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3 years ago

You win the million-dollar lottery and decide to quit working. How can you explain this decision using economics

Business

1 answer:

Mademuasel [1]3 years ago

4 0

Answer:

the income effect now groverns your behaviour as you demand more leisure and the opportunity cost of leisure goes down

Explanation:

In economics, the cost of opportunity refers to when one person or business chooses one advantage over another.
When a person wins the lottery, the person's income increases. This increase in income motivates the person to choose more leisure at work. This means the person is ready to leave work for leisure. In this way, the potential cost of the holiday is reduced.
And with an increase in a person's income, a person's purchasing power improves. Increasing purchasing power means the person seeks more rest. Therefore, choosing to retire at work with an increase in income indicates an income impact. Therefore, if a person decides to quit his job, that person's behavior will be controlled by the income effect.

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When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of:

leva [86]

Answer:

Organising

Explanation:

Organising is defined is the process of sharing responsibility based on sections and departments. It is also establishment of relationship among between the people involved in a project so that efficiency is ensured.

In this scenario where Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he is performing organising function by allocating resources in the organisation.

8 0

3 years ago

Read 2 more answers

douglas pays selena $43,300 for her 30% interest in a partnership with net assets of $127,900. following this transaction, dougl

Katarina [22]

Selena receives $43,300 from Douglas for her 30% stake in a partnership with $127,900 in net assets. After this transaction, the capital account of Douglas should have a account balance of $38,370.

Douglas's Capital account balance

= Net assets x30%

= $127,900 x 30%

= $31,875

Therefore, Douglas's capital account should have a credit balance of $38,370

A financial repository's account balance represents the amount of money there is at the end of the current accounting period. It is the sum net assets of the balance carried over from the previous month and the net difference between the credits and debits that have been recorded during any given accounting cycle.

The amount due or the net debt may be shown in an account balance. The former is frequently depicted in financial accounts that include net assets recurring bills, like those for utilities or gym memberships. The latter, on the other hand, is reflected in accounts with negative cash balances, such as bank overdrafts.

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4 0

1 year ago

Kingbird, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable

antoniya [11.8K]

Answer:

(a) The adjusting journal entry to record bad debt expense for the year:

Debit Bad debt expense $5,640

Credit Allowance for doubtful accounts $5,640

<em>(To record bad debt expense)</em>

(b) If the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, The appropriate journal entries are:

Debit Bad debt expense $9,460

Credit Allowance for doubtful accounts $9,460

<em>(To record bad debt expense)</em>

Explanation:

To arrive at the bad debt expense for Kingbird, Inc., we simply need to calculate 3% of accounts receivable, as follows:

2% of $429,500 = $8,590

Since the allowance for doubtful accounts has a credit balance of $2,950, the bad debt expense will be: $8,590 - $2,950 = $5,640. The appropriate journal entries are as provided above.

However, if the allowance for doubtful accounts had a debit balance of $870 instead of a credit balance of $2,950, the bad debt expense will be: $8,590 + $870 = $9,460. The addition is necessary in order to reinstate the allowance account to $8,590. The appropriate journal entries are as provided above.

6 0

3 years ago

Olive Maccones dies without a will. She has three sons and seven grandchildren. She owned a substantial amount of property. What

navik [9.2K]

Answer:

The property will be transferred according to the Statute of Descent and Distribution.

Explanation:

Intestacy is the situation where a person dies without leaving a will for the sharing of his estate.

When this happens the descent and distribution statute comes into play.

The heirs or next of kin are beneficiaries to the estate. Heirs can be be blood relatives, adopted children, adopted parent, or surviving spouse.

The line of descent is the order of beneficiaries that are from an ancestor. The line of descent can be direct such as sons, or collateral such as cousins.

In this case where Olive Maccones dies without a will and she has three sons and seven grandchildren, her estate will be distributed by a court based on the line of descent of her sons and grandchildren.

6 0

3 years ago

Your sister is thinking about starting a new business. The company would require $355,000 of assets, and it would be financed en

Diano4ka-milaya [45]

The net income that must be expected to warrant starting the business is: $47,925.

<h3>Net income</h3>

Using this formula

Net income = ROE × Total equity

Let plug in the formula

Net income = 13.5% × $355,000

Net income = $47,925

Therefore the net income that must be expected to warrant starting the business is: $47,925.

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7 0

2 years ago