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Andrej [43]
3 years ago
6

Suppose that Paolo, an economist from an AM talk radio program, and Sharon, an economist from a public television program, are a

rguing over government bailouts. The following dialogue shows an excerpt from their debate:
Valerie: Thanks to recent financial crises, the concept of bailouts is a hot topic for debate among everyone these days.

Shen: Indeed, it's gotten crazy! A government bailout of severely distressed financial firms is unnecessary because free markets will properly price assets.

Valerie: I don't know about that. Without a bailout of severely distressed financial firms, the economy will experience a deep recession.

The disagreement between these economists is most likely due to:

1) Differences in perception versus reality

2) Differences in scientific judgements

3) differences in values

Despite their differences, with which propositional two economists chosen at random most likely to agree?

1) Rent ceilings reduce the quality and quantity of available housing.

2) Immigrants receive more in government benefits than they contribute in taxes.

3) Having a single income tax rate would improve economic performance.
Business
1 answer:
just olya [345]3 years ago
7 0

Answer:

Question 1 is Differences in perception versus reality

Question 2 is Rent ceilings reduce the quality and quantity of available housing.

Explanation:

Question 1

Perception is a way of regarding, understanding, or interpreting something; a mental impression as result of pre-existing notions. Shen judgement was based on her knowledge of economics of free markets without taking into consideration of exceptions.

Reality on the other hand is the state of things as they actually exist, as opposed to an idealistic or notional idea of them. Shen with her economics knowledge understands that the situation on ground does not conform with what Valerie knows. This is because perception is inherently flexible and speculative while reality disrespects viewpoints and view angles and is inherently rigid and factual.

Question 2

Rent ceilings stimulate demand and this cause shortages. Where the ceiling is set, there is more demand than at the equilibrium price.

This leads to shortage of supply of rent housing. This is because investors and landlords will stop building new houses or apartments to satisfy existing or increasing quantity demand. This shortage of supply somehow will lead to search activity and invariably affect the quality and quantity of available housing.

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Larson Manufacturing is considering purchasing a new​ injection-molding machine for ​$360 comma 000360,000 to expand its product
Anastaziya [24]

Answer:

If I bougth the Machine at 14% interest.

This purchase is not justified

Depreciation expenses and credit interest are greater than the income generated

Explanation:

Machine 360000    

Adittional cost 20000    

Final Cost 380000    

Salvage Value 73000    

Machine value for depreciation 307000    

   

   

year 1 307000 61400 245600  

year 2 245600 61400 184200  

year 3 184200 61400 122800  

year 4 122800 61400 61400  

year 5 61400 61400 0  

   

   

Period Payment Capital Interest Loan

   

   360000

1 104.862 54.462 50.400 305.538

2 104.862 62.087 42.775 243.451

3 104.862 70.779 34.083 172.672

4 104.862 80.688 24.174 91.984

5 104.862 91.984 12.878 0

   

Depreciation 307000    

Interes        164.310    

Expenses 471.310    

   

Revenue       430.000    

8 0
3 years ago
What is the best loan option for a neighborhood Lemonade stand? Why?​
Radda [10]

Short term loan is the best loan option for a neighborhood Lemonade stand because it is a small business.

<u>Explanation:</u>

Short term loan is obtained for a small business capital need. Short term loans are usually payable within an year. The interest to paid to short term loan is less compared to long-term loan.

Bank offers loan amount easily because they encourage people to do small business. In short term loan, risk is generally low and the profit is high if the business is running well.Since lemonade stand is a small business, short-term loan is the best loan option.  

3 0
3 years ago
Radon Corporation manufactured 33,000 grooming kits for horses during March. The company uses machine hour to allocate fixed man
Bumek [7]

Answer:

1) The fixed overhead production-volume variance is $14400 favourable.

2) The fixed overhead spending variance is $9000 unfavourable.

Explanation:

1)

Fixed overhead production volume variance

= amount applied * amount budgeted

= 144000/30000

= 4.80 per unit

= 4.80*33000 - 144000

= $14400 favourable

Therefore, The fixed overhead production-volume variance is $14400 favourable.

2)

fixed overhead spending variance

= actual overhead - budgeted overhead

= 153000 - 144000

= $9000 unfavourable

Therefore, The fixed overhead spending variance is $9000 unfavourable.

6 0
3 years ago
Company X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share.
gladu [14]

Answer:

23.08%

Explanation:

The computation of the debt ratio is shown below:

Debt amount

= 2 million × 0.90

= 1.80 million

And,

Equity amount

= 2 million × 3

= 6 million

Now

debt ratio = debt amount  ÷ (amount of debt + amount of equity)

= 1.80 million ÷ ( 6 million + 1.80 million)

= 23.08%

4 0
3 years ago
The Maurer Company has a long-term debt ratio of .50 and a current ratio of 1.40. Current liabilities are $970, sales are $5,190
bekas [8.4K]

Answer:

$7,210.1065

Explanation:

The computation of net fixed assets is shown below:-

But before that we need to do the following calculations

Current Ratio = Current Assets ÷ Current Liabilities

Current Assets = 1.40 × $970

= $1,358

Profit Margin = Net Income ÷ Sales

= 9.30% = Net income ÷ $5,190

Net income = $5,190 × 9.30%

= $482.67

ROE = Net Income ÷ Shareholders Equity

16.90% = $482.67 ÷ Shareholders Equity

Shareholders Equity = $482.67 ÷ 16.90%

= $2,856.0355

Long-term debt ratio = Long term debt ÷ (Long term debt + Equity)

0.50 = Long term debt ÷ (Long term debt + $2,856.0355)

Long term debt = 0.50 × Long term debt + $2,856.0355

0.5 × Long term debt = $2,856.0355

Long term debt = $2,856.0355 ÷ 0.50

= $5,712.071

Total Assets = long term debt + Equity

= $5,712.071 + $2,856.0355

= $8,568.1065

Now

Total Assets = Current Assets + Fixed Assets

$8,568.1065 = $1,358 + fixed assets

So, the fixed asset is

= $8,568.1065 - $1,358

= $7,210.1065

7 0
3 years ago
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