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garri49 [273]
2 years ago
5

For which of the following types of goods would the income elasticity of demand be positive and relatively large?A. luxuriesB. a

ll normal goodsC. all inferior goodsD. goods for which there are many good complements
Business
1 answer:
RoseWind [281]2 years ago
5 0

Answer:

Option (A) is correct.

Explanation:

Luxury goods refers to the goods which are having positive income elasticity of demand. Positive income elasticity of demand is defined as the direct relationship between the demand of the goods and the income of the consumers.

If there is an increase in the income level of consumers then as a result there is an increase in the demand for luxury goods by a greater proportion. That's why the income elasticity of demand is relatively larger.

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Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a checking account ba
Stella [2.4K]

Answer:

A. Bank balance per reconciliation $22,789

Company balance per reconciliation $22,789

B. No journal entry required

Dr Service fees expense $41

Cr Cash $41

Explanation:

A Preparation of a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021

Bank Reconciliation

July 31 2021

Bank Cash balance

Per bank statement $22,364

Add Deposits outstanding $1,745

Checks outstanding -$1,320

Bank balance per reconciliation $22,789

Company Cash balance

Per generall edger$ 22,830

Service Fees -$41

Company balance per reconciliation $22,789

B. Preparation of the journal entry to adjust the balance for cash.

No journal entry required

Dr Service fees expense $41

Cr Cash $41

4 0
2 years ago
What are the macroeconomic conditions affecting the IT industry? Select "yes" for those statements that are accurate and choose
RUDIKE [14]

Answer:

a. From a political perspective, Ricoh should be aware of regulations from ITAC (Information Technology Association of Canada) who is actively promoting and supporting the expansion of the IT services industry in Canada as this move will likely impact Ricoh in many ways.   - Yes

b. From an economic perspective, Canada enjoys a strong economy with a strong GDP growth.  -  Yes

c. Low oil prices are causing turmoil in business investment in western Canada, leading to a negative impact for the economic component of the macro-environment.  -  Yes

d. A weak Canadian dollar makes the cost of importing more expensive. - No

Explanation:

  • The macroeconomic conditions that impact the business in terms of the economic growth rate. The use of GNP and GDP to measure the growth. The macroeconomic phenomenon estates the patterns and conditions from the large aspects of the economy.
3 0
2 years ago
Government is typically a​ ________.
xxTIMURxx [149]
Answer: D. net demander of funds because it borrows more than it saves

The government incurs more debts than gain profits as shown by most financial reports. The government is viewed similarly to that of business firms being net demanders by loaning huge amounts to financial institutions indirectly. The indirect borrowing done by government is done through debt security selling. 
8 0
3 years ago
Frieda Inc. is considering a capital expansion project. The initial investment of undertaking this project is $105,500. This exp
Nana76 [90]

Answer:

WACC = 0.18 or 18%

Option b is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • D, P and E represents debt, preferred stock and common equity respectively
  • r represents the cost of each component
  • rD * (1-tax rate) represents the after tax cost of debt

WACC = 0.2 * 0.16   +   0.8 * 0.185

WACC = 0.18 or 18%

7 0
3 years ago
Each statement below is part of an economic model. Indicate whether the statement is a prediction of cause and effect or an assu
aivan3 [116]

Answer:

(a) Assumption

(b) Cause and Effect

(c) Cause and effect

(d) Assumption

Explanation:

(a)  People behave rationally: Assumption

Rational behavior refers to a decision-making process that is based on making assumptions that result in an optimal level of benefit or utility.

(b) Cause and Effect

If a price of goods falls that is a cause and the effect is that  people will consume more of the good.

(c) Cause and effect

As the population grows faster than food supply (cause), mass starvation is predicted to occur which is the resultant effect.

(d) Assumption

The maximization of profit is based on the assumption of theory of production and costs.

4 0
2 years ago
Read 2 more answers
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