Answer:
B. not maximizing utility because the marginal utility per dollar spent on movies is not equal to the marginal utility per dollar spent on CDs
Explanation:
Consumer is at utility maximising equilibrium in case of two goods consumption, when Marginal Utility per unit of dollar spent on each good is equal , i.e :
MU (G1) / P (G1) = MU (G2) / P (G2) , where ;
MU (G1) = Marginal Utility of Good 1 , MU (G2) = Marginal Utility of Good2 , P (G1) = Price of Good 1 , P (G2) = Price of Good 2
If Marginal Utility per unit of dollar spent on any good is higher than other , it is beneficial (utility maximising) for consumer to increase consumption of good having higher MU/P .
Given: MU (Movie) = 50, P (Movie) = 5 , MU (CD) = 96, P (CD) = 10. MU (Mov) / P (Mov) i.e 50/5 = 10 > MU(CD) / P(CD) i.e 96 / 10 = 9.6
Since consumer's MU per unit of dollar spent is not equal for both goods , consumer is not at utility maximising equilibrium.
Answer: False
Explanation:
The Fair Labor Standards Act enacted into law in 1938, covers the protection of employees' rights such as minimum wage, child labor laws and overtime conditions.
According to the Fair Labor Standards Act, an employee who works overtime is entitled to a payment of one and half times their hourly pay. However overtime counts as working for more than 40 hours in a week.
Because Sally has only worked for 37 and a half hours, she will not be entitled to any overtime pay.
Answer:
The correct answer is letter "D": short-term financing.
Explanation:
Short-term financing allows companies to obtain capital for their <em>day-to-day operations</em>. The funds obtained are typically used for the transactions companies require during one period -one year, but the term for payment tends to be within six (6) to twenty-four (24) months. Under this scenario, the main purpose of firms is to keep their businesses up and running and obtain profits enough for the payment of the loan and reinvestment in the company.
Answer and Explanation:
The journal entry to record issuance of the stock in exchange for the land and building is given below:
Land $237,000
Building $368,000
To Common stock, $8 par value $168,000
To Paid-in capital in excess of par value, common stock $437,000
(Being the issuance of the stock in exchange for the land and building is recorded)
Answer:
According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.
Explanation:
To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.
This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.
