when making historical comparison's of one's income it is better to use real income
What distinguishes real from nominal income, and why is real income more significant?
Real income, commonly referred to as real salary, is the amount of money that a person or organisation actually makes after accounting for inflation. Real income is distinct from nominal income, which does not undergo any modifications. To have the best knowledge of their purchasing power, people frequently closely monitor the difference between their nominal and actual income.
hence , we can say real income is better when making historical comparison's of one's income
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The doctrine that allows a creditor to seek recovery from the purchaser of assets even when the purchaser did not expressly assume such liabilities as part of the purchase is called?.
Successor Liability a rule of state law that permits a creditor to sue the buyer of assets for obligations that weren't taken on as part of a transaction. The idea of successor liability is more frequently used in the contexts of products liability, environmental cleanup, and employment law.
What is Successor Liability?
The idea of successor liability is more frequently used in the contexts of products liability, environmental cleanup, and employment law. In general, the asset acquisition process does not instantly transfer the seller's liabilities to the asset buyer. However, if a court decides that the requirements of one of the following exceptions are satisfied, the buyer may occasionally be held accountable for the seller's obligations:
The obligations are impliedly or expressly assumed by the buyer.According to state law, the deal constitutes a de facto merger.To know more about doctrine, refer:
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a manager walks around the kitchen every hour to answer questions and to see if staff members are following procedures. this is an example of which step in active managerial control?
One of the main responsibilities of organizational executives is managerial control. The managers and executives of an organization use it to establish performance standards, evaluate performance in light of those standards, and take any necessary remedial action.
What Does Active managemental control mean?In order to exert control over the risk factors for foodborne illnesses, industry management must actively include certain activities or procedures into how their company is run. Through a constant system of monitoring and verification, it embodies a preventive rather than a reactive approach to food safety.Industry can utilize a variety of techniques to give active managerial control over risk variables. The following are possible components of an efficient food safety management system:Certified food safety managers who have demonstrated their knowledge of the necessary material by completing a test that is a component of an accredited programStandard operating procedures (SOPs) for carrying out crucial operational processes, including cooling, during a food preparation processRecipe cards that outline the precise procedures for creating a food item as well as the key parameters for food safety, like the final cooking temperatures that must be watched and confirmedPurchase requirementsDesign and upkeep of equipment and facilitiesMonitoring techniques.To Learn more About managerial control refer to:
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what is the price today (in dollars and cents) of a stock whose dividend per share is currently $1.80 and who expects to pay this same dividend per share at the end of each future year forever? that is, the assumption is that the current dividend per share will never change. the stock's required rate of return is 7.25%.
The current price of the stock would be $24.82
What is stock?
A stock, usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle its owners to a share of the company's assets and income in proportion to the number of shares they possess.
Most individual investors' portfolios are built on stocks, which are mostly bought and sold on stock exchanges. Government standards designed to shield investors from dishonest tactics must be followed during stock trades. In order to raise money to run their operations, corporations issue stock, and the holder of that shares, known as a shareholder, may be entitled to some of the company's assets and earnings.
Calculate the price today as follows:
Price today = dividend / Required rate of return
Price today = $1.80 / 7.25%
Price today = $24.82
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what are the parameters affecting prices european and american calls and puts. how do the prices change when one of the parameters changes with all the others remaining the same?
The price of the underlying securities, time, and volatility are three varying factors that options traders must contend with in order to determine the pricing.
What factors determine the call and put prices?Choose to dismiss the help pop-up If the strike price of a call option is higher than the market value of the underlying securities, the option is out of the money. If the strike price of a put option is less than the market value of the underlying securities, the option is out of the money. Whether an option has inherent value depends on the strike price.American-style options are more valuable than the constrained European options since investors are free to exercise their options at any time during the contract's lifespan. The chance to exercise early does come with an additional premium or cost, though.Like the majority of other financial assets, the pricing of options are affected by current interest rates changes. As interest rates fluctuate, call option and put option premiums are affected in opposite ways: calls gain from rising rates while puts lose value.To learn more about Call and Put prices refer to:
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starbucks ceo howard schultz has made sure his employees have health insurance and work in a positive environment. he could best be described as which type of leader?
Starbucks CEO Howard Schultz has made sure his employees have health insurance and work in a positive environment. He could be described as Servant Leader.
