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stiv31 [10]
3 years ago
5

When the Toyota Prius first entered the marketplace, dealers kept waiting lists of people wanting one and the factories had to r

amp up production and order more raw materials. Increased factory product indicates derived demand.
A. True
B. False
Business
1 answer:
rjkz [21]3 years ago
3 0

Answer:

The correct answer is A. True.

Explanation:

Derived demand is the demand for goods and services that is generated as a result of the demand for other goods and services. This type of demand usually corresponds to the demand for factors or products, since the demand for a good or service may be related to the process necessary to produce another good or service, although it can affect both producers and consumers.

Derived demand can sometimes lead to an increase in the price of a marginal product, since the demand for the resources needed to produce a physical product also increases.

The elasticity of the demand for a productive factor depends on the characteristics of the good. This dependency is explained through Marshall's laws:

  1. Replaceability, elasticity is greater the more easily one factor can be substituted for another in the production process.
  2. The elasticity of the demand for a factor will be greater the more elastic the demand for the good it produces. If the demand for the product varies, so will the demand for the factor.
  3. The elasticity of demand for the factors also depends on the elasticity of the other factors involved in the production process.
  4. Demand for the factor will be less elastic the lower its cost compared to the total cost of production.
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A U.S. citizen accrued $120,000 of creditable foreign taxes last year. The citizen's foreign tax credit limitation for last year
grandymaker [24]

Answer:

C) USD 8,000

Explanation:

Excess credits can be transferred back one year and can be moved ten years, or a sum of 11 (eleven) years. The credits that are anticipated  to be not used are  USD 16,000 So,

= ((USD 30,000 - (USD 2,000 × 11)).

= USD 8000/-

8 0
3 years ago
When using the indirect method, which of the following would be included in the net cash flows from operating activities section
Monica [59]
The answer for this question is: C. <span>Payment of interest and expenses
In reporting cash flow, an indirect method will use accrual method to present cash from the operation on the cash flow statement
Which means that the rate of interest and expense will be added together over period of time.</span>
4 0
3 years ago
Tristan transfers property with a tax basis of $1,245 and a fair market value of $1,750 to a corporation in exchange for stock w
Bas_tet [7]

Answer: $1644

Explanation:

The corporation's tax basis will be the addition of the tax basis of Tristan and the gain that is recognized on the exchange by Tristan.

Gain realized = 1750 - 1245 = 505

Boot received = 399

The gain recognized on the exchange will the value that's lower between the gain realized which is $505 and the boot received which is $399. Therefore, gain recognized = $399.

The corporation's tax basis will then be:

= Tristan Tax basis + Gain recognized

= 1245 + 399

= 1644

6 0
3 years ago
Food manufacturers must be able to trace all ingredients ________ in case of contamination or recall
skelet666 [1.2K]
The answer that will complete the sentence above is the packaging. It is because it is a must that the food manufacturers to check on the ingredients but also the packaging before it could be sent out to other branches or companies to ensure that there is no contamination of which could harm other people that will buy it and to ensure that the quality of the food is good enough for the people.
6 0
4 years ago
An investor owns a 6% bond issued by ABC Corporation that is callable at 102 ($1,020) next May 1. All of the following statement
Alexxandr [17]

Answer:D) the bond is probably being called by the issuer because interest rates went up

This statement is not true because when interest rates go up the issuer is at an advantage as he had previously borrowed money at a interest rate which is lower than the present interest rate, as interest rates have risen. Also when interest rates rise and the issuer calls the bond he will have to pay higher interest to re borrow money and this is foolish thus the issuer will not call the bond when interest rates rise. The issuer will call the bond when interest rates fall, as the issuer can re issue the bonds and borrow money at lower interest rates.

Explanation:

6 0
3 years ago
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