Answer:
$1,500,000
Explanation:
in order for the insurance company to pay for all the damages, you should have purchased a policy that covered $4,000,000 in damages. Since the policy only covers $3,000,000, the insurance company will pay:
($3,000,000 / $4,000,000) x $2,000,000 (loss) = 0.75 x $2,000,000 = $1,500,000
Answer
The type of insurance that builds no cash value is B. Term
Explanation
Cash value insurance is one that provides a permanent insurance for life and has high premium rates with a requirement of a fixed level premium deposit. Examples of cash value insurance covers are<u> the whole life, variable life and universal life insurance.</u> Whole life insurance is also called the <u>straight life/ordinary life insurance cover</u>. When premium payment term is limited to 20 years it is called 20-payment life.
Answer:
b. Sales, production, direct materials purchases, cash disbursements.
Explanation:
First, you calculate your sales.
Then, the amount produced to fulfill your sales and desired inventory stocks
Based on your production, you can calculate the direct materials purchases
Lastly, with the combination of raw materials purchases, along with other information, you generate the cash disbursements budget
a.- you need to know the production to know how much direct materials do you need. INCORRECT
c.- you can't calculate how much will you pay for the direct materials without knowing how many direct materials are needed. INCORRECT
d.- you need to know the number of sales, to know how much to produce. Else you will be producing without knowing how much do you need. INCORRECT
Answer: When the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending.
Explanation:
As the price level falls, the interest rate declines, and interest-rate-sensitive spending increases. It should be noted that a low interest rate will bring about a rise in the demand for investment.
Therefore, when there's a reduction in the price level, there'll be a reduction in interest rate as well which then leads to the rise in demand for investment and rise in aggregate demand.
When the price level increases, there will be a reduction in real balances while the businesses and the households will be poorer when compared to a scenario whereby there's a price fall.
Answer:
YES - When marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.
Explanation:
Marginal cost (MC) is the cost of producing an extra unit of output while Average variable cost (AVC) is the cost per unit of output produced.
When MC is below AVC, MC pulls the average down. This means that when MC is falling, AVC is falling
When MC is above AVC, MC is pushing the average up; therefore when MC is rising, AVC is rising.
The conclusion is that MC and AVC have a direct relationship and a rise in one will cause a rise in the other
, therefore when the marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.