Answer:
The correct answer is Allocative efficiency.
Explanation:
Although there are different evaluation standards for the concept of allocation efficiency, the basic principle states that, in any economic system, the different options in the allocation of resources will produce both "winners" and "losers" in relation to the choice being evaluated. The principles of rational choice theory, individual maximization, utilitarianism and market theory assume, in addition, that the results for both winners and losers can be identified, compared and measured.
From these basic premises, the objective of maximizing the efficiency in the allocation can be defined according to some neutral principle in which some options are considered “objectively better than others”. For example, an economist might say that a change in policy increases the efficiency of allocation, as long as those who benefit from the change (winners) earn more than the losers lose.
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Answer:
a. 19.750 b. 138.250
Explanation:
A. We divide 158.000 by 8 to get the amount per year
158.000/8= 19.750
- Amortization expense (Db) 19.750
- Accumulated amortization (Cr) 19.750
B. On the balance sheet at the end of the first year, we would subtract those 19.750 to the gross value of the patent and the value of the patent would be
158.000 - 19.750 = 138.250
<u><em>Net carrying amount of the patent:</em></u><em> 138.250</em>
Answer:
Basis risk for the future contract is 0.65%
Explanation:
Basis risk is the difference in spot price and future price of an hedged asset. It is the difference between the price price of an hedged asset and price of the asset serving as the hedge.
Basis risk = Futures price of contract − Spot price of hedged asset
Basis Risk = Future IMM index - Spot IMM index
Basis risk = 95.75% - 95.10%
Basis risk = 0.65%
Answer:
a. $3.13 per unit
b. No
c Yes
Explanation:
The computation is shown below
a. Fixed overhead per unit is
= Fixed overhead ÷ Number of units manufactured
= $363,000 ÷ 116,000 units
= $3.13 per unit
b. The cost calculation is not appropriate because the fixed overhead per unit is not be involved while calculating the cost
c. Now the acceptance of the offer should be based on total relevant cost which is
Total relevant cost
= $6.1 + $6.1 + $8.1
= $20.3
Since the offer is accepted because total relevant cost is less than the offered purchase price i.e $24.50
Answer:
The correct answer is option a.
Explanation:
Minimum wages can be defined as the minimum level of wages that an employer is supposed to pay to workers for their work. It cannot be reduced through an individual contract or collective agreement.
Minimum wages are fixed above the equilibrium level of wages. At this level, the demand for labor is lower while supply is more because of high wages. This creates surplus labor in the market.
