High worker produlicty
Explanation:
The following factor could influence an employer to increase an employee's wages. The state of the labor market, local wage rates, cost of living, the results of collective bargaining, and statutory requirements are examples of external factors that affect wage rates.
What can affect employment?Labor Supply and Demand: One of the key variables affecting wage rates is labor supply and demand. Ability to Pay: A company's ability to pay employees' wages is another factor. Working Times. Price of Living
The present rate of inflation in a society has an impact on the real wages that an individual receives. Additionally, it is influenced by a person's purchasing power at a particular wage rate in comparison to market pricing.
The job market is impacted by a number of things. These include the frequency of job changes, rates of unemployment and employment, immigration, income inequality, discrimination, seasonality, and the state of the economy as a whole.
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Pondside Apartments is a 900-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $ 226 comma 220. When occupancy dips to 80%, monthly operating costs fall to $ 220 comma 640. The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it will close in three months. The apartment owner fears that occupancy of her apartments will drop to 70% if residents lose their jobs and move away. Assuming the same relevant range, what can the owner expect her operating costs to be if occupancy falls to 70%?
Answer:
$215,060
Explanation:
90% occupancy rate (810 apartments) costs = $226,220
80% occupancy rate (720 apartments) costs = $220,640
we can use the high low method to calculate both variable and fixed costs:
variable costs = ($226,220 - $220,640) / (810 - 720) = $62 per apartment
fixed costs = $226,220 - ($62 x 810) = $176,000
if occupancy rate is 70%, then 630 apartments will be occupied:
total cost for 630 apartments = $176,000 + (630 x $62) = $215,060
If actual manufacturing overhead costs are less than the applied manufacturing overhead, then manufacturing overhead is:
Answer:
Under applied
Explanation:
Actual manufacturing overhead costs are those amounts of overhead costs that are incurred by a firm during production processes.
Applied manufacturing overhead costs are those costs that are added to jobs as they near completion. Usually, as work or job nears completion during the year, the predetermined overhead rate and actual activity level are used to apportion them.
In general, manufacturing overhead costs are those costs that are not direct labor costs or direct material costs; which is made of expenses like equipment and lightening. It could either be under or over applied. It is under applied as in the above while it is over applied when the actual manufacturing overhead costs are more than the applied manufacturing overhead costs.
You and your friend Joe have identical tastes. At 2 p.m., you go to the Ticketmaster outlet and buy a $30 nonrefundable ticket to a basketball game to be played that night in Syracuse, 50 miles north of your home in Ithaca. Joe plans to attend the same game, but because he cannot get to the Ticketmaster outlet, he plans to buy his ticket at the game. Tickets sold at the game cost only $25 because they carry no Ticketmaster surcharge. (Many people nonetheless pay the higher price at Ticketmaster, to be sure of getting good seats.) At 4 p.m., an unexpected snowstorm begins, making the prospect of the drive to Syracuse much less attractive than before (but ensuring the availability of good seats.)
Is one of you more likely to attend the game than the other?
Briefly explain with consideration of relevant cost(s).
Answer:
1.Joe should be less likely to make the trip.
2. The ticket cost for Joe which is the amount of $25 changes whether he goes or not, and will therefore the only cost that should be considered.
Explanation:
1. Joe should therefore be less likely to go for the trip.
Since the ticket has been already, this means the $30 that you spent on it is a sunk cost because It is the money you cannot recover, and in deciding whether you want see the game or not, this means you should compare the benefit of seeing the game which is measured by the biggesr dollar amount you would be willing and ready to pay to see it .
Hence only those additional costs must be incur to see the game which is the opportunity cost of your time which is why in Cost-Benefit, only the costs that will actually change with your decision will be considered, which is not the case with the $30 that you wont see again whether you go to the game or not.
2.Joe must try to weigh the opportunity cost of his time in making his decision on whether he need to attend the game or not and he must as well weigh the $25 he will spend for his ticket.
