.
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A quintile represents a population divided into _________ parts or expressed as _________ percent of the whole.
A quintile represents a population divided into 5 parts or expressed as 20 percent of the whole.
How are quintiles calculated?Add up the total income for each quintile, then divide it by the proportion of cases in each quintile. In the aforementioned example, the median annual income for those in the lowest quintile is 2,500, while that of those in the highest quintile is 13,500.
A quintile is one of five numbers that divides a set of data into five equally sized chunks, each of which represents one fifth (20%) of the total range. Tertiles are created when a population is divided into three equal parts, whereas quartiles are created when a population is divided into four equal parts.
Each of the five equal halves of a collection of data is known as a quintile, which both refers to the cut-off points and the group of values contained. Each of the ten equally sized portions of a piece of data are referred to as a decile.
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Suppose only two goods: good A and good B are consumed in Australia and Europe. Assume that at time t=1: E$/ € 1.5 1 unit of A costs $150 in Australia 1 unit of B costs $300 in Australia The law of one price holds for both good A and good B The EU Price Index is calculated as 0.2*(Price of A in Euros) + 0.8*(Price of B in Euros) The AU Price Index is calculated 0.5*(Price of A in AUD) + 0.5*(Price of B in AUD) If the real Dollar per Euro exchange rate is expected to depreciate by 10% next year, then at t=1: O A. Absolute PPP holds but relative PPP does not B. Absolute and relative PPP do not hold O C. Absolute and relative PPP hold O D. Absolute PPP does not hold but relative PPP does E. Absolute PPP does not hold. We need information on expected rates of inflation in the two countries to determine whether relative PPP holds
Using the same equation, we have PA/E = 0.2*100 + 0.8*200 = 180 and PA*/E = 0.2*100 + 0.8*200 = 180, which implies that relative PPP holds. Therefore, the correct answer is Absolute and relative Purchasing Power Parity PPP hold. Hence option C is correct.
Given: E$/ € 1.5 1 unit of A costs $150 in Australia 1 unit of B costs $300 in Australia The law of one price holds for both good A and good BThe EU Price Index is calculated as 0.2*(Price of A in Euros) + 0.8*(Price of B in Euros)
The AU Price Index is calculated 0.5*(Price of A in AUD) + 0.5*(Price of B in AUD)We have to determine whether absolute PPP and relative PPP hold or not, if the real Dollar per Euro exchange rate is expected to depreciate by 10% next year, then at t=1.Absolute Purchasing Power Parity (PPP) and Relative Purchasing Power Parity (PPP) are two concepts that are critical to the understanding of exchange rates and international trade.
Absolute PPP states that the purchasing power of a currency in one country is the same as in another country.
Relative PPP says that a change in the exchange rate between two currencies is equal to the ratio of the price levels in the two countries. In this question, the law of one price holds, which indicates that both goods A and B should cost the same amount in euros in Europe and in AUD in Australia. Absolute PPP holds if the price of goods A and B in euros in Europe is equal to the price of goods A and B in AUD in Australia divided by the exchange rate.
Therefore, Absolute PPP formula, PA / E = PA* + E (PB*)Here, PA = 150 AUD/Euro, PB = 300 AUD/Euro, E$/€ = 1.5.So, PA* = 150/1.5 = 100 Euros and PB* = 300/1.5 = 200 Euros.Using the formula for absolute PPP, we have PA/E = 200, which is true. Therefore, Absolute PPP holds. If the real Dollar per Euro exchange rate is expected to depreciate by 10% next year, then E$/€ becomes 1.35.
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What is meant by the phrase “Keeping up with the Joneses”?
a
This phrase refers to the human behavior of wanting to spend more because we see others around us spending more and enjoying goods and services that we think we would enjoy as well.
b
This phrase refers to the concept of saving up for only your needs in your budget, not your wants.
c
This phrase refers to the annual event in August where investors compete with each other to see who can beat the market.
d
This phrase refers to the newest reality television show that demonstrates the effect of saving early and often.
Answer:
D This phrase refers to the newest reality television show that demonstrates the effect of saving early and often.
Explanation:
A reference to the reality show Keeping up with the Kardashians.
