Paid in Capital Common Stock in Excess to par = (35-9)*50,000=1,300,000
Paid in Capital Common Stock in Excess to par is the difference between the par value of the share and the market value or fair value it was sold at, in this case the par value per share was 9 and market value was 35 , there fore we multiplied their difference by 50,000 to get the total difference.
Explanation:
Answer: shift out by more than $40 if the mpe is between 0 and 1
Explanation:
If the price level is fixed and autonomous expenditures rise by $40, then the multiplier model would predict that the aggregate demand curve would:
SHIFT OUT BY MORE THAN $40 IF THE MPE IS BETWEEN 0 AND 1
Answer:
Option E. None of the choices are correct.
Explanation:
The substitution effect refers to the situation whereby there is a decrease in sales for a particular product due to the fact that consumers are switching to cheaper alternatives when its price rises.
The substitution effect arises purely out of the need for consumers to be frugal. If a producer raises the price of their commodities, some consumers will opt for a cheaper alternative. For example, if beef prices go up, many consumers will switch to chicken.
A manufacturer can also experience the substitution effect when faced with a price hike for an essential raw material needed for production, he/she may switch to cheaper resources.
Answer: a. an offshore facility.
Explanation:
Offshore in this scenario refers to activities in another country therefore an offshore facility would be one that supplies markets located in countries outside the country the facility is located.
These facilities are able to supply other countries with materials because they do it at such a low enough cost that the countries they supply to buy from them instead of their own countries. This is how most Newly Industrialized Countries came to be.
Answer:
3. Investing is riskier than putting money in a savings accounts.
Explanation:
Investing involves putting money in profits generating ventures. It is risky because the money invested may be lost should the venture make losses instead of profits. Investments activities include buying of shares and other marketable securities or starting and operating a business. Should the business or investment do well, the returns or profits can be attractive.
Saving is putting money aside for future consumption. Saving may be done through savings accounts that as safe and secure. Money saved is risk-free. The possibility of losing it is very minimal. Because money saved is kept safe, it does not generate much income for the owner.
