Answer:
the general welfare will be the sum of consumer surplus and producer surplus.
Explanation:
The consumer and producer surplus assessment serves to measure the overall efficiency of the market, which in turn is associated with overall well-being. An efficient market is one in which both consumers and producers have the incentive to negotiate and effect trade.
Consumer surplus is the difference between the amount he or she is willing to pay and how much he or she actually pays for the product. This surplus is positive when the amount paid is less than the amount for which the consumer would be willing to pay.
Similarly, the producer's surplus is the difference between the market price and the price at which the seller is willing to produce and sell. When the producer's surplus is positive, it means that he sells the product for a price higher than the minimum value that would stimulate him to produce.
Thus, the general welfare will be the sum of consumer surplus and producer surplus.
Answer:
The lump sum invested was $2,730.30.
Explanation:
Giving the following information:
Invested one lump sum 17 years ago at 4.25 percent interest. Today, the proceeds totaled $5,539.92.
We need to calculate the original amount that this person invested 17 years ago. We will use the following formula:
PV= FV/(1+i)^n
PV= 5,539.92/ (1.0425)^17
PV= $2,730.30
Answer:
Explanation:
Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2
<u>Answer:</u>
<em>Yes, Americans always shared the same social and economic goals throughout history.</em>
<u>Explanation:</u>
The social economic segmentation of the American market. Market segmentation is the movement of distributing a widespread customer or business exchange, ordinarily consists of existent and potential clients, into sub-groups of customers which is recognized as segments which is based on the different type of shared features.
In distributing or segmenting businesses, researchers look for common features such as distributed needs, mutual interests, related lifestyles or even comparable demographic characterizations.
Answer:
Machine B has a higher NPV therefore should be produced
Explanation:
The machine with the higher Net Present Value (NPV) should be produced .
NPV of Machine A
PV of cash flow
PV of annual profit = A × (1- (1+r)^*(-n)/r
A- 92,000, n- 11, r- 12%
PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32
PV of salvage value = 13,000× 1.12^(-11)= 3737.189
NPV = 546268.320 + 3737.189 -250,000 = $300,005.50
NPV of Machine B
A- 103,00, n- 19, r- 12%
PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165
Pv of salvage value = 26000× 1.12^(-19)= 3018.776199
NPV =758675.0165 + 3018.77 -460,000 = $301,693.79
Machine B has a higher NPV , therefore should be produced.
