Suppose the country of Altaria only produces one good, pink tutus. Last year, nominal GDP was $50,000 and this year it is $200,000. What can we definitively conclude? A. Output in Altaria quadrupled
B. The rate of unemployment decreased
C. Standard of living in Altaria increased
D. All of the above.
E. None of the above.

Answers

Answer 1
Answer:

Based on the nominal GDP changes in Alteria over the years, we can conclude E. None of the above.

We cannot conclude that output increased by fourfold because we do not know the real GDP and the nominal GDP could simply have changed because of inflation.

We also cannot get information on the standard of living or unemployment rate from the nominal GDP.

In conclusion, the best option is D.

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Answer 2
Answer:

Answer:

E. None of the above

Explanation:

because the price level is not known, we can not tell definitely that the output is increased or unemployment is decreased or standard of living is increased.

Therefore, we cannot conclude on anything.


Related Questions

A market segment is less attractive when ________. A) there are few aggressive competitors in the segmentB) it is difficult for new entrants to enter the segmentC) it contains powerful suppliers who can control pricesD) substitute products are unavailable in the segmentE) buyers in the market segment have weak bargaining powers
Suppose that Italy and Austria both produce fish and shoes. Italy’s opportunity cost of producing a pair of shoes is 5 pounds of fish, while Austria’s opportunity cost of producing a pair of shoes is 10 pounds of fish. By comparing the opportunity cost of producing shoes in the two countries, you can tell that _____ has a comparative advantage in the production of shoes, and ______ has a comparative advantage in the production of fish. Suppose that Italy and Austria consider trading shoes and fish with each other. Italy can gain from specialization and trade as long as it receives more than _______ of fish for each pair of shoes it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______ of shoes for each pound of fish it exports to Italy. Based on your answers to the previous question, which of the following terms of trade (that is, price of shoes in terms of fish) would allow both Austria and Italy to gain from trade? Check all that apply.(A) 8 pounds of fish per pair of shoes (B) 1 pound of fish per pair of shoes(C) 15 pounds of fish per pair of shoes(D) 3 pounds of fish per pair of shoes
At Bargain Electronics, it costs $30 per unit ($16 variable and $14 fixed) to make an MP3 player at full capacity that normally sells for $51. A foreign wholesaler offers to buy 3,580 units at $28 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Should the order be accepted or rejected?
Should the home country be "large" relative to the world, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the:_________a. revenue effect plus redistribution effect. b. protective effect plus revenue effect. c. consumption effect plus redistribution effect. d. production distortion effect plus consumption distortion effect. e. None of the above.
Beverly Company has determined a standard variable overhead rate of $3.10 per direct labor hour and expects to incur 0.50 labor hour per unit produced. Last month, Beverly incurred 1,250 actual direct labor hours in the production of 2,600 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead.

The first step in assembling a project team is to:A) talk to potential team members.
B) identify the required skills.
C) negotiate with the functional supervisor.
D) notify top management.

Answers

Answer:

B) identify the required skills.

Explanation:

After the scope of a project has been clearly defined with the goal well understood, in assembling a project team there is a need to first identify the required skills for the project.

This is key and has to be done before talking to potential team members, negotiating with the functional supervisor and notifying top management.

It costs Fortune Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1,000 scales at $15 each. Fortune would incur special shipping costs of $1 per scale if the order were accepted. Fortune has sufficient unused capacity to produce the 1,000 scales. If the special order is accepted, what will be the effect on net income?

a)$2,000 increaseb)$2,000 decreasec)$3,000 decreased)$15,000 increase

Answers

Answer:

c)$3,000 decrease

Explanation:

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

Considering the data given with respect to the special order, the net income would be equal to the sales less the additional cost which are variable and fixed.

net profit/(loss) from order

= 1000 ($15 - $5 - $12 - $1)

= ($3000)

Answer:

a)$2,000 increase

Explanation:

As fixed cost is the irrelevant expense in the decision making for the special order. It is avoidable cost.

Special Order

Quantity 1000 scales

Price                            $15 per sale

Less: Variable cost     $12 per sale

Less: Shipping cost    $1 per sale

Contribution margin   $2 per scale

Total Contribution margin = 1,000 scales x $2 per scale = $2,000

Net Income will increase by $2,000 if the special order is accepted.

Clovix Corporation has $50 million in​ cash, 10 million shares​ outstanding, and a current share price of $30. Clovix is deciding whether to use the $50 million to pay an immediate special dividend of $5.00 per​ share, or to retain and invest it at the​ risk-free rate of 10% and use the $5.00 million in interest earned to increase its regular annual dividend of $0.50 per share. Assume perfect capital markets. a. Suppose Clovix pays the special dividend. How can a shareholder who would prefer an increase in the regular dividend create it on her​ own? b. Suppose Clovix increases its regular dividend. How can a shareholder who would prefer the special dividend create it on her​ own?

