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yulyashka [42]
3 years ago
8

An externality is an intangible effect of production and purchases. TRUE FALSE

Business
1 answer:
iren2701 [21]3 years ago
5 0

true i think.....Im just guessing to be honest

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In 1971, under president richard nixon, the federal government passed legislation that "froze" wages and the prices of consumer
kicyunya [14]

The idea behind Nixon's decision to "freeze" wages and prices was inflation affects wages and prices, so freezing those would halt inflation.

When the total demand (AD) exceeds the total supply (AS) of a given item or service in the market, this is referred to as inflation.

As a result, the cost of those goods and services rises. This occurs as a result of people having money, either through high government spending or from high incomes or low loan rates.

Nixon thus decides to maintain a specific level of prices and salaries in order to freeze employment. As a result, the population's purchasing power will be constrained, and prices will eventually balance out.

Read more about Inflation:

brainly.com/question/13865168

#SPJ4

4 0
1 year ago
Read 2 more answers
An investor estimates that next​ year's sales for​ Dursley's Hotels Inc. should amount to about ​$100 million. The company has 5
Lerok [7]

Answer:

(a) $10 million

(b) $1 per share

(c) $49

(d) 25 %

Explanation:

(a) Estimated net earnings for next year.

Sales next year = $100 million

Net profit margin = 10%

Net profit margin = Net Income ÷ Sales

Net Income = 10% × $100 million

                    = $10 mil lion

(b) Next year's dividends per share.

Dividend payout = Dividends paid ÷ Net Income

                            = 50%

Dividends paid = $10 × 50%

                          = $5 mil lion

Per share dividend = Dividend paid ÷ Shares outstanding

                                = $5 million ÷ 5 million

                                = $1  per share

(c) The expected price of the stock (assuming the P/E ratio is 24.5 times earnings).

Earnings per share:

= Net income ÷ shares outstanding

= $10 million ÷ 5 million

= $2 per share

P/E Ratio = Price per share ÷ Earnings per share

Price per share = $2 × 24.5

                          = $49

(d) The expected holding period return (latest stock price: $40 per share).

= (Final price - Initial price + Dividend) ÷Initial Price

= ($49 - $40 + $1) ÷ $40

= 25%

8 0
3 years ago
Which of the following actions would the Federal Reserve most likely take to rein in spiraling inflation?
ryzh [129]
The right answer for the question that is being asked and shown above is that: "Increase reserve requirement." The <span>action that would the Federal Reserve most likely take to rein in spiraling inflation is that of </span><span>Increase reserve requirement.
</span>
The right answer for the question that is being asked and shown above is that: "<span>Increase reserve requirement." </span>
5 0
3 years ago
Read 2 more answers
Based on the case and previous calculations, please answer the following short answer questions. Note: Your instructor will need
mezya [45]

Question Completion:

see Exhibit 4 attached.

Answer:

1. The largest and smallest divisions by net sales in 2017:

Largest divisions:

Fabric & Home care with 32%

Baby, Feminine & Family Care, 28%

Smallest divisions:

Beauty with 18%

Grooming, 11%

Healthcare, 11%

2. The one most important division in terms of the proportionate net earnings for the company is:

Fabric & Home Care

Explanation:

The two largest divisions generate 60% of the net sales of the company while the three smallest divisions generate only 40%.  In terms of the proportionate net earnings for the company, the two largest divisions also generate 53% of the net earnings of the company, while the three smallest divisions generate 47%.  The analysis shows that the company's financial sustenance is largely driven by the Fabric & Home Care division and the Baby, Feminine & Family Care division.  Another up-and-coming division is the Beauty division, which generates 18% of the net sales and 20% of the net earnings.

Download docx
4 0
2 years ago
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
adell [148]

Answer:

Direct material price variance= $12,500 unfavorable

Explanation:

Giving the following formula:

The standard price per pound is $2.00.

The actual quantity of materials purchased and used in production is 50,000 pounds.

The actual purchase price per pound of materials was $2.25.

<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 2.25)*50,000

Direct material price variance= $12,500 unfavorable

6 0
3 years ago
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