Lymen International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the company’s current offerings, but offer a complementary fit to its existing product line. Fred Riddick, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Barbara Dyson, the company’s CFO, has provided the following projections based on results with and without the new products.
Without New Products
With New Products
Sales revenue $12,149,200 $16,618,200
Net income $488,900 $885,800
Average total assets $5,282,800 $13,930,400
(a) Compute the company’s return on assets, profit margin, and asset turnover, both with and without the new product line. (Round answers to 0 decimal places, e.g. 2% and asset turnover to 1 decimal place, e.g. 6.2)
Without new products
With new products
Return on assets
International sidering offerings, xut offer compl step up with New Products Sales 2,145.20 Average tel Without new products with now products ej abou: red Riddick, bring. Th producti depart
%
%
Profit margin
%
%
Asset turnover
Answer:
I don't know sorryyyyyjdkd
The computation of the Lymen International Company's return on assets, profit margin, and assets turnover, both with and without the new product line, is as follows:
a) Return on assets = Net Income/Average total assets
Without New Products With New Products
Net income $488,900 $885,800
Average total assets $5,282,800 $13,930,400
= 9% 6%
b) Profit margin = Net Income/ Sales revenue
Without New Products With New Products
Sales revenue $12,149,200 $16,618,200
Net income $488,900 $885,800
= 4% 5%
c) Asset Turnover = Net Sales / Average Total Assets
Without New Products With New Products
Sales revenue $12,149,200 $16,618,200
Average total assets $5,282,800 $13,930,400
= 2.3 x 1.2 x
How useful are accounting ratios?The accounting ratios above help investors understand the efficiency, profitability, and effectiveness that companies achieve when compared with previous years or with competitors.
For instance, the assets turnover ratio helps investors understand Lymen International Company's effectiveness in using its assets to generate sales.
Data and Calculations:Without New Products With New Products
Sales revenue $12,149,200 $16,618,200
Net income $488,900 $885,800
Average total assets $5,282,800 $13,930,400
Total assets = $10,565,600 $2,786,0800
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Which of the following is a benefit of using the individual interview to collect data?
a) The informality allows consumers to feel comftorable revealing information.
b) The ability to probe with additional questions
c) Very fast turnaround time from data collection to reporting.
d) The data is inexpensive to collect.
Individual interviews offer several benefits such as the opportunity to probe for additional information, and the potential for obtaining comprehensive and accurate data. So, the correct answer is option B.
One advantage of individual interviews is that they create an environment that is conducive to eliciting detailed and informative responses from the interviewee.
This is because the informality of the setting allows consumers to feel comfortable revealing information that they might otherwise be reluctant to share in a more structured or formal setting.
Another benefit of individual interviews is the opportunity to probe for additional information. Unlike questionnaires or surveys, which are limited to pre-formulated questions, individual interviews allow the interviewer to ask follow-up questions and explore particular issues in greater depth.
One potential downside of individual interviews is that they can be time-consuming and resource-intensive. Collecting data through individual interviews requires a skilled interviewer, and the process of scheduling and conducting interviews can be time-consuming. .
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An large area of land changes from a surface of high albedo to low albedo. Briefly explain the effect that change has related to climate. g
When a large area of land changes from a surface of high albedo (reflectivity) to low albedo, it can have significant effects on the climate.
Albedo refers to the ability of a surface to reflect sunlight. Surfaces with high albedo reflect more sunlight back into space, while surfaces with low albedo absorb more sunlight. When a land surface changes from high albedo to low albedo, it means that it becomes more absorbent of solar radiation.
The effect of this change on climate can be twofold:
Increased Absorption of Solar Radiation: With a lower albedo, the land surface absorbs more solar radiation instead of reflecting it back into space. This leads to an increase in surface temperature, as the absorbed energy is converted into heat. This can contribute to local heating of the surrounding air and influence the microclimate of the area.
Feedback Mechanism: The change in albedo can trigger a feedback mechanism known as the albedo-temperature feedback. As the land surface absorbs more solar radiation and heats up, it can lead to the melting of ice and snow cover in colder regions. Since ice and snow have high albedo, their loss reduces the overall reflectivity of the Earth's surface, further increasing the absorption of solar radiation. This positive feedback loop can amplify the warming effect, contributing to regional or even global climate change.
