Draw an indifference curve for an individual

In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was

Cerrena [4.2K]

Answer:

Real income has increased by $720 in terms of dollar and 2% in percentage

Explanation:

<em>The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.</em>

R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>

Real Income = 32000 × 120/125

=$30,720

Change Real income

Change in real income ($) = 30,720 - 30,000

= $ 720

Change in real income (%) = (720/30,000) × 100

= 2%

Real income has increased by $720 in terms of dollar and 2% in percentage

3 0

3 years ago

Exercise 177 Kirk Company issued a $3,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at D

denis-greek [22]

Answer:

The annual installment payment consists of both interest payments and principal repayment.

The interest is based on the remaining balance which is $3,500,000 in this instance:

= 10% * 3,500,000

= $350,000

Principal repayment = 569,509 - 350,000

= $219,509

a.

Date Account Titles and Explanation Debit Credit

Dec, 31 2020 Cash $569,609

Mortgage Payment $569,609

Date Account Titles and Explanation Debit Credit

Dec, 31 2021 Interest Expense $350,000

Mortgage Payable $219,509

Cash $569,609

7 0

3 years ago

what countries represent the largest global business opportunities for the next decade? what factors determine the size of the o

aksik [14]

This is of course somewhat of a subjective question, but in general most would agree that China, the United States and Germany represent the largest global business opportunities for the next decade based mostly on factors of production.

5 0

3 years ago

Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The payoff matrix that follows shows the profit (

Vladimir [108]

Answer:

Flashfone and Pictech

The Nash equilibrium is achieved when Pictech and Flashfone price their smartphones high without the other party changing their strategy.

Explanation:

a) Data and Calculations:

Pictech

High Low

High 8 8 3 10

Flashfone

Low 10 3 5 5

b) By acting at the Nash equilibrium and pricing their smartphones high, Pictech and Flashfone achieve a payoff of $8 million respectively. This payoff level does not put any of the two firms at a disadvantage.

7 0

3 years ago

Sophie, the CFO of Slolum Ski Supplies, received a watch from one of her company's largest vendors, Colorado Ski Shoppe. She rec

Sveta_85 [38]

Answer:

c. Whether the gift was reasonable in the circumstances.

Explanation:AICPA(American institute of certified public accountants) is a body who is saddled with the responsibility of ensuring ethics in the public accounting profession. AICPA is present in most parts of the world, it guides and ensures that its members perform their accounting functions with the most ethical standards,in order to preserve the integrity of the certified public accountants,the AICPA has certain code of professional conduct which helps to streamline the functions its members all over the world.

4 0

3 years ago