The one that is true about economic resources is : B. Economic resources are limited
Basically, the main characteristic of economic resources is we need sacrifices in order to get. To make a resource worthy of sacrifice, it has to be : Limited and provide value to us
hope this helps
Answer:
II, III, IV are correct
Explanation:
According to my knowledge and understanding cash flow projection for a new product should include:
II. Capital expenditures for equipment to produce the new product,
III. Increase in working capital needed to finance sales of the new product,
IV. Interest expense on the loan used to finance the new product launch.
whereas Money already spent for research and development of the new product is irrelevant as it was incurred already and not incremental.
Answer:
a. Assuming that the investors are concerned only about expected returns, stockholders would prefer Project 2. It yields more returns with the high risk variability attached to the better yield of $20,000.
b. Bondholders would prefer Project 1. It yields good returns with moderate risk variability. Bondholders are generally risk-averse. They avoid risk wherever possible.
Explanation:
a) Data and Calculations:
Project 1 Project 2
Investment $11,000 $11,000
Expected Returns $12,000 $12,500
Bond issue = $10,000 with interest rate of 10%
Expected Returns for Project 1:
Yield Probability Expected Value
$11,000 0.5 $5,500
$13,000 0.5 $6,500
Total expected returns = $12,000
Expected Returns for Project 2:
Yield Probability Expected Value
$5,000 0.5 $2,500
$20,000 0.5 $10,000
Total expected returns $12,500
Answer:
The real issue with prisoners being paid is not the fairness of paying someone for performing a job, but the extremely high costs of keeping someone in jail. When you read all the articles of people that oppose paying prisoners a minimum wage (or around $3 per hour), they all argue that the cost of keeping them in jail is already too high and they working for cents (on average a prisoner gets paid between 14¢ - 61¢ per hour) is away of returning something to society. The logic is that the government already pays for their food, shelter and security.
Personally, I understand the argument that keeping someone in jail is really expensive. That argument is really solid when you are talking about jobs related to government needs, but do they apply to jobs performed for businesses? No. A prisoner whose work makes someone wealthier, should be paid a reasonable amount. It is true that prisoners that work for businesses earn around twice as much, between 33¢ to $1.41, but that amount is still ridiculous. Again, someone is actually benefiting from prisoners' work while the general public pays for the costs of keeping them in jail.
The general public is actually subsidizing those businesses that are lucky enough to get basically free labor. Remember that not all prisoners are constantly hitting or attacking someone, the vast majority live relatively boring lives behind bars (OK, they are in jail and that is the point). They are able to perform many work related tasks. Businesses are taking advantage of both prisoners and the general public that pays the incarceration costs.
It is ridiculous to believe that using prisoners will reduce public expenses, it doesn't. It makes no sense to replace public sector workers with prisoners. Even though prisoners are able and capable of working, it costs a lot of money to guard them while at work. Who pays for it? The government pays for it. The logistics of using inmates as workers is very complex and expensive, and I bet it is much cheaper to pay a free person the minimum wage than it is to use inmates as workers.
Prisoners forming a union is also something that makes no sense. I believe and defend many social issues, but some topics shouldn't even be considered.