Social surplus is the ____________. A. total value from trade in a markettotal value from trade in a market. B. difference between the amount that buyers actually pay and what they wish to pay. C. excess of aggregate demand over aggregate supply. D. difference between consumer surplus and producer surplusdifference between consumer surplus and producer surplus.

Answers

Answer 1

Answer:

Answer:

The correct answer is letter "A": total value from trade in a market.

Explanation:

Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.

Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.

Answer 2

Answer:

Final answer:

Social surplus is the combination of consumer surplus and producer surplus, taking into account the price that consumers are willing to pay based on their preferences, and the price that producers are willing to sell their product at, based on their costs.

Explanation:

The question asked here is: Social surplus is the ____________. The correct answer to this question is that social surplus is the sum of consumer surplus and producer surplus. This concept falls under economic principles. Consumer surplus is the difference between the price that consumers are willing to pay based on their preferences, and the actual market equilibrium price. On the other hand, producer surplus is the gap between the price at which producers are willing to sell a product, based on their costs, and the market equilibrium price. Combining both these surpluses gives the social surplus.

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Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?Check all that apply.An asset account increases. An asset account decreases.A liability account increases. A liability account decreases.Capital Stock increases. Capital Stock decreases.Retained Earnings increase. Retained Earnings decrease.
An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost(without profit). The remaining 60% of the business is with several differant customers and they are charged $40 per unit. Find. a.The break even volume for this job. b.The unit cost if 100,000 units are made per year. c.The annual profit for this quantity(100,000 units).

A $20,000 municipal bond is offered for sale at $18,000. The bond interest rate is 6 percent per year payable semiannually. The bond will mature and be redeemed at face value 5 years from now. If you purchase the bond, the first premium you will receive is 6 months from today. You have decided that you will invest $18,000 in the bond if your effective semi-annual yield is at least 4 percent. What effective semi-annual rate will this investment yield?

Answers

Answer:

For this calculation we need to use the Effective Annual Yield Formula.

EY = (1 + r/n)^n - 1

Where:

EY = Effective annual yield
r = coupon rate
n = number o periods the coupon rate is compounded per year

Plugging the amounts into the formula we obtain:

EY = (1 + 0.06/2)^2 - 1

EY = 0.062

EY = 6.2%

To obtain the effective semi-annual yield, we simply divide the effective annual yield by two:

= 0.062/2

=0.031

Effective semi-annual yield = 3.1%

In this case, we would not invest in the bond because the effective semi-annual yield does not reach the required 4%.

Explanation:

9) Selected information regarding a company's most recent quarter follows (all data in thousands). 9) _______ Direct labor $540 Beginning work in process inventory $330 Ending work in process inventory $420 Cost of goods manufactured $1620 Manufacturing overhead $830 What was the cost of direct materials used for the quarter

Answers

Answer:

Direct material= $340

Explanation:

Giving the following information:

Direct labor $540

Beginning work in process inventory $330

Ending work in process inventory $420

Cost of goods manufactured $1620

Manufacturing overhead $830

To calculate the direct material used in production, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

1,620= 330 + DM + 540 + 830 - 420

Direct material= $340

Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 5%. What is the stock's current value per share? Round your answer to the nearest cent.

Answers

Answer:

The price of the stock today is $80.00

Explanation:

The price of a stock whose dividends are expected to grow at a constant rate is calculated by the constant growth model of the DDM. The price of a stock under DDM is based on the present value of the expected future dividends that the stock will pay. The formula for price under this model is,

P0 = D1 / r - g

Where,

D1 is the dividend expected for the next period
r is the required rate of return
g is the growth rate in dividends

P0 = 1.6 / (0.05 - 0.03)

P0 = $80.00

Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax.(a) Determine the proper amount of revenue to report for the month.
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.

Answers

Answer:

a. $800000

b. Account receivable Dr. 840000

To sales revenue 800000

To sales tax payable 40000

Explanation:

a. Given the total billed amount = $840000

Sales tax = 5%

Total revenue for the month = 840000 x (100 / 105) = $800000

b. Account receivable Dr. 840000

To sales revenue 800000

To sales tax payable 40000

The owners of a chain of fast-food restaurants spend $ 25 million installing donut makers in all their restaurants. This is expected to increase cash flows by $ 12 million per year for the next five years. If the discount rate is 6.6%, were the owners correct in making the decision to install donut makers? Round answer to the nearest million.

Answers

Answer:

As the NPV of the project is $25 million and is positive, the owners made a correct decision to install donut makers.

Explanation:

An investment will add value when the Net Present Value of an investment is positive. The net Present Value (NPV) of an investment is the present value of all the future cash flows expected as a result of an investment less the initial cost of the project/investment.

As the cash flows from the investment will be a constant $12 million after equal intervals of time for a period of five years, this can be treated as an annuity and the NPV of the project can be calculated as the Present value of $12 million annuity less the initial cost of the investment of $25 million.

NPV = 12 * [ 1 - (1+0.066)^-5 / 0.066] - 25

NPV = $24.73 million or $25 million rounded off to the nearest million

Megan Brink is offered the possibility of investing $6,651 today at 6% interest per year in a desire to accumulate $10,000. How many years must Brink wait to accumulate $10,000