The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.

Before the Price Floor was introduced, area A, B and C were the Consumer Surplus as they were above the price but below the Demand Curve.

After the Price Floor was introduced however, area B has become a Producer Surplus.

7 0

3 years ago

The LIBOR scandal in 2012 involved a. banks reporting inflated earnings from their loans. b. hackers breaking into the loan docu

stepladder [879]

Answer:

C) banks falsely reporting the interest rates they offered in the interbank market.

Explanation:

The LIBOR rate is used all over the world to set banking interest rates. it reflects the cost of interbank loans. The LIBOR was used as a benchmark to charge interest rates to clients around the world, e.g. LIBOR + 2%.

The scandal involved many major banks, e.g. Deutsche Bank, Barclays, UBS, Rabobank, HSBC, Bank of America, Citigroup, JPMorgan Chase, the Bank of Tokyo Mitsubishi, Credit Suisse, Lloyds, WestLB, Royal Bank of Scotland, and a long list of etc.

What the banks did was artificially manipulate the LIBOR rate by increasing or decreasing it to show artificial profits from trading activities. When the manipulation was discovered, it had been going on for at least 7 years, and some believe it started earlier.

4 0

2 years ago

QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty

prisoha [69]

Answer:

On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts

Recording of revenue:

Cash $490 (debit)

Revenue $490 (credit)

Recording of Warranty granted :

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00 (credit)

$490 × 10% = $49.00

On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory

When warranty is subsequently received:

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Explanation:

On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts

Recording of revenue:

Cash $490 (debit)

Revenue $490 (credit)

We Recognise Revenue to depict transfer of control of mower

Recording of Warranty granted :

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00 (credit)

$490 × 10% = $49.00

There is no option for customer to take the warranty or not, so this is a service warranty.The warranty is measured at the best estimate of expenditure required to settle the obligation that is at 10% of sales.

On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory

When warranty is subsequently received:

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Utilise the Warranty Provision when the warranty claim is subsequently received

7 0

3 years ago

Allocation of resources is inefficient only if:________

weqwewe [10]

Answer:

 we produce the goods and services that people value less

Explanation:

Remember, an inefficient activity is one that fails to achieve maximum productivity with minimum wasted effort.

Let's take for example a mobile producer (manufacturer) decides to allocate its resorces into producing laptops. However, it later determined that the allocated resources were inefficient since most consumers according to a survey now prefer tablet computers. The company received low sales volume as result.

6 0

3 years ago