Answer:
A. Movement on the PPC
B. Rightwards / Outwards shift of PPC
C. Less Concavity of PPC
Explanation:
Production Possibility Curve is combination of two goods that an economy can produce, given resources & technology (efficient utilisation).
- It is a downward sloping curve as more of one good can be produced by sacrifising other good, same resources & technology.
- It is concave curve because of increasing marginal opportunity cost, i.e increasing amounts of a good to be sacrifised to gain additional amount of other good, as resources are not equally efficient in production of both goods.
- Points on PPC reflect full utilisation, points under PPC reflect under utilisation, points above PPC are unattainable.
a) A disagreement between persons favouring more domestic welfare spending or national welfare spending : Is just an issue of reallocation of same resources, technology. So, PPC doesn't change & there can only be movement on the PPC (more of one good, less of other good)
b) An increase in population : leads to increase in human resource & hence the PPC shifts outwards / rightwards as the production potential of economy rise with more human resource.
c) Technological change that make resources less specialised : would reduce resources' efficiency gap in production of two goods. So, Marginal Opportunity cost reduces & hence the PPC becomes less concave.
Barney appears to be very impressed by the candidate's non-verbal communication skills.
Answer:
Price of bond = $916.26
Explanation:
<em>The amount to be paid for the bond would be equal to the Present value (PV) of the redemption Value (RV) plus the present value of the interest payments discounted at the yield rate.</em>
Let us assume that the face value of the bond is 1000 and it is redeemable at par
Interest payment = 6.375%× 1000 = 63.75
PV of interest payment = A× (1- (1+r)^(-n))/r
A- 63.75, r-8.5%, n-5
PV = 63.75 ×(1- (1.085)^(-5))/0.085)
PV = 251.215
PV of RV
PV = RV × (1+r)^(-5)
= 1,000 × (1.085)^(-5)
= 665.045
Price of bond = $916.26
The question is incomplete. The complete Question is as follows,
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:
Units to be produced
October 4,500
November 4,750
December 5,200
Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs?
A) 4,500 ounces
B) 13,575 ounces
C) 13,425 ounces
D) 4,525 ounces
Answer:
Purchases = 13575 ounces
Option B is the correct answer
Explanation:
To calculate the purchases of material for October, we first need to calculate the inventory needed to produce the desired number of units in October along with the desired ending inventory and adjust it for the available opening inventory at start of October.
Material available at Start - October = 10% * 4500 units * 3 ounces per unit Material available at Start - October = 1350 ounces
Material required at end - October = 10% * 4750 units * 3 ounces per unit
Material required at end - October = 1425 ounces
Material required to produce required units in October = 4500 * 3 = 13500
Production = Opening Inventory + Purchases - Closing Inventory
13500 = 1350 + Purchases - 1425
13500 + 1425 - 1350 = Purchases
Purchases = 13575 ounces
Answer:
27.4 days
Explanation:
Accounts receivable turnover days :
365 / Receivable turnover ratio
Receivable turnover ratio :
Sales / Average accounts receivables
12,442,000,000 / 932,500,000 = 13.34
Account receivable turnover days :
365 / 13.34 = 27.4 days