An effective strategy that complements Starbucks business model is servant leadership. The current corporate culture has enhanced this management approach. To contribute value to the company, leaders coach and guide their employees. When consumers use high-quality goods and services, they are also taken into account and given authority.
The goal of servant leadership is to realize a vision through strongly empowering the workforce. Employees are empowered by servant leadership. However, the leader doesn't just vanish. Open forums were launched by the company a number of years ago to enhance manager-employee communication. Starbucks executives are constantly prepared to respond to the requirements of the company's constituents, including its customers, workers, and communities. Additionally, the organization fosters a culture that actively works to advance both employee empowerment and diversity.
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when most workers are classified as not being in the labor force, when in reality they are actively searching for work, then the unemployment rate will be
In a case whereby most workers are classified as not being in the labor force, and in reality they are actively searching for work, then the unemployment rate will be Neither understated nor overstated .
What is an unemployment?An unemployment can be described as the term that is been used in referring to the situation whereby someone that is employable and fit with the necessary skill can not find job in a particular economy.
It should be noted that the case that is been described in the question fall under the categories of Neither understated nor overstated because they were still looking for a job.
Therefore, the second option is correct.
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Check the missing options:
Overstated Neither understated nor overstated Either understated or overstated Understated
you have one type of nut that sells for $4.60/lb and another type of nut that sells for $8.70/lb. you would like to have 32.8 lbs of a nut mixture that sells for $8.10/lb. how much of each nut will you need to obtain the desired mixture?
28 lbs of the expensive $8.70/lbs nuts and 4.8 lbs of the cheaper $2.50/lbs is required in order to obtain 32.8 lbs of a nut mixture that sells for $8.10/lbs i.e., the desired mixture.
What are linear equations ?If a variable consistently exhibits its maximum power, an equation is considered to be linear. Another name given to linear equation is a one-degree equation. The typical form of a linear equation with one variable is Ax + B = 0. In this case, the variables x and A are variables while the variable B is a constant. The traditional form applies to a linear equation with two variables is Ax + By = C. In this case, we have the variables x and y, the coefficients A and B, and the constant C.
Let C be the cheaper nut that costs $4.60/lbs and E be the expensive nut that costs $8.70 :
4.6C + 8.7E = 32.8(8.10)
4.6(32.8-E) + 8.7E = 265.68
150.88- 4.6E + 8.7E = 265.68
4.1E = 265.68 -150.88
E = 114.8/4.1
E = 28 lbs
C = 32.8 - 28
C = 4.8 lbs
Therefore, the required quantity of the expensive $8.70/lbs nuts is 28 lbs and cheaper $2.50/lbs nuts is 4.8 lbs.
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g identify which offering process is typically used for treasury debt securities? group of answer choices a. brokered b. competitive c. direct listing d. negotiated
Competitive (Auction) is a government-identified offering method that is commonly utilized for treasury debt securities.
What are treasury debt securities?United States Treasury securities, often known as Treasuries or Treasury, are government debt instruments issued by the United States Department of Treasury to fund government expenditure rather than taxation.
Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation-Protected Securities are the four forms of marketable Treasury securities. The government auctions off these securities through the Federal Reserve Bank of New York, after which they can be sold in secondary markets.
Treasury securities are backed by the full confidence and credit of the United States, which implies that the government guarantees to repay them using any legally possible methods. Despite the fact that the United States is a sovereign authority with no recourse, its track record of repayment has earned Treasury securities a reputation as one of the world's lowest-risk investments. Treasuries have a unique niche in the financial system because of their low risk, where they are utilized as cash equivalents by institutions, businesses, and affluent investors.
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how can companies handle corrupt practices in foreign practices? can they find ways to compete there without engaging in these practices? please explain
Apply appropriate anti-corruption policies appropriate to your industry or sector (Code of Business Ethics)
What are anti-corruption policies?The purpose of this policy is to provide clear guidance on compliance with all applicable anti-bribery and anti-corruption policies, encourage reporting of suspected violations, and provide guidance.The US Foreign Corrupt Practices Act (FCPA) is the most prevalent anti-corruption policies in the world. Check the most important information here. The African Union (AU) Convention on the Prevention and Elimination of Corruption, adopted in 2003, addresses corruption in the public and private sectors.Corruption undermines our trust in the public sector to act in our best interests. It also wastes taxes and tax rates allocated to important community projects. This means you have to put up with poor quality services and infrastructure.To learn more about anti-corruption policies from the given link :
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if a stock has a beta greater than 1.0, then its expected return a. will be 0. b. is greater than the market portfolio. c. is the same as the market portfolio. d. is less than the market portfolio.
