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monitta
3 years ago
5

In the short run, a supply shock will _________ the equilibrium level of prices and ___________ the equilibrium level output. re

duce;raise raise;raise reduce;reduce raise;reduce
Business
1 answer:
Taya2010 [7]3 years ago
5 0

Answer: raise; reduce

Explanation:

A Supply shock is described as a situation where the supply of a good changes suddenly/ abruptly due to an unforeseen event.

Supply shocks can be positive but are usually negative so we will assume the supply shock is negative here.

If there is a negative supply shock, the amount of goods being produced will reduce abruptly which will force the supply curve to shift left.

It will then intercept the the demand curve at an equilibrium level that has a higher price and a lower quantity of output.

Think of it this way. Negative supply shock ⇒ less goods ⇒ scarcity ⇒ higher prices.

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Corrective action is a control principle that states that managers should be informed of a situation only if data show a signifi
OLga [1]

Answer:

Management by exception.

Explanation: It is a management style in business that focuses only on dealing with cases that are beyond the norm or exceptional, It is a good strategy in project management.

The main purpose of this management style is to bring to the notice of the management only important situations that shows variation to the business out.

Advantages of Management by exception.

• It help employees to adopt their own approach to achieve results thereby serving as a motivation to them.

• It helps the management to make good use of their time.

6 0
3 years ago
Read 2 more answers
A firm's ___________________ are costs that increase as quantity produced increases. These costs often show ___________________
Elodia [21]

Answer:

The question is incomplete.

Choose from the following;

a. variable costs; constant returns to scale

b. fixed costs; opportunity costs

c. fixed costs; technological changes

d. variable costs; diminishing marginal returns

The answer is d. variable costs; diminishing marginal returns

Explanation:

4 0
3 years ago
Under GASB guidance when should an item be recognized on the face of the financial statements? Under whatconditions, would the G
aleksandrvk [35]

Answer:

If it satisfies the definition of an element and is also measurable with a high degree of reliability and accuracy

If there is a lack of clarity of any items found within the financial statement

Explanation:

According to the governing body the Governmental Accounting Standards Board, an item is only accepted in the face of a financial statement if it satisfies the characteristics of an element and must be measurable. The level of accuracy and reliability in these measures must also be high.  

When there is any item found in the financial statement that lacks clarity, it is important to tag the statement with a note disclosure stating what is not clear to you. If this is done, the user is able to understand each items in the statement.

6 0
4 years ago
Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price
slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.

A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid

wherein CMP=  Current Market Price

A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.

 

8 0
3 years ago
The calculation of diluted earnings per share assumes that stock options were exercised and that the proceeds were used to buy t
dusya [7]

Answer:

The correct answer is (A)

Explanation:

Diluted earnings per share is a technique which is used by firms and organisations to measure the equality of earning per share (EPS).  Similarly, various procedures are used to measure (EPS), the diluted earnings per share uses the average market price of the current or the reported period to buy treasury stocks to exercise stock options.

4 0
4 years ago
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