Exercise
Two countries: the U.S. and Japan
Two goods: computers and wheat
• One resource: labor, measured in hours
• We will look at how much of both goods each country
produces and consumes - if the country chooses to be self-
sufficient - if it trades with the other country
Computer is on Horizontal axis
.
US
Japan
50,000 labor hours 30,000 labor hours
Computer Wheat Computer Wheat
50,000 0
30,000
0
40,000 10,000 25,000
5,000
30,000 20,000 20,000 10,000
25,000 25,000 15,000 15,000.
20,000 30,000 10,000 20,000
10,000 40,000 5,000
25,000
0
50,000
0
30,000
US
Production
100 hours = 1 computer 125 hours = 1 computer
10 hours 1 ton of wheat 25 hours = 1 ton of wheat
Japan
Production
Computer Wheat
0
500
Computer
240
Wheat
0
a. Calculate the production of computer and wheat for each
country.
b. Draw a production possibility curve for the US. Suppose
the U.S. uses half its labor to produce each of the two
goods. Then it will produce and consume 250 computers
and 2500 tons of wheat. Plot it on the graph.
c. Draw a production possibility curve for Japan. Suppose
Japan uses half its labor to produce each good. Then it will
produce and consume 120 computers and 600 tons of
wheat.
d. Suppose the U.S. produces 3400 tons of wheat. How many
computers would the U.S. be able to produce with its
remaining labor? Draw the point representing this
combination of computers and wheat on the U.S. PPF.
e. Suppose Japan produces 240 computers. How many tons
of wheat would Japan be able to produce with its remaining
labor? Draw this point on Japan's PPF.
f. Suppose the U.S. exports 700 tons of wheat to Japan, and
imports 110 computers from Japan. (So, Japan imports 700
tons wheat and exports 110 computers.) How much each
country gain from trade?
g. Who has the absolute advantages? Comparative
advantages? Why?

Answer:

Of the following factors, the manufacturer's production volume variance is most likely to have been caused by:

D. Temporary employment of workers with lower skill levels than originally anticipated.

Explanation:

a) Data and Calculations:

Estimated practical capacity = 90,000 machine hours

Machine hours per unit = 2

Estimated production units based on capacity = 45,000 (90,000/2)

                                                   Budgeted          Actual

Variable overhead =                 $200,000      $240,000

Actual fixed overhead =           $450,000      $442,000

Machine hours                             90,000           88,000

Units produced                            45,000           42,000

Estimated units to be produced based on standard machine hour

= 44,000 units (88,000/2)

Variance between standard units to be produced and actual = 2,000 (44,000 - 42,000) Unfavorable

Discrimination in the form of access barriers to productivity-increasing opportunities is termed as Human capital  discrimination.

Discrimination refers to the unfair or unfavorable treatment of individuals or groups based on traits like race, gender, age, or sexual orientation. The basic answer is yes.

Various forms of discrimination exist. Discrimination can occasionally be both direct and intentional (for example, if a person or group treats another person differently on purpose because of a Code ground). This kind of prejudice typically results from unfavorable attitudes and biases related to that basis.

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Alex is pursuing an implied covenant of good faith and the fair dealing judicial limitations to at-will employment.

Regardless of how a human encounter turns out, good faith refers to a real purpose to be fair, honest, and open-minded. Over the years, certain Latin expressions have lost their exact meaning, but not bona fides, which is still frequently used and interchangeable with its widely-accepted contemporary English translation of "good faith." It is a crucial idea in both business and law. The opposing ideas include mala fides (duplicity), poor faith, and perfidy (pretense). The words bona fides and credentials are interchangeable in modern English. The statement, which is occasionally used in job advertisements, should not be mistaken with the genuine occupational requirements or the employer's good faith attempt.

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Fixed costs are important because, at least in the short run, the firm cannot alter them.

Long-term, none of the costs are fixed. A company has two options: it can either close down old facilities or develop new factories and buy new equipment. A company might contrast several manufacturing technologies or processes while making long-term plans.

Given that the long run is a sufficient amount of time for all short-run fixed inputs to become variable, there are, by definition, no fixed costs in the long run.

Fixed expenses are outlays that, at least temporarily, are unaffected by the level of production. No matter how much or how little you generate, the fixed costs remain the same. The rent for a manufacturing or a retail location is one illustration.

