In terms of their effect on GDP (Gross Domestic Product), government spending and government purchases are two variables that have a different impact.
Government expenditures refer to the money that the government spends on a variety of public programs and services, such as education, health, defense and infrastructure.On the other hand, government purchases refer to purchases of goods and services made by the government, such as the construction of roads, the purchase of machinery and equipment, and the acquisition of professional services.In conclusion, the key between government spending and government purchases is that government spending is a flow of money for different programs and public services, whereas government purchases are a flow of benefits and services for the government. Both have an impact on GDP, but government spending can have a broader and more lasting impact on the economy as a whole, whereas government purchases have a more direct and short-term impact.
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garth corporation is a profitable company that sells a single product. if the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then:
Garth Corporation is a profitable company that sells a single product. If the selling price per unit and the variable expenses per unit both increase by 10%, and the fixed expenses remain the same, then the company’s profits will increase.
A 10% increase in the selling price per unit means that Garth Corporation will make more money from each product sold. This increase in revenue will offset any increase in variable expenses, such as production costs, because these costs are incurred as a result of producing and selling the product.
However, this increase in revenue may not be enough to cover the company’s fixed expenses. If Garth Corporation’s fixed expenses are higher than the amount of money they will make from the 10% price increase, then the company will not experience a profit increase.
Therefore, it is important for Garth Corporation to evaluate the financial impact of any price or expense changes before making a decision. They should consider their fixed costs, the expected revenue from the increase, and the impact of any potential expenses. Once they have determined that the changes will have a positive effect on the company’s profits, they can make the decision to move forward with the changes.
In conclusion, if the selling price and variable expenses increase by 10% and fixed expenses remain the same, then Garth Corporation may experience an increase in profits, depending on their evaluation of the changes.
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the cash flows have a present value of 0. compute the value of n, assuming a 10% interest rate compounded annually?
The present value of a set of cash flows is equal to the sum of the discounted future cash flows, where the discount rate is the interest rate (in this case 10% compounded annually). Therefore, the value of n is the number of periods needed in order for the equation to be true.
Therefore, the equation to compute the value of n is:
Present Value = [tex]$\sum_{t=1}^{n} \frac{C_{t}}{(1+r)^{t}}$[/tex]
Where:
Ct is the amount of cash at period tr is the interest rate (in this case 10% compounded annually)n is the number of periodsIn this question, the present value of the cash flows is 0, so we can rearrange the equation to solve for n:
0 = [tex]$\sum_{t=1}^{n} \frac{C_{t}}{(1+r)^{t}}$[/tex]
Therefore, the value of n is the number of periods needed in order for the equation to be true.
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expansionary fiscal policy includes: group of answer choices increasing the money supply. decreasing government expenditures. increasing taxes. decreasing taxes.
Expansionary fiscal policy includes "increasing government expenditures" to stimulate economic growth and reduce unemployment rates by injecting more money into the economy. Thus, Option C is correct.
While decreasing government expenditures and increasing taxes would be considered contractionary fiscal policy, which is used to control inflation and slow down the economy.
Expansionary fiscal policy can also involve tax cuts to boost disposable income and encourage consumer spending. Additionally, expansionary fiscal policy can lead to an increase in government borrowing, which can raise interest rates and potentially increase inflation. It is typically used during times of economic downturn, such as recessions, to stimulate the economy and promote growth.
However, it is important to note that expansionary fiscal policy can also lead to budget deficits and long-term debt if not carefully implemented and managed.
This question should be provided as:
Expansionary fiscal policy includes:
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the payment of an employee's net pay using electronic funds transfer
direct deposit
The payment of an employee's net pay using electronic funds transfer is called direct deposit.
Your paycheck, benefit check, or other payment is electronically transferred into your checking, savings, share draft, or other low-cost account provided by your bank through a process known as direct deposit, or electronic funds transfer. A digital transfer of funds from one bank account to another is known as an electronic funds transfer (EFT), also known as a direct deposit. These transfers are conducted without the involvement of bank employees. It is a digital transaction, so no paper documents are required.
You will need to get the bank name, account number, bank routing number, and account type from an employee because direct deposits are electronic fund transfers that always pass through the ACH network. You can set up the direct deposit information with your own bank account as soon as you receive this information.
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[chapter 19] assume that price controls are imposed on the healthcare sector. what problem occurs when a new surgical technique is developed that reduces the time and effort required by a surgeon to perform the same procedure?
Assuming that price controls are imposed on the healthcare sector, the issue that arises when a new surgical technique is developed that reduces the amount of time and effort required by a surgeon to complete the same procedure is the following:
According to the current pricing arrangement, a surgeon will be paid the same for a new and improved procedure as he or she would be for the old procedure, even if it requires less time and effort to perform. This would result in a significant reduction in surgical techniques' quality of care since they are now paid at a lesser rate. Surgeons will lose their motivation to improve their practices and will begin to perform operations that are not only outdated but also inefficient. There will be little incentive for the adoption of new surgical techniques that may reduce the time and effort required to complete an operation. In the long run, patients will suffer as a result of the lack of innovation, and the quality of healthcare will suffer as well. There will also be a reduction in research and development, which will have a detrimental impact on the healthcare industry as a whole.
