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3 years ago

1. The level of prices and the value of money

Business

1 answer:

Marizza181 [45]3 years ago

8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

In year one, the basket costs $8.00.

In year two, the price of the same basket is $7.00.

Deflation= (7/8)-1= - 12.5%

In year one, $40.00 will buy ________ baskets, and in year two, $40.00 will buy ________ baskets.

Year 1= 40/8= 5 baskets

Year 2= 40/7= 5.71 baskets

The value of money rises.

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Classifications on Balance SheetThe balance sheet contains the following major sections:Current assetsLong-term investmentsPrope

Shkiper50 [21]

Answer:

1. Cash ⇒ CURRENT ASSETS, NOT A CONTRA ACCOUNT

2. Bonds Payable (due in 8 years) ⇒ LONG TERM LIABILITY, NOT A CONTRA ACCOUNT

3. Machinery ⇒ FIXED ASSET, NOT A CONTRA ACCOUNT

4. Deficit ⇒ PART OF RETAINED EARNINGS, NOT A CONTRA ACCOUNT

5. Unexpired Insurance ⇒ GENERALLY CURRENT ASSET (AT LEAST THE PORTION OF PREPAID INSURANCE THAT COVERS THE NEXT 12 MONTHS), NOT A CONTRA ACCOUNT

6. Franchise (net) ⇒ INTANGIBLE ASSET, NOT A CONTRA ACCOUNT

7. Fund to Retire Preferred Stock ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

8. Current Portion of Mortgage Payable ⇒ CURRENT LIABILITY, NOT A CONTRA ACCOUNT

9. Accumulated Depreciation ⇒ PART OF FIXED ASSETS, CONTRA ACCOUNT

10. Copyrights ⇒ INTANGIBLE ASSET, NOT A CONTRA ACCOUNT

11. Investment in Held-to-Maturity Bonds ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

12. Allowance for Doubtful Accounts ⇒ PART OF CURRENT ASSETS, CONTRA ACCOUNT

13. Notes Receivable (due in 3 years) ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

14. Property Taxes Payable ⇒ CURRENT LIABILITY, NOT A CONTRA ACCOUNT

15. Deferred Taxes Payable ⇒ LONG TERM LIABILITY, NOT A CONTRA ACCOUNT

16. Additional Paid-in Capital on Preferred Stock ⇒ CONTRIBUTED CAPITAL, NOT A CONTRA ACCOUNT

17. Premium on Bonds Payable (due in 8 years) ⇒ LONG TERM LIABILITY, IT IS AN ADJUNCT ACCOUNT NOT A CONTRA ACCOUNT

18. Work in Process ⇒ CURRENT ASSET, NOT A CONTRA ACCOUNT

19. Common Stock, $1 par ⇒ CONTRIBUTED CAPITAL, NOT A CONTRA ACCOUNT

20. Land ⇒ FIXED ASSET, NOT A CONTRA ACCOUNT

21. Treasury Stock (at cost) ⇒ CONTRIBUTED CAPITAL, CONTRA ACCOUNT

22. Unrealized Increase in Value of Available-for-Sale Securities ⇒ ACCUMULATED OTHER COMPREHENSIVE INCOME, NOT A CONTRA ACCOUNT

3 0

3 years ago

In the late 1970s Federal Reserve Chairman Paul Volcker contracted the money supply to reduce the rate of inflation. One result

xxTIMURxx [149]

Answer: to increase interest rates which reduced aggregate demand.

Explanation:

Since the money supply was contracted to reduce the rate of inflation, this will lead to increase interest rates which reduced aggregate demand.

In this case as a result of the increase in the interest rate, people will prefer to save their money in the banks and thus will result in less money in circulation which ultimately reduces the demand for goods and services.

8 0

2 years ago

Economic efficiency is

Marina CMI [18]

Answer:

The correct answer is option A.

Explanation:

A market outcome will be considered economically efficient if the marginal benefit earned from the last unit is equal to the marginal cost incurred in the production of the last unit while the economic surplus or the sum of consumer surplus and producer surplus is at maximum.

If the marginal cost and benefit are not equal then the outcome is said to inefficient. It means that either the resources are not being allocated efficiently or the production is not efficient.

6 0

3 years ago

A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec

gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

= $65

3 0

3 years ago

Macroeconomics deals with the short-run variations in economic growth that make up the business.

madam [21]

Macroeconomics deals with the short-run variations in economic growth that make up the business cycle

This is further explained below.

<h3>What is Macroeconomics?</h3>

Generally, The study of an economy's performance overall, structure, behavior, and judgment is the domain of macroeconomics, a subfield within the discipline of economics.

The increase of economic activity is followed by periods of contraction, which together make up a business cycle.

These shifts have repercussions not just for the well-being of the general population but also for the operations of private organizations.

Business cycles are a sort of variation that may be observed in the overall economic activity of a country.

A business cycle is a cycle that consists of expansions happening at about the same time in numerous economic activities, followed by contractions that are equally widespread in nature.

In conclusion, The business cycle is the primary focus of macroeconomics, which analyzes the short-term fluctuations in economic growth that occur throughout it.