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iragen [17]
3 years ago
13

Suppose that Jim uses his budget to purchase 100 units of Good X and 100 units of Good Y. When the price of Good X rises, he pur

chases 55 units of Good X and 95 units of Good Y. An economist calculates his compensated budget and finds that in that scenario, Jim would buy 60 units of Good X and 105 units of Good Y. Calculate the income effect. (Remember to include a negative sign (-) if the effect reduces the quantity.)
Business
1 answer:
jekas [21]3 years ago
3 0

Answer:

(- 5 units)

Explanation:

Given that,

Initial quantities:

x1 = 100 units and y1 = 100 units

If price of Good X rises,

Final quantities:

x2 = 55 units and y2 = 95 units

Compensated:

x3 = 60 units and y3 = 105 units

Income effect = Final demand - compensated demand

                       = x2 - x3

                       = 55 units - 60 units

                       = - 5 units

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For 2017, P Co. estimated its two-year equipment warranty costs based on $23 per unit sold in 2017. Experience during 2018 indic
goblinko [34]

Answer:

In 2018 income from continuing operations.

Explanation:

A variation in the accounting forecast impacts present and future periods and is not accounted for by repaying earlier periods. The adjustment in the warranty cost estimate is based on new information gained from experience which counts as an adjustment in the accounting estimate. The accounting change is part of continuing operations but is not recorded net of taxes.

Therefore first option is correct

5 0
3 years ago
Which of the following is NOT correct about causal regression analysis of the form Y = f(X)? A. Selection of the appropriate cau
Law Incorporation [45]

Answer:

A. Selection of the appropriate causal variable Y is important

Explanation:

We have this function, Y = f(X).

From this function we can see that Y is dependent on X. That is, it is a function of X. Y is not a causal variable. A causal variable is a variable that is able to influence the variable of interest. From this question Y is the variable of interest. It is the dependent variable. The independent variable is X and it is the causal variable.

Therefore the incorrect one is Selection of the appropriate causal variable Y is important

5 0
3 years ago
Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly a. is often not in the b
olchik [2.2K]

Answer:

a. is often not in the best interest of society. 

Explanation:

A monopoly is when there is a single firm operating in an industry. This is usually so because of high barriers to entry of other firms.

Because a monopoly has only one firm in the industry, the firm sets prices to maximise profit. The firm earns economic profit in the short and long run.

The monopoly benefits the producer more than consumers. It is often inefficient and fails to maximise total welfare .

Because of these inefficiencies, government usually steps in to regulate the activities of a monopoly.

I hope my answer helps you.

4 0
3 years ago
It is estimated that firms lose ___________ annually in productivity, absenteeism, and employee turnover due to caring for aging
Sergeu [11.5K]

Answer:

$11 billion annually.

Explanation:

Firms carried out assessments based on their daily activities as well as employee assessment.

Employees in firms are assessed based on their productivity level, rate at which they are absent from work as well as their turnover rate in the firm.

Low productivity can be defined as a decrease in the production capacity of a firm due to the inefficiency of workers.

Absenteeism can be defined as when a person is not present at work. This may be due to genuine or deliberate reasons.

Employee turnover can be defined as the number of employees who leave a firm and are replaced with new employees.

Low productivity, consistent absenteeism and employee turnover rates are said to cause firms to lose a lot of money due to:

a. Payment of salary for absent workers

b. Having to find replacement for absent staffs.

c. Low productivity due to lack of or absent staffs.

It is estimated that firms lose $11 billion annually in productivity, absenteeism, and employee turnover due to caring for aging parents.

7 0
4 years ago
Differentiate between an active partner and sleeping partner?
sasho [114]
One is moving and the other isn’t
5 0
3 years ago
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