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The rate at which prices rise is measured by inflation. In 2009, when the percent change was -0.3%, disinflation took place.

Inflation in 2014 hovered at 1.6%. Since the average percent change was positive, prices did not generally decrease during this time. S rise in the general price level reduces the purchasing power of money by lowering the amount of products and services that each unit of currency can buy. This is why growing prices often cause inflation. High inflation may be undesirable, but low inflation may be equally damaging to the economy.

When the economy is struggling and inflation is too low, the Fed will switch to the opposing approach by lowering interest rates or buying assets to increase cash flow. Cost-push inflation results from a decrease in total supply of goods and services caused by rising manufacturing costs. Demand-driven inflation could be made worse by rising labour or raw material costs.

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Answer: increase, between 2008-2009, 1.5%, in 2009 only

Explanation: Just confirmed on edge

A life settlement agreement enables the policyholder to sell their insurance policy for a higher price than the policy's cash value.

J decides to pay his Whole Life insurance premiums in a monthly installment plan. Which of these assertions is true? When opposed to paying annually, the total premium is greater when paid monthly. A whole life insurance's "termination for lower paid-up policy of the same kind" clause permits the policyholder to do just that (n) On Mary's life insurance application, a mistake was made. Which of the following sectors does the incontestable clause NOT apply to, where mistakes on applications are frequently made? Beneficiary Contingent of the Insured J opts for a recurring monthly premium payment option on his Whole.

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79% of marketers responded that content marketing (through organic traffic) was the most efficient strategy to reach their target audience.

Email or newsletters are effective channels that B2B marketers can use. Brands can share instructional materials with consumers thanks to email marketing. This approach has also worked well. 32% of marketers predicted that in 2023 they would use email marketing to engage potential consumers.

Think about your objectives. What goals do you have for marketing?

Talk to your customers as they travel.

Analyze the opposition.

Work your plan and evaluate the outcomes.

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The answer is B: 20 workers, 16 units of capital, and 90 units of output. Following changes in the number of workers, units of capital, and quantity of output are consistent with constant returns to scale.

This is consistent with constant returns to scale because the ratio of workers, capital, and output remains the same. In the original example, the ratio is 2.5 workers to 1 unit of capital to 2.5 units of output. In Option B, the ratio is also 2.5 workers to 1 unit of capital to 2.5 units of output. Therefore, Option B is consistent with constant returns to scale.

The phrase "returns to scale" describes how efficiently a company produces its products and services.

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Portfolio investment is defined as the purchase of less than 40 percent of the shares of ownership in a company in another country.

The purchase of less than 40% of the stock in a foreign corporation is referred to as a portfolio investment. It describes when an investor buys stocks, bonds, or other securities in a firm with the intention of making a profit. It is distinct from direct investment, which entails buying a sizable part of a firm or starting a new company in another country.

Investing in a range of different companies across various industries and countries is a means for investors to diversify their portfolios and lower risk. Investors can spread their risk over more assets and possibly lower the portfolio's overall volatility by purchasing a portfolio of securities. Further, portfolio investment can involve the purchase of securities in both domestic and foreign companies.

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An accredited investor is a person or a company that is authorised to trade securities even if they are not officially registered with the financial authorities.

Securities that have not been registered with regulatory bodies like the SEC may be legally purchased by accredited investors. Many businesses decide to directly market securities to this group of accredited investors. Companies can save a lot of money thanks to this decision's exemption from having to register securities with the SEC.

A private placement is the term used to describe this kind of share offering. These accredited investors could be exposed to a lot of risk as a result. Authorities must therefore make sure that they are experienced, financially secure, and knowledgeable about their risky endeavours.

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The finance lease permits the tenant to use the chartered  quality throughout the lease term. The transfer of the actual asset's possession at the lease term (LT) ends. The tenant should purchase the quality below the honest price from the proprietor.

The LT is typically for a serious or good portion of the involved asset's helpful life. Situations that may usually result in a lease being classified as a finance lease embrace the following: the lease transfers possession of the quality to the tenant by the top of the lease term.

A finance lease during which all risks and rewards area unit transferred to the owner of assets. The title might or might not eventually be transferred. 2. Lease term that tenant has choice to buy the assets type proprietor at value which is under honest price on the date once option become exercisable. To be classified as a finance lease, a minimum of one in every of the subsequent criteria should be true: A transfer of possession of associate quality to the tenant at the top of the term of the initial lease.

