Answer:
Jerry's gain on the sale= $28,500
Explanation:
When Jerry sells his interest in JJM to Lucia his basis ($54,250) is what he owes and will be taken out of the proceeds he will get for selling his interest in the company.
Therefore
Jerry's gain on the sale= Amount of sale- Jerry's basis
Jerry's gain on the sale= 82,750- 54,250
Jerry's gain on the sale= $28,500
Answer:B. are always completely flexible
Explanation:The classical theory proposes that all markets reequilibrate because of adjustments in prices and wages which are flexible. For instance, if an excess in the labor force or products exist, the wage or price of these will adjust to absorb the excess. If prices and wages are flexible, markets reequilibrate.
Wages are said to be flexible when they respond to changes in supply and demand and lead to the market clearing wage being set. It implies that the wage will be set by the Marginal Revenue Product of labour and marginal cost of labour. Any change in supply and demand for labour will lead to a change in the wage rate.
The importance of wage flexibility arises from the fact that, in most macroeconomic models, we find an inverse relationship between wages and employment.
Answer: a. benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.
Explanation:
Equilibrium price will be at level where quantity demanded equals quantity supplied.
200 − 2P = -60 + 3P
200+60 = 5P
5P = 260
P = $52
Equilibrium Quantity Demanded = 200 − 2P = 200 - 2 * 52 = 96 units
In a no-trade situation the demand in Boxland is 96 units at a price of $52. If they were to buy at the world price of $45, they would benefit;
= (96 * 52) - (96 * 45)
= 4,992 - 4,320
= $672
Producers however would produce the following at a price of $45;
Q S = -60 + 3P
= -60 + 3(45)
= 75 units
They would be supplying less units and be hurt.
Answer:
2.30% appreciated
Explanation:
The computation of the change in dollar is shown below;
But before that we have to find out the base currency which is
As we know that
Old rate = $0.8909 / Euro
And New rate = $0.8709 / Euro
Therefore changing the base currency to Dollar, we get
Old rate = (1 ÷ 0.8909)
= Euro 1.122460 / $
New rate = (1 ÷ 0.8709)
= Euro 1.148237 / $
The more number of Euors could be bought when there is a change in rates together the dollar is also used. So dollar has appreciated.
Now the change in dollar is
Change in dollar = (New rate ÷ Old rate) -1
= (1.148237 ÷ 1.122460) - 1
= 1.0229647 - 1
= 0.0229647
= 2.29647% or 2.30%
The shares of stock of the firm are to be treated as independent when there are specific risk attached to them.
Given an incomplete sentence related to insurance principle.
We are required to fill the blank with appropriate word so that the sentence gives appropriate meaning.
The appropriate word which will fit is independent.
Insurance is basically protection from financial loss. It is the form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. An institution which provides insurance is known as an insurer, an insurance company, an insurance carrier or an underwriter.
Because the shares of stock are different so the company needs to get insurance of each types of shares individually.
Hence the insurance principle relies on the idea that firm-specific risk among different shares of stock is independent.
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