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3 years ago

For each of the following scenarios identify the correct term.

Business

1 answer:

jonny [76]3 years ago

8 0

Solution :

a). Opportunity cost

In the field of economics, Opportunity cost may be defined as the loss of a potential gain when some other alternatives are chosen from a given set of opportunities.

b). efficiency

c). Our professor presents us the incentives for major in economics.

d). I can complete the project via specialization more efficiently rather than doing it all each part of the project together.

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Suppose lawyers seek legislation to limit the use of computer software that enables people to use their personal computers to se

Harman [31]

Answer:

c. rent-seeking behavior

Explanation:

In economics, rent-seeking behavior can be described as a behavior or conduct that tries to increase the share of an economic agent or an entity from the existing wealth without adding or creating new wealth. This implies that the entity aims to obtain added wealth without creating a new one.

From the question, the aim of the lawyers is mainly to increase their own wealth in terms of legal fees they will collect from preparing wills, trusts, and other legal documents when they prepare them for people when a law restrict people from self-preparing it using their personal computers. In turn, the lawyers will only increase their share of wealth without adding any wealth.

Therefore, this is an example of rent-seeking behavior.

6 0

3 years ago

Why must the eliminating entries be entered in the consolidation worksheet each time consolidated statements are prepared?

DedPeter [7]

Answer:

The reason to prepare the consolidation worksheet is to maintain the record of what is finally entered in the books to record the transactions in between the holding and subsidiary.

This basically thus, requires the elimination of all the assets and liabilities of the subsidiary, and creation of such assets and liabilities into the balances of the holding(parent) company. In this manner the elimination is necessary to record.

So that there is no error in the form of multiple record of assets and liabilities, or in the form of no record of assets and liabilities of the subsidiary.

8 0

4 years ago

In the simple Keynesian model, Multiple Choice Inflation becomes a problem only if demand increases at full employment. Inflatio

ElenaW [278]

Answer:

In the simple Keynesian model, inflation becomes a problem only if demand increases at full employment.

Explanation:

In the Keynesian view, price inflation is mainly the result of relative changes in supply and demand, which lead to price changes. Changes in the money supply have no direct influence here. According to this school, the money supply is the result of money creation by the banking system; but this plays only a limited role in the process.

In this vision, a distinction is made between:

- Demand inflation: Inflation occurs when the aggregated demand for goods and services increases, with an initially constant supply.

-Cost inflation: Inflation occurs if there is a sudden decrease in supply when demand remains the same.

7 0

3 years ago

Agricultural output is affected by the weather. Excessively high temperatures and a lack of rainfall are detrimental too crop yi

Dimas [21]

Answer:

<u>Scenario:</u>

1. Agricultural output is affected by the weather.

2. Excessively high temperature + lack of rainfall = less crop yields.

3. Farmers desire to maximize crop yields under the best growing conditions and accept whatever the weather offers.

4. For a particular crop, actual yield < desired yield.

<u>Solution: </u>

1. Conditions for less than desired yield to be beneficial for farmers revenue:

a) Higher market demand: The market demand for the crop this year may be far higher than the supply since the yield is less than desired.

b) With market demand outstripping supply, price for the crop will skyrocket, according to the law of demand and supply.

c) Total revenue may become more this year, given the increased demand, less supply, and increased price per unit.

2. a) The surprising result is possible, because more people will want to buy the crop. The total quantity they may require will be higher than the actual quantity available for sale. The sellers will take advantage of this situation to raise the price per unit.

b) For example, yam tubers cost $2 per pound last year. The total pounds of yam produced was 200 pounds. The total revenue for all sellers would not exceed $400 ($2 * 200 pounds). If the yam produced this year is 50 pounds and the price per pound is $10. The farmers revenue will be $500 ($10 * 50 pounds). With this hypothetical example, it can be clearly seen that total revenue increased by $100 despite the reduced crop yield.

Explanation:

What is operational here is the economic law of demand and supply. The law states that when the demand is higher than the supply, the price will be higher. On the other hand, when the supply is higher than the demand, the price will be lower. Equilibrium price is achieved when demand equals supply, all things being equal.

All things are equal when there is a perfect market with information available equally to sellers and buyers. This enables transactions to be carried out at an arm's length between knowledgeable buyers and sellers. The implication is that buyers and sellers do not take advantage of the other party to cheat on price or act on a cartel basis.

4 0

3 years ago

Calculate and Use Overhead Rate Chipman Corporation expects to incur $300,000 of factory overhead and $500,000 of general and ad

tatyana61 [14]

Answer:

$1,500

Explanation:

Given that;

Factory overhead = $300,000

General and administrative costs= $500,000

Direct labor cost = $500,000

Total direct labor hours = $500,000 /$25 per hour

= 20,000 direct labor hours

Factory overheads per direct labor hours = $300,000 / 20,000

= $15 per direct labor hour

Therefore, Overheads applied to job will be;

= 100 direct labor hours × $15 per direct labor hour

= $1,500

Overhead applied is $1,500

7 0

3 years ago