Answer:
C. Inside its PPC
Explanation:
The Production possibility Curve also known as Production Possibility Frontier PPF is the curve that depict the relationship in the production of 2 given goods in an economy (See Image).
The curve basically shows 5 situations:
1. Point A: where all the production is devoted to Wheat
2. Point B: where all the production is devoted to Cotton
3. Points C: Any given point along the curve different to point A and B represent the trade off in the production of the 2 goods
4. Point D: Is an impossible point to achieve as it is outside the capabilities of the curve
5. Point E: Is an inefficient point of production as it is below the possibilities of production.
In the case of the expantion of the production capacity while the total spending fails to rise as fast. Then, the economy ends up in point E were inefficiency must be solve in order to produce in a maximum capacity.
I wouls say B. price, location, condition
You would probably have a budget for what you could afford for price. You probably have a certain area that you want to live in for the location and you would want the house that you want to purchase to be in good condition. You do not want to go in having lots of repairs to deal with.
Answer:
B) $56,130
Explanation:
The cash flow statement shows how the company's operating, investing and financing activities affect the flow of cash by generation or use.
The investing activities section is where the purchase of fixed assets and the amount received for the disposal of these assets are accounted for.
Given that a gain was realized and the book value of the asset was given, the amount received for the disposal
= $5,278 + $50,852
= $56,130
This is the amount that will be reported in the investing activities section of the statement of cash flows as an inflow.
Answer:
a) $0 of the net capital loss is deductible in 2016
b) $7,000
Explanation:
a) $0 of the net capital loss is deductible in 2016
First, it should be noted that only individuals are allowed to charge/deduct any capital losses against their ordinary income, corporate organisations are not allowed to do so. Corporate firms are only allowed to deduct their capital losses from their capital gains, therefore if there are no capital gains or the gains are insufficient, then no amount of net capital loss can be charged.
Since Goose Corporation has no capital gain it means that the entire $12,000 capital loss cannot be charge or deducted in 2016.
b) To calculate net loss to be carried forward is as follows
Capital loss - net gain in 2015 (the net gain in 2012 cannot be used because it is more than 3 years back before the capital loss)
= $12,000- $5000 = $7,000
While corporate organisations are permitted to use their current net losses to offset past capital gains (limited to only 3 years). This rule therefore exempts the use of the $2,500 in 2012 to offset the capital loss of 2016
Answer:
The type of consumer behavior this scenario describes is psychological consumer behavior.
