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algol [13]
3 years ago
9

Each statement below is part of an economic model. Indicate whether the statement is a prediction of cause and effect or an assu

mption.
a. People behave rationally: __ .
b. If the price of a good falls, people will consume more of that good: __ .
c. Mass starvation will occur as population outgrows the food supply: __.
d. Firms want to maximize profits:___ .
Business
2 answers:
Brilliant_brown [7]3 years ago
7 0

Answer: Please refer to answer.

Explanation:

An Assumption in Economics is a condition that is necessary for Economic theory to be founded upon. You could call them SIMPLIFYING conditions as they make the Theory easier to understand.

Cause and Effect I hope and believe is self explanatory.

a. People behave rationally: ASSUMPTION.

This is a basic Assumption in Economics that helps to explain why and how Individuals react to certain things.

b. If the price of a good falls, people will consume more of that good: CAUSE AND EFFECT

People consume more goods (effect) when prices fall (cause).

c. Mass starvation will occur as population outgrows the food supply: CAUSE AND EFFECT .

Mass Starvation will occur (effect) if the population outgrows food(cause).

d. Firms want to maximize profits: ASSUMPTION.

This is another Economic Assumption that attempts to explain why firms act in a certain way.

aivan3 [116]3 years ago
4 0

Answer:

(a) Assumption

(b) Cause and Effect

(c) Cause and effect

(d) Assumption

Explanation:

(a)  People behave rationally: Assumption

Rational behavior refers to a decision-making process that is based on making assumptions that result in an optimal level of benefit or utility.

(b) Cause and Effect

If a price of goods falls that is a cause and the effect is that  people will consume more of the good.

(c) Cause and effect

As the population grows faster than food supply (cause), mass starvation is predicted to occur which is the resultant effect.

(d) Assumption

The maximization of profit is based on the assumption of theory of production and costs.

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The Most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. In
Aneli [31]

Answer:

$5,006.07

Explanation:

The external financing needed = Projected Increase in Assets - Increase in Liabilities - Increase in Retained Earnings

Projected Increase in Asset = Assets Value*Sales Growth Rate

Projected Increase in Assets = $364,720 * 20%

Projected Increase in Assets = $72,944

Increase in Liabilities = Liabilities * Sales Growth Rate

Increase in Liabilities = $69,600 * 20%

Increase in Liabilities = $13,920

<em>To calculate the Increase in Retained Earning, the below calculations are needed:</em>

a. Profit Margin Rate = Net Income / Sales * 100

Profit Margin Rate = 75,000 / 751,000 * 100

Profit Margin Rate = 9.99%

b. Dividend Payout Ratio = Dividend / Net Income * 100

Dividend Payout Ratio = 30,000 / 75,000 * 100

Dividend Payout Ratio = 0.4

Dividend Payout Ratio = 40%

Retention Rate = 1 - Dividend Payout Ratio

Retention Rate = 1 - 0.40

Retention Rate = 0.60

Retention Rate = 60%

c. Expected Sales = $751,000 * 1.20 = $901,200

So, the Increase in Retained Earning = Expected Sales * Profit Margin * Retention Rate = $901,200 *9.99% * 60% = $54,017.93

Therefore, External Fund Needed = $72,944 - $13,920 - $54,017.93 = $5,006.07

3 0
2 years ago
Pricing Strategy, Sales Variances Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,
deff fn [24]

Answer:

Check the explanation

Explanation:

Sales price variance = (Actual price - Budgeted price) * Actual units sold

Product R : ($25 - $26) * 123000 = $123000 unfavorable

Product S:($20 - $22) * 162700 = $325400 unfavorable

Product T: ($10 - $20) * 54000 = $540000 unfavorable

Sales volume variance = (Actual units - Budgeted units) * Standard price

Product R : (120000 - 123000) * 26 = $78000 favorable

Product S:(150000 - 162700) * 22 = $279400 favorable

Product T: (20000 - 54000) * 20 = $680000 favorable

Notes:

Actual units:

Product R = $3075000/ $25 = 123000

Product S = $3254000/$20 = 162700

Product T = $540000/$10 = 54000 units

6 0
3 years ago
You smart ?? Help pleasss
Schach [20]
B, because the average customer would want 2
3 0
3 years ago
An investment offers a total return of 15 percent over the coming year. Janet Jello thinks the total real return on this investm
Sonbull [250]

Answer:

6.78%

Explanation:

Data provided in the question:

Total return i.e nominal rate = 15% = 0.15

Real return = 7.7% = 0.077

Now,

Inflation rate = \frac{\textup{1 + Nominal rate}}{\textup{1 + Real return }}  - 1

on substituting the respective values, we get

Inflation rate = \frac{\textup{1 + 0.15}}{\textup{1 + 0.077}}  - 1

or

Inflation rate = [ 1.15 ÷ 1.077 ] - 1

or

Inflation rate = 0.0678

or

Inflation rate = 0.0678 × 100% = 6.78%

6 0
3 years ago
Partially completed goods that are in the process of being converted into a finish product are defined as Select one: A. convers
fomenos

Answer:

B. work-in-process inventories.

Explanation:

Partially completed goods that are in the process of being converted into a finish product are defined as work-in-process inventories.

Generally, the work-in-process inventories include the following raw materials cost, direct labor cost and factory overhead cost.

These category of products are only partially completed and as such are waiting for further processing, still undergoing fabrication or kept in a buffer storage.

4 0
3 years ago
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