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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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Feather Company's inventory is recorded at its historical cost of $100,000. The replacement cost currently is $95,000; estimated
Liula [17]

Answer:

B. $97000

Explanation:

Given that

Estimated selling price = 102000

Estimated selling cost = 5000

Recall that

The net realizable value which is NRV

= Estimated selling price - estimated selling cost

Thus,

NRV = 102,000 - 5000

= 97000

Therefore, the estimated net realizable value is $97000.

Note, the other parameters listed are not used in estimating NRV.

5 0
3 years ago
Read 2 more answers
Sox Corporation purchased a 30% interest in Hack Corporation for $1,525,000 on January 1, 2021. On November 1, 2021, Hack declar
Serjik [45]

Answer:

$1,200,000

Explanation:

SOX Corporation purchased a 30% interest for $1,525,000

On November 1, 2021, Hack declared and paid $1,100,000 million in dividends

Hence, Carrying value = $1,525,000 - 30%($1,100,000)

Carrying value = $1,525,000 - $330,000

Carrying value = $1,195,000

Net loss given during the year reported by Hack is $4,000,000

Hence, Net Loss of SOX is $4,000,000 * 30%

Net Loss = $1,200,000

Therefore, the net loss to be recognized in the Income statement is $1,200,000

3 0
3 years ago
Javier, a new insurance agent, pays one of his customers to buy his firm's insurance product. Javier explains to the customer th
GaryK [48]

Answer: Bribery.

Explanation:

Bribery is a legal offense which involves giving or demanding for some form of valuables so as to gain favouritism or influence a situation in someone's else favour. Giving or accepting bribes while discharging one's duty as a government official or public office holder is said to be a form of corrupt practices, this could come as a form of gift, money, goods, property, contract award, etc.

Bribery is a crime in which when committed all parties involved are liable to being charged. Bribery harbours other vices such as fraud, cheating, partiality, power abuse, collusion, cartels, etc.

8 0
3 years ago
Fill in both blanks with the correct terms: A _________ percentage of young people have debt than older generations, while their
Vinil7 [7]

Answer:

The correct answer is letter "C": Larger, lower.

Explanation:

According to different researches carried out across the U.S., young adults who are between 18 and 29 years old have a total debt to $1.05 trillion. Individuals' debt who are older than 70 is $1 trillion. The average debt amount that young adults (18-29) have is $22,000 while elder people from 50 years old and on is $36,000.

Then, <em>young adults have larger accumulated debt than elders and their debt amounts are lower as well.</em>

7 0
3 years ago
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People in the Warehousing and Distribution center pathway create safety procedures that employees follow.
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Answer:

The answer is true

Explanation:

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