Answer:
The correct answer is option 4.
B. The correct answer is option 3.
Explanation:
The seaport town here became extremely popular with shipping countries due to its location. It increased the demand for docking at the port. As a result, the port became congested and ships must wait for hours. This is an example of market failure.
Here, the market is not able to efficiently allocate the product. The demand for the port is higher than what the market is able to supply efficiently.
A command economy can be defined as the economy in which the activities are controlled by any central agency, generally a government.
The Mayor instead of controlling if tries to solve the problem through the working of the market forces then it would be farthest from a command economy. If Mayor intervenes in any way then it is a command economy.
Answer:
17.6%
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the rate of return on the stock by using following formula:-
Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)
Before estimate rate of return on the stock
= 16% = α + (4% × 1) + (5% × 0.6)
= 16% = α + (0.04 × 1) + (0.05 × 0.6)
= 0.16 = α + 0.04 + 0.03
= 0.16 - 0.04 - 0.03 = α
α = 0.09 =9%
Rate of return after the changes
= 9% + (5% × 1) + (6% × 0.6)
= 0.09 + 0.05 + 0.036
= 0.176
= 17.6%
According to the analysis, New rate of return on the stock is 17.6%
Answer:
Option (C) is the correct answer to this question.
Explanation:
A cost-benefit analysis is a method that organizations use to assess decision making. The company or financial provision up the advantages of a circumstance or intervention but instead deducts the risks of taking the steps. Some consultants or analysts are now developing models for assigning a dollar value to intangible products, such as the advantages and costs of living in a certain town
Other options are incorrect because they are not related to the given scenario.
Answer:
reserves will be 0.1 billion
Explanation:
given data
discount rate = 1 %
borrow = $2 billion
reserve ratio = 10%
discount rate= 4.0% to 3.5%
to find out
bank reserves will be
solution
we know here discount rate is 1 % with borrow additional $2 billion and reserve ratio is 10%
and here discount rate is 0.5 % for 4% to 3.5 %
so here we can say bank will borrow $2 billion × 0.5
bank borrow = $1 billion
and
here bank reserves increase that is 10% × $1 billion
so reserves will be 0.10 × $1 billion = 0.1 billion
Answer:
Indication of items erroneously stated on:
A) the income statement for the year
Salaries Expense will be understated.
Therefore, the Net Income will be overstated.
B) the balance sheet as of October 31:
Salaries Expense Payable (current liabilities) will be understated.
Explanation:
When accrued salaries are not accounted for in the financial statements for an accounting period, it means that the revenues generated for that period are not being matched with the expenses incurred in generating the revenues. Such omission does not agree with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses are accrued whether paid for or not, and that expenses are matched to the period's revenue since they are necessarily incurred in generating such revenue.