Answer:
B. False
Explanation:
Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.
Answer:
Bellisima's opportunity cost:
Production of rye per million hours of labor = 24 / 12 = 2 pairs of jeans
Production of jeans per million hours of labor = 12 / 24 = 0.5 bushels of rye
Dolorium's opportunity cost:
Production of rye per million hours of labor = 32 / 8 = 4 pairs of jeans
Production of jeans per million hours of labor = 8 / 32 = 0.25 bushels of rye
Dolorium has a comparative advantage in the production of jeans while Bellisima has a comparative advantage in the production of rye.
If both countries specialize:
Bellisima will produce 48 million bushels of rye.
Dolorium will produce 128 million pairs of jeans.
Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 24 million pairs.
Answer:
Credit of $80,000
Explanation:
Big-Mouth Frog Corporation Calculation for Retained earnings
Using this formula
Retained earnings =Revenue- Expenses
Where,
Revenue =$200,000
Expenses =$180,000
Let plug in the formula
Retained earnings =$200,000-$180,000
Retained earnings =$80,000
Therefore when the Income Summary is closed to Retained Earnings, the amount of the credit to Retained Earnings will be $80,000
Economics in many cases is an exact science, but usually it is a practical one that has applications. Thus there are some practical goals that need to be answered with the use of economics and an easy to summarize form of them are the five fundamental questions of economics. 3 of the choices above are such fundamental questions; determining the way of production, the receiver of the production as well as the ways in which the economic system can change are of fundamental importance to the science of economics. The other 2 questions are: What products will be produced ? and How can we foster progress?
Choice d is a pretty important question too (that falls somewhat under a) but the fact that it mentions the government specifically makes it less general than the other propositions so it is not a fundamental question.
