Which phrase best completes the list?

6.Which statement applies to all centrally-planned economies?

Art [367]

Answer: C) the government makes all important economic decisions.

<span>A centrally planned economy is an economic system in which the government makes all important economic decisions rather than leaving them to consumers and businesses.</span>

<span>In these type of economy, prices are all controlled, the government sets plans, and the economy is handled by bureaucrats. </span>

4 0

3 years ago

Recently, the level of gdp has declined by $60 billion in an economy where the marginal propensity to consume is 0.75. aggregate

Paha777 [63]

Answer:

a. $45 billion.

Explanation:

The aggregate expenditures must have fallen by = 0.75*$65 billion

= $45 billion

Therefore, The aggregate expenditures must have fallen by $45 billion.

8 0

3 years ago

The degree of operating leverage can be measured by ________. A. multiplying the contribution margin by sales revenue B. dividi

Varvara68 [4.7K]

Answer:

Option C is the answer

Explanation:

The degree of operating leverage is measured by dividing the contribution margin by operating income.

The degree of operating leverage (DOL) is the ratio of contribution margin to operating income. It measures how much the operating income of a company will change in response to a change in sales. A Companies that have higher proportion of fixed costs to variable cost will have greater levels of operating leverage.

4 0

3 years ago

If you bought a new truck for $40,000 for your auto parts delivery service, and you estimated that the truck would last you 200,

krok68 [10]

Answer:

First year depreciation expense is $2,250

Explanation:

Total depreciation expense is given by:

Price - Salvage Value = 40,000 - 4,000 = 36,000

That $36,000 depreciation expense would be spread out for 200,000 miles.

So for the first year in which the truck is used 12,500 miles, the depreciation expense will be

$\frac{36,000}{200,000}\times{12,500}{=2,250}$

Question answered.

Note:

$\frac{Depreciable \,Cost}{Units \,in \,Useful \,Life}{=Per-Unit\,Depreciation}$

${Per-Unit\,Depreciation \times \,Units \,During \,Year = Annual \,Depreciation \,Expense$

5 0

3 years ago

Suppose you are currently invested 100% in U.S. stocks and you CANNOT short: a.Find the portfolio that maximizes expected return

Volgvan

Answer:

Part a: The portfolio which maximizes the expected return is in the attached file.

Part b:The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.

Explanation:

As the question is incomplete and the data is not available, thus the complete question is found as attached with the solution.

The Sharpe rate is given as

$S_a=\frac{E_a-E_r}{\sigma}$

Where

E_a is the estimated rate of return for a value
E_r is the risk free rate of return
σ is the standard deviation of the investment.

The portfolio variance is given as

$\sigma^2_{portfolio}=\sum_{i}^{n}{\sigma_i^2w_i^2}+\sum_{i}^{n(n-1)/2}{cv_i}$

Where

σ is the standard deviation of the investment.
w is the weighted value of the investment
cv is the covariance term

Portfolio standard deviation is given as

$\sigma_{portfolio}=\sqrt{\sigma^2_{portfolio}}$

Expected rate is given as

$E_{rate of return}=\sum_{i=1}^{n}{E_a_i\times w_i}$

Now the Sharp value is calculated as above.

Now the values as given in the excel sheet are added in the attached excel sheet, following formulas are used to calculate various values

Sharpe ratio is calculated using =(B6-J3)/C6

Portfolio variance is calculated using (=B13^2*C6^2+B14^2*C7^2+B15^2*C8^2+B16^2*C9^2+2*B13*B14*C6*C7*D7+2*B13*B15*C6*C8*D8+2*B13*B16*C6*C9*D9+2*B14*B15*C7*C8*E8+2*B14*B16*C7*C9*E9+2*B15*B16*C8*C9*F9)

Portfolio standard deviation is SQRT(Variance)

Expected return is calculated using =B13*B6+B14*B7+B15*B8+B16*B9

Sharpe is calculated using =(B23-$J$3)/B22

Part a:

The portfolio which maximizes the expected return is in the attached file.

Part b:

The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.

4 0

3 years ago