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Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream

Harlamova29_29 [7]

Answer:

Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution.

It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when communications barriers or social customs are important enough relative to the potential gains involved that a private solution is not feasible.

Explanation:

The type of private solution to the externality of pollution occurred in this case is Charities , because the work done by a non-profit organization is a form of charity.

It is crucial to note that sometimes private solutions to externalities do not work for example, this occurs when one party repeatedly holds out for a better deal.This describes the problem of a breakdown in bargaining.

7 0

3 years ago

International issues of social responsibility and ethical behavior are: difficult and not as clear-cut as U.S. firms would like

Arlecino [84]

Answer: difficult and not as clear-cut as U.S. firms would like them to be

Explanation:

The issues associated with social responsibility and ethical problems doesn't pertain to a particular income level or economic system.

Even though businesses in the United States always demand socially responsible behavior and good ethics from their international suppliers, the issues of social responsibility and ethical behavior are still difficult and not as clear-cut as they want them to be.

This is really a bothering issue as.it has even been suggested in the past whether the international suppliers should be made to adhere to the laws I the United States.

5 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

Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'

SVETLANKA909090 [29]

Answer:

The production range between 1120,000 and 150,000 is called Relevant range

correct option is c) relevant range

Explanation:

given data

normally produces = 120,000 to 150,000 units

to find out

The production range between 1120,000 and 150,000 is called

solution

The production range between 1120,000 and 150,000 is called Relevant range because there are 2 point

if Craft, Inc. need to reduce fixed expenses then production volume is reduce less than 120000 unit

if Craft, Inc. need to increase fixed expenses than production volume is increases more than 150000 unit

and if expected fixed expenses will not change than the production volume is 120000 units to 150000 units

so that production range between 1120,000 and 150,000 is called Relevant range

correct option is c) relevant range

7 0

3 years ago

Prepare a pro forma balance sheet, assuming a sales increase of 15 percent, no new external debt or equity financing, and a cons

xeze [42]

Answer:

pro forma Balance sheet

old increased

assets

non current assets 37800 43470

net PPE 37800 43470

Current assets 15400 17710

Inventory 9000 10350

Accounts receivable 3900 4485

cash 2500 2875

total assets 53200 61180

Equity & Liabilities

common stock 15000 15000

retained earnings 6800 13930

total 21800 28930

Liabilities

long term debt 24000 24000

Current liabilities 7400 7760

Accounts payable 2400 2760

notes payable 5000 5000

total 53200 60690

EFN = 61180 - 60690 = 490

PAYOUT RATIO = dividends / net income

additions to retained earnings = net income less dividends

Explanation

Retained earnings = old retained earnings plus additions to retained earnings = 6800 + 7130 =13930

Missing parts of the Question

Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION

Income Statement

Sales $ 48,500

Costs 34,500

Taxable income $ 14,000

Taxes (35%) 4,900

Net income $ 9,100

Dividends $ 2,900

Addition to retained earnings 6,200

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION

Balance Sheet

Assets Liabilities and Owners’ Equity

Current assets Current liabilities

Cash $ 2,500 Accounts payable $ 2,400

Accounts receivable 3,900 Notes payable 5,000

Inventory 9,000 Total $ 7,400

Total $ 15,400 Long-term debt $ 24,000

Owners’ equity

Fixed assets Common stock and paid-in surplus $ 15,000

Net plant and equipment $ 37,800 Retained earnings 6,800

Total $ 21,800

Total assets $ 53,200 Total liabilities and owners’ equity $ 53,200

1.Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

2.Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

8 0

3 years ago