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4 years ago

Unemployment insurance

Business

1 answer:

sveta [45]4 years ago

8 0

Answer: The correct answer is "d. reduces search effort which raises unemployment.".

Explanation: Unemployment insurance reduces search effort which raises unemployment because the unemployed who receive this unemployment insurance, lose motivation to look for work because they are calm knowing that they will receive unemployment insurance, which causes unemployment to increase.

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Answer each of the following independent questions.

Yakvenalex [24]

Answer:

option 1

$1,381,644.80

Explanation:

Alex would choose the option that has the highest present value

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

pv of option 2

Cash flow in year 0 = 20,000

Cash flow in year 1 - 6 = $8,000

i = 6%

PV = 59,338.60

OPTION 3

Cash flow in year 1 - 6 = 13,000

i - 6%

pv = 63,925.22

option 1 has the highest present value and should be chosen

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

future value of an annuity = Annual payment x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

(1.07^10 - 1 ) / 0.07 = 13.816448

13.816448 x 100,000 = $1,381,644.80

8 0

3 years ago

An investment earned the following returns over a four-year period: 28 percent, 21 percent, 1 percent, and -36 percent. What is

riadik2000 [5.3K]

Answer:

A) 0.0618

Explanation:

Variance is given by:

$V = \frac{\sum(Xi - \mu)^2}{n}$

Where 'Xi' is the value for each term 'i' in the sample of size 'n' and μ is the sample mean.

The mean investment return is:

$\mu = \frac{0.28+0.21+0.01-0.36}{4} \\\mu = 0.035$

The variance is:

$V = \frac{\sum(Xi - \mu)^2}{n}\\V = \frac{(0.28- 0.035)^2+(0.21- 0.035)^2+(0.01- 0.035)^2+(-0.36- 0.035)^2}{4}\\V= 0.0618$

The variance of the returns on this investment is A) 0.0618.

4 0

3 years ago

What changes has affirmative action brought

WARRIOR [948]

Affirmative Action is a policy which function by favouring the cause of disadvantaged set of people who are suffering or had suffered from discrimination within a community. The group was established in the 1960s. The major goals of this group is to: close the gaps of employment inequalities and pay, increase access to education, promote diversity and address past injustices. Affirmative Action had produced both positive and negative outcomes. Positive outcomes include: closing the gaps in employment eligibility and payment, increasing number of people having access to education and promotion of diversity. Negative outcomes include: driving away of skilled labour which resulted in poor economic growth and mismatching of skills.

3 0

3 years ago

What is the value of a 20-year, zero-coupon bond with a face value of $1,000 when the market required rate of return is 9.6 perc

arlik [135]

Answer:

The answer is $153.30

Explanation:

Value= M / (1 + i)^n = 1000/[ (1+(0.096/2))^40] = $153.30

Value is $153.30

6 0

3 years ago

Which of the following statements is CORRECT? Select one: a. Higher sales usually require higher asset levels, and this leads to

Scorpion4ik [409]

Answer:

b. If a firm's assets are growing at a positive rate, but its retained earnings are not increasing, then it would be impossible for the firm's AFN to be negative.

Explanation:

AFN represents Additional Funds Needed and that whenever a company plans for expansion it should have resources, generally these are borrowed from outside.

So when the firm is growing positively it have profits with it and simultaneously if there is no increase in retained earnings then it means the company is distributing such profits as dividends, and in that case there will be a positive balance of AFN as, the funds are still needed even in case of profits.

Thus, in no manner the balance of AFN will be negative in this instance.

3 0

4 years ago