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2 years ago

An increase in the price of a resource would cause

Business

1 answer:

evablogger [386]2 years ago

8 0

Answer:

it would cause more people to go hungry and cold and die because it would be harder to afford all of those things if they were more expensive.

hope that helps

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Suppose the current level of output is 5000. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, re

Tamiku [17]

Answer:

5575

Explanation:

The computation is shown below;

<u>Factor Elasticity Increase Effective Increase </u>

A B A × B

Capital 0.3 10% 3.00%

Labor 0.7 5% 3.50%

Increase due to Productivity 5.00%

Total Increase in Output 11.50%

(3% + 3.5% + 5%)

Original Output 5000

Increase in Output (5000 × 11.5%) 575

Increase Output (5000 + 575) 5575

3 0

3 years ago

On January 1, 2012, Albert invested $6,000 at 8 percent interest per year for three years. The CPI (times 100) on January 1, 201

qaws [65]

Answer:

Inflation in 2012:

$=\frac{CPI\ 2013 - CPI\ 2012}{CPI\ 2012}$

$=\frac{110 - 100}{100}$

= 10%

Inflation in 2013:

$=\frac{CPI\ 2014 - CPI\ 2013}{CPI\ 2013}$

$=\frac{120 - 110}{110}$

= 9.09%

Inflation in 2014:

$=\frac{CPI\ 2015 - CPI\ 2014}{CPI\ 2014}$

$=\frac{126 - 120}{120}$

= 5%

Real rate of interest = Nominal - inflation

Given that,

Nominal rate = 8%

Therefore,

Real interest rate is as follows:

2012:

= 8% - 10%

= -2%

2013:

= 8% - 9.09%

= -1.09%

2014:

= 8% - 5%

= 3%

$6000 at 8% grows to:

= 1000 × 1.08

= $6,480 in one year

which is invested again to grow to $6,998.4 in two years

which is invested again to grow to $7,558.272 in three years

so,

Total gain:

$=\frac{7,558.272-6,000}{6000}\times100$

= 25.9712%

The price level increases in three years by:

$=\frac{CPI\ 2015 - CPI\ 2012}{CPI\ 2012}\times 100$

$=\frac{126 - 100}{100}\times 100$

= 26%

So,

Total real rate of return:

= Total gain - Percentage increase in prices

= 25.9712 - 26

= -0.0288%

5 0

3 years ago

On January 1, 2021, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year, $14,000,000, 6% note. Interes

kari74 [83]

Answer:

If Interest is not Paid yet

Nantucket Ferry

Dr. Interest Expense $840,000

Cr. Interest payable $840,000

BankOne

Dr. Interest receivable $840,000

Cr. Interest Income $840,000

If Interest is Paid

Nantucket Ferry

Dr. Interest Expense $840,000

Cr. Cash $840,000

BankOne

Dr. Cash $840,000

Cr. Interest Income $840,000

Explanation:

Amount of interest is the expense for Nantucket Ferry and Income for the BankOne on the bond.

As per given data

Amount borrowed = $14,000,000

Coupon rate = 6%

Interest in paid on and received on the bnd is calculated by using the face value and coupon rate of the bond.

Coupon Payment = $14,000,000 x 6% = $840,000

$840,000 will be paid annually to the Bank one.

6 0

3 years ago

Which of the following expenses is NOT deductible when a taxpayer uses the simplified method of calculating the home-office dedu

Rasek [7]

The simplified method of computing home office expenses limits the number of home office expenses allowed to a fixed amount regardless of the amount of business income or the size of the home office.

<h3>How do you calculate home office deductions?</h3>

A business owner can calculate the home office deduction in two ways: regular and simplified. The regular method would require you to use Form 8829 to calculate your deduction, which would include figures for the area of your home and the total hours it was used for business purposes, your business income, and other business expenses.

If you itemize deductions and use the simplified method for a taxable year, you can deduct home expenses that would otherwise be deductible as itemized deductions on Form 1040 or 1040-SR, Schedule A, without reducing these expenses by the amounts allocable to the simplified method.

Learn more about home office deductions here:

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8 0

8 months ago

Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of

labwork [276]

Answer:

The increase in earnings is $136511.56

Explanation:

Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:

Profit on lease=present value of lease payments-costs

=$274149-$156000

=$118149

However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:

Interest=($274149-$44617)*8%

=$18362.56

Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.

Conclusively, the increase in earnings is $118149+$18362.56

That is $136511.56

5 0

2 years ago