In summary, a transition from high albedo to low albedo in a large land area can result in increased absorption of solar radiation, leading to local heating effects and potentially contributing to broader climate changes through feedback mechanisms.
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compared to going to college, working directly after high school has the following advantages except
earning money sooner and avoiding the cost of tuition
expanding career growth that never requires further training
learning about the industry
Answer:
Expanding career growth that never requires further training
The sides of a triangle measure 4, 6, and 7. If the shortest side of a similar triangle is 12, what is the perimeter of the larger triangle?
Answer:
51
Explanation:
12 divided by 4 is 3 so we'll multiply all of the smaller triangle by 3.
4 x 3 = 12
6 x 3 = 18
7 x 3 = 21
12 + 18 + 21 = 51
determine whether each of the following events is likely to cause deflation, disinflation, no change in the price level, or inflation.
In order to determine whether an event will cause deflation, disinflation, no change in the price level, or inflation, we need to consider its impact on the supply and demand of goods and services.
For example, if there is a decrease in the supply of goods and services, it is likely to cause inflation as demand remains constant or even increases. On the other hand, if there is a decrease in demand for goods and services, it is likely to cause deflation as suppliers reduce their prices to maintain sales.
Similarly, if there is an increase in the supply of goods and services, it is likely to cause disinflation as suppliers reduce their prices to compete with each other, while demand remains constant. Finally, if there is an increase in demand for goods and services, it is likely to cause inflation as suppliers increase their prices to reflect the increased demand.
Therefore, the impact of an event on the supply and demand of goods and services is crucial in determining its impact on the price level.
Event 1: Central bank raises interest rates
This event is likely to cause disinflation, as raising interest rates discourages borrowing and reduces money supply. Less borrowing means less spending, leading to a decrease in demand for goods and services. This decrease in demand causes prices to increase at a slower rate, resulting in disinflation.
Event 2: A large-scale natural disaster
A large-scale natural disaster may lead to inflation. The disaster could destroy productive resources and disrupt supply chains, leading to a decrease in supply. This scarcity of goods and services would cause prices to rise, resulting in inflation.
Event 3: Technological advancements leading to increased productivity
Increased productivity due to technological advancements can lead to no change in the price level or even deflation. As productivity increases, businesses can produce goods and services at a lower cost. If this cost reduction is passed on to consumers, it could result in stable or decreasing prices.
Event 4: Government increases spending significantly
Significant government spending is likely to cause inflation. Increased government spending injects more money into the economy, raising aggregate demand for goods and services. This increased demand can cause prices to rise if supply does not keep up, leading to inflation.
In summary, various events can cause different impacts on the price level, including deflation, disinflation, no change, or inflation. Understanding these events and their consequences helps policymakers make informed decisions to manage price stability.
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Plz Hurry I am timed!
A chain of coffee servers is sending a spreadsheet of projected costs and profits to some of its investors. When, Kyle, the administrator making the spreadsheet, adds an image of his company’s logo, he realizes it would fit and look best if turned to read sideways.
How can Kyle change the image to make it fit in such a way?
A) He can select the image and hold down on the green handle above it while sliding the mouse.
B) He can select the image and hold down Control while sliding the scroll bar to the right.
C) He can press the PivotTable button and select “Rotate 90 degrees” and then click OK.
D) He can click on the Pictures Tool tab and select press Artistic Effects to access the rotate option.
Answer: A) He can select the image and hold down on the green handle above it while sliding the mouse.
Explanation:
After inserting the picture, if he wants the logo to read sideways, his best bet is to rotate it. He can do this by clicking on the picture and then clicking and holding down the green handle above the image which would look like a rotating arrow.
While holding it down, he should then slide the mouse and the picture would rotate. He can stop rotating at an angle he deems appropriate.
Answer:
A
Explanation:
Just took the test
PLEASE HELP QUICK!!!
Which of the following is an advantage of buying your home over renting?
(1 point)
O You do not have to worry about the housing market in your area.
O The amount you pay each month is set by the terms of your mortgage.
O If something breaks, you have to fix it or pay to have it fixed.
