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Natalija [7]
3 years ago
12

Suppose an economy is initially in a steady state with capital per worker below the Golden Rule level.

Business
1 answer:
daser333 [38]3 years ago
3 0

Answer:

B) first fall below then rise above the initial level.

Explanation:

'Steady State' & 'Golden Rule' of capital per worker : are concepts of Solow model.

The model defines output (income) per worker as a function of capital per worker, increasing with it at a diminishing rate, & hence the curve is upward sloping swamp shaped. Depreciation is a constant slope straight upward sloping line. Saving is a function of income per worker.

  • Steady State level is the level of output at which savings (investment) by workers is equal to depreciation of capital stock.
  • Golden rule capital level refers to the saving rate, which maximises steady state level or growth of consumption.

If the saving rate increases to a rate consistent with the Golden Rule: the consumption per worker will first fall below the initial level (as savings proportion out of income are more). But, when these savings will be invested back, capital per worker will increase. High capital per worker will imply high output  & income per worker. And, then the consumption per worker will rise.

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Following are financial statement numbers and ratios for CVS Health Corporation for the year ended December 31, 2016. 2016 Total
77julia77 [94]

Answer:

The correct option is B,$6,710 million

Explanation:

First and foremost,one needs to be aware that net operating profit margin(NOPM) of 3.6% was computed  by dividing operating profit after tax by  the total revenue for 2016,hence we use same formula to determine the net operating profit after tax for 2017 by merely changing the subject of the formula.

NOPM=net operating profit after/total revenue

net operating profit after tax=NOPM*total revenue

NOPM remains at 3.6%

total revenue for 2017=total revenue for 2016*(1+growth rate)

total revenue for 2016 is $177,526 million

growth rate is 5%

total revenue for 2017= $177,526*(1+5%)=$ 186,402.30  million

Net operating profit after tax= 186,402.30 *3.6%=$ 6,710.48  million

Approximately $6710 million

8 0
3 years ago
The Achilles' heel (or biggest disadvantage/pitfall) of relying heavily on alliances and cooperative strategies is
vredina [299]

Answer:

Becoming dependent on other companies for essential expertise and capabilities.

Explanation:

When a firm comes in alliance with any other firm , the sole motive behind this is to complement each other with they key competencies. They make use of each other strength to grow together.

However it has one disadvantage is that if one rely only on alliance partner for the specific expertise or resources, it creates a sense of dependencies and if the alliance get annexed in future due to some reason, it can hamper the business.

In today's world example can be vividly seen, in Corona virus crisis, any  firm's alliance with Chinese companies may get hurt, as lock-down in china may interrupt major supplies from china.

3 0
3 years ago
Congratulations! You were the 10th caller on the KMTH morning show and you just won $3,000.00. After you calm down, you decide t
VashaNatasha [74]

Answer:

$4,697.04

Explanation:

In simple words , this question requires us to find the Future Value in 5 years time. We compound the Present Value using the effective interest rate to determine the Future Value of an investment.

<em>PV = $3,000.00</em>

<em>P/YR = 12</em>

<em>N = 5 x 12 = 60</em>

<em>I = 9 %</em>

<em>PMT = $0</em>

<em>FV = ?</em>

Using a Financial calculator to enter the parameters as above the Future Value (FV) is $4,697.04

therefore,

In 5 years time, you will have $4,697.04.

8 0
2 years ago
Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now
Morgarella [4.7K]

When a company gains a competitive advantage over an action that becomes mandatory in the line of business, such as providing package tracking capability, this is an example of profitability factors becoming productivity factors over time.

<h3 /><h3>What are profitability factors?</h3>

It corresponds to factors that enable a company to be positioned and competitive in the market in which it operates, determined by internal and external agents, such as:

  • Demand force
  • Advertsing
  • Substitute products
  • Economy of scale
  • Costs

Therefore, an organization's profitability factors became productivity factors by instituting new forms of work management that generated competitive advantages for the organization.

So, the correct answer is:

D. Profitability factors; productivity factors.

Find out more information about profitability here:

brainly.com/question/16755022

8 0
2 years ago
Spears Co. had net sales of $53,404 million. Its average total assets for the period were $16,302 million. Spears' total asset t
liraira [26]
Given:
net sales = 53,404,000,000
Average total assets = 16,302,000,000

Total asset turnover is calculated by divided net sales by the average total assets.

Total asset turnover = net sales / average total assets 
T.A.O = 53,404,000,000 / 16,302,000,000
T.A.O = 3.2759 OR 3.3

The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue. 
7 0
3 years ago
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