(b) Greater than the market portfolio.
This is because in a market, beta greater than 1.0 will tend to produce above-average returns - but will also produce larger losses in a down market.
What is the portfolio ?
Portfolio is the collection of wide rages of assets that are owned by investor. the Portfolio collection includes financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a Portfolio.
What are the components of a Portfolio?
Components of a Portfolio
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in 2025, the robinson company switched its inventory method from fifo to average cost. inventories at the end of 2024 were reported in the balance sheet at $22 million. if the average cost method had been used, 2024 ending inventory would have been $20 million. ending inventory in 2025 is $23 million using average cost, and would have been $26 million if the company had not switched from the fifo method. the company's tax rate is 25%. the effect of the change in method on 2025 income before taxes is a:
A million dollars less will be made before taxes in 2025 as a result of the method change.
First In, First Out (FIFO): What Is It?First In, First Out, also known as FIFO, is a method of managing assets and valuing them that prioritizes the sale, use, or disposal of assets that were produced or acquired first.
For taxation purposes, FIFO presumes that the cost of goods sold on the income statement includes the assets with the oldest costs (COGS). The assets in the inventory that are still available are compared to those that were just bought or made.
Calculation:
Inventory's average cost rose by $3 million ($23 million minus $20 million).
There would have been a $4 million increase in FIFO inventory ($26 million minus $22 million).
As a result, selling costs at average cost are $1 million higher than selling costs at FIFO.
This lowers net income by $750,000 and income before taxes by $1 million.
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Where would you measure angles?
A) Driveline components
B) Bolt
C) Fasteners
D) All of the above
Driveline components (option A) are where I would measure angles.
What is angle measurement?The amount of rotation from point A to point B is described as an angle measurement. It is important to mention that the if the rotation is carried in a clockwise direction, then such an angle is called a positive angle. If the rotation is carried out in the anticlockwise direction. Then such an angle is called a negative angle.
Driveline components are described as the various components in a vehicle that allows the wheels to rotate by transferring power to the wheels from the transmission. Angles are measured in a driveline and the angle is kept within one degree with respect to the other components.
It can be concluded that driveline components (option A) are where I would measure angles.
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Josie is a teenage girl who wants to start a jewelry-making business. Her target market is females, ages 10-14. What price should she charge per necklace that she sells?.
Since his target market is youngsters, Josie's target audience is females between the ages of 10 and 14.
The definition of a target market is A company's target market is a portion of the market that is open to it. Marketing efforts and resources are frequently concentrated on the target market because no organization has unlimited marketing resources or money for advertising.
2. Josie should charge between one and ten dollars for each necklace target market considering that her target market consists of ladies between the ages of 10 and 14.
3. Because the focus group was set up to obtain opinions from a target market, the results from the focus group are descriptive rather than quantifiable, which means that the focus group is producing qualitative data.
4. A small boutique's inventory was chosen using quantitative data from an online article on European fashion trends.
To categorise data, choose one of the four broad categories.
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What is one way to name a computer document to be able to identify it as the most recent version?
add READ LATER to the end of the file name
add your initials at the end of the file name
add the date at the end of the file name
give the document a completely new name every time it's changed
Based on the available options and the Microsoft Office techniques, the one way to name a computer document to be able to identify it as the most recent version is to "add the date at the end of the file name."
Naming and Sorting of Documents in ComputerThere are straightforward means of naming and sorting file documents in a computer to make it easier to access.
One of the ways of naming a file document is to use a name or phrase that defines the document.
However, in other to quickly identify the document with the most recent version of the edit, it is advisable to add the date at the end of the file.
This will help the user to quickly identify the most recent or latest version as the date will specify the last edit or when the document is created.
Hence, in this case, it is concluded that the correct answer is "add the date at the end of the file name."
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in 2022, wilma (who files as a head of household) reported regular taxable income of $150,000. she itemized her deductions, deducting $10,000 in charitable contributions and $2,000 in state income taxes. what is wilma's alternative minimum taxable income?
According to the given information, Wilma's alternative minimum taxable income is $152,000.
