All categories

3 years ago

Which of the following is NOT one of the three basic economic questions?

1 answer:

4 0

The answer s "How to Produce it".
This is not one of the three basic economic questions.
Mostly what they usually asks is what to produce base on the needs of the consumers, where to produce it in where people really are needing it and who will consume what is produced, they may be rich people, etc.

You might be interested in

What is a likely result of an increase in trade between nations?

torisob [31]

Answer:

Explanation:

The prices will lower and the the amount of goods will increase

5 0

3 years ago

At the heart of operations management is the transformation process through which inputs (resources such as labor, money, materi

Alina [70]

Answer:

1. Slow Production - 5. Control Standards

2. Unfriendly Attendants - 4. Feedback

3. Oak trees and Labour - 1. Input

4. New Training Program - 2. Transformation

5. Oak Furniture - 3. Output

Cheers!

3 0

2 years ago

These expenditures were incurred by Carla Vista Co. in purchasing land: cash price $61,440, accrued taxes $4,720, attorney’s fee

ludmilkaskok [199]

Answer:

Cost of land = $76,240

Explanation:

Cost of land = cash price + accrued taxes + attorney's fees + broker's commission + clearing and grading

Cost of land = $61,440 + $4,720 + $2,660 + $3,360 + $4,060

Cost of land = $76,240

Original cost is the total price associated with the purchase of an asset.
The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use.
These costs include the purchase price and such factors as commissions, transportation, appraisals, warranties and installation and testing.
Original cost can be used to value an asset type, including equipment, real estate and security instruments.

3 0

3 years ago

Bob is evaluating a bond issue to determine the right price for the bond. In his evaluation, he gathers the following informatio

Elanso [62]

Answer:

The price of the bond is $1000. Thus, option a is the correct answer.

Explanation:

The price of a bond is calculated using the present value of the interest payments made by the bond, which is in the form of an annuity, plus the present value of the face value of the bond. The present value is calculated by discounting the annuity of interest and the face value by the YTM or yield to maturity. In case YTM is not provided, we assume that it is same as or equal to the coupon rate paid by the bond.

The formula for the price of the bond is attached.

Bond Price = 25 * [(1 - (1+0.025)^-8) / 0.025] + 1000 / (1+0.025)^8

Bond Price = $1000

5 0

3 years ago

You are scheduled to receive annual payments of $11,100 for each of the next 24 years. Your discount rate is 10 percent. What is

Lisa [10]

Answer:

The difference in the present value is $988.32.

Explanation:

The difference in the present value can be calculated using the following 3 steps:

Step 1: Calculation of the present value if you receive these payments at the beginning of each year

This can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:

PVA = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

Where;

PVA = Present value if you receive these payments at the beginning of each year = ?

P = Annual payments = $11,100

r = interest rate = 10%, or 0.10

n = number of years = 24

Substitute the values into equation (1), we have:

PVA = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10) * (1 + 0.10)

PVA = $10,871.54

Step 2: Calculation of the present value if you receive these payments at the end of each year

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVO = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where:

PVO = Present value if you receive these payments at the end of each year = ?

Other values are as defined in Step 1 above.

Substitute the values into equation (2), we have:

PVO = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10)

PVO = $9,883.22

Step 3: Calculation of the difference in the present value

This can be calculated as follows:

Difference in the present value = PVA - PVO = $10,871.54 - $9,883.22 = $988.32

3 0

3 years ago