Hence, when deciding, the additional costs Joe have to incur in other to see the game are $25 higher than that of the remaining costs for you. Hence, Joe should be less likely to make the trip.
Lastly You might as well think that the cost of seeing the game is higher for you, since your ticket cost $30, in which Joe's will cost only $25 which means at the decision making moment, the ticket cost for Joe which is $25 changes whether he goes or not and will therefore be the only cost that should be considered.
The value of the goods and services Australia purchases from the U.S. are less than the value of goods and services the U.S. purchases from Australia. The U.S. has
Answer:
The answer is The U.S has a negative net exports with Australia and trade deficit with Australia
Explanation:
Net exports is the difference between the total value of a nation's exports and the nation's imports.
Net exports are positive when exports are greater(Australia)than imports and negative when exports are less than imports(The U.S). Also, positive net export number indicates a trade surplus, while a negative number means a trade deficit.
At the beginning of the year, paid-in capital was $164 and retained earnings was $94. During the year, the stockholders invested $48 and dividends of $12 were declared and paid. Retained earnings at the end of the year were $104.
Net income for the year was:_______
Answer:
$22
Explanation:
From the question above, the paid in capital at the beginning of a year was $164
Retained earnings was $94
During the year the amount invested by stockholders was $48 and a dividend of $12 was declared and paid.
At the end of the year the retained earnings was $104
Therefore, the net income for the year can be calculated as follows
Net income= Retained earnings at the end of the year-retained earnings at the beginning of the year+dividend
Net income= $104-$94+$12
= $22
Hence the net income for the year was $22
Off-the-shelf accounting software is not adequate to meet the needs of small businesses. True or False True False
Answer:
True
Explanation:
Small Business face different operational and managerial circumstances compared to established business.
Off-the-shelf accounting software may not be consistent with these circumstances rendering it cumbersome or unsuitable.
Thus a customized accounting software is most suitable to meet the needs for small businesses
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent and the company just paid a $1.30 dividend. what is the current share price
Answer:
$36.81
Explanation:
Div₀ = $1.30
Div₁ = $1.625
Div₂ = $2.03125
Div₃ = $2.5390625
Div₄ = $2.6914 at a constant g of 6%
first we need to determine the terminal value in year 3:
P = $2.6914 / (12% - 6%) = $44.86
the current stock price, P₀ = $1.625/1.12 + $2.03125/1.12² + $2.5390625/1.12³ + $44.86/1.12³ = $1.45 + $1.62 + $1.81 + $31.93 = $36.81
If 200,000 machine‐hours are budgeted for variable overhead at a standard rate of $5/machine‐hour, but 220,000 machine‐hours were actually used at an actual rate of $6/machine‐hour, what is the variable overhead efficiency variance?
Answer:
Variable overhead efficiency variance= $100,000 unfavorable
Explanation:
Giving the following information:
200,000 machine‐hours are budgeted for variable overhead at a standard rate of $5/machine‐hour, but 220,000 machine‐hours were used.
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (200,000 - 220,000)*5
Variable overhead efficiency variance= $100,000 unfavorable
When the Variable overhead efficiency variance is = $100,000 unfavorable
What is the Efficiency variance?
Giving the following information are:
200,000 machine‐hours are budgeted for variable overhead at a standard rate of $5/machine‐hour, but [tex]220,000[/tex] machine‐hours were used. Now we calculate the variable overhead efficiency variance, Then we need to use the following formula are below mention. The variable overhead efficiency variance is= (Standard Quantity - Actual Quantity)*Standard rate. Then Variable overhead efficiency variance= [tex](200,000 - 220,000)*5[/tex]
Thus, Variable overhead efficiency variance= $100,000 unfavorable
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The new union president has proposed a couple of ideas that are very unusual: 1. "We should make an effort to help solve problems in the business." 2. "We should encourage our members who have the right experience and training to apply for supervisor jobs." Are these ideas good or not?
Answer:
In simple words, supervisory jobs refers to those jobs in which an individual has to monitor the performance of other individuals working under his or her direction and guidance.