Total alternative minimum taxable income = Regular taxable income +
State tax income + Exemptions
There are no exemption claims in this question.
Regular taxable income =$150,000 and State tax income = $2,000
So, Wilma's alternative minimum taxable income = $150,000 + $2,000
= $152,000
Taxable income is the portion of your gross income that is used to determine your tax liability for a specific tax year. In general, it may be defined as adjusted gross income (AGI) less permitted standard or itemized deductions. Along with investment income and numerous unearned income streams, taxable income includes wages, salaries, bonuses, and tips.Earned income and unearned income both qualify as taxable income. Taxable unearned income includes forgiven debts, government benefits (such unemployment and disability payments), strike benefits, and lottery winnings. Taxable income also includes dividend and interest income, as well as revenues from the sale of valued assets during the year.Learn more about Taxable income, here
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the information gap that international investors face is further complicated by the differences in blank conventions, which makes the analysis of cross-border investments opportunities challenging. multiple choice question. accounting exchange rate borrowing segmenting
The information gap that international investors face is further complicated by the differences in exchange rate conventions, which makes the analysis of cross-border investment opportunities challenging.
Contemporary worldwide change fees are decided by using a controlled floating change rate.
A controlled floating change price method that each currency's value is tormented by the economic movements of its government or significant bank.
The change charge is the rate of a rustic's money on the subject of another country's money.
An alternate fee is “constant” when nations use gold or every other agreed-upon popular, and each forex is worth a selected measure of the metallic or other trendy.
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18. sardi company estimates its 2015 tax expense to be $80,000. it makes a cash payment of $20,000 to the tax authorities on december 31, 2015. how should this transaction be recorded by sardi? debit tax expense $80,000; credit cash $60,000; credit taxes payable $20,000 debit tax expense $80,000; credit cash $20,000; credit taxes payable $60,000 debit tax expense $80,000; credit cash $20,000 debit tax expense $80,000; credit cash $20,000; credit accounts payable $60,000
Debit tax expense $80000 credit cash $20000, credit taxes payable $60000
tax expense estimated by the company in the year 2015 is $80000
Cash payment to the tax authorities on December 31, 2015, = $20000
So the balance tax to be paid is equal to 80000 - 20000 = 60000
Hence initially the company need to debt tax expense $80000
Then the credit cash is $80000
The provision to be made credit taxes payable $60000
Hence Debit taxes paid ($60,000), credit cash ($2,000), and credit tax expense $80000
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managers must conduct a review of the company's internal control system and issue a report of their effectiveness. this was enacted as part of sox in an attempt to .
To Reduce the opportunity for error and fraud.
Reduce the likelihood of error and fraud, combat the incentives for fraud, and emphasize the value of managers and employees' moral character.
What is the Sarbanes-Oxley Act and what does it do?Federal legislation known as the Sarbanes-Oxley Act of 2002 established stringent financial and auditing standards for publicly traded companies. To help shield shareholders, employees, and the general public from accounting mistakes and dishonest financial practices, legislators created the legislation.The law imposes stringent reforms to enhance corporate financial disclosures and stop accounting fraud. Additionally, it addresses topics like improved financial disclosure, corporate governance, internal control evaluation, and auditor independence.To learn more about : Sarbanes-Oxley Act
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costs of $5,000 were incurred to acquire goods and make them ready for sale. the goods were shipped to the buyer (fob shipping point) for a cost of $200. additional necessary costs of $400 were incurred to acquire the goods. no other incentives or discounts were available. compute the buyer's total cost of merchandise inventory.
The entire cost of the inventory of goods is $5,600.
Obtain the combined value of the starting and ending inventories as well as the cost of products sold. Make a subtraction between the starting and finishing inventories. The difference between the ending and starting inventory is the cost of goods sold.
The cost of finished items that a retailer or wholesaler has on hand to sell to its clients during a specific accounting period is known as merchandise inventory.
The sum of all expenses incurred up until the point at which the products are purchased by the Buyer will be his entire cost of merchandise inventory.
Consequently, in this scenario, the total cost of the inventory of goods will be
= $5,000 + $200 + $400
= $5,600
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when preparing the statement of cash flows using the indirect method, one of the purposes of adjusting net income for changes to certain balance sheet accounts is to
One of the purposes of adjusting net income for changes to certain balance sheet accounts is to convert the net income to cash.
