Answer:
The correct answer is option C.
Explanation:
Microeconomics is the branch of economics that studies the behavior of individual economic agents such as a single firm or a single consumer. For instance, it deals with variables such as demand for a single consumer or a supply from a single firm.
Macroeconomics is that branch of economics that studies the entire economy as a whole. It deals with variables such as inflation, unemployment rate, etc.
Answer:
Option (D) is correct.
Explanation:
Given that,
Beginning retained earnings = $300,000
Income tax expense = $60,000
Ending retained earnings = $320,000
Cash dividends declared = $80,000
Net income:
= Increase in Retained Earnings + Dividend Declared
= (Ending Retained Earnings - Beginning Retained Earnings) + Dividend Declared
= ($320,000 - $300,000) + $80,000
= $20,000 + $80,000
= $100,000
Answer:
Differential income = $8,100
Explanation:
<em>The differential income is the difference in income between the two alternative uses of the unused space. This would be done as follows:</em>
<em>Option 1</em>
<em>Income from the pop corn option:</em>
$
Sales value 715,000
Less commission (6%×715,000) <u>(42,900)</u>
Net sales value <u>672,100</u>
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Option 2 :
<em>Lease income from Salty Snacks</em>
$
Lease income 188,800
Taxes 47,000
Insurance <u> 9,000</u>
Annual Net lease income <u> 132,800</u>
Total lease income for 5 years 132800× 5= $664,000
Differential income 672,100-664,000 = 8,100
Differential income = $8,100
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Answer:
The Price of this bond is $1,044.57
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.
According to given data
Face value of the bond is $1,000
Coupon payment = C = $1,000 x 8% = $80 annually = $40 semiannually
Number of periods = n = 15 years x 2 = 30 period
Market Rate = 7.5% annually = 3.75% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = 40 x [ ( 1 - ( 1 + 3.75% )^-30 ) / 3.75% ] + [ $1,000 / ( 1 + 3.75% )^30 ]
Price of the Bond = $713.17 + $331.40 = $1,044.57
Answer:
1.True
2.False
3.True
Explanation:
1) Meekertownian consumers were better off without free trade than they were before.
-True
As the world price is higher than in Meekertown, opening up to international trade will align goods prices to that of in the world market. Since world price is higher, meeker price will go up and consumers will have to pay more.
2) Meekertownian producers were worse off without free trade than they are with it.
-False
World meeker price is higher than in Meekertown domestic market. So opening up of the market to international trade will provide an opportunity to producers to export to the world market.
3) When a country is too small to affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.
-True
Free trade creates a surplus in the market because of efficient production and market forces.
When a country is too small to affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade
