Answer:
A. Set above equilibrium price
Explanation:
A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.
If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.
Option A is correct because... (please refer attached diagram):
When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.
Answer:
a.
7.22%
Explanation:
The computation of the return on total assets is shown below:
= Net income after taxes ÷ total assets at the end of the last year
= $22,750 ÷ $315,000 × 100
= 7.22%
Hence, the return on total assets is 7.22%
Therefore the correct option is a.
Answer:
The investment of $1000 that yields 12% interest per year would become $2000 in 6 years' time as shown by the calculation below
Explanation:
In determining the how long it would take for the investment to become $2000, the future value formula stated below is used.
FV=PV*(1+r)^N
FV is the $2000
PV, present value is $1000
r is the rate of return at 12%
2000=1000*(1+0.12)^N
2000/1000=1.12^N
2=1.12^N
by taking log of both sides the equation becomes
ln 2=N ln 1.12
N= ln 2/ln 1.12
N=6.116255374
approximately N is 6 years
Answer:
$11 billion annually.
Explanation:
Firms carried out assessments based on their daily activities as well as employee assessment.
Employees in firms are assessed based on their productivity level, rate at which they are absent from work as well as their turnover rate in the firm.
Low productivity can be defined as a decrease in the production capacity of a firm due to the inefficiency of workers.
Absenteeism can be defined as when a person is not present at work. This may be due to genuine or deliberate reasons.
Employee turnover can be defined as the number of employees who leave a firm and are replaced with new employees.
Low productivity, consistent absenteeism and employee turnover rates are said to cause firms to lose a lot of money due to:
a. Payment of salary for absent workers
b. Having to find replacement for absent staffs.
c. Low productivity due to lack of or absent staffs.
It is estimated that firms lose $11 billion annually in productivity, absenteeism, and employee turnover due to caring for aging parents.
