Stockbrokers who still had profits on their books were afraid that their profits would disappear.
Stockbrokers who had losses were afraid that those losses might get larger.
Investors decided to get out of the market.
Answer:
The Journal entries are as follows:
(i) Manufacturing Overheads Account Dr. $900
To Accumulated Depreciation $300
To Cash account $100
To Utilities payable $500
(To record the expenses incurred)
(ii) Work in process inventory A/c ($1.50 × 450) Dr. $675
To Manufacturing Overhead $675
(To record the allocation of overhead at the predetermined rate of $1.50 per machine hour)
Answer:
Hospitality provides essential services (i.e., lodging and food) for travelers, whether they are on the move for reasons of necessity, leisure or luxury. Hospitality is a major factor in every vacation and business trip, and is thus important to individual customers and to businesses.
Answer: Option (a) is correct.
Explanation:
Correct Option: Lower than his opportunity cost of that good.
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
In our case, if people obtained a good at a price that is lower than his opportunity cost of that good then he will be benefited from the trade.
Answer:
B) The yield on a 5-year Treasury bond must exceed that on a 2-year Treasury bond.
Explanation:
The yield on 5-year Treasury bond must be higher than a 2-year Treasury bond. This is because the expected inflation rate after 2-years will be constant at 4% and there is also a maturity risk premium which increase with the increase in maturity of the bond. Therefore, the correct answer is option B.