The opinion of the president, therefore, is not bad as an employee with relevant experience gets a certain respect and have adequate level of knowledge for teaching others.
Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,300, and the company expects to sell 1,700 per year. The company currently sells 2,050 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,720 units per year. The old board retails for $23,700. Variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $675,000 per year, and fixed costs are $3,400,000 per year. If the tax rate is 25 percent, what is the annual OCF for the project
Answer:
$24,635,865
Explanation:
total cash inflows = ($25,300 x 1,700) + ($23,700 x 1,720) = $83,774,000
variable costs = $83,774,000 x 57% = $47,751,180
fixed costs = $3,400,000
depreciation expense = $675,000
tax rate = 25%
operating cash flow = [($83,774,000 - $47,751,180 - $3,400,000 - $675,000) x (1 - 25%)] + $675,000 = $23,960,865 + $675,000 = $24,635,865
Determinants of the price elasticity of demand
Consider some determinants of the price elasticity of demand:
1. The availability of close substitutes
2. Whether the good is a necessity or a luxury
3. How broadly you define the market
4. The time horizon being considered
A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.
A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand?
A heart valve for heart attack victims
Diamond necklace
The price elasticity of demand for a good also depends on how you define the good.
Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.
Categories Most Elastic In Between Least Elastic
Red bell peppers
Vegetables
Food
The price elasticity of demand is also affected by the given time horizon.
Other things being equal, the demand for natural gas will tend to be elastic in the short run than in the long run.
Answer:
Elastic
A heart valve for heart attack victims
Red bell peppers - least elastic
Vegetables - in between
Food - most elastic
less elastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
a good that is considered a necessity usually has a less elasticity of demand.
the more narrowly defined a good is, the less elastic demand is. for example, there are many substitutes for food because it is largely defined, so its elasticity of demand would be more elastic
in the short run, demand is usually less elastic because there is a short time to find suitable substitutes. but in the long run, consumers have enough time to find suitable substitutes so demand is usually more elastic
Sellers allow customers to use credit cards for all of the following reasons: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a) seller does not have to decide who gets credit 2
b) seller accepts the risk for extending credit to customers 2
c) seller receives cash sooner than if credit is granted directly to the customers 2
d) may allow seller to increase sales volume 2
e) seller determines which customers receive credit and how much
Answer:
The correct answer is the option D: may allow sellers to increase sales volume.
Explanation:
To begin with, the fact that sellers allow customers to use credit cards is because mainly it increases the ways that the clients can pay for the products and if those methods increase then the sales' volume will increase as well due to the fact that there is a direct relationship between the payment methods that the consumers have and the sales' volumen of the company. That is the major reason why a seller may allow the consumers to pay with credit card and to accept the risk of doing it.
On December 31, 2018, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Wintergreen received $139,875 when it issued the bonds (or $150,000 × .9325). After recording the related entry, Bonds Payable had a balance of $150,000 and Discounts on Bonds Payable had a balance of $10,125. Wintergreen uses the straight-line bond amortization method. The first semiannual interest payment was made on June 30, 2019.Complete the necessary journal entry for June 30, 2019 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer: Please see explanation column
Explanation:
Journal entry for June 30
Date Amount Debit Credit
June 30 Bond Interest expense $5,756
Discount on Bonds Payable $506
Cash $5,250
Calculation:
Cash = 150,000 x 7%x 6/12 = $5,250
10-year bonds pay interest semiannually indicates 20 interest periods
Straight line Amortization of the discount =$10,125/20 = $506
Bond interest expense= Interest + amortization on discount
Interest = $150,000 x 7% x 6/12 = $5,250 + 506= $5,756.
Managers in international businesses will need to evaluate the attractiveness of a country as a market or location for a facility or investment. Knowing how to think about events and situations will help the manager make that evaluation.
