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Ratling [72]
3 years ago
12

The term capital, as used by economists, refers to A. money B. the physical space in which production occurs C. the time allocat

ed to producing goods and services D. financial securities such as stocks and bonds E. machinery and equipment that is not used up during the production process
Business
1 answer:
miskamm [114]3 years ago
7 0

Answer:

The correct answer is option E.

Explanation:

The term capital refers to the machinery and equipment that are used to produce goods and services. These things are long lasting and are not exhausted in the production process.

It is one of the four factors of production and essential for production of goods and services. It is already produced durable good.

Financial securities such as stocks and bonds are financial capital and are different from capital goods or capital assets.

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Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania. You might conclude
irinina [24]

Answer:

D) productivity in Poland is higher than in Romania.

Explanation:

Income and wages are directly related to productivity and economic growth. Productivity refers to the total output produced by each unit of labor, an almost all variations in the standard of living of a country and most variations in economic growth are associated with it.

The logic is that a worker that is able to generate a higher level of output should earn a higher income. E.g. if you are a salesperson that sells $200,000 worth of merchandise per month should earn more money that another salesperson that only sells $50,000 per month. Generally, the more money you earn, the higher your standard of living.

6 0
3 years ago
Read 2 more answers
Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
atroni [7]

Answer:

Correct answer is letter D, $11,000 cost, five-year life and $1,000 salvage value

Explanation:

To compute depreciation expense of an asset using straight-line method of depreciation, the information we needed is 3,

1. cost of an asset

2. life of an asset (in year)

3. residual value (if available)

<em>* residual value of an asset is to be determined by the company, some asset don't have scrap value assigned.</em>

<em />

<em>FORMULA </em>

<em>The difference between the cost of an asset and the expected residual value over the number of years it is expected to be useful.</em>

<em>(cost of an asset - residual value ) / life of an asset</em>

6 0
3 years ago
What is generally TRUE about earning an income?
Daniel [21]
I think it could possibly be d?
5 0
2 years ago
Read 2 more answers
Kenyon Co. uses the perpetual inventory method. Kenyon purchased 400 units of inventory that cost $6.00 each. At a later date th
olga nikolaevna [1]

Answer:$5600

Explanation:

The FIFO inventory system is an inventory system where the inventory purchased first is the first to be sold.

If 800 units are sold, the inventory sold would be calculated as:

$6 × 400 = $2,400

$8 × 400 = $3200

=$5,600

4 0
3 years ago
Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $110 million and it has total a
mafiozo [28]

Answer:

ROE is 0.1571 or 15.71%

Explanation:

The ROE or return on equity is a measure of a business's profitability in relation to its equity. The Dupont equation breaks down the ROE into three components which are used to calculate the ROE. The formula fro ROE under dupont equation analysis is,

ROE = Net Profit/Sales  *  Sales/Total Assets  *  Total Assets/Total Equity

  • The part of Net Profit/Sales is also known as profit margin.
  • The part of Sales/Total Assets  is also known as Assets Turnover
  • The part of Total Assets/Total equity is also known as equity multiplier

ROE = 0.03  *  110/42  *  2

ROE = 0.1571428571 rounded off to 0.1571

8 0
3 years ago
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