Answer:
(a) To record the repair to the transmission on one of its delivery vans, the resulting journal entry is:
(Dr) Repairs and Maintenance Expense, $2,300
(Cr) Cash, $2,300
The repair of the transmission is an expenditure that returns the vehicle to its previous operating condition. The repair results in an increase to Repairs and Maintenance Expense (an increase to an expense is a debit) and a decrease to Cash (a decrease to an asset is a credit).
(b) To record the installation of a GPS system in one of its delivery vans, the resulting journal entry is:
(Dr) Delivery Van, $450
(Cr) Cash, $450
The installation of the GPS system is a permanent addition to the van that has increased its capability and should be capitalized. The addition results in an increase to Delivery Van (an increase to an asset is a debit) and a decrease to Cash (a decrease to an asset is a credit).
Answer:
4 apples
Explanation:
Given that
Point A = 50 apples and 40 pears
Point B = 46 apples and 41 pears
These points are located on the PPF at which various combinations of products are displayed by available resources and technologies.
So, the opportunity cost of moving from Point A to Point B would be 4 apples which is shown below:
= Point A apples - Point B apples
= 50 apples - 46 apples
= 4 apples
Answer:
new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital
Explanation:
- The catch-up effect is explained by the convergence principle that the rate of growth in the per capita income of poor economies is higher than the rate of growth of the per capita income of rich economies, which ultimately leads to the end of the two economies.
- This theory is supported by the law of low returns because diminished returns are stronger in capital-intensive countries than in capital countries, which cannot be classified as capital-intensive to develop.
- The growth rate of emerging economies is higher than that of developed economies. In addition, the costs of research and development of emerging economies are low because they can simulate technology and processes from developed economies. all economies will transform into a global culture.
Answer:
A budget constraint is the amount of goods and service that a person or firm can purchase given their income.
In this case, the budget constraint of Sam and Amanda is determined by their income: that is to say, their monthly grocery budget, which is $100 per month.
Because a dozen organic egg costs $5, and a frozen pizza costs $10, if we suppose that Sam Amanda will spend half their income on each item, their budget constraint will allow them to buy the following amounts:
$50 / $5 = 10 dozen organic eggs
$50 / $10 = 5 frozen pizzas.
The consumer price index, or cpi, has the following formula:
Let's compute the real base period price for the cpi today.
Base Period Price = $9.2
Then, we compare the apparent with the real:
Real Base Period: $11 - $9.2 = $1.8
Apparent Base Period: $11 - $10 = $1
Real > Apparent, thus your real wage rate has increased since 2005.