Answer:
a. The services of a commercial painter in painting the family home.
No, Not Included , As no monetary/payment transaction is involved for service provided.
b. An auto dealer’s sale of a new car to a non-business customer.
Included , As the sale of car has happened to the final consumer
c. The money received by Smith when she sells her biology textbook to a used-book buyer.
Not included , as nothing new is produced in the economy
d. The publication and sale of a new economics textbook.
Included , As new books are produced in the economy
e. A $2 billion increase in business inventories.
Included, as this new inventory is produced during this year.
f. Government purchases of newly produced aircraft.
Included , As it's production took place this year and government is final consumer.
Answer:
The correct answer is 10 chips.
Explanation:
A person is eating chips. Initially, the marginal utility is very high, but after 10 chips it starts declining. It declines till 49 chips and after that it becomes negative.
We see that the marginal utility derived from the consumption of chips start to decline after consuming 10 chips.
This implies that marginal utility is being maximized at the consumption of 10 chips.
So the utility-maximizing quantity of chips is 10 chips.
Answer:
Ending cash balance for November = $52,869
Explanation:
Crane Company
Cash Budget
October
November
beginning cash balance
$16,000
$40,539
expected cash receipts
$63,000
$95,000
Total available cash
$79,000
$135,539
expected cash payments
$45,000
$76,000
excess of available cash over payments
$34,000
$59,539
financing:
Borrowings
$6,539
$0
Repayments
$0
($6,539)
Interest
$0
($131.00)
Ending cash balance
$40,539
$52,869
The ending cash balance shortfall in October $40,539 - $34,000 = $6,539
Hence, the amount to be borrowed = $6,539
In November, the company has enough funds to meet its ending cash balance as well as pay-off the borrowed amount with interest.
Interest for 2 month = 6,539 x 12% x 2/12 = $130.78 or $131 (rounded off)
Note: cash is borrowed in the first day of the month, assuming the company borrows cash on October 1, and repays on November 30, interest is payable for two months.
<span>The default risk premiums on the exxon bond is 1%. Treasury bonds are backed by the government and have a greater security against risk. The risk premium for the xerox bond is 1.2% and has the same reasoning as the exxon bond. Government back bonds usually have less risk than corporate bonds and thus can offer lower yields.</span>
Answer:
She should do her financial planning properly.
Explanation:
In the context, it is given that Anh who is a full time employee in a firm owns a car and she is single. She has some debts to pay and also has a student loans. She is currently buying a home. In this way she might face financial problems in her future. She will in huge debts where she will not be able to pay off the loans and the debts.
So Anh must consult a financial expert who will help her or guide her to plan her finances properly. She must pay off the debts and the loans as soon as possible. The more delay she does the more debt she will be pulled into as she will have to pay more as the interest increase.
So she should invest properly and clear off her loan first.