Managers can use economic and socioeconomic indicators to evaluate potential locations to conduct business
Mathc the Economic indicator to the relevant dimensions.
a. Income distribution
b. Unit labor costs
c. Private consumption
d. Age distribution
e. Gross national income (GNI)
f. Economic growth rate
g. Total population
1. Absolute size of an economy
2. Speed of economic growth
3. How a nation's income is apportioned
4. Purchase of essential vs, nonessential goods
5. Cost of production
6. Potential market size
7. Potential market segments
Answer:
1. Absolute size of an economy
e. Gross national income (GNI)
2. Speed of economic growth
f. Economic growth rate
3. How a nation's income is apportioned
a. Income distribution
4. Purchase of essential vs, nonessential goods
c. Private consumption
5. Cost of production
b. Unit labor costs
6. Potential market size
g. Total population
7. Potential market segments
d. Age distribution
Explanation:
Any entity that wishes to exploit foreign markets must of necessity determine the suitability of the country's market and its economy. To achieve this aim, entities engaging in foreign direct investments consider some factors. One of them is the country's attractiveness. A country is attractive or not depending on the following elements, among others: market size, growth of market size, per capita income, population and age distribution, existence and enforcement of contract laws, and political openness. These considerations are important to avoid regrets, including over-exposure to country risks.
The above values represent a PPF of production for one day's work. What is the opportunity cost of producing the first two pounds of beets
Answer:
The values that the question is making reference to are these:
Carrots Beets
(Pounds) (Pounds)
0 6
5 4
10 2
15 0
What is the opportunity cost of producing the first two pounds of beets
The opportunity cost is what is given up to do something instead. In this case, the opporutnity cost is the amount of carrots that are not produced when choosing to produce beets instead.
As we can see from the table, if we produce 0 pounds of beets, we can produce 15 pounds of carrots. However, if we decide to produce the first 2 pounds of beets, we can only produce 10 pounds of carrots.
These 5 pounds of carrots that we cannot produce anymore, is the opportunity cost.
You purchased a share of SPCC for $100 and expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year
Answer:
The answer is 15%
Explanation:
(P1 - Po) / Po + D
Where P1 is the price of the share at the end of the year
Po is the price of the share at the beginning of the year
D is the Dividend receceived
P1 is $110
Po is $100
And Dividend is 5%
($110 - $100) / $100 + 5 %
$10/100 + 5%
10% + 5%
= 15%
The total return will you have earned over the year for the purchase of a share of SPCC is 15%
A stock is expected to pay a dividend of $0.75 in the next year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What should be the fair value of the stock
Answer:
$18.29
Explanation:
From the question above, the dividend payment next year (D1) is $0.75
The required rate of return (rs) is 10.5%
= 10.5/100
= 0.105
The growth rate is 6.4%
= 6.4/100
= 0.064
Therefore, the fair value of the stock can be calculated as follows
Po= D1/(rs-g)
Po= 0.75/(0.105-0.064)
Po= 0.75/0.041
Po= $18.29
Hence the fair value of the stock is $18.29
A shopper infers that a product must be of high quality because the manufacturer has been in business a long time. Which heuristic is this an example of
Answer:
The Compromise effect
Explanation:
Heuristic is a modelling that explains the two fundamental ways of processing information while making up an opinion.
Data and information can be processed diligently in order to form an opinion which is a more accurate way than the other type known as heuristics .This explains that opinions can also be formed based on just a mere perception of issues or based on the opinion of other people or experts , which in most cases may not give a true representation of the situation at hand.
However , it forms a part of human daily activities and can also be useful in forming the required opinions in the course of daily activities.
One of the effect as seen in the question is bias attitudes or the compromise effect.
​A restaurant, which operates in a perfectly competitive market, is evaluating whether it should serve breakfast on a daily basis. It would choose to do this when its revenues cover its variable costs. True or False
Answer:
TRUE
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In the short run, the firm would continue to operate if its revenue covers variable cost. if it doesn't it would shut down.
