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3 years ago

With only two goods, if the income effect is in the same direction as the substitution effect then the good is ____.

Business

1 answer:

Leya [2.2K]3 years ago

7 0

Answer:

Normal good

Explanation:

Income effect Is change in quantity demanded when the consumers purchasing power change as a result of a change in real income.

Substitution effect is when quantity demanded falls as a result of rise in price of a good which leads consumers to purchase cheaper alternatives.

A normal good is a good whose demand increases as income increases.

If the price of a normal good falls, the real purchasing power of the consumer increases and the consumer buys more of the good. Also, the consumer substituites from more expensive alternative goods to the more cheap normal good. The income and substitution effect both move in the same direction.

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Charismatic leaders are often _____ than transactional leaders.

hram777 [196]

I had a quiz like this back in 9th grade, even though what goes in the blank is less predictable. Glad to help :)

7 0

3 years ago

A life insurance policyowner would like a dividend option that results in a limited current outlay of funds. Which divident opti

yan [13]

Reduction of premium payment would be chosen.

This enables the policyholder to deduct policy dividends from the premium for the next year. Consequently, it will be simpler for the policyholder to pay her subsequent premium.

<h3>What is a dividend?</h3>

A dividend is a cash paid to you by your life insurance provider. This typically signifies that you have a participating policy contract, commonly known as a whole life insurance policy that pays dividends. You receive dividend payments from that company when it is profitable, rewarding your investment. You have the option of receiving this money through dividend options.

<h3>Converting Your Dividend Into Premium</h3>

This dividend option for life insurance is quite simple. If selected, your insurance provider will just use your payout to cover all or a portion of your yearly payment. If you select this option and your dividend is greater than your premium, you might also need to select a secondary alternative. On the other hand, you will need to make the remaining payments as usual if your dividend is less than your premium.

You must begin paying your premium on an annual basis if you decide to use your payout toward it. For instance, you would still need to pay the remaining $6,500 all at once if your annual premium was $8,000 and your dividend was $1,500. You may pay more or less of your premium each year depending on how the dividends change over time.

Learn more about reduction of premium here:

brainly.com/question/13237769

#SPJ4

7 0

2 years ago

D. L. Tuckers has $48,000 of debt outstanding that is selling at par and has a coupon rate of 6.75 percent. The tax rate is 35 p

RUDIKE [14]

Answer:

$16,800 ($1,134 tax shield discounted at 6.75% to infinity)

Explanation:

Since debt interest payment is tax deductible, D.L. Tuckers, will enjoy an annual tax shield from the interest payment. This is computed as follows.

Debt Outstanding: $48,000

Interest payment: 6.75% * $48,000 = $3,240

Let's assume the in a given year, the profit of the Company was $x.

The tax payable on the profit (without the shield from debt interest) would be

= $x * 35% = 0.35x

However, due to the tax shield, the taxable profit of the Company will be reduced by the interest payment.

Taxable Profit = $x - $3,240

Tax payable = 35% * (x - 3,240) = 0.35x - 1,134

Thus, as a result of the tax shield from interest payment, the tax payable by the company is reduced by $1,134. This will recur annually since the company intends to keep this level of debt financing for the foreseeable future.

The effective interest payable (after tax) can also be computed using the formula below.

Effective after tax interest = $Debt Interest * (1-Tax Rate)$

= $3,240 * (1 - 35%)

= $3,240 * 65% = $2,106.

With an effective after tax interest of $2,106, the tax shield is the difference between the actual interest and the effective after tax interest

Tax shield = $3,240 - $2,106 = $1,134

Therefore, the present value of the tax shield is derived by discounting the tax shield with the appropriate discount rate, assumed to be the coupon rate in this case.

PV of Tax shield = $\frac{Tax Shield}{Coupon Rate}$

= $\frac{1,134}{0.0675}$

PV of Tax Shield = $16,800.

5 0

3 years ago

A lawyer cannot represent both the plaintiff and the defendant because of

adelina 88 [10]

Answer:

a Conflict of Interest Issue

Explanation:

In many countries, including the USA, the legal system is built on an adversarial process. Each of the conflicting parties is allowed the chance to argue their case as persuasively as possible. It means each side independent representation to defend their rights.

In the adversarial process, a lawyer must be loyal to their client to represent them effectively. It is practically impossible to be loyal to two clients on opposite sides of a court proceeding. Conflicts of interest will arise as the same lawyer cannot argue for and against the issue in the same court.

6 0

3 years ago

What is the standard cost of producing one 10-pound case of roasted coffee beans? First, select the formula to calculate the

fredd [130]

Answer:

The question posted seems to be lacking in giving what the standard costing is in monetary value. However, the formula can be given.

The formula to calculate the standard cost of input:

standard cost of unit (monetary value) multiplied by the standard quantity per unit

For Example:

If the standard cost of unit is $10 then the standard cost of input will be:

$10 x 10 pounds per case

= $100 per case.

Explanation:

To calculate standard cost, you have to understand the definition of standard cost. Standard cost is the estimated cost of production for a business.

Apply the formula given to calculate the the standard cost of input. Once you have that value, you can then calculate the cost of producing a case of roasted coffee beans.

4 0

4 years ago