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RoseWind [281]
3 years ago
11

If the structural unemployment rate is 3%, the frictional unemployment rate is 2%, and the cyclical unemployment rate is 4%, the

n the natural rate of unemployment is 9%.
True

False
Business
1 answer:
Damm [24]3 years ago
5 0

Answer:

False

Explanation:

In this scenario, the natural rate of unemployment would be 5% = 3% of frictional unemployment plus 2% of cyclical unemployment. The other type of unemployment that is part of the natural rate is not referenced in the question (surplus unemployment).

Cyclical unemployment is not added up because it is not part of natural unemployment.

In fact, what natural unemployment basically is, is unemployment that does not depend on business cycle, that is not cyclical. In that sense, cyclical unemployment is totally the opposite to natural unemployment, and you only reach a rate of natural unemployment, when cyclical unemployment is eliminated in a healthy economy.

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Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for
In-s [12.5K]

Answer: The predetermined overhead rate increased because the total direct labor-hours dropped

Explanation:

The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.

When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped

The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.

6 0
3 years ago
The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each
zzz [600]

Answer:

40 air conditioner and 60 fans yield a 1,900 dollar profit

Explanation:

Maximize: 26x_1+15x_2\\$Subject to:\\3x_1+ 2x_2 =240\\2x_1+x_2 =120

We apply this constrain on excel solver tool.

                     Wiring  Drilling    Profit per unit   Total Profit

AC  40 units 120  80            25                  1000

Fan 60 units 120  60            15                  <u> 900 </u>

  240        140  1900                 1,900

8 0
3 years ago
To prepare for the construction of its new headquarters, Baker Co. purchased a 500-acre plot of land on August 5, Year 1. Baker
leonid [27]

Answer:

FASB ASC 835-20-15-8

Explanation:

This section explicitly states that in order for interests to qualify for interest capitalization, the assets purchased through the loan must be getting ready for its intended use. E.g. if you want to capitalize the interests on the land, you must carry out activities necessary to prepare it for its intended use. Or if you purchase a machinery, you must be installing it in order to get it ready to produce.

4 0
3 years ago
Delta Company purchased a delivery truck for a total cost of $15,000. Delta paid $2,000 in cash and signed a note payable for th
kupik [55]

Answer:

increase assets by $13,000, increase liabilities by $13,000 and have no effect on equity.

Explanation:

Given that

The total cost of purchase of delivery truck = $15,000

Cash paid = $2,000

The accounting equation equals to

Total assets = Total liabilities + owners equity

The remaining amount left would be equal to

= $15,000 - $2,000

= $13,000

So it would increase the assets for $13,000 as the delivery truck is purchased plus there is also an increase in liabilities for $13,000 as it signed a note payable and there is no effect on equity

8 0
3 years ago
The Atlanta Braves signed an outfielder to a five-year contract. The contract calls for the following cash flows: a signing bonu
Aleonysh [2.5K]

Answer:

$63.56 million

Explanation:

We are to find the present value of the cash flows in order to determine the value of the contract today

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 0 = $4.00 million  

Cash flow in year 1  = $12.09 million

Cash flow in year 2  = $13.36 million

Cash flow in year 3  = $14.17 million

Cash flow in year 4  = $15.26 million

Cash flow in year 5  = $16.43 million

I = 6%

Present value = $63.56 million

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
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