Answer:
Real wage rate can be calculated by:
= Nominal wage rate /CPI * 100
2018 real wage rate:
= 7 / 252 * 100
= $2.78
2019 real wage rate:
= 10 / 257 * 100
= $3.89
Did these workers really get a pay raise between 2018 and 2019?
YES THEY DID:
= 2019 real wage - 2018 wage rate
= 3.89 - 2.78
= $1.11
Answer:
Explanation:
Profit maximization objective can easily be manipulated and it is highly subjective. Management may decide to avoid some costs in the short-term such as Investment in Assets, Investment in R &D and other discretionary cost in order to have an impressive profit performance. In the long-run, the avoidance of this cost now may reduce the earnings capacity of the company assets.
Using profit as measure of performance for manager may encourages dysfunctional behavior.
In the true sense, profit generation may not translate into increase in the value of the company . For example, management may decide to reduce depreciation charge, decide to over state revenue or over valued inventory
On other hand, maximizing shareholder value is a long-term and sustainable objective that involved investing in viable projects with positive net present value to enhance the value of the company.
When this is used as a performance measure , it very difficult to manipulate in the short-term.
Answer:
The correct answer is: As the interest in a product goes up, the price goes up.
Explanation:
Increasing interest and thus increasing demand leads to increased demand for a particular good or service. In this respect, as production remains constant, the increased demand for goods or services pressures the supply of this good or service, culminating in its price increase.
Answer:
a. Producer surplus
b. Neither
c. Consumer surplus
Explanation:
The producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he actually gets.
The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he actually gets.
a. Here, the person gets $189 for his laptop but he was willing to accept $180 as well. This is an example of producer surplus. The producer surplus, in this case, is $9.
b. In this example, we only know the price that the producer actually received and the price the consumer actually paid. The maximum price the consumer was willing to pay or the minimum price that the producer was willing to accept is not mentioned. So this is neither an example of producer surplus nor consumer surplus.
c. Here, the consumer was willing to pay $47 for a sweater, but he actually has to pay $40. This is an example of consumer surplus. The consumer surplus is equal to $7.
Answer:
Explanation:
An unlimited payment plan for controlling sales force expenses Is flexible so management can allow for cost differentials arising from variations in jobs or territories
