Based on the description above, the correct answer is a, true. It is because moral hazard problem covers about or focuses more on problems of how unemployed works doesn't exert much effort because of certain factors in which one of them maybe because of the unemployment benefits that unemployed individuals receives.
It would be best to look at the budget deficit or surplus as a percentage of GDP in order to evaluate the size of the federal budget deficit or surplus over time,
<h3>What is a federal budget?</h3>
It refers to the written document that contains the estimates of the federal government's revenue and authorizing its spending for coming year.
The process of federal budget establishes the spending priorities and identify revenues to pay for those activities. The size of these decisions make the budget process one of the most important and complex exercises in public policy making.
However, It is best to look at the budget deficit or surplus as a percentage of GDP in order to evaluate the size of the federal budget deficit or surplus over time,
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Answer:
$24,000
Explanation:
Calculation to determine How much taxable gain will Mark recognize from the sale
Mark allocated precontribution gain $20,000
($40,000-$60,000)
Add Post contribution gain $4,000
($60,000-$76,000*25%]
Taxable gain $24,000
($20,000+$4,000)
Therefore How much taxable gain will Mark recognize from the sale is $24,000
For monopolistically competitive businesses, the factor that ultimately causes zero economic profitability is: newly added
What Exactly Is Economic Gain (or Loss)?
The difference between the money made from selling an output and the price of all the inputs plus any opportunity costs is what is known as an economic profit or loss. By deducting potential costs and explicit costs from generated revenue, economic profit is calculated.
Opportunity costs are a kind of implicit cost that management determines and that vary depending on various events and viewpoints.
Analysis of accounting profit and economic profit frequently goes hand in hand. The profit that a corporation reports as accounting profit appears on its income statement. Accounting profit is a measure of actual inflows and outflows that is necessary for a company to have financial transparency.
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Answer:
Esquire should purchase machine B since its present value is lower than machine B's ($69,917.73 < $73,356.18)
Explanation:
Machine A:
PV of purchase cost $63,000
PV of maintenance costs = $2,000 x 6.7101 (PV annuity factor, 10 periods, 8%) = $13,420.20
PV of resale value = -$6,615 / 1.08¹⁰ = -$3,064.02
total PV = $63,000 + $13,420.20 - $3,064.02 = $73,356.18
Machine B:
PV of purchase cost $52,500
PV of maintenance costs:
- $8,000 / 1.08³ = $6,350.66
- $10,000 / 1.08⁶ = $6,301.70
- $12,000 / 1.08⁸ = $4,765.37
total PV = $69,917.73