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Work with a thriving businessman to gain experience.

The pursuit of profit is just a businessperson's primary goal, and the greater the profit, the greater. Entrepreneur, on the other hand, typically concentrate on their passion and business growth. such that obtaining personal satisfaction from successfully designed products and services is the primary objective.

Yes, anyone may start their own business, but not everyone will achieve the very same level of accomplishment. It takes a significant amount of experience, grit, and occasionally education to be an entrepreneur. Nevertheless, there really are entrepreneurs from each and every demography and there aren't any requirements to becoming one.

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As per the given portfolio, the most risker stock is stock A.

Here we have given that show plots of monthly excess returns for two stocks plotted against excess return for a market Index.

And we need to find in which stock is riskier for an investor currently holding just one stock in their portfolio

While we looking into the given question we have identified that the risk of the diversified portfolio consists primarily of systematic risk.

Now, we have to looking into the Beta measures systematic risk which one is the slope of the security characteristic line.

Therefore, based on the beta score, we have concluded in that the two figures depict the stocks' SCLs, here Stock B's SCL is steeper, where as the stock has the overall broad steep.

Therefore, option (a) is correct.

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The formula for calculating straight line depreciation is: Straight line depreciation = (cost of the asset – estimated salvage value) ÷ estimated beneficial life of an asset. Where: Cost of Asset is the preliminary purchase or building fee of the asset as nicely as any related capital expenditure.

Straight-line depreciation is an accounting process that spreads the cost of a fixed asset over the period an company expects to gain from its use. Depreciation influences a company's earnings statement, stability sheet, profitability and net assets, so it is essential for it to be correct.

Straight Line Example

Cost of the asset: $100,000. Cost of the asset – Estimated salvage value: $100,000 – $20,000 = $80,000 total depreciable cost. Useful life of the asset: 5 years. Divide step (2) through step (3): $80,000 / 5 years = $16,000 annual depreciation amount.

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The primary purpose for setting overall materiality when planning the audit is that it is used to identify performance materiality relative.

Unfortunately, under U.S. Generally Accepted Accounting Principles, materiality is not defined in any particular way (GAAP). But according to the International Financial Reporting Standards' (IFRS) Conceptual Framework for Financial Reporting: Information is considered substantial if leaving it out or reporting it incorrectly could affect the choices users make when using financial data regarding a particular reporting entity. In other words, the nature, size, or both of the things to which the information refers in the context of an individual entity's financial report determine materiality for that entity. There are numerous ways to define materiality. However, the general rule is that a financial misrepresentation is serious if it has the potential to affect the choices made by users of financial statements.

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A check that has been written but has not yet been cashed, deposited, or cleared by the bank is considered an outstanding check. A personal or business check can be outstanding.

Why a company's balance deposits in transit will differ from a bank's balance. Costs associated with check printing and bank service. Errors in the books of the company.

Charges and deposits made electronically that are shown on the bank statement but have not yet been recorded in the company's books.

The cash balance that is recorded in a bank's records is shown on the bank statement balance. Some financial transactions that are not included in the bank balance are recorded in the book balance. The balance on a bank statement reveals transactions that are not included in the book balance of the business.

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This calls for improving interactive technology, online services, and digital audience engagements in order to improve customer service.

Students should have the chance to study the importance of content, its uses, and how to create a variety of content campaigns in a digital marketing course. The choice-making of the audience is significantly influenced by content creation.

An online presence can be built utilizing technologies like social media, paid search, organic search, and other web-based platforms like your website. The target market, the best way to reach them, the price point at which the good or service should be sold, and the method by which the business will evaluate its performance will all be determined by the marketing strategy.

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Thru four factors: client satisfaction, processes, innovation and enhancement activities, a balanced scorecard approach offers upper management with a fast but thorough look at the company.

What exactly does the term "customer" mean?

Customer identification: A client is an individual or company who purchases services or products from that other company. Customers are important because they generate income. Businesses would fail if they did not exist.

What is the significance of customer service?

Customer service is essential because it fosters customer loyalty while also making employees' jobs easier. This, in turn, aids business growth. Organizations can recoup acquisition costs, retain the talented, and foster brand loyalty by providing excellent customer service.

