Closely held corporations sell shares of stock to the public. <br> True <br> False

If consumer has rational, monotonic and convex preferences, which of the following is true concerning the substitution effect of

Zanzabum

Answer:

It will lead to an increase in consumption of good X only if X is a normal good ( D )

Explanation:

If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .

This is because the demand for Normal goods increases with increase in consumers income. therefore <em>a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.</em>

5 0

3 years ago

The buyer of a futures contract A. assumes the short position. B. may not sell the contract without the permission of the origin

Anit [1.1K]

Answer:

D

Explanation:

Firstly, before we answer this question, we need to know what a futures contract is.

A futures contract can be defined as an agreement specifying the delivery of a commodity or a security at an agreed future date and at a currently agreed price.

This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.

Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date

6 0

3 years ago

Suppose the economy is operating at an output level of $5,400 billion. Assume furthermore that potential output is $5,000. Which

olga2289 [7]

Answer:

The government should decrease spending by $100 billion.

Explanation:

The potential output level of an economy is $5,000 billion.

The economy is operating at an output level of $5,400 billion.

We see that there is an inflationary gap of $400 billion as the economy is operating at an output level of $400 billion more than the potential output level.

The marginal propensity to consume is 0.75.

ΔY = $\frac{1}{1 - MPC}\ \times\ \Delta G$

$400 billion = $\frac{1}{1 - 0.75}\ \times\ \Delta G$

ΔG = $\frac{400}{4}$

ΔG = $100 billion

4 0

3 years ago

IM Enterprises sells two products, Crunchies and Munchies. Crunchies have a 32 percent contribution margin and Munchies have a 3

german

Answer:

The multiple choices are:

A. No recommendation can be made by the data

B. It should sell more crunchies

C. It should sell an equal number of each product

D. It should sell more munchies

Option D, it should sell more munchies , is correct

Explanation:

In order to cover generate more margin while the fixed cost remains the same, hence profitability is improved overall, the best course of action would be to sell more munchies with a higher contribution margin.

In essence, I am in strong support of the company, IM Enterprises , selling more of munchies, option D, as that would improve its bottom-line in terms of more profit generation.

Whatever contribution is made on additional sales,directly impacts net income since fixed cost has been covered ,hence a product with higher contribution would have impact on increased profit

5 0

4 years ago

Based on the following data, what is the amount of quick assets?

Neporo4naja [7]

Answer:

the total of quick assets is 173,000

Explanation:

assets are fast, they are those that are considered current, that is, in less than a year they can be used to cancel liabilities or acquire other goods.

First we dismiss all liability accounts.

Then we analyze the possibility of assets "becoming" money in less than a year.

They are the following items:

Accounts receivable 45,000

Cash 20,000

Inventory 72,000

Marketable securities 36,000

Total = 173,000

7 0

3 years ago

Closely held corporations sell shares of stock to the public. True False