Answers

Answer:

a. Assuming an investor prefers the extra $0.50 per year, then he/she can invest the $5 received as special dividend and earn $0.50 himself/herself in the same or similar risk free investment.

b. If the investor needed or wanted the $5 instead of $0.50 extra per year, he/she can borrow the $5 and use the extra $0.50 per year to pay the interests on the loan.

Suppose the farm equipment manufacturer from the previous question was able to charge $30,000 per tractor, and produces and sells 2,000 tractors per year at that price. As a reminder, the company originally spent $3 million in research and development costs. The company now spends $20 million at the beginning of each year to rent a factory, and $10,000 per tractor in materials and wages. If another manufacturer enters the market in the middle of a year and engages the company in a price war, what is the lowest price the company would be willing to charge for each tractor?

Answers

Given Information:

Rent = $20,000,000

Materials and Wages = $10,000/tractor

Number of tractors = 2,000

Amount spent on R&D = $3 million

Required Information:

Lowest price to sell atractor= ?

Answer:

Lowest price to sell atractor= at least $20,000

Calculations & Explanation:

The company needs to sell at least at a price that all of its manufacturing cost can be recovered without the profit margin.

This happens at a break-even point where total revenue equals the total manufacturing cost.

Total manufacturing cost = Total revenue

The revenue is number of tractors multiplied by some price x

Total revenue = 2,000*x

Total manufacturing cost = fixed cost + Variable cost

Total manufacturing cost = 20,000,000 + 2,000(10,000)

Total manufacturing cost = 20,000,000 + 20,000,000

Total manufacturing cost = 40,000,000

so,

Total manufacturing cost = Total revenue

40,000,000 = 2,000*x

x = 40,000,000/2,000

x = $20,000

Therefore, the lowest price to sell each tractor should be atleast $20,000

Note: The R&D cost is not usually included in such scenarios because R&D cost is sunk and should not be added in these calculations.

On December 1, 2016, Insto Photo Company purchased merchandise, invoice price $25,000, and issued a 12%, 120-day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system.

Answers

Answer:

See explanation section

Explanation:

Requirement A

                            Insto Photo Company

                                  Journal Entries

Date                             Accounts Name                    Debit          Credit

December 1, 2016     Inventory                              $25,000

                                           Notes payable                                 $25,000

Note: As the merchandise company issued a note for the credit purchase of merchandise inventory, notes payable is used instead of accounts payable.

Dec. 31, 2016             Interest expense                      $250

                                               Interest payable                             $250

Note: Adjusting entry is needed as the fiscal year is ended on 31st December, therefore, there will be an accrued interest expense to be paid for one month. The calculation of interest expense = $25,000 × 12% × (30 ÷ 360) [assuming  1 year = 360 days, 1 month = 30 days]. = $250 for one month's accrual.

Requirement B

March 31, 2017           Interest expense                     $   750

                                   Interest payable                      $   250

                                   Notes payable                       $25,000

                                                      Cash                                      $26,000

Note: At the end of the maturity date, the buyer will pay all the bills of the notes plus interest. Interest payable becomes debit as it did not pay by the buyer on 31st December, 2016. The remaining interest = $25,000 × 12% × (90 ÷ 360) = $750. Total cash will be paid after the maturity = $25,000 + $250 + $750 = $26,000.

A large tire manufacturing facility tracks numerous safety indicators and provides frequent safety training. Each month, if no incidents or unsafe conditions occur, the employees receive a small bonus. The tire manufacturer is using controls toMultiple Choice
decentralize decision making and facilitate teamwork.
detect opportunities and increase innovation.
adapt to change and uncertainty.
provide performance feedback.

Answers

Decentralize decision making and facilitate teamwork. The correct answer is option (a).

What is Decentralize decision making?

Any procedure in which decision-making power is dispersed across a broader group is considered to be decentralised decision-making. Additionally, it suggests that lower level bureaucrats, executives, and employees are given more power. This may happen in any institution, regardless of size, from a business to a political body.

On the other hand, decentralising decision-making shortens wait times, enhances the flow and throughput of product development, and makes it possible for quicker feedback and more creative solutions. Higher levels of autonomy are a further, noticeable advantage. In general, it is ideal to make decisions at a decentralised level when they are frequent and time-sensitive. A decision should be centralised if it is rare, not time-sensitive, and includes economies of scale.

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Other Questions
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 300 shares of preferred stock and 3,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2018: March 1 Issue 1,100 shares of common stock for $33 per share. May 15 Purchase 400 shares of treasury stock for $26 per share. July 10 Reissue 200 shares of treasury stock purchased on May 15 for $31 per share. October 15 Issue 200 shares of preferred stock for $36 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Preferred Stock, $300; Common Stock, $31; Additional Paid-in Capital, $67,000; and Retained Earnings, $26,000. Net income for the year ended December 31, 2018, is $9,900. Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the statement of stockholders' equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)