O Your mortgage payments will far exceed the value of your home.
Answer:
The amount you pay each month is set by the terms of your mortgage.
Explanation:
connexus
how does lever simplify the work? explain.
Explanation:
A lever works by reducing the amount of force needed to move an object or lift a load. A lever does this by increasing the distance through which the force acts. ... Instead, they make the work easier by spreading out the effort over a longer distance.
Calculate the operational cost xyz : Installed data 7) N/. Capital r/ Rate (U) Ranning (u) اره cost electricity generation, and plant use Sactor power plant having following 300 MW capacity of plant 91000 Crove) tion cost = 12 % 6 load factor interes T and 6 cont (juelt taxation) = 60%
The operational cost of a power plant is a critical factor to consider when deciding whether to invest in the power plant or not. The operational cost of a power plant comprises of installation, running, and electricity generation costs. The following is a calculation of the operational cost of the XYZ power plant.
Maintenance cost is the cost of maintaining the power plant, and repair cost is the cost of repairing the power plant. Assuming that the running cost of the XYZ power plant is 0.25 crore per MW, then:
Running cost = (Fuel cost + Labor cost + Maintenance cost + Repair cost) * (300 * 0.6)
Electricity Generation Cost The electricity generation cost refers to the cost of generating one unit of electricity. The formula for calculating the electricity generation cost of a power plant is as follows:
Electricity generation cost = (Running cost + Interest + Depreciation + Taxation) / (Capacity of the plant * Load factor * 365 * 24)
A Total operational cost = Capital cost + (Electricity generation cost * Units generated)
Units generated = Capacity of the plant * Load factor * 365 * 24 * Power factor
Assuming that the power factor of the XYZ power plant is 0.9, then: Units generated = 300 * 0.6 * 365 * 24 * 0.9
Units generated = 1,576,640,000 units
Total operational cost = 1050 + (1.63 * 1,576,640,000)
Total operational cost = 2571.88 crore
Therefore, the operational cost of the XYZ power plant is 2571.88 crore.
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Any recommendations of how to convince my parents to get me a dog?
Answer:
ok so u have to get a pet rock first u name it u take it out to go to the bathroom and everything u would do with a dog and it shows your parents you're ready for one u have to show them that u know how to take care of one first
Explanation:plz mark me branlyiest this worked for me so yea hope it helped
Select the education and qualifications that are most helpful for Business Analysis careers. Check all that apply.
research skills
bachelor’s degree in finance
certificate from a vocational school
computer skills
problem-solving skills
leadership skills
marketing skills
Answer:
A, B, D, E
Explanation:
The education and qualifications that are most helpful for Business Analysis careers are research skills, bachelor’s degree in finance, computer skills and the problem-solving skills. Thus, option (a), (b), (d) and the (e) is correct.
What is business?
The term “business” refers to earning a profit. The business is taking the risk and earning the profit. The business is mainly focused on the activities of the creation, distribution, and selling of concepts. The businesses are interested in the investment as a future perspective.
A person is the struggle in the life are the important to build the career. The career are the significant for the life. The profession of the Business Analysis careers are the education and the qualification is the necessary. The business analysis career is the main quality are the bachelor’s degree in finance, research skills, computer skills, and the problem-solving skills.
Therefore, option (a), (b), (d) and the (e) is correct.
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Mike paid $4,000 of interest on a qualified education loan that he used to pay for his dependent son’s college education. How much of this payment can mike deduct as a for agi deduction if he files married-joint and reports modified agi of $155,000?.
An AGI deduction of $2500 paid as interest on a qualified education loan can be claimed by Mike when his AGI is $155,000.
What is deduction?An amount, which is exempted from taxes after the setting off them against the taxable income made throughout the year, is known as a deduction.
The maximum deduction allowed to be claimed on a qualified education loan for an income between $145,000 to $175,000 is $2,500.
Hence, the deduction allowed to be claimed by Mike is as aforementioned.
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outline 2 advantages to H&H of using secondary market research
A factory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. If a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. How is this factory owner seeking to solve the agency conflict problem in this case?.
By paying his workers based on how many widgets they produce, the factory owner is seeking to solve the agency conflict problem by D. supplying incentives so the agents act in the way the principal desires.
