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2 years ago

9

Fiona deposits $2,000 into a savings account. If the Fed requires a 20 percent reserve ratio, how much of Fiona’s money can the

bank lend?
a.)$400
b.)$1,600
c.)$2,000
d.)$1,200

1 answer:

Scrat [10]2 years ago

6 0

the answer is B.)$1,600

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How does a market economy operate?

Tanya [424]

Answer:

The principle of market economy dictates that producers and sellers of goods and services will offer them at the highest possible price that consumers are willing to pay for goods or services. When the level of supply meets the level of demand, a natural economic equilibrium is achieved.

Explanation:

5 0

2 years ago

The United States currently imports all of its coffee. Suppose the annual demand for coffee by U.S. consumers is given by the de

Vlada [557]

Answer:

(a) $7; $205 million

(b) $9; $195 million

(c) $400 million

(d) $390 million

(e) Loss = $10 million

Explanation:

(a) Price paid by consumers when no tariff imposed:

= Marginal cost + Distribution cost

= $6 + $1

= $7

Quantity demanded:

Q = 240 - 5P

= 240 - 5 × $7

= 240 - $35

= $205 million pounds

(b) At imposed tariff of $2 per pound, then the new price paid by consumers:

= Marginal cost + Distribution cost + Tariff

= $6 + $1 + $2

= $9

New quantity demanded:

Q = 240 - 5P

= 240 - 5 × $9

= 240 - $45

= $195 million pounds

(c) Lost consumer surplus:

= ($9 - $7)($195) + (0.5)($9 - $7)($205 - $195)

= ($2 × $195) + (0.5 × $2 × $10)

= $390 + $10

= $400 million

(d) Tax revenue collected by government:

= Quantity demanded under tariff × tariff

= $195 × $2

= $390 million

(e) Tax revenue of $390 million received is less than the value of coffee sold under tariff $400 million.

Loss = $400 million - $390 million

= $10 million

4 0

2 years ago

1. Which of the following is an economic activity?

galina1969 [7]

Check this attachment

3 0

3 years ago

Read 2 more answers

Pronghorn Corporation purchased machinery on January 1, 2022, at a cost of $276,000. The estimated useful life of the machinery

vfiekz [6]

Answer and Explanation:

The depreciation schedule is as follows:

<u>For straight-line method</u>

<u>Year Depreciable Depreciation Depreciation Accumul Book value</u>

<u> cost rate Expense Depre</u>

2022 $243,400 25% $60,850 $60,850 $215,150

($276,000 - $32,600) (1 ÷ 4) ($276,000 - $60,850)

2023 $243,400 25% $60,850 $121,700 $154,300

2024 $243,400 25% $60,850 $182,550 $93,450

2025 $243,400 25% $60,850 $243,400 $32,600

$243,400

<u>For double declining method</u>

<u>Year Depreciable Depreciation Depreciation Accumul Book value</u>

<u> cost rate Expense Depre</u>

2022 $276,000 50% $138,000 $138,000 $138,000

(1 ÷ 4 × 2)

2022 $138,000 50% $69,000 $207,000 $69,000

2023 $69,000 50% $34,500 $241,500 $34,500

2024 $34,500 $1,900 $243,400 $32,600

$243,400

3 0

2 years ago

Determine how many of each plant stand Bobby needs to sell to breakeven. Begin by computing the weighted-average contribution m

Pavel [41]

Answer:

For twig stands= 24 units.

For oak stand = 6 units.

Explanation:

From the question above we are given that the Sale price for Twig and Oak plant stand are 15.00 and 42.00. We are also given that the Variable cost for Twig and Oak plant stand are 2.00 and 19.00 per unit. Thus, the value for the Contribution Margin per unit can be calculated by just subtracting Variable cost for Twig and Oak plant stand from Sale price for Twig and Oak plant stand, that is;

Contribution Margin per unit = (Sale price for Twig and Oak plant) - (Variable cost for Twig and Oak plant stand).

Contribution Margin per unit for Twig = 15.00 - 2.00 = 13.00 and the Contribution Margin per unit for oak = 42.00 - 19.00 = 23.00.

From the question, we are given that the Sales mix in units is 4(twig) and 1(oak) = 4 + 1 = 5.

Thus, the contribution margin for twig = sales mix for twig × Contribution Margin per unit for Twig = 4 × 13 = 52.

Also, the contribution margin for oak = sales mix for oak × Contribution Margin per unit for oak = 1 × 23 = 23.

Total = 52 + 23 = 75.

Hence, the Weighted Average Contribution per unit = 75 / 5 = 15.

Total Break even Sales = 450/15 = 30 units.

Thus, for twig stand; 30 × 4/5 = 24 units.

For oak = 30 × 1/5 = 6 units.

6 0

2 years ago