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1 year ago

As the wage rate increases, the quantity of labor supplied by an individual worker will?

1 answer:

8 0

As the wage rate increases, the quantity of labor supplied by an individual worker will raise the quantity of labor supplied through the substitution effect.

For labor supply, the substitution effect is always positive.

It means that a higher wage rate always induces a greater quantity of labor supplied. For any worker, the substitution effect of a wage increament will always reduces the amount of leisure time consumed by him and increases the amount of time which is spent on working.

A higher wage thus produces a positive substitution effect on labor supply.

With the increase in the labor supply the supply curve for labor will move upward.

To know more about the labor supply here:

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In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF p

Lunna [17]

Answer:

a. 4.06%

b. $827.06

c. 5.33%

Explanation:

a. Assuming you purchased the bond for $740, what rate of return would you earn if you held the bond for 25 years until it matured with a value $2,000?

Rate of return = [(Promised payment / Bond purchase price)^(1 / 25)] - 1 = [(2,000 / 740)^(1/25)] - 1 = 1.0406 = 0.0406 = 4.06%

Therefore, the rate of return that you would earn is 4.06%.

b. Suppose under the terms of the bond you could redeem the bond in 2023. DMF agreed to pay an annual interest rate of 1.4 percent until that date. How much would the bond be worth at that time?

Since 2015 to 2023 is 8 years, the worth of the bond after 8 years at 1.4 percent can be computed as follows:

Worth after 8 years = Bond purchase price * (1 + r)^n

Where;

r = annual interest rate = 1.40%, or 0.014

n = number years after = 8

Therefore, we have:

Worth after 8 years = 740 * (1 + 0.014)^8 = $827.06

c. In 2023, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2040. What annual rate of return will you earn over the last 17 years?

Return in last 17 years = [(Bond purchase price / Worth after 8 years)^(1/17)] - 1 = [(2,000 / 827.06)^(1/17)] - 1 = 1.0533 - 1 = 0.0533 = 5.33%

5 0

3 years ago

The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info

Gemiola [76]

Answer:

Direct material used= $102,000

Cost of goods manufactured= $327,000

COGS= $347,000

Explanation:

First, we need to calculate the cost of direct material used:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 28,000 + 105,000 - 31,000

Direct material used= $102,000

Now, the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 102,000 + 130,000 + 105,000 - 50,000

cost of goods manufactured= $327,000

Finally, the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 80,000 + 327,000 - 60,000

COGS= $347,000

6 0

2 years ago

A bank currently has $50 million in deposits, $6 million in cash in the vault, $4 million on deposit with Fed, and $5 million in

yuradex [85]

Answer:

A) $800,000

Explanation:

Since the current reserve ratio is 20%, and the bank has no excess reserves, then the maximum it can lend if it receives $1 is $800,000.

The bank has currently $50 million in deposits and $10 million in reserves ($6 million in cash and $4 million in the Fed), so its reserves are exactly 20% of its total deposits. So if any new deposits are received, the bank will have to keep as reserves 20% of it (= $1,000,000 x 20% = $200,000).

This type of banking system is called the fractional banking system because banks are only required to keep a fraction of the money they receive as deposits and they can lend the rest to other clients.

8 0

2 years ago

_ is the actual amount each common stockholder would expect to receive if a firm's assets are sold for their market value, cre

Alona [7]

Answer: Liquidation value

Explanation:

The liquidation value is one of the type of physical assets of an organization and the business value, real estate firms, directories and the equipment are refers as the liquidation value that helps in evaluating the overall worth of the firm.

This organizational value is lower as compared to the market value and it has less time for selling the products in the open market.

According to the given question, the liquidation value is refers as the actual amount of the stockholder expected value value in the market. Therefore, Liquidation value is the correct answer.

5 0

2 years ago

If 2G Robotics is bought by another firm and Gillham decided to allocate a total of 400 points to employees, and the value of th

Darina [25.2K]

Answer:

The programmer can get $20,250

Explanation:

Take the amount of 300,000 multiple by the point the programmer is worth then divide by the total points for the employees.

300000*27/400= 20250

7 0

3 years ago