What is statement of cash flows and what is the purpose of adjusting net income ?A cash flow statement is a financial statement that provides aggregate data of all cash in flows.Here in the question is asked one of the purpose of adjusting net income for changes to certain balance sheet accounts.Net income is the net earnings which is calculates as sales minus cost of goods, and other operating expenses.Hence when preparing the statement of cash flows using the indirect method, one of the purposes of adjusting net income for changes to certain balance sheet accounts is to convert the net income to cash.To know more about net income visit:
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maribel just took a job with a recycling company. her job is to search for potential customers that need to get rid of their recyclable materials or those customers who wish to buy recycled materials for processing. maribel's job fits into the first step of the personal-selling process, that of
Maribel's job fits into the first step of the personal selling process, which is that of: C. prospecting.
What is personal selling?Personal selling can be defined as a type of sales technique which typically involves selling a good (product) directly to a buyer, especially by establishing a face-to-face system of communication with the person.
This ultimately implies that, personal selling requires that a sales representative (sales rep) would physically meet up with the buyers in order to facilitate the completion of a business transaction.
In conclusion, a sales representative (sales rep) whose job is to search for potential customers that wishes to get rid of their products is referred to as prospecting.
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Complete Question:
Maribel just took a job with a recycling company. Her job is to search for potential customers that need to get rid of their recyclable materials or those customers who wish to buy recycled materials for processing. Maribel's job fits into the first step of the personal selling process, that of Multiple Choice
preapproach.
advertising.
prospecting.
sales promotion.
gaining commitment.
Michael noticed an inaccuracy in his credit report and he is interested in applying for a new credit card next month. Which action should he take?.
As he noticed an inaccuracy in his credit report but also interested in applying for a new credit card next month, the proper action will be to report to the Credit bureau.
What is the role of Credit bureau?Basically, a credit bureau refers to the credit reporting agency that collects and researches individual credit information and sells it to creditors for a fee so they can make decisions about extending credit or granting loans.
Most time, these credit bureau collects and researches about an individual credit information and thus sells it to the requesting creditors for a fee so they can make decisions about granting loans.
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given a two-year loan of $50,000 and an annual interest rate of 8 percent, how much interest will accrue during the life of the loan? (assume no principal payments during the term.)
$8,000 interest will accrue during the life of the loan. Interest is the payment of an amount above the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate.
How to calculate interest ?In finance and economics, interest is the payment of an amount above repayment of the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate by a borrower or depositor.
A customer would usually pay interest to borrow from a bank, so they pay the bank more than they borrowed; or a customer may earn interest on their savings, so they withdraw more than they originally deposited. In the case of savings, the customer is the lender, while the bank is the borrower.
It is calculated by multiplying the principal, rate of interest and the time period. The formula for Simple Interest (SI) is “principal x rate of interest x time period divided by 100” or (P x Rx T/100).
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analyzing and computing dividends and effect of options exercises following is the stockholders' equity section of the intuit inc. balance sheet (dollars in millions, except par value; shares in thousands). changes in the company's outstanding shares are due to (1) treasury share purchases by the company and (2) issues of treasury shares for employee stock options. stockholders' equity ($ millions) july 31, 2014 july 31, 2013 preferred stock, $0.01 par value authorized-1,345 shares total; 145 shares designated series a; 250 shares designated series b junior participating issued and outstanding - none $ - $ - common stock, $0.01 par value authorized-750,000 shares outstanding-285,853 shares at july 31,2014 and 300,737 shares at july 31,2013 3 3 additional paid-in capital 3,558 3,198 treasury stock, at cost (6,430) (4,952) accumulated other comprehensive income (loss) (2) 20 retained earnings 6,405 5,607 total stockholders' equity $3,534 $3,876 a. in the fiscal year ended july 31,2014, intuit reported net income of $1,009 million. how much did intuit pay in dividends to its common shareholders?
The amount that Intuit paid in dividends to its common shareholders for the year ended July 31, 2014, was $211 million.
How are the dividends determined?The dividends paid to common stockholders are the total dividend declared less the amount paid to other stockholders like preferred.
Since no dividends were paid to others, the total amount declared was paid to the common stockholders.
We can compute the total declared dividends using the beginning and ending balances of the retained earnings and the net income for the period.