The factory owner is using the tactic of supplying incentives so that the workers produce as many widgets as possible. In the case above, it can be seen that the factory owners need many widgets to be produced. Hence, in order to make his agents work best, he pays or gives them incentives on the basis of how many widgets they are producing.
Hence, in the case above, the factory owner is using the supplying incentives way so that the workers work on the principal desires to solve the agency conflict problem.
Although a part of your question is missing, you might be referring to this question:
A factory owner wants his workers to produce as many widgets as they can, so he pays his workers based on how many widgets they produce. However, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. If a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. How is this factory owner seeking to solve the principal-agent problem in this case?
A. By making the agents into principals themselves
B. By ensuring that all workers cooperate to maximize the gains of their section
C. By maximizing the information that the principal obtains about the behavior of the agents
D. By supplying incentives so the agents act in the way the principal desires
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Suzie pays her insurance company every month for coverage for her car. This payment is called the ___. deductible premium contribution liability
Answer:
premium
Explanation:
Premium is the term given to the regular and periodic payments that the insured makes to the insurance companies. Premiums are the payments for the insurance coverage.
Insurance coverage is a contract between the insurance company and the customer. As per the contract agreement, the company provides insurance coverage, and the customer pays premiums. In other words, Premium is the consideration for the insurance coverage.
Company Z understands that their business is at risk. How can they use step two in the
Decision Making Process to reach their end goal of increasing sales and customer satisfaction?
Company Z can use step two in the decision-making process to achieve its ultimate goal of increasing sales and customer satisfaction by gathering the relevant information about a decision.
Step two of the decision-making process corresponds to gathering relevant information after the decision has been identified. At this stage, internal and external work is necessary, analyzing the errors and successes related to a past decision.
Therefore, it is necessary for company Z to seek information from different sources, such as the results of previous decisions, studies, market research and consultancy, to ensure greater chances of a decision being effective.
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Which of the following is NOT Considered personal information?
O a) Social Security number
Ob) Date of Bith
Oc) Place of employment
O d) Credit card number
Answer: NOne of the above. Or C Place of employement
Explanation:
The personal information that does not consider is the place of employment.
The following things should be considered for personal information:
The number of social security.The date of birth.The credit card number.Personal information refers to the information that does not share with anyone as it is safe and secure data that should be kept with the person only.
Therefore we can conclude that the personal information that does not consider is the place of employment.
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What is one 1 negative of living in a command economy?
In a command economy, costs are not entirely settled by the organic market. All things considered, they are set by the public authority. This can make it challenging for organizations to come to informed conclusions about what to create and the amount to deliver.
Command economies incorporate the absence of rivalry, which can prompt the absence of development, and absence of effectiveness. It doesn't fulfill the needs of shoppers, it doesn't convince individuals to buckle down, and it requires a huge dynamic government organization.
It limits opportunities for individuals who can't pick their vocations in light of their abilities and interests; rather, it depends on what the public authority drives them to do.
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A(n)
is a federal- or state-chartered financial institution accepting deposits that it
uses to make loans and earn profits.
Answer:savings and loan association
Explanation:
3- Use the following data to answer the questions below:
Category
Billions of Dollars
Consumption $200
Investment $ 50
Government Spending $ 60
Exports $ 70
Imports $ 80
Depreciation $ 10
Foreign Factor Income $ 10
Please answer in whole numbers.
