BUSINESS COLLEGE

Dana, who is a trained yoga instructor, spends 4 hours on Monday baking and packing 10 boxes of cookies. She sells the cookies for $10 a box. Given that she can also teach yoga for $80 an hour, what is her opportunity cost of baking cookies?A. $220 B. $800 C. $320 D. $420 E. $100

Answers

Answer 1
Answer:

Answer:

c. $320

Explanation:

Opportunity cost is an economic term for expressing cost in terms of forgone alternatives. The opportunity cost of Dana is calculated as;

Hours spent baking cookies = 4 hours, the amount earned per hour when Dana is working as yoga instructor = $80.

Therefore, the total opportunity cost of Dana, when she is baking is cookies;

= 4 hours × $80

= $320.

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On January 2, 2021, Ivanhoe, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $320000 starting at the beginning of the first year, with title passing to Ivanhoe at the expiration of the lease. Ivanhoe treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Ivanhoe uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $1966261, based on implicit interest of 10%.In its 2021 income statement, what amount of interest expense should Ivanhoe report from this lease transaction?

Answers

Answer:

interest expense:    $ 164,621.65

Explanation:

We solve for the present value of the lease value:

C * (1-(1+r)^(-time) )/(rate) = PV\n

C 320,000.00

time 10

rate 0.1

320000 * (1-(1+0.1)^(-10) )/(0.1) = PV\n

PV $1,966,261.4738

We made the first payment which decrease our payable:

1,966,261.47 - 320,000 = 1,646,261.47‬

And now, from this amount we solve for the interest expense:

And now, we calculate the 10% interest for the year:

1,646,216.47 x 10% = 164,621.65 interest expense

If the government wants to reduce GDP by $500 million, the most appropriate action is: contractionary fiscal policy, which includes a reduction in government spending by $500 million.
contractionary fiscal policy, which includes a reduction in government spending by more than $500 million.
contractionary fiscal policy, which includes a reduction in government spending by less than $500 million.
expansionary fiscal policy, which includes an increase in government spending by $500 million.
expansionary fiscal policy, which includes an increase in government spending by more than $500 million.
expansionary fiscal policy, which includes an increase in government spending by less than $500 million.

Answers

Answer:

The correct answer is the first option: contractionary fiscal policy, which includes a reduction in government spending by $500 million.

Explanation:

On one hand, Gross Domestic Product, or GDP, is the name given in the field of economics, to the term that refers to a monetary measure of the market value of all the goods and services that are produced in the economy of a country in an specific time period of evaluation.  

On the other hand, a contractionary fiscal policy indicates the fact of reducing the amount of money spent in the economy, therefore that the main focus of this type of policy is to try to lower the public expenditure basically.  

Therefore that it is understandable that the correct answer is the first option where the action would be of reducing the government spending by $500 million, according to what the question ask.

To achieve the social optimum,the government could set a tax equal to ________ per unit sold. A) $6
B) $4
C) $2
D) $3
E) $5

Answers

Answer:

A) $6

Explanation:

The equilibrium price arises when the marginal cost of private i.e. demand is $12 and when the social production cost is to be considered then the equilibrium price is $18

So, to accomplish the social optimum, the government should set a tax of

= $18 - $12

= $6

This shifted the private marginal cost to the left and there is yield to the social optimum

Hence, the correct option is A. $6

Which economic system has no formal government ​

Answers

Market economic system

5. In the October 23, 1999 issue, the Economist reports that the interest rate per annum is 5.93% in the United States and 70.0% in Turkey. Why do you think the interest rate is so high in Turkey? Based on the reported interest rates, how would you predict the change of the exchange rate between the U.S. dollar and the Turkish lira?

Answers

Answer:

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Assume that you are given a payoff function that is a straight line with slope 3 and y-intercept $-200. This payoff function is for an expiration in 3 months. Assume that the current price of the underlying stock is $60 and the annual risk free rate is 2%. What is the price of this payoff

Answers

Answer:

price of the payoff is -$19.01

Explanation:

The computation of the price of payoff is shown below:

But before that we have to do the following calculations

Equation of payoff is

= -$200 + 3 × current price

Now

price of payoff is

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= -$199.01 + $180

And, finally

The price of the payoff is -$19.01

The same is to be considered

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