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Michael received an offer from a potential third-party buyer, but he decided not to tell Heidi because he was afraid the ridiculously low offer would insult her. Michael has breached the duty of notification.

A written provide from a dealer to a ability sponsor is called a offer. When a consumer takes into consideration elements apart from fee whilst creating a purchase, enterprise proposals are regularly an vital section withinside the complicated income process.

A idea is whilst one character shows to every other that they may be inclined to behave or chorus from appearing for you to get the alternative character's popularity of the proposed act or refraining from appearing. A idea informs the patron approximately the dealer's capacity to satisfy their needs at the same time as additionally putting the consumer's necessities in a context that advantages the dealer's items and services.

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More labor and less capital should be required to make the 50 widgets since the marginal product of labor exceeds the marginal product of machinery.

An excellent illustration of the marginal output of labor is a restaurant kitchen. Without cooks, the restaurant will produce nothing. The restaurant may produce 10 meals more after hiring one cook, resulting in a positive MPL of 10.

In terms of economics, marginal cost refers to the entire cost incurred while producing a further unit of a good or service. The additional output produced by one additional unit of input, such as an additional worker, is known as marginal product.

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Based on the information provided, Fenton Manufacturing Company has the following cash and cash equivalents:

Cash in bank account: $7,955

Petty cash balance: $500

Cash in register: $1,757

Total cash and cash equivalents: $7,955 + $500 + $1,757 = $10,212

Note that the inventory of postage stamps and the certificate of deposit are not included in the calculation of cash and cash equivalents because they are not readily available for use. The accounts payable and NSF checks are also not included because they represent liabilities, not assets. The bank account balance is not included because it is not specified whether it is a checking or savings account, and it is not clear whether it is readily available for use.

"Cash and cash equivalents" is a term used to refer to the value of a company's assets that are cash or can be easily converted into cash. These assets are typically listed on the balance sheet and may include bank accounts, marketable securities such as commercial paper and short-term government bonds, and other assets that can be quickly converted into cash.

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It's true that the perspective is known as the state of affairs.

Perspective allows us to consider multiple viewpoints and other people's opinions, experiences, and points of view. This increases our ability for understanding and empathy. Prejudice, condemnation, and conflict are reduced.

A method of considering and comprehending anything (such as a specific problem or life in general) [count] He gave us fresh eyes to view the issue from. [=angle, viewpoint] In the 1940s, the narrative is recounted from the viewpoint of a little kid.

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The Full Disclosure Principle states that all relevant and necessary information for the understanding of a company’s financial statements must be included in public company filing. The Correct  option (B)

According to the full disclosure principle, any information that might influence how well a reader understands an entity's financial statements should be included in those statements. Since there is a lot of information that may be presented, this concept can be interpreted in very judgemental ways.

In the long run, the Full Disclosure Principle helps to foster trust in business organizations because it enables investors to assess a firm's financial sustainability prior to investing in it, which is good for the company and the economy as a whole.

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Earnings before tax (EBT)-It is the quantity of cash left after all charges are subtracted from revenues. Because companies pay tax at distinctive charges depending on the place they are located, EBT is a more true reflection of profitability than profits after tax (EAT).

Profit before taxes and revenue earlier than activity and tax (EBIT), are both fantastic measures of a company's profitability. However, they grant barely one-of-a-kind views on monetary results. The most important difference is that whilst PBT money owed for pastime in its calculation, EBIT doesn't.

Gross annual earnings is your income earlier than tax, whilst internet annual profits is the amount you are left with after deductions. This topic is important if you're a wage earner or a commercial enterprise owner, in particular when it comes to filing your taxes and applying for loans.

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Answer:

The new policy will attract more trainees to the Dallas Airline school, thus increasing the class size to the maximum capacity.

Explanation:

The size of the class will increase dramatically.  The Dallas Airline School may not have enough space to accommodate the training applicants.  The payment of the salary during training is a motivating factor to trainees.  It eliminates the significant complaints from the trainees.  It levels the training ground for the Dallas Airline School to become consistent in practice with other airlines schools.

Costs of production are reduced as a result of the creation of value. Economies of extension depict circumstances were delivering at least two products together outcomes in a lower negligible expense than creating them independently.

