Near-zero rates of unemployment are not desirable because they often lead to

Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as they desire. If any firm

Reika [66]

Answer:

d. Supply is perfectly elastic.

Explanation:

Perfectly elastic supply is when a change in price causes supply to fall to zero.

The supply curve is usually an horizontal line.

I hope my answer helps you

3 0

3 years ago

Find the Net Pay: hours worked--27 1/4, $5.15 an hour, Federal tax--$6.19, Social Security--$10.74, Other--$6.37

Kobotan [32]

Calculate for the total earnings gained from working by multiplying the number of hours worked and the hourly wage.

E = (27.25 hours)($5.15 /hour) = $140.3375

The total taxes and items that need to be paid is,

T = $6.19 + $10.74 + $6.37 = $23.3

Subtracting from the total earnings the latter,

NP = $140.3375 - $23.3 = $117.04

Answer is the third choice, $117.04.

4 0

4 years ago

An investor is contemplating the purchase of a 20-year bond that pays $50 interest every six months. the investor plans to hold

irinina [24]

Answer: The investor should be willing to pay <u>$927.68 </u>for the bond today.

We in need to compute the price at which the investor can sell the bond in year 10 (Y10).

The price of the bond in year 10 will be the present value of the coupons over the remaining life of the bond and the maturity value of the bond after 20 years.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected YTM in year 10 0.08

Expected semi annual YTM in year 10 $\frac{0.08}{2} =0.04$

Face (Maturity) Value of the bond (MV) $1,000.00

The bond price in year 10 will be

$\mathbf{Bond Price_{Y10}=C*\left ( \frac{1-(1+r)^{-n}}{r}\right )+\frac{MV}{(1+r)^{n}}}$

Substituting the values we get,

$Bond Price_{Y10}=50*\left ( \frac{1-(1+0.04)^{-20}}{0.04}\right )+\frac{1000}{(1+0.04)^{20}}$

$Bond Price_{Y10}=50*\left (13.59\right )+\frac{1000}{2.19}$

$\mathbf{Bond Price_{Y10}= 679.52+ 456.39 = 1,135.90}$

<u>Hence the investor can expect to sell the bond in year 10 at $1,135.90.</u>

Now, we'll calculate the price the investor is willing to pay for the bond. The investor can expected to pay the Present Value of the coupons she'll receive over 10 years and the selling price of the bond 10 years from now. We discount the cash flows at the rate of return the investor expects.

We have

Coupon Value (C ) $50.00

No. of coupons remaining (n) 20

Expected rate of return 0.12

Expected semi annual rate of return $\frac{0.12}{2} =0.06$

Selling Price of the bond (SP) $1,135.90

$\mathbf{Bond Price=C*\left ( \frac{1-(1+r)^{-n}}{r}\right )+\frac{SP}{(1+r)^{n}}}$

Substituting the values we get,

$Bond Price=50*\left ( \frac{1-(1+0.06)^{-20}}{0.06}\right )+\frac{1000}{(1+0.06)^{20}}$

$Bond Price=50*\left (11.47\right )+\frac{1000}{3.21}$

$\mathbf{Bond Price= 573.50+ 354.18 = 927.80}$

4 0

3 years ago

Discuss any five types of visual aids and you would use to enhance the quality of your presentation

kiruha [24]

Answer:

Following are some commonly used visual aids:

PowerPoint. Microsoft PowerPoint is probably the most commonly used visual aid for presentations as one can easily create attractive and professional presentations with it. ...

Whiteboards. ...

Video clips. ...

Charts and graphs. ...

Handouts. ...

Flip chart. ...

Props. ...

Overheads.

8 0

3 years ago

Read 2 more answers

Who is not obliged to reduce inequality?

andreyandreev [35.5K]

Answer:

Governments can intervene to promote equity, and reduce inequality and poverty, through the tax and benefits system. This means employing a progressive tax and benefits system which takes proportionately more tax from those on higher levels of income, and redistributes welfare benefits to those on lower incomes.

3 0

3 years ago

Read 2 more answers