a. How much is net exports? $
b. How much is net investment? $
c. How much is GDP? $
d. How much is Net Domestic Product? $
e. How much is National Income?$
Explanation:
a. Net exports = Exports - Imports = $70 - $80 = -$10 b. Net investment = Investment - Depreciation = $50 - $10 = $40 c. GDP = Consumption + Investment + Government Spending + Net Exports = $200 + $50 + $60 - $10 = $300 d. Net Domestic Product = GDP - Depreciation = $300 - $10 = $290 e. National Income = Net Domestic Product + Foreign Factor Income = $290 + $10 = $300
Writ (T) for True and (F) for False Statements: All desires of human beings are known as ‘Demand’. Demand is inversely related with income of the consumer. Supply is the quantity which actually brought by the seller to sell in the market. The stock of perishable goods are similar to the supply quantity. Demand curve goes upward to the right, to show inverse relationship between price and demand for good. When the price of Giffen good increases, its’ demand also increases. Income demand means relationship between price and demand quantity. Size of population is also a determinant of demand. Individual demand means all quantity demanded by buyers in the market. Means and willingness are necessary factors to be demand. Fill in the Blanks by Suitable word Two major wheels of the economy are …….. and ……. …. … …. is the desire from sellers side. The major determinant of demand is … … The situations when law of demand is not applicable is known as its …. ….. Beggar’s desire is not regarded as demand, because he may not have … …. When price of one good affects to the demand for other good, this situation is known as … …. Demand is the effective desire backed by …. ….. and ……….. When price of a good increases, its demand …. ….. but the supply …… ….. Those goods, which can be consumed alternatively are termed as …. …… goods. ….… are those goods, whose demand rises when income the consumer decreases.
Answer: (1) F, (2) F, (3) T, (4) F, (5) F, (6) T, (7) F, (8) T, (9) F, (10) T
Please check Explanation below for answers to section 2
Explanation: All desires of human beings are known as demand is False.
(1) Demand is the quantity of goods and services that a consumer is "willing" and "able" to buy at a "given price" and at a "particular point in time." Therefore, that someone desires a beautiful house does not constitute demand, but certain conditions must be present and one of such is his ability (that is money) to buy the house.
(2) Demand is inversely related with the income of the consumer is False.
On the contrary, demand is directly related with the income of the consumer, that is, both variables move in the same direction. Simply put, as the income of the consumer rises, his total demand for a commodity or service will also rise, and likewise if the income of a consumer falls, hos total demand for a commodity will also fall or reduce.
(3) Supply is the quantity which is actually brought by the seller to sell in the market is True.
This is the simplest way to put the definition of supply which is defined as the quantity of a commodity that a seller is willing to sell at a given price and at a given point in time.
(4) The stock of perishable goods are similar to the supply quantity is False.
The supply quantity includes the entire stock of goods that the seller or producer is willing to sell regardless of its status (perishable or not).
(5) Demand curve goes upward to the right, to show inverse relationship between price and demand for good is False.
Demand curve actually slopes downward to the right, and this shows an inverse relationship between quantity demanded and price of a commodity. That means, as the demand increases the price reduces, and as the price increases the demand reduces. This follows the law of demand which states that, "other factors being held equal, the higher the price the lower the quantity demanded and, the lower the price the higher the quantity demanded."
(6) When the price of Giffen goods increases, its demand also increases is True.
Giffen goods also known as inferior goods (or staple foods most often) are such that the consumers of such goods usually do not have better alternatives. Hence as the prices of such goods rise the consumer demands equally rise (contrary to the law of demand).
(7) Income elasticity of demand means relationship between price and demand quantity is False.
Income elasticity of demand is the relationship between the consumer income and the quantity demanded, and it measures the rate of response of the quantity demanded in relation to the rate of change in income.
(8) Size of population is also a determinant of demand is True.
The determinants or factors of demand are those that affect the level of demand, and when the population increases the level of quantity demanded will also increase, and vice versa.
(9) Individual demand means all quantity demanded by buyers in the market is False.
Individual demand is clearly distinct from market demand. Market demand is the totality of all the individual demands for a commodity.
(10) Means and willingness are necessary factors to have demand is True.
Just as explained in number (1) above, demand can only be effective if there is the means (money/resources) and the willingness to make a purchase. If these two conditions are not met, then desire for a commodity alone cannot be termed as demand.
Fill in the blanks by suitable words;
Two major wheels of the economy are Demand and Supply, Supply is the desire from sellers side. The major determinant of demand is Price. The situation when law of demand is not applicable is known as Abnormal demand. Beggar's desire is not regarded as demand, because he may not have ability. When price of one good affects the demand for another good, this situation is known as Substitute goods. Demand is the effective desire backed by Ability and willingness. When price of a good increases, its demand decreases but the supply increases. Those goods which can be consumed alternatively are termed as substitute goods. Inferior or Giffen goods are those good whose demand rises when the income of the consumer decreases.