Question 21 of 25

A wealthy benefactor just donated some money to the local college. This gift was established to provide scholarships for worthy

Mariulka [41]

Answer:

Worth of scholarship today = $1,000,000

Explanation:

The value of the scholarship can be determined using the present value of a growing perpetuity. A growing perpetuity is an indefinite annual payment that increases by a constant percentage.

The applicable formula is given below;

PV = A/r-g

A-annual payment one year from now - 35,000

r- interest discount rate - 9.,

g- growth rate - 5.5

The value of the gifts today

= 35,000/(0.09-0.055)

= $1,000,000

5 0

3 years ago

Suppose the production function in an economy is Y = K0.5L0.5, where K is the amount of capital and L is the amount of labor. Th

maw [93]

Answer:

Therefore new level of output = (64x0.5)*(64.0.5) = 1,024

Explanation:

Suppose the production function in an economy is Y = K0.5L0.5,

where K is the amount of capital and

L is the amount of labor.

The economy begins with 64 units of capital and 16 units of labor.

If a sudden immigration quadruples the size of the population, while the capital stock is unchanged, what is the new level of output?

K remains 64 and L= 16 x 4 = 64

Therefore new level of output = (64x0.5)*(64.0.5) = 1,024

What is the new wage and rental price of capital?

The rental price for capital is expected to remain unchanged because there is no change in the quantity of capital But the wage level is expected to drop because of excess supply due to the immigration boom.

What share of output does labor receive now?

The function remains unchanged in proportion which is 0.5 but in absolute figures it will receive 0.5*1,024 = 512

5 0

3 years ago

The short-run economic outcome resulting from the increase in production costs is known asstagflation . Now suppose that the gov

masha68 [24]

Answer: Increase

Explanation: When government pursues accommodative policy as implied in the question, it would lead to a surge or increase in price level this is as a result of lower interest rates which tends to increase money supply thereby leading to a higher economic growth. Higher growth automatically translates to a higher employment, Which would likely lead to a higher inflation rate.

3 0

3 years ago

Indirect, subtle attacks that large rivals may not immediately recognize as competitive challenges are hallmarks of which of the

seraphim [82]

Answer:

The correct answer is letter "A": Growth.

Explanation:

The growing strategy implies attracting entrepreneurs to a company that can use their vision and leadership. Competitive scenarios tend to be interesting for them thus it is important to promote the creation of one considering not being too aggressive to avoid potential risks.

4 0

3 years ago

Calculate Cost of Goods Manufactured for 2019 using the following information. Direct Materials, Jan. 1, 2019 $ 40,000 Work-in-P

Aleksandr [31]

Answer:

$234,000

Explanation:

Calculation to determine the Cost of Goods Manufactured for 2019

First step is to calculate the direct materials used in production

Direct materials used in production=$40,000+$75,000-$43,000

Direct materials used in production=$72,000

Second step is to calculate the COGM

COGM=$87,000+$72,000+$48,500+$72,500-$69,000

COGM=$211,000

Now let calculate the COGS

COGS=$128,000+$211,000-$105,000

COGS=$234,000

Therefore the Cost of Goods Manufactured for 2019 is $234,000

5 0

3 years ago

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