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3 years ago

Most economists do not recognize consumer credit as a major force in the American economy.

1 answer:

7 0

False. Consumer credit is a MAJOR force in the american economy, without consumer credit many business would not be able to exist, including banks.

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Murljashka [212]

I’d say false. I hope this helps

4 0

3 years ago

Suppose people cannot tell for sure whether they will fall ill in any given year. High-risk people correctly perceive their chan

Crank

The expected annual medical expenses of a high-risk person is $3000 per year while that of a low-risk person is $1000 per year.

The expected annual medical expenses of a high-risk person will be calculated as:

= Probability of falling ill × Expenses in case of illness

= 30% × $10000

= 0.3 × $10000

= $3000

The expected annual medical expenses of a low-risk person will be calculated as:

= Probability of falling ill × Expenses in case of illness

= 10% × $10000

= 0.1 × $10000

= $1000

It should be noted that in a situation where the individuals are risk neutral, the low-risk persons will not buy insurance as only the high-risk individuals will be expected to buy<em> insurance.</em>

Read related link on:

brainly.com/question/25405387

5 0

3 years ago

World Company expects to operate at 80% of its productive capacity of 61,250 units per month. At this planned level, the company

yaroslaw [1]

Answer:

$2,880 unfavorable

Explanation:

A difference between the actual and estimated (budgeted) quantity of consumption of a product at standard rate

Formula for volume variance

Volume variance = (Actual quantity - budgeted Quantity) x Standard Rate

Budgeted Fixed overhead rate = $47,040 / $29,400 = $1.60 per direct labor hour

Budgeted Variable overhead rate = 355740/29400 = $12.10 per direct labor hour

Standard direct labor hour = ( 29,400 / 49,000) x 46,000 = 27600 direct labor hour

Fixed OH applied = 27,600 hours x $1.6 per direct labor hour = $44,160

Variable OH applied = 27,600 x $12.10 per direct labor hour = $333.960

Total overhead applied = $44,160 + $333,960 = $378,120

Budgeted Overhead = $47,040 + $333,960 = $381,000

Volume variance = Budgeted overhead - Total overhead applied

= 381,000 - $378,120 = $2,880 unfavorable

As actual production used more labor hours than estimated, so the volume variance is unfavorable.

8 0

3 years ago

The manager of Flogymki, a newly opened continental restaurant, decides to organize the restaurant's labor force into separate d

Romashka [77]

Answer: Functional departmentalization

Explanation: In a functional departmentalization structure, the company tries to organize the employees into groups based upon the specific skills they possess. The activities performed by such groups are different from each other but the employees within groups performs the same task.

In the given case, the manager is dividing the company as per the purchase,serving and home delivery etc. It is evident that the grouping is done upon the specific activities to be performed.

Hence we can conclude that the correct option is B.

5 0

3 years ago

Which one of the following bond values will change when interest rates change?The expected cash flowsThe present valueThe coupon

ZanzabumX [31]

Answer:

The present value of the bond.

Explanation:

The present value of a bond will change when interest rate changes. The present value is the price at which you will buy the bond. Interest rate is also known as the yield to maturity (YTM). This interest rate has an inverse relationship with the price; meaning, if YTM increases, the price of the bond will decrease and vice versa.

Expected cashflows are the recurring coupon payments which are usually fixed amount in the case of a coupon paying bond. For this reason, they do not change with changes in interest rate.

The maturity value also known as the Face value or Par value is fixed and does not change with changes in interest rate.

5 0

4 years ago