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lyudmila [28]
3 years ago
6

Which of the following is correct?

Business
1 answer:
babymother [125]3 years ago
3 0

Answer: (A)

Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced.

Explanation:

According to Gregory Mankiw, resources are scarce and therefore every society must use its scarce resources to derive as much benefits as it can. It is this derived benefits he calls the "economic pie"

The more efficient a society is, the more the benefits (or the larger the economic pie) it can derive from its resources.

According to Mankiw, equality means fairness in distributing the benefits (or slicing the pie) among the people in that society.

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Cutter Enterprises purchased equipment for $72,000 on January 1, 2011. The equipment is expected to have a five-year life and a
lapo4ka [179]

Answer:

$22000 and $50000.

Explanation:

Given: Purchased value of equipment- $72000.

           Residual value- $6000

           Estimated useful life of equipment- $ 5 years.

Now, finding value of depreciation for 2011 using the sum of the years digits method.

Depreciation cost= (\textrm{Purchased value - residual value}

⇒ Depreciation cost= (72000-6000)= \$ 66000

∴ Depreciation cost= $66000.

     

Depreciation fraction for 1st year= \frac{5}{1+2+3+4+5} = \frac{5}{15}

Depreciation expense for 1st year= \frac{5}{15} \times 66000= \$ 22000

∴ Depreciation for 2011 is $22000.

Next, lets find out the book value at the end of  first year.

Book value= (\textrm{Purchased value - depreciation expense})

Book value= (72000 - 22000) = \$ 50000

∴ Book value at December 2011 is $50000.      

8 0
3 years ago
5. Elmofud, Inc. is considering splitting its stock. The stock is currently priced at $90 per share. You own 100 shares of the s
UkoKoshka [18]

Answer:

total value be in the stock $9,000

Explanation:

given data

currently priced = $90 per share

Number of Stocks = 100 share

solution

we get here first Value of Position that is express as

Value of Position = $90  × 100

Value of Position = $9,000

and

After stock split

Number of Stocks will be

Number of Stock  = 100 × 3 = 300

and

Price per Share will be

Price per Share = \frac{90}{3}  

Price per Share = $30

so

Value of Position = 30 × 300

Value of Position = $9,000

8 0
3 years ago
"Davcher, Inc. is considering a project for next year, which will cost $5 million. Davcher plans to use the following combinatio
AfilCa [17]

Based on the U.S. Treasury bond rate, the market return and the beta, Davcher's expected rate of return would be 6.5%.

<h3>What is the expected rate of return?</h3>

Using the Capital Asset Pricing Model (CAPM), the expected rate of return would be:

= Risk free rate + Beta x Market premium

Market premium:

= Market return - risk free rate

= 8% - 3% rate of treasury bonds

= 5%

Expected rate of return is:

= 3% + 0.70 x 5%

= 6.5%

Find out more on the Capital Asset Pricing Model at brainly.com/question/15851284.

6 0
2 years ago
During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct
alex41 [277]

Answer: Please see answers in explanation column

Explanation:

a)Total Labor Cost for Job 200 = Labor Hours  x Direct labor rate

= 2,500 x $ 28

= $ 70,000

b)Total Labor Cost for Job 305 = Labor Hours  x Direct labor rate

= 3,000  x $ 24

= $ 72,000

Labor Cost for Job 200 and Job 305 during May   = $ 70,000 + $ 72,000

= $ 142,000

Date         Account Titles and Explanation        Debit          Credit

May 31st     Work In Progress                  $142,000  

Wages Payable                                                            $  142,000

6 0
3 years ago
In control theory, how many control systems are in place to work against our tendencies to deviate?
lutik1710 [3]
<span>Two systems are in place, inner and outer control systems. Inner controls consist of our personal morality and our general codes of ethics. Outer controls, on the other hand, are the people in our lives (family, friends, authority figures) who place indirect pressure on people as a way of keeping them in line.</span>
7 0
4 years ago
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