Answer:
(A) Decrease
(B) Increase
(C) Frictional
Explanation:
An decrease in the price of cotton will cause all the cotton producing firms to put Strategies in place that will help them to cut the costs of operations which will include the REDUCTION OF THE MANPOWER OR WORKFORCE.
When the price of raw materials or inputs used in the production processes of a given product reduces, IT WILL ENABLE THE COMPANY TO WANT TO INCREASE ITS PRODUCTION CAPACITY WHICH WILL ALSO INVOLVED AN INCREASE IN MANPOWER OR WORKFORCE.
Frictional Unemployment is a type of Unemployment caused by seasonal changes such as reduced demand, reduced price of products etc or people changing jobs due to certain factors.
Answer:
Confirmation bias.
Explanation:
Confirmation bias is defined as the tendency for an individual to recall and favour information that confirms one's previous beliefs or hypothesis. It is a form of cognitive bias.
In the given example Joe only accepted information that would confirm his belief that there are fewer cars on the road (that is his commute is now shorter).
He however rejected the information that he now works the night shift, a period when traffic is low.
Answer:
Ans. The price of the bond immediately after it makes its first coupon payment is $1,068.02
Explanation:
Hi, we have to bring to present value the remaining cash flows, that is 9 coupons and its face value, so we need to use the following equation.
Where:
Coupon = 0.07*$1,000=$70
YTM = Yield to maturity, in our case 6% or 0.06
n = 9 (since the bond is paying every year and there are 9 years left until maturity)
Face Value= $1,000.
Everything should look like this
Therefore:
So, the price of this bond right after paying its first coupon is $1,068.02
Best of luck.
Answer: The following journal entries would be recorded upon disposal of the equipment:
Debit Credit
Cash $100,000
Accumulated depreciation $140,000
Equipment $250,000
Loss on disposal of asset $10,000
Explanation: Using the straight-line method of depreciation, the following formula applies: (Historical cost - Salvage value) / No of years
<u>Depreciation = ($250,000 - $50,000) / 5 years = $40,000 yearly </u>
Accumulated depreciation (January 1, 2010 - July 1, 2013) for three and half years is $140,000 (3.5 years * $40,000). This means that the equipment had a net book value (NBV) of $110,000 as at the time of disposal. So, the above entries would eliminate the asset in the books and recognise the loss on disposal (sales proceed was less than the NBV).
False.
While it is true that individuals can choose what to do with their money, both saving and investing are smart decisions when done right.
