Answer:
Katie Kwasi's Utility Function
The units of x1 that she will consume after the change in income is:
= 40 units of x1
Explanation:
a) Data and Calculations:
Katie Kwasi’s utility function, U(x1, x2) = 2(ln x1) + x2
Current consumption = 10 units of x1 and 15 units of x2
When her income doubles, with prices staying constant, Katie will consume:
= 2(2 * 10 of x1) + 15 of x2
= 40 units of x1 + 15 units of x2
Therefore, she will consume 40 units of x1 and 15 units of x2
b) The above function expresses mathematically Katie's utility to be a function of the units of x1 and x2 that she can consume, given her income constraint. If her income doubles, Katie will consume double units of x1 and the same units of x2 as she was consuming before the change in income.
Answer:
D. $53,000.
Explanation:
The computation of the ending cash balance is shown below:
Beginning cash balance $95,000
Add: Receipts
Cash sales $418,000
Total cash receipts (a) $513,000
Deduct: Payments:
Cash payment for purchases -$273,000
Cash payment for salaries -$96,000
Other cash expenses -$58,000
Repayment of bank loan -$33,000
Total cash payments (b) $460,000
Net receipts /( payments) (a) - (b) $53,000
Shareholders' Equity = Assets – Liabilities where the rearrangement reflects the residual claim of equity owners.
The two basic types of life insurance policies are B. Term and Permanent Whole Life.
A life insurance policy is a contract that someone gets with an insurance company. The purchaser makes payment to the company and if the person passes away, the insurance company will pay a large lump-sum payment known as a death benefit. Life insurance policies vary based on the purchaser. Whole and Term are two different types of life insurance policies. Whole life insurance coverage covers you your entire life whereas term life insurance only pays if needed during a certain term in life.
