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2 years ago

Which is not the cost of rising unemployment in an economy?

Business

1 answer:

notka56 [123]2 years ago

3 0

Answer:

e)Flourishing Economy

Explanation:

Unemployment is a scenario where members of the adult population seek job opportunities but cannot get any. Therefore, an unemployed person is a jobless adult who is actively seeking employment.

Unemployed people have no income, which means they do not pay taxes. They may resort to crime to support themselves. Jobless people usually claim unemployment benefits, which is a burden to the government. A jobless person is mostly idle, which is a waste of skill, time, and knowledge.

Unemployment has adverse effects on the economy. It does not support the growth or flourishing of economic activities.

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Suppose someone believes that if a per-unit tax is placed on the producers of good Y, the consumers of good Y will end up paying

Alex_Xolod [135]

Answer:

The correct answer is option (B) perfectly inelastic

Explanation:

It is a known facts that anytime tax is imposed on any goods at any given time, the tax falls totally on the consumers provided the elasticity of demand is zero.

Since increase in tax doesn't affect the demand for goods and services, and no matter the increment in price from the supplier, the demand remains the same. Therefore, the demand curve for goods Y is said to be perfectly inelastic.

4 0

2 years ago

You would like to borrow money three years from now to build a new building. In preparation for applying for that loan, you are

zysi [14]

Answer:

Option "D" is the correct answer to the following statement.

Explanation:

The cash coverage ratio helps find the available cash in hand or cash at the bank to pay for the expenditure of a loan. The ratio must be considerably higher to 1: 1, it shows our potential to pay interest. In this situation Option "D" has the highest Cash coverage ratio.

The debt-equity ratio is used to find the firm's credibility.

5 0

2 years ago

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 155,000 kites (the local curren

vovikov84 [41]

Answer:

a. The Board would report translation adjustment of -$3,138.

b. See the journal entries and explanation below.

c. Net translation adjustment is -$1,138.

Explanation:

a. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2017?

Note: See the attached file for the calculation of translation adjustment.

The board would report a negative (debit) translation adjustment of $3,138. That is,

Translation adjustment = -$3,138

b. Assume that on October 1,2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 200,000 kites in three months at a forward exchange rate of $0.76/1 kite. Prepare the journal entries required by this forward contract.

Board Company

Journal Entries

Date Account titles and Explanation Debit ($) Credit ($)

01 Oct 17 (No entry)

12 Dec 17 Forward contract 2,000

Translation adjustment (positive) (w.1) 2,000

(To record forward contract change in the value to adjust translation adjustment.)

12 Dec 17 Foreign currency (kites) (w.2) 152,000

Cash 152,000

(To record 200,000 kites purchased at the spot rate of $0.76)

12 Dec 17 Cash 154,000

Foreign Currency (kites) 152,000

Forward contract 2,000

(To record 200,000 kites delivered, $154,000 received, and close the forward contract account.)

Workings:

w.1: Translation adjustment = Number of kites agreed to sell in three months * (Agreed exchange rate on October 1, 2017 per kite - Exchange rate on December 1, 2017) = 200,000 * (0.76 - 0.75) = $2,000

w.2: Foreign Currency (kites) = Number of kites agreed to sell in three months * Agreed exchange rate on October 1, 2017 per kite = 200,000 * 0.76 = $152,000

c. Compute the net translation adjustment for Board to report in Accumulated Other Comprehensive Income for the year 2017 under this second set of circumstances.

This can be calculated as follows:

Net translation adjustment = Negative translation adjustment in part a + Positive translation adjustment in part b (i.e. w.1) = -$3,138 + 2,000 = -$1,138

Therefore, net translation adjustment is -$1,138.

Download xlsx

8 0

2 years ago

While sony and microsoft focused on the graphics and raw processing power favored by hard-core male gamers, nintendo chose to de

anastassius [24]

The answer is- Blue Ocean

8 0

2 years ago

Economists who view the AS curve as upward-sloping believe that changes on the demand side _______ result in changes in Real GDP

Yanka [14]

Answer:

May; cannot do anything

Explanation:

In the short run, the aggregate supply curve will react to price level, which means it is upward sloping rather than vertical. If the price level increases, quantity supplied will increase. If the price level decreases, the quantity supplied will decrease.

5 0

2 years ago

Read 2 more answers