A company's (and, by default, its customers') ability to save money through efficient production processes is known as an economy of scale. The average cost of producing something decreases as production volume increases, resulting in these cost savings.

The necessity of localization limits a company's ability to grow profits and profitability by expanding globally. By customizing products to meet the tastes and preferences of people from different cultures, the company can increase profitability through the localization strategy.

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(b) the easy entry or exit allows the number of firms to change in response to changes in supply or demand  is the characteristic of a perfectly competitive industry that allows for long- run adjustment.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behavior in a market economy, despite perfect competition seldom occurring in actual markets.

There are numerous buyers and sellers in a market with perfect competition, and prices always reflect supply and demand. Companies only make as much money as is necessary to stay in operation.

Other businesses would enter the market and reduce revenues if they were to make excessive profits. One standard or ideal kind to which actual market structures can be contrasted is perfect competition.

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Correct question:

Which of the following is the characteristic of a perfectly competitive industry that allows for long- run adjustment to restore efficiency when there is a change in costs or demand?

(a) the standardized good which allows for consumers to substitute one firm's goods or services

for another.

(b) the easy entry or exit allows the number of firms to change in response to changes in supply or demand.

(c) the large number of firms allows them to grow or shrink in size. (d) the interdependence of firms allows them to meet together to respond to changes.

When using earned value techniques, Actual Cost (AC) refers to the total of costs incurred in accomplishing work on the activity during a given period is true.

The total amount needed to acquire an asset is its actual cost, which may take into account a variety of elements. the cost that was charged by your provider. the expense of delivering the asset. the price of establishing the asset. the price of evaluating the asset.

Subtracting any depreciation, the replacement value is the same as the actual cash worth. There are rules for declaring the worth of the products while importing them. Customs duty and other taxes are determined using this number as a starting point. The worth of an imported good can be determined using a variety of techniques.

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Answer: 7.35%

Explanation:

Based on the information given, the market rate of return on this stock will be calculated as:

= (D1/P0) +G

where,

D1= Dividend at year 1 = 2.20

P = price at present =43.19

G = dividend growth rate =2.25%

We then slot the figures into the formula and we will get:

= (D1/P0) +G

= (2.20 / 43.19) + 2.25%

= 0.051 + 2.25%

= 5.1% + 2.25%

= 7.35%

Therefore, the market rate of return will be 7.35%.

Answer:

Fraud Investigators Inc.

1. Journal Entries:

March 31:  Debit Accounts Receivable $21,000

Credit Service Revenue $21,000

To record the rendering of service on account.

Oct. 31: Debit Allowance for Uncollectible Accounts $1,300

Credit Accounts Receivable $1,300

To write-off uncollectible accounts.

Dec. 15: Debit Accounts Receivable $760

Credit Allowance for Uncollectible Accounts $760

To reverse a previously written-off account.

Dec. 15: Debit Cash $760

Credit Accounts Receivable $760

To record the cash collected from the customer.

Dec. 31: Debit Bad Debts Expense $460

Credit Allowance for Uncollectible Accounts $460

To record bad debts expense for the year.

A) Debit Accounts Receivable $34,000

Credit Service Revenue $34,000

To record the rendering of service on account.

B) Debit Allowance for Uncollectible Accounts $1,950

Credit Accounts Receivable $1,950

To write off uncollectible accounts.

C1) Debit Accounts Receivable $810

Credit Allowance for Uncollectible Accounts $810

To reverse a previously written-off debt.

C2) Debit Cash $810

Credit Accounts Receivable $810

To record the receipt of cash from the customer.

D) Debit Bad Debts Expense $590

Credit Allowance for Uncollectible Accounts $590

To record bad debts expense for the year.

2. Transaction  Net Receivable  Net Sales   Income From Operation

        A                  +34,000           +34,000           +34,000

        B                  -1,950                 NE                   -1950

        C                  +/- 810                NE                    +810

        D                   NE                     NE                    -590

Explanation:

a) Data and Analysis:

March 31:  Accounts Receivable $21,000 Service Revenue $21,000

Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300

Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760

Dec. 15: Cash $760 Accounts Receivable $760

Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460

A) Accounts Receivable $34,000 Service Revenue $34,000

B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950

C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810

C2) Cash $810 Accounts Receivable $810

D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590