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AnnyKZ [126]
2 years ago
5

Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2012 to 2062, capital per worker rises

by 5 units in each country. The 5-unit change in capital per worker causes productivity in Hermes to rise by asmaller amount than productivity in Gobbledigook. This illustrates the ___________ effect.

Business
2 answers:
9966 [12]2 years ago
8 0

Options:

Human capital, Natural resources, technology, catch-up

Answer:

Catch-up effect

Explanation:

In 2012, Hermes had 30 workers and 11 tools per worker, total output was 1,800. Output per worker = 60

In 2062, Hermes also had 30 workers but it has 16 tools per worker, total output was 2,160. Output per worker = 72

In 2012, Gobbledigook had 30 workers and 8 tools per worker, total output was 900. Output per worker = 30

In 2062, Gobbledigook also had 30 workers and 13 tools per worker, total output was 1,620. Output per worker = 54

The workers in Hermes increased their productivity by 20% using 5 more tools, while the workers in Gobbledigook increased their productivity by 80% using 5 more tools.

The catch-up effect states that poorer economies tend to grow more rapidly than wealthier economies, e.g. China consistently grows at around 7% a year, while the US growth rate is between 2-3%. In absolute terms, the US economy is still larger with a much higher GDP per capita, but in the future both economies will have the same GDP per capita.

MrRissso [65]2 years ago
4 0

Answer: Catch up effect

Explanation: As per the theory of catch up effect, the economies of the world with poor financial conditions will grow more rapidly than those of the wealthy economies.

In the given case, Hermes had a better tool per worker than the Gobbledigook, and the equal change in capital units in  both economies resulted in more impact on Gobbledigook.

Thus, we can conclude that the given case illustrates catch up effect.

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Economic growth will reduce the future real GDP of an economy. expand the production possibilities of an economy. increase an ec
nikklg [1K]

Answer:

The correct option is B. expand the production possibilities of an economy.

Explanation:

Economic growth can be defined as the increase in an economy's production of economic goods and services, often compared from one period of time to another. It can be measured in any of the following:

  • Nominal or real (adjusted for inflation) terms.
  • Gross National Product (GNP)
  • Gross Domestic Product (GDP), etc.

Contributors to economic growth include:

  • Increases in capital goods.
  • Increase in labor force.
  • Technology.
  • Human capital.

In simplest terms therefore, economic growth is used to refer to an increase in the aggregate production in an economy.

5 0
3 years ago
Dani is a topnotch tax accountant who knows all the tricks. She is paralyzed and unable to use her arms and legs. When using her
kupik [55]
Speech recognition makes the most sense here. The keyboard and firewall would be no use here. Then the audio recorder just records a voice/sound so that wouldn't help her either:) Hope that helps:)
8 0
3 years ago
On December 31, 2017, Ainsworth, Inc., had 720 million shares of common stock outstanding. Thirty one million shares of 7%, $100
Oksana_A [137]

Answer:

1)

Reported net loss                                                       $  (195)    

Add: Cumulative preference dividend (31*$100*7%)     $  (217)    

Total loss                                                                       $ (412)    

Calculation of weighted average number of shares

   

Common stock outstanding on 12/31/17 (720*105%)    756.00    

Treasury stock (-30*105%*8/12)                             (21.00)

 

Issuance (12*4/12)                                                    4.00  

 

Weighted average number of shares                      739.00

Numerator / Denominator    =      Net loss per share  

 $  (412)         /        739.00    =        $  (0.56)

2)

Calculation of Net Income

   

Reported net loss                                  $  (195)

   

Add : loss from discontinuing operation   $ 510

   

Income from continuing operation           $  315  

 

Cumulative preference dividend            $  (217)

   

Net Income                                             $  98  

Numerator / Denominator = Net loss per share  

$ 98                /       739.00 = $  0.13

3)

Comparative income statement   2018      2017

 

Earning(Loss) per common share:  

   

Income from                           $ 0.13    $0.71   ($540/(720*105%))

continuing operation                                           =   $ 0.71                                          

Loss from discontinued         $ (0.69)    

operation

Net Income (Loss)                   $ (0.56)      $ 0.71

4 0
2 years ago
Taxes represent __________ of the business. Multiple Choice an equity liability a cash inflow a cash outflow an accounts receiva
Eduardwww [97]

The taxes that are being paid by a business firm represents: C. a cash outflow.

Taxation can be defined as the involuntary and compulsory fees that are usually levied on individuals or business firms (entities) by the government, so as to generate revenues which are used in funding public institutions and activities.

Basically, these taxes that are being paid by individuals or business firms (entities) is considered as a cash outflow because it represents money that are flowing out of their accounts.

In conclusion, an amount of money that is flowing out of an account such as taxes is referred to as a cash outflow.

Read more: brainly.com/question/16477816

5 0
2 years ago
Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
fgiga [73]

Answer:

Partners Dennis and Lilly have decided to liquidate their business. The following information is available:

Cash $100,000 Accounts Payable $100,000

Inventory $200,000 Dennis, Capital $120,000

Lilly, Capital $80,000

$300,000 $300,000

Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month.

1. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the first month?

a. $36,000

b. $64,000

c. $60,000

d. $24,000

2. Using a safe payments schedule, how much cash will be distributed to Lilly at the end of the first month?

a. $40,000

b. $24,000

c. $64,000

d. $16,000

4 0
2 years ago
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