Answer: The following statement best describes the strategy behind his thoughts: <u><em>By increasing government spending through road and bridge repair and construction, the government will intervene in the free-market economic system to help jump-start a weak economy.</em></u>
Here, in this case Ben recently lost his job and he is searching for work in a similar industry i.e. road and bridge repair companies. His belief is that if the government begins to contract with companies that repair highways and bridges, he may find steady work.
<u><em>This belief can be substantiated with the fact that if the government decides to increase spending and thereby investing in road and bridge repair companies would increase the no. of job in that sector.</em></u>
Answer:
True
Explanation:
Equivalent Unit Production is solved in two ways. Either by adding beginning inventory and units started or by adding finished goods and ending inventory.
If we add finished goods and ending inventory we get
Finished Goods units 12000
Ending Inventory units 4000(75%)= 3000
Equivalent Units 15000
which is true .
Answer:
Total surplus will be $0.50
Explanation:
We have given consumer maximum payable amount = $1.75
Producers minimum amount to receive = $1.25
Price paid = $1.68
We have to find the total surplus
Total surplus will be equal to
Total surplus = consumer surplus + producer surplus
Consumer surplus = consumer maximum amount willing to pay - amount paid = $1.75-$1.68 = $0.07
Producer surplus = price received - producer minimum willingness to pay = $1.68 - $1.25 = $0.43
So total surplus = $0.07+$0.43 = $0.50
Answer:
D. reduce economic efficiency; deadweight loss
Explanation:
Market failures are produced when in a free market context, individual decisions for the allocance of resources is inefficient, and produces deadweight loss, an economic measure of social welfare. This situation justifies in some cases government interventions. The most common tools for intervention are taxes, subsidies or price regulation.
Answer:
Option D ($100,000) is the correct choice.
Explanation:
Given:
Fair value of Assets,
= $800,000
Fair value of liabilities,
= $300,000
Consideration amount,
= $600,000
Now,
The net assets of subsidiary will be:
=
=
=
hence,
The goodwill will be:
=
=
= ($)