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3 years ago

Suppose that the rural part of a country is hit by a major earthquake

Business

1 answer:

stiv31 [10]3 years ago

6 0

Answer:

(a) How this episode is likely to affect the economic well-being of people in the country

In the short-run, there will be an increase in labor demanded, increasing jobs to build homes and repair the damage caused by the earthquake. In the long-run, things will begin to go back to normal.

(b) How this episode is likely to affect the economy’s measured GDP

In this case, GDP measurements will shift causing less of an input in private spending and an increase in government spending due to subsidies to increase home-building.

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Explain how consumer and producer surplus affect economic well-being. When the price of a good or service is – enough, it will e

horrorfan [7]

Answer:

the general welfare will be the sum of consumer surplus and producer surplus.

Explanation:

The consumer and producer surplus assessment serves to measure the overall efficiency of the market, which in turn is associated with overall well-being. An efficient market is one in which both consumers and producers have the incentive to negotiate and effect trade.

Consumer surplus is the difference between the amount he or she is willing to pay and how much he or she actually pays for the product. This surplus is positive when the amount paid is less than the amount for which the consumer would be willing to pay.

Similarly, the producer's surplus is the difference between the market price and the price at which the seller is willing to produce and sell. When the producer's surplus is positive, it means that he sells the product for a price higher than the minimum value that would stimulate him to produce.

Thus, the general welfare will be the sum of consumer surplus and producer surplus.

4 0

3 years ago

Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem

Westkost [7]

Answer and Explanation:

In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.

Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.

If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.

Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.

3 0

3 years ago

Speedy Package is California's largest express transportation company. In addition to the largest fleet of all-cargo aircraft in

tia_tia [17]

Answer:

Date General Journal Debit Credit

Cash $15,400

Accumulated Depreciation $39,600

Equipment - Delivery truck $55,000

(Assuming the truck was sold for $15,400 cash)

Cash $16,500

Accumulated Depreciation $39,600

Gain on sale $1,100

Equipment - Delivery truck $55,000

(Assuming the truck was sold for $16,500 cash)

Cash $12,700

Accumulated Depreciation $39,600

Loss on sale $2,700

Equipment - Delivery truck $55,000

(Assuming the truck was sold for $12,700 cash)

4 0

2 years ago

Each of the following are types of__________allocation methods:

storchak [24]

Answer:

Each of the following are types of Overheads allocation methods.

Explanation:

Factory overheads such as rent, electricity or water can not be traced directly to a cost object.

When determining the cost of a cost object these overheads are apportioned to departments they pass through for processing or the actual job using an allocation method.

The common methods for allocating overheads are plant-wide rate method, departmental overhead rate method and activity-based costing method.

5 0

3 years ago

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money

Lilit [14]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money, both she and Harry expect an inflation rate of 6%. Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%.

Real rate= nominal rate - inflation rate

At the beginning of the loan, the expected real rate is:

Real rate= 9 - 6= 3%

The actual rate is:

Real rate= 9 - 7= 2%

3 0

3 years ago