Retained earnings:Beginning balance $5,607
Net income 1,009
Ending balance (6,405)
Dividends paid $211
Dividends to preferred stockholders = $0
Dividends to common shareholders = $211
Thus, the dividends paid to the common shareholders were $211 million.
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6. tech university has more than 10,000 students enrolling in courses each term. the management would like to develop a balanced scorecard to assess performance. assume students are the customers. (11.5) a) provide two financial measures tech university can use on its balanced scorecard. b) provide two internal business process measures tech university can use on its balanced scorecard.
Financial metrics (a) Return on Assets (ROA): To calculate the ROA, the institution divides the annualized investment in assets by the income received from student fees. Under the balance card strategy.
to deliver the precise performance that was anticipated at the time of strategy selection and to give each one of them a focus for its objectives and appropriate measures. A financial ratio known as return on assets (ROA) measures a company's profitability in relation to its total assets.
ROA can be used by corporate management, analysts, and investors to assess how effectively a company uses its resources to make a profit. Management, analysts, and investors can use ROA to assess how effectively a company uses its resources to make a profit.
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the production possibilities frontier illustrates group of answer choices the combinations of output that an economy should produce. the combinations of output that an economy should consume. the combinations of output that an economy can produce. all of the above are correct.
The production possibilities frontier illustrates the combination of output that an economy can produce.
An economy is a place of the production, distribution and trade, in addition to consumption of goods and offerings. In popular, it's far described as a social area that emphasize the practices, discourses, and fabric expressions related to the manufacturing, use, and management of scarce resources'.
An economy is a machine of inter-associated production and intake activities that in the long run decide the allocation of resources within a collection. The manufacturing and intake of products and services as an entire satisfy the needs of those residing and running within it.
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the fixed cost in manufacturing a single led monitor is $40 and the variable cost is $12. if the company expects to manufacture 5,000 monitors, the total costs would be
last year a country had exports of $100 billion, imports of $70 billion, and purchased $60 billion worth of foreign assets. what was the value of domestic assets purchased by foreigners? a. $30 billion b. $40 billion c. $10 billion d. $70 billion
The value of domestic assets purchased by foreigners is $10 billion.
Domestic property means flora, assets and equipment of a home Subsidiary. home belongings method any acquired property owned through a home seller which aren't difficulty to a overseas Governmental Authority and concerning which no Consent of a overseas Governmental Authority is required pursuant to this agreement.
An asset is any resource or proper used to generate cash waft, lessen prices, or offer future monetary advantages for an character, government, or enterprise. property comprise financial fee and can benefit a business enterprise's operations, boom the price of a business, or improve an individual's net worth.
An asset is an entity from which the monetary owner can derive a gain or collection of blessings in future accounting intervals through preserving or the use of the entity over a time period, or from which the monetary owner has derived a benefit in past intervals and continues to be receiving a gain within the contemporary duration.
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which of the following is not insured by the fdic? question 6 options: retirement account. savings account. certificate of deposit. money market savings account. g
The option that is known to not be insured by the FDIC would be the certificate of deposit.
What is the FDIC?This is the term that is sued to refer to the agency that has to do with the regulation that is done in the financial market in the United States of America.
They are the ones that would help to raise the stability and the confidence that the people of the United States would need to have in these monetary systems.
The FDIC is known to provide all that we have here but the certificate of deposit.
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a limitation of 1,550 machine-hours per week prevents golden leaf manufacturing company from meeting the sales demands for its products. the product information is as follows: r1 r2 r3 r4 unit selling price $450 $300 $175 $300 unit variable costs (300) (125) (100) (150) unit contribution margin $150 $175 $75 $150 machine-hours per unit 10 10 10 15 assuming demand for each product is as follows: r1 50 units; r2 80 units; r3 25 units; and r4 10 units, what is the best short-run profit maximizing strategy?
The best short-run profit maximizing strategy is $23,450.
A monopolistically competitive company optimizes profits or minimizes losses in the short run by producing the amount where marginal revenue equals marginal cost. The company will make an economic profit if the average total cost is lower than the market price.
How is short-run profit determined?
Profits from the sale of an asset that a company has owned for less than a year are referred to as short-term profits. By deducting the price, you paid for an asset at the beginning of the year from the sale price you got for the item, you may figure out your short-term gains. Four important elements can contribute to profitability. Costs are coming down, turnover is going up, production is going up, and efficiency is going up.
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