Specialization is important in an economy because it leads to which important economic concept?

People live for four periods. They can choose to work for all four periods, or can attend school in the first period and then wo

blondinia [14]

Answer:

People should disregard schooling and thus work in the entire life period.

Explanation:

Condition 1--- Work throughout the 4 periods

The NPV = $\frac{30,000}{1.1} + \frac{30,000}{1.1^2} + \frac{30,000}{1.1^3} + \frac{30,000}{1.1^4}$

= 27,272. 7 + 24,793.3 + 22,539.4 +20,490.4

= 95,095.8

Condition 2 - Attend school and work later

The NPV = -28,000 + $\frac{50,000}{1.1^2} + \frac{50,000}{1.1^3} + \frac{50,000}{1.1^4}$

= -28000 + 41,322.31 + 37,565.7 + 34,150.6

= 85,038.61

Conclusion: Since the NPV of not going to school is higher, people should disregard schooling. They should work in the entire life period.

3 0

3 years ago

Nicolas maduro is the leader of what country, which is struggling with a major economic crisis that includes incredibly high inf

irga5000 [103]

Nicolas Maduro is the leader of Venezuela.

5 0

3 years ago

ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, th

Nikolay [14]

Answer:

increase by $336,000.

Explanation:

Options are <em>"1. increase by $176,000. 2. increase by $336,000. 3. increase by $160,000. 4. be unaffected."</em>

<em />

Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.

3 0

2 years ago

The rate of economic growth per capita in france from 1996 to 2000 was 1.9% per year, while in korea over the same period it was

bagirrra123 [75]

Answer:

36.83 years

16.85 years

$63,710.88

$ 71,490.43

Explanation:

We can use the nper formula in excel to compute the doubling time for the capital real GDP of both countries

=nper(rate,pmt,-pv,fv)

FV is the future real GDP which $28,900*2=$57,800 for France while that of Korea is $25,400 ($12,700*2)

PV is the present real GDP

rate is the economic growth rate of 4.2% in Korea and 1.9% in France

France=nper(1.9%,0,-28900,57800)= 36.83

Korea=nper(4.2%,0,-12700,25400)= 16.85

In 2045 ,which is 42 years from now the real GDP are shown thus:

=fv(rate,nper,pmt,-pv)=fv(1.9%,42,0,-28900)=$63,710.88

=fv(rate,nper,pmt,-pv)=fv(4.2%,42,0,-12700)=$ 71,490.43

3 0

3 years ago

A company orders office supplies in June. Those supplies are received and used in July. The supplies are paid for in August. In

Leviafan [203]

Answer:

Expense must be recognized in July

Explanation:

The reason is that the expense must be recognized in the month in which the supplies are used because the accrual concept says that the expenses must be realized when they are incurred. Incurred means that the consideration received has been used. For example if I pay the telecommunication network in June to give 4G internet and the services are delivered in the month July then the expenses will be realized in the month in which the services were used and that is July for internet facilities. So in this case the supplies are used in the month of July which is in-accordance with the accrual concept.

8 0

2 years ago