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3 years ago

If labor becomes more productive, the production possibilities frontier will:__________

Business

1 answer:

bezimeni [28]3 years ago

7 0

Answer:

Shift outwards.

Explanation:

The production possibilities frontier or curve is the curve that shows various combinations or bundles of goods that an economy produces by using its all resource and if there is any point inside the curve then it will depict the inefficiency or underutilization of resources. Moreover, the PPF curve shifts outwards when there is an improvement in technology, due to which the output has increased. Similarly, the increase in output due to labor productivity will result in the rightward shift in the PPF curve.

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A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.40 million Year 2: $1.51 million

jolli1 [7]

The player's annual salary (in millions of dollars), using the present value calculations, is <u>$1.89743 million</u>.

<h3>What is the present value?</h3>

The present value of the player's future cash flows (salaries) is the current value or the value in today's dollars. It is computed by discounting the future values at the appropriate discount rate.

The present value can be computed using the Present Value formula, an online finance calculator, or the PV factor table.

Formula

PV = FV \frac{1}{(1+r)^{n}}

Where:

PV = present value

FV = future value

r = rate of return

{n} = number of periods

<h3>Data and Calculations:</h3>

Discount rate = 10%

Period of salary = 5 years

Period Cash Flows PV Factor Present Value

Year 1: $1.40 million 0.909 $1,272,600 ($1.4 x 0.909)

Year 2: $1.51 million 0.826 1,247,260 ($1.51 x 0.826)

Year 3: $2.25 million 0.751 1,689,750 ($2.25 x 0.751)

Year 4: $2.59 million 0.683 1,768,970 ($2.59 x 0.683)

Year 5: $3.17 million 0.621 1,968,570 ($3.17 x 0.621)

Additional present value required 1,540,000

Total present value = $9,287,150

Annual salary (in millions of dollars) = $1.89743 million ($9,287,150/5).

Thus, the player's annual salary (in millions of dollars) is <u>$1.89743 million</u>.

Learn more about present value calculations at brainly.com/question/20813161

8 0

2 years ago

People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience

IrinaK [193]

Answer:

c. shoe leather cost.

Explanation:

During times of high inflation, interest rates usually go up. Money in the banks earns higher interest compared to when inflation is low. When the inflation rate is high, the prices of goods and services increase rapidly, resulting in a reduction in currency's purchasing power.

Individuals and firms opt to keep as little cash in hand as possible. Holding a lot of cash at such times is not prudent as banks offer high-interest rates. Keeping cash become costly due to currency depreciation. As firms and households keep most of the money in banks, they incur a lot of transport costs and time going to banks to withdraw cash for normal expenses. The time and transport costs incurred are referred to as shoe leather costs.

6 0

3 years ago

Which of the following would be included in the expenditure method of calculating GDP? Check all that apply. Firedog spends $150

MrMuchimi

Sam pays Better Buy $1,000 to install a new high -definition television (HDTV) on his living room wall. He's attracted by Better Buy's guarantee that he'll be happy with the new HD1V, or he'll get his money back. ? Better Buy pays Firedog $900 to install the HDTV. ? Firedog buys hardware worth $150 from The Home Station. Assume that The Home Station gets the hardware for essentially nothing and that other costs are $0. To compute the contribution to GDP using the expenditure approach. Which of the following would be included in the expenditure method of calculating GDP? Check all that apply. Sam spends $1,000. El Better Buy spends $900. El Firedog spends $150. The total contribution to GDP, measured by the expenditure method,

Answer:

Sam spending of $1000

Explanation:

Sam's expenditure is a household consumption expenditure

Since AE = C + I + G + NX

where AE = aggregate expenditure for GDP

C = household consumption

I = investment on capital goods

G = government expenditure

NX = net export.

7 0

2 years ago

3) mario's home systems has sales of $2840, costs of goods sold of $2180, inventory of $508, and accounts receivable of $432. ho

Novay_Z [31]

84.84 days take Mario's to sell its inventory.

<h3>What is meant by Inventory?</h3>

All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory.

The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities.

Data given in the question:

Sales = $2,880

costs of goods sold = $2,220

Inventory = $51

Accounts receivable = $436

Now,

Time taken to sell inventory = 365 ÷ ( Inventory Turnover Ratio )

also,

Inventory Turnover Ratio = [ Cost of goods sold ] ÷ [ Average inventory ]

= $2,220 ÷ $516

= 4.3023

Therefore,

Time taken to sell inventory = 365 ÷ 4.3023

= 84.84 days

To learn more about Inventory refer to:

brainly.com/question/24868116

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6 0

1 year ago

Fixed manufacturing costs are $51 per unit, and variable manufacturing costs are $153 per unit. Production was 81,000 units, whi

scZoUnD [109]

Answer:

Part a.

Yes, variable costing operating income is less than or greater than absorption costing.

Part b.

$247,860

Explanation:

The difference between variable costing operating income and absorption costing operating income lies in the fixed costs deferred in inventory.

The profit in both method is the same if and only if there is no inventory. That means units produced equal units sold (Production = Sales)

The absorption costing method includes fixed manufacturing cost in determining product costs whereas the variable costing method only accounts for variable manufacturing cost.

When the units produced are greater than units Sold (Production > Sales) , Fixed Costs in Inventory increases this means absorption profits will be greater than Variable costing profit as <em>Fixed costs in inventory value reduces cost of sales in absorption costing.</em>

<u>Difference in variable costing and absorption costing operating income.</u>

Difference = (81,000 - 76,140) x $51

= $247,860

3 0

3 years ago