Suppose Portugal has 700 workers and 26,000 units of capital, and France has 18,000 workers and 700 units of capital. Technology is identical in both countries. Assume that wine is the capital-intensive good and cloth is the labor-intensive good.
a. Given the information above, which country is labor abundant? Which country is capital abundant? Explain
b. According to the Heckscher- Ohlin theorem, which country should export wine and import cloth? Which country should export cloth and import wine? Explain.
Answer:
(a)France is labor abundant because it has more workers than capital. Portugal is capital abundant because it has few workers and more capital
(b) Since France is labor abundant it should export cloth and import wine whil Portugal should export wine and import cloth.
Explanation:
Solution
Given that
(a) France as a country is labor abundant as compared to Portugal which is a capital abundant. this is because, France has more number of workers than capital and Portugal possess more capital than workers.
(b) With reference to Heckscher-Ohlin theorem, a capital abundant country should export capital intensive good and the labor abundant country should export labor intensive good.
France should export cloth and import wine since it is abundant. while Portugal should export wine and import cloth.
With this, both the countries will be utilizing their abundant factors of production in an effective way. this will increase the production of both the countries.
A company traded an old forklift for a new forklift, receiving a $10,500 trade-in allowance and paying the remaining $37,200 in cash. The old forklift cost $39,000 and straight-line accumulated depreciation of $27,200 had been recorded as of the exchange date under the assumption it would last five years and have a $5,000 salvage value. a. What was the book value of the old forklift on the date of the exchange
Answer: $11,800
Explanation:
The Book Value is calculated as the Cost price less the accumulated depreciation on the asset.
Book Value of old forklift = Asset Cost - Accumulated Depreciation
Book Value of old forklift = 39,000 - 27,200
Book Value of old forklift = $11,800
Varto company has 11800 units of its sole product in inventory that it produced last yrear at a cost of $24 each. this years model is superior to last year's and the 11800 units cannot be sold at last years regular selling price of $55 each. Varto has two alternatives for these items:
Complete question:
Varto Company has 11,800 units of its sole product in inventory that it produced last year at a cost of $24 each. This year’s model is superior to last year’s and the 11,800 units cannot be sold at last year’s regular selling price of $55 each. Varto has two alternatives for these items:
(1) they can be sold to a wholesaler for $9 each, or
(2) they can be reworked at a cost of $220,000 and then sold for $27 each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them.
Answer:
Varto company should not process further, they should sell it as it is.
Explanation:
Given:
For last year:
Product quantity = 11800
Cost = $24 each
For this year, the model is superior to last year's model and they can't be sold for the same price.
Required:
Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them.
Analysis is prepared below:
INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING
Revenue if processed further: (11800*$27) 318600
Revenue if sold as it is: (11800*$9) 106200
Incremental revenue: (318600-106200) 212400
Further processing cost: 220000
Incremental net income: (220000-212400) 7600 (loss)
From the analysis above, Varto company should not process further, as they will make a loss of $7,600 if they process further.
NB: $24 manufacturing cost is sunk cost which makes it not needed.
You find that the bid and ask prices for a stock are $14.25 and $15.45, respectively. If you purchase or sell the stock, you must pay a flat commission of $30. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars
Answer:
$180
Explanation:
The bid price of a stock is $14.25
The ask-price of a stock is $15.45
A flat commission of $30 must be paid in the stock
100 shares of stock are bought
Therefore, the total implied and actual transaction costs can be calculated as follows
= Commission+(ask price-bid price)×number of shares
= 30×2+($15.45-$14.25)×100
= 60+ 1.2×100
= 60+120
= $180
Hence the total implied and actual transaction cost is $180
When asset specificity is very high and there is market uncertainty, then it is best for a firm to:
a. Vertically integrate.
b. Ngage in a strategic alliance.
c. Use a short-term contract.
d. Buy in the open market.
Answer:
a. Vertically integrate.
Explanation:
a. Vertically integrate as this is the only way to reach the standards requirements of the product features at the reasonable amount.
