Answer:
the level of real GDP that exists when the economy is experiencing only frictional and cyclical unemployment.
Explanation:
Potential GDP output is the highest level of real GDP that an economy can achieve over a sustained period of time and at a constant inflation rate. Potential output is reached when the natural rate of unemployment exists.
Natural rate of unemployment = frictional + structural unemployment
An economy can temporarily reach an output level higher than potential, but it will cause a surge in the inflation rate that will soon lower real GDP.
Answer:
The correct answer is letter "A": Analytical review.
Explanation:
Substantive procedures are those steps auditors take to confirm the accuracy of the Financial Statements being checked. This activity aims to confirm if there are transactions recorded incorrectly in a company's books. Some examples of substantive procedures are <em>bank account confirmation, observation of the firm's physical inventory, </em>or<em> analytical review of the assets, liabilities, and revenue</em>.
Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
Answer:
According to Ronald Coase, in his Coase theorem efficiency in the areas of negative externalities can be achieved through negotiations aimed at reaching conclusions that is places each party in a win-win position.
The minimum the spa would pay the surfboard designer is $175 and the maximum is $250.
Explanation:
Assuming the conclusion reached in the negotiation is for the surfboard designer decides to install the technology that eliminates noise,the spa would have to pay $175 while on other hand ,if agreed between both parties that the surfboard designer shifts to next door ,the spa would cough out $250,the increase cost of renting in the next building.