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3 years ago

The government sets the price of subsidized corn too low. Which of the following statements describes the result?

Business

2 answers:

GREYUIT [131]3 years ago

5 0

Answer:

At that price, quantity demanded exceeds quantity supplied.

Explanation:

The subsidy is a government financial aid for a particular sector to produce a type of good, such as corn. This is applied when the value of the product is low enough to make production unfeasible. Because corn is an important product for the food industry and animal feed, the government gives producers a subsidy, which will be above market value. However, if the subsidy is low enough to not stimulate corn production, demand for the product will exceed supply. The solution to this is to raise the price of corn or to increase subsidies so that farmers have a stimulus to produce a quantity that meets demand.

malfutka [58]3 years ago

4 0

Because the price of the corn is very low many people will decide to go for it. Thus, the result will be that the quantity demanded for will exceed the quantity supplied.

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Losses on the sale of long-term assets for cash:

atroni [7]

Answer: (D) Are the excess of the book value over the cash received

Explanation:

The long term assets are mainly said to be sell in loss when, the actual selling price of the long termed investment are less than the value of the book and also the carrying value of the investment in books.

We can also find out the actual gain or loss as if cash receive are greater as compared to the assets vale of the book, then it is said to be gain. If cash receive are less as compared to the assets value of the book, then it is said to be loss.

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3 years ago

Name any four roles (functions) of money

andrezito [222]

Answer:Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

Explanation:

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3 years ago

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such a

Olenka [21]

Answer:

Explanation:

‘Cash Flow Statement’ is one of major financial statement that indicates the inflow and outflow of cash along with the reasons by categorizing each cash transaction in three activities i.e., operating, investing or financing activity. Non-cash transactions are not considered while preparing a cash flow statement.

Operating Activities records the cash transactions involved in the operations of the business are recorded under ‘operating activities’ in the cash flow statement.

Examples: Revenue earned, expenses incurred etc.

There are two methods to prepare the cash flow statement. The only difference between both the methods is the way of presenting cash flow from operating activities.

The two methods of presenting cash flow statement are:

Direct method: Operating activities section under direct method reports the amount of cash received and paid by the company during the period.
Indirect method: Operating activities section under indirect method reports the net income and later adjusts the transactions to convert it to cash basis of accounting.

3 0

3 years ago

You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of

Bess [88]

Answer:

So we can offer for the house $180119.95

Explanation:

Monthly income =$4000

Monthly mortgage payment allowed (P)= 25% of 4000= $1000

Interest rate per month (i)= 0.5%

Number of months in total (n)= 30*12= 360

Maximum loan affordable = P*(1-(1/(1+i)^n))/i

=1000*(1-(1/(1+0.5%)^360))/0.5%

=$166791.61

Closing cost is 4% of loan value = 166791.61*4% =$6671.66

Balance Amount left for down payment = 20000-6671.66

=$13328.34

It means we can pay $6671.66 for closing cost of Loan and $13328.34 for down payment.

Cost of house paid maximum = Down payment + Affordable loan

=13328.34+166791.61

=$180119.95

So we can offer for the house $180119.95

7 0

3 years ago

Metropolis National Bank is holding 2% of its deposits as excess reserves. Assume that no banks in the economy want to maintain

iris [78.8K]

Answer:

Increase in money supply = $200,000

Explanation:

Note: The given question is incomplete, missing part is as follow:

Metropolis National Bank

Balance sheet

Assets Liabilities

Reserves $60,000 Deposits $500,000

<u> Loans $440,000 </u>

Computation:

Excess reserve hold = 2% × Deposits

Excess reserve hold = 2% × $500,000

Excess reserve hold = $10,000

Required reserve = Reserves - Excess reserve hold

Required reserve = $60,000 - $10,000

Required reserve = $50,000

So,

Required reserve ratio = [$50,000 / $500,000]100 = 10%

Multiplier(K) = 1 / Required reserve ratio

Multiplier(K) = 1 / 10%

Multiplier(K) = 10

Total Money = Person deposit + Excess reserve hold

Total Money = $10,000 + $10,000

Total Money = $20,000

Increase in money supply = Total Money × Multiplier(K)

Increase in money supply = $20,000<u> </u> × 10

Increase in money supply = $200,000

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3 years ago