Therefore according to the given situation, If the specificity of the assets is very high and there is market instability so it is appropriate for a company to vertical intergrate.
So, the correct answer is a.
Use the following information . On January 1, 2018, Dennis Company purchased land for an office site by paying $540,000 cash. Dennis began construction on the office building on Jan 1. The following expenditures were incurred for construction: Date Expenditures January 1, 2018 $ 360,000 April 1, 2018 504,000 May 1, 2018 900,000 June 1, 2018 1,440,000 The office was completed and ready for occupancy on July 1st of the following year. To help pay for construction, $720,000 was borrowed on January 1, 2018 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2018 was a $300,000, 12%, 6-year note payable dated January 1, 2016. Assume the weighted-average accumulated expenditures for the construction project are $870,000. The amount of interest cost to be capitalized during 2018 is:___________.
Answer:
$82,800
Explanation:
The computation of the amount of interest cost to be capitalized during 2018 is shown below:-
Amount of interest cost to be capitalized = (Borrowed amount × Rate of interest) + ($300,000 ÷ 2 × Rate of interest)
= ($720,000 × 9%) + ($150,000 × 12%)
= $82,800
Therefore for computing the amount of interest cost to be capitalized during 2018 we simply applied the above formula.
A waiter fills your water glass with ice water (containing many ice cubes) such that the liquid water is perfectly level with the rim of the glass. As the ice melts,
Answer:
As the ice melts and turns into water, the level of the liquid water will lower and it will no longer be perfectly leveled with the rim of the glass. This happens because water has a unique property, its solid state occupies a larger volume than its liquid state, i.e. as waters turns into ice, it expands and occupies more space. Generally, as liquids become solid, they will shrink and occupy less space, but that doesn't happen with water.
Explanation:
Which of the following is a disadvantage of mass production particularly in regard to automation
A an enormous increase in productivity
B a decrease in the number of availabile jobs
C lower cost of materials services and capital
D equipment can often be repaired by individual parts
The disadvantage of mass production particularly in regard to automation is a decrease in the number of available jobs. The correct option is (B).
What do you mean by the mass production?Mass production is the process of producing standardized goods in huge quantities, frequently with the aid of automation or assembly lines.
The efficient creation of several identical products is made possible by mass production.
The goal of mass production is to maintain the lowest cost possible throughout the whole manufacturing process while producing the biggest volume achievable.
When goods are produced in large quantities, their individual costs are reduced. Production in large quantities takes the forms of flow production, job production, and batch production.
Therefore, the disadvantage of mass production particularly in regard to automation is a decrease in the number of available jobs.
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Sam and Lisa run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client. For Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.
In this scenario,_________ advantage in food preparation has an absolute advantage in food preparation, and________has a comparative
Assume that initially, Sam and Lisa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by________.
Answer:
In this scenario, LISA has both an absolute advantage in food preparation, and LISA has a comparative advantage in food preparation.
Assume that initially, Sam and Lisa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by 1.
Before they were getting 3 new customers since Sam got 2 and Lisa 1, but since Sam will only look for clients, then the total number of clients will be 4 (or 1 more).
Explanation:
It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client.
Sam's opportunity cost of preparing food = 12/3 = 4 new clientsSam's opportunity cost of getting new clients = 3/12 = 0.25 of food preparationFor Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.
Lisa's opportunity cost of preparing food = 10/5 = 2 new clientsLisa's opportunity cost of getting new clients = 5/10 = 0.5 of food preparationAlthough GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?
a) The leisure time enjoyed by households
b) The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
c) Expenditures on federal highways
d) The loss of enjoyment people incur when scenic land is converted to commercial use
Answer:
a) The leisure time enjoyed by households
b) The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
d) The loss of enjoyment people incur when scenic land is converted to commercial use
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Expenditures on federal highways is accounted for in GDP as part of government expenditures
"Which of the following is a significant operation interface that distinguishes a service supply chain from a product supply chain?"
a. service performance management
b. customer relationship management
c. supplier relationship management
d. demand management