Answer:
The best answer choice to the question: Which of the following events could transform the price floor from one that is binding to one that is not binding? would be, B: Traditional land line phones become more expensive.
Explanation:
Governments make economic decisions all the time, and generate policies on all matters pertaining to markets, in order to maintain a balance. Sometimes, due to specific circumstances, products can become less necessary, or less interesting, for buyers, be it because the prices are too high for the product, be it because there is little money to spend on certain items, or be it because other items on the market can replace the product on offer. To regulate this, governments thus bind products, and pricing, to encourage the consumption of one, or another product, and thus maintain an economic balance. In this case, cellular phones have become less interesting to consumers because using landline phones is cheaper and more effective, so they do not need cellphones. The government, to maintain the economy, places a floor on pricing, and the way to make this measure not binding, is by making traditional landline phones more expensive than cellphones, thus motivating people to buy more cellphones.
Answer:
<em>Zero</em>
Explanation:
There are three(3) types of unemployment recognized by economists;
<em>Structural unemployment:</em> This occurs where innovation and technological improvement render workers unemployable because their is a mismatch between the available jobs and the skills possessed by willing workers. For example, the introduction of online classes might reduce the number of teachers needed by a school.
<em>Frictional unemployment:</em> This is used to describe the number of people looking for jobs because they are transiting from one job to another.The addition of the structural and frictional is know as the <em>natural rate of of unemployment.</em>
<em>Cyclical unemployment</em><em>:</em><em> </em>this is caused by fluctuation in real GDP around the potentila GDP. For example, when the real GDP falls significantly for a sustained period of six month. At a time like this, the economy is contracting and it is evident by a negative growth rate in real output, firms do lay off workers because the business climate is not favorable.This is called <em>recession</em>. The cyclical unemployment is the difference between the actual rate of unemployment and natural rate. During recession, the actual is always greater thant the natural; and the balance is cyclical unemployement
<em>Full employment output and cyclical unemployment</em>
The potential GDP is the level of real GDP achieved where an economy has fully employed all of its resources ( land, labour, capital and entrepreneur). It is also called <em>full employment GDP</em>. An economy operating at its potential GDP level will still record some level of unemployment which is known as natural unemployment. And its actual rate of unemployment will be equal to the natural rate.
<em>In other words, at the full employment output level, the actual rate of unemployment is the same the natural rate of unemployement. So there is zero cyclical unemployment rate</em>
Answer:
$900
Explanation:
The computation of the amount of the overhead allocated is shown below:
But before that the predetermined overhead rate is
As we know that
Predetermine overhead rate is
= Estimated manufacturing overhead ÷ estimated direct labor hours
= $450,000 ÷ $150,000
= $3
Now the overhead allocated is
= 300 direct labor hours × $3
= $900
Answer:
the present value is $58,026
Explanation:
The computation of the value of the building is shown below
Present value = Cash flows × Present value of discounting factor( interest rate%,time period)
= $13,800 ÷ 1.068^3 + $13,800 ÷ 1.068^4 + $13,800 ÷ 1.068^5 + $13,800 ÷ 1.068^6 + $13,800 ÷ 1.068^7 + $13,800 ÷ 1.068^8
= $58,026
Hence, the present value is $58,026