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3 years ago

9

Automobile insurance companies have a problem with people who buy insurance and then drive recklessly or take less care to avoid

losses after being insured. in other words, the automobile insurance market is subject to

1 answer:

Sergio039 [100]3 years ago

4 0

I think the proper term is "moral hazard"

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Storm Concert Promotions Valle Home Builders

KIM [24]

Answer:

<u><em>Storm Concert Promotions</em></u>

It was overapplied as the amount appliued exceed the actual overhead cost so we decrease the cost of good.

manufacturing overhead 3,200 debit

COGS 3,200 credit

<u><em>Valle Home Builders</em></u>

It was underapplied as the amount applied was below the actual overhead cost. We must increase the cost of our good sold to recognize the extra cost.

COGS 1,200 debit

manufacturing Overhead 1,200 credit

Explanation:

Storm Concert Promotions

Actual indirect materials costs 22,000

Actual indirect labor costs 46,000

Other overhead costs <u> 17,000 </u>

Total overhead 85,000

Overhead applied 88,200

Overapplied overhead 3,200

Valle Home Builders

Actual indirect materials costs 12,500

Actual indirect labor costs 46,500

Other overhead costs <u> 47,000 </u>

Total overhead 106,000

Overhead applied 105,200

Overhead underapplied 1,200

6 0

3 years ago

Simon is a buyer represented by Peter. Peter shows Simon several homes currently on the market. What is Peter's relationship to

Fed [463]

Answer:

The sellers are peter’s customers.

Explanation:

The sellers are peter’s customers because in this situation peter is showing them the houses available in the market. Thus we can consider that the owner of the homes is customers to Peter because here the work of peter is to help in the sale of homes. Therefore it may be said that the sellers are peter's customer.

5 0

4 years ago

A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be pe

faust18 [17]

Answer:

A. the FCAC is less than the TBC

Explanation:

If the amount of cumulated actual costs is less than difference between the total budgeted cost and the re-estimate, then the FCAC is less than the TBC

3 0

3 years ago

If the economy is at equilibrium above potential output:

babunello [35]

Answer:

B) There is an inflationary gap, and contractionary fiscal policy is appropriate.

Explanation:

One of the macroeconomic cases is inflationary gap. It means that the difference between the current level of real gross domestic product (GDP) and the predicted or forecasted GDP that would be experienced and achieved if an economy is at full employment. It could be claimed that when the demand for goods and services gets over the production in the factors such as: higher levels of overall employment, increased trade activities or increased government expenditure.

In order to overcome this gap, the contractionary fiscal policy must be considered. The mechanism of that policy is to increase the taxes decrease the government expenses due to inflationary pressures. This policy consequently will affect the level of consumption and private investment, respectively, these also will decrease the real GDP.

Other concept of macroeconomics is recessionary gap. In comparison to inflationary gap, this concept indicates the economy operating at lower level than its full equilibrium level, in turn, the level of real GDP is also less than full equilibrium level. We used to see this situation when the economy was intending to recess.

In order to overcome this gap, the expansionary fiscal policy will work well. Because of decreasing taxes and increasing government expenditures, the recessionary gap can be fought anymore. Since the taxes decreases, the business will revive and the confidence to the investment will increase, as a result the GDP will rise. Moreover, the growing government expenditures will stimulate the GDP to accrue.

To summarize, according to the question we need the gap in which the economy is above of potential, this means inflationary gap. Following this finding, the contractionary fiscal policy will be solution.

6 0

4 years ago

The price of crude oil increases 50%. This will cause a change in ( supply/ quality supplied )

Paladinen [302]

Answer:

See below

Explanation:

A price increase motivates suppliers to avail more products for sale in the markets. High prices tend to have a high margin hence more profits. Like other businesses, oil producers are profit-motivated; they will supply more quantities if there is a high probability of making more profits.

The law of supply explains the correlation between supply and price. As prices increase, supply also tends to increase.

5 0

3 years ago