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sammy [17]
3 years ago
6

Practice: True or False 1. Investment spending is spending on financial assets like stocks and bonds F 2. Transfer payments are

not counted in the calculation of GDP 3. If the nominal GDP increases then the economy is definitely experiencing inflation 4. An economy is not at full employment unless there is no unemployment 5. Countries that have generous unemployment benefits tend to have higher natural rates of unemployment 6. Lumberjacks are structurally unemployment when they are replaced by machines
Business
2 answers:
Colt1911 [192]3 years ago
8 0

Answer:

1. False

2. True

3. False

4. False

5. True

6. True

Explanation:

1. False: Investment spending is spending on financial assets like stocks and bonds.

2. True: Transfer payments are not counted in the calculation of GDP.

3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.

4. False: An economy is not at full employment unless there is no unemployment.

5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.

Aleksandr [31]3 years ago
3 0

Answer:

1. False

2. True

3. False

4. False.

5. True

6. True

Explanation:

Investment spending is the purchases of land, machinery, infrastructure or production inputs. Investment spending is different from investment, which is the purchase of financial instruments like bonds, stocks, and derivatives.

Transfer payments are not calculated in the GDP. An example of a transfer payment is a welfare check that is received by a household. Transfer payments are not included because nothing gets produced as money is simply just transferred from one group to another.

Nominal GDP increases due to a positive economic growth. The nominal GDP could increase because production has increased and due to increase in in the price.

Full employment means that the unemployment has fallen to a lowest possible level which won't cause inflation. Full employment does not mean there won't be unemployment at all in the economy.

Countries that have generous unemployment benefits tend to have higher natural rates of unemployment unemployment because the workers are always coming and going, looking for better jobs.

Lumberjacks are structurally unemployment when they are replaced by machines because it is an unemployment that results.from industrial reorganization, due to technological change.

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Answer: B. Maintaining a steady dividend is a key goal of most dividend-paying companies.

Explanation:

Companies that pay dividends prefer in general, to maintain a steady dividend overtime. This does not necessarily mean that they will pay the same amount of dividend but rather that they will pay out dividends as within a certain percentage range of the net income.

Companies do not prefer to cut dividends so as not to send the wrong message so A is wrong. Share repurchases reduces agency costs so C is wrong. Short term fluctuations in cash flow are not the key favor in determining dividend policy as the company might still pay out the same regardless so this is wrong as well. Option B is the best answer.

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3 years ago
Late on summer clothing store managers realize they have many more bathing suits in stock than they can normally expect to sell
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They would opt to have a sale of bathing suits. They would offer discount from the original price of the bathing suit. In this way, the suits will be bought because its cheaper than before. 

The store manager should make sure that the discounted price is still higher than the cost of the bathing suits so that they will still generate profit even at a lower value than initially expected.
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3 years ago
A marketing manager instructs his team to make 80 telephone calls to attempt to sell an insurance policy. The random variable in
Serggg [28]

Answer:

A) discrete random variable.

Explanation:

Discrete random variables can assume only a finite number of values, and their combined total probabilities must equal 1.

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arlik [135]

Answer:

A. Frictional Unemployment

B. Structural Unemployment

C. Cyclical Unemployment

Explanation:

A. Frictional Unemployment refers to people moving between jobs which is the case for the first scenario

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7 0
3 years ago
Assume that on February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. Prepare P&am
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Answer:

Journal entry on February 1:

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Credit Cash $729,600

Annual adjusting entry on June 30:

Debit Insurance Expense $152,000

Credits Prepaid Insurance $152,000

Explanation:

On February 1, Procter & Gamble (P&G) paid $729,600 in advance for 2 years’ insurance coverage. The company records the insurance as the prepaid Insurance:

Debit Prepaid Insurance $729,600

Credit Cash $729,600

On Jun 30, the last day of the following 5 months, the company records an adjusting entry that Credits Prepaid Insurance for $152,000 ($729,600 divided by 24 months times the 5 months that will be prepaid as of Jun 30) and Debits Insurance Expense for $152,000

Debit Insurance Expense $152,000

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7 0
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