Answer:
Substitution Effect outweighs Income Effect ; Labour Supply Curve between wages will be upward sloping. OR :-
Income Effect outweighs Substitution Effect ; Labour Supply Curve between wages will be backward bending
Explanation:
Relationship between wage rate & labour supply can be explained by two effects :
- Substitution Effect : Higher wage means more opportunity cost of leisure, so labourer would substitute leisure by working hours. This would imply increased labour supply.
- Income Effect : Higher wage means more income. At higher income, consumer demands more of all goods, including leisure. So that would imply labourer preferring more leisure, decreased labour supply.
Wage rate change from $20 to $25 is a case of wage rate increase
If substitution effect > income effect, labour supply would increase as a result of wage rise ( from $20 to $25). So, the labour supply curve would be upward sloping
If income effect > substitution effect, labour supply would decrease as a result of wage rise ( from $20 to $25). So, the labour supply curve would be backward bending
The correct answer is D. decreasing inventory to lower costs
If you decrease inventory, then you don't have trapped money. If someone needs something, you can then order the things you need from your supplier and then sell it to the people who ordered it.
Oona should conduct research in the area of <u>"industrial-organizational" </u>psychology.
Industrial-organizational psychology is the branch of psychology that applies psychological speculations and standards to associations. Regularly alluded to as I-O brain research, this field centers around expanding working environment profitability and related issues, for example, the physical and mental prosperity of representatives.
Industrial-organizational psychologists use psychological standards and research strategies to take care of issues in the work environment and enhance the personal satisfaction. They think about work environment profitability and administration and representative working styles. They figure out the morale and identity of an organization or association.
Answer:
Doing a financial statement analysis.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.
Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.
Answer:
(1) Payback period is 4.588 years or 4 years and 215 days
(2) 5.13%
Explanation:
(1)
Payback period is the time period in which Initial Investment made in the project is recovered in the form of cash inflows.
Payback period = Initial Investment / Annual net cash flow
Payback period = $390,000 / $85,000 = 4.588 years = 4 years and 215 days
(2)
As per given data
Net Income = $20,000
Initial Investment = $390,000
Annual rate of return is the ration of net income to the investment made in the project.
Annual rate of return = Annual net Income / Initial Investment
Annual rate of return = ($20,000 / $390,000) x 100 = 5.13%