Therefore, the best way to encourage the adoption of new surgical techniques is to improve healthcare pricing policies, which will benefit both patients and surgeons. Better pricing strategies would incentivize innovation and reward those who contribute to the healthcare industry's growth and development. Thus, the healthcare sector requires updated pricing policies that value innovation and efficiency and support research and development.
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while a limited partnership interest is transferable, the transferee will become a limited partner if: a. the other members consent. b. he has consented to the organizational character. c. he has paid fair market value. d. he has also donated services.
While an interest in a limited partnership can be transferred, the person who transfers it will become a limited partner if: a. The consent of the other members .
How can you join a limited partnership?You must register as a limited partnership in your state, pay a filing fee, and draft a limited partnership agreement outlining the partnership's other terms, including how much ownership each limited partner has in your business. A business that has more than one owner, including at least one general partner and at least one limited partner, is considered to be a limited partnership. The general partner is in charge, taking personal responsibility for the debts and lawsuits of the company as well as making business decisions. Limited partners are merely shareholders in the company; they don't have control of everyday activities, and they're just responsible for however much they put resources into the organization. Like the general partner, limited partners can lose their limited liability and be held fully liable for the company's debts and lawsuits if they take an active role in running the business.
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Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham Hardware should:
attempt to facilitate the collective agreement of all members of the buying center.
Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham Hardware should attempt to facilitate the collective agreement of all members of the buying center. The correct option is D.
Consensus buying center: A buying center where all team members must concur in order for them to each support a specific purchase.
Before supporting a specific purchase in a consensus buying center, all members of the buying team must come to a consensus. Adopting a consensus buying center culture has a number of advantages, including:
Risks are minimized, particularly when purchasing intricate or highly specialized goods or services. There are alternatives to extremes. encourages participation from various employees in the buying center because decisions that were reached by consensus are more likely to be accepted than those that are imposed. The correct option is D.
The question is incomplete, complete question "Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham Hardware shouldA. focus exclusively on the head of the buying center.B. address the concerns of all members of the buying center with particular attention to those of the decision maker.C. focus on providing information to and making the sales approach to the one decision maker.D. attempt to facilitate the collective agreement of all members of the buying center.E. attempt to get one "friend" on the committee to support his products."
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green company sponsors a defined benefit pension plan. the pension formula is calculated based on the following formula: 1.5% x number of service years x final salary. the assumed discount rate is 5%. if an employee is expected to retire in 10 years with a final annual salary of $200,000, has earned 20 years of service, and is expected to receive an annual pension for 20 years, the current pbo rounded to the full dollar will be
As per the given pension, the current PBO rounded to the full dollar for the employee in question is $13,884.
In this case, the employee has 20 years of service and a final salary of $200,000, so the pension payment amount would be:
Pension payment amount = 1.5% x 20 x $200,000 = $60,000
To calculate the PV factor, we need to use the discount rate and the number of years until the pension payments begin. In this case, the employee is expected to retire in 10 years and receive pension payments for 20 years, so the total number of years is 30.
PV factor = 1 / (1 + discount rate)ⁿ
PV factor = 1 / (1 + 0.05)³⁰ = 0.2314
Finally, we can calculate the PBO by multiplying the pension payment amount by the PV factor:
PBO = $60,000 x 0.2314 = $13,884
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In performing a SWOT analysis to generate insights from external and internal analysis, internal strengths and weaknesses can be determined by applying ______ and external strengths can be evaluated in part by applying ______.
"In performing a SWOT analysis to generate insights from external and internal analysis, internal strengths and weaknesses can be determined by applying the VRIO framework and external strengths can be evaluated in part by applying PESTEL."
A SWOT analysis is a strategic tool used to identify an organization's internal and external factors that can impact its performance. In this analysis, internal strengths and weaknesses are evaluated using the VRIO framework, which assesses a company's resources, capabilities, and competitive advantage.
External strengths are evaluated through the PESTEL framework, which assesses the political, economic, social, technological, environmental, and legal factors that can affect an organization's operations. By applying these frameworks, organizations can identify their strengths, weaknesses, opportunities, and threats, and make informed strategic decisions to improve their overall performance.
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fussner medical clinic measures its activity in terms of patient-visits. last month, the budgeted level of activity was 1,610 patient-visits and the actual level of activity was 1,670 patient-visits. the cost formula for administrative expenses is $3.30 per patient-visit plus $17,900 per month. the actual administrative expense was $24,600. in the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:
The budgeted level of activity at Fussner Medical Clinic for last month was 1,610 patient-visits and the actual level of activity was 1,670 patient-visits. The spending variance for administrative expenses in the clinic's flexible budget performance report for last month was $207.
The cost formula for administrative expenses is $3.30 per patient-visit plus $17,900 per month. The actual administrative expense was $24,600.
The spending variance for administrative expenses in the clinic's flexible budget performance report for last month can be calculated as follows:
The budgeted administrative expense = 1,610 patient-visits x $3.30 + $17,900 = $24,807
The actual administrative expense = 1,670 patient-visits x $3.30 + $17,900 = $24,600
The spending variance = Budgeted administrative expense – Actual administrative expense = $24,807 – $24,600 = $207
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what is the incidence of the tax on consumers and the monopolist if the incidence of the tax is defined as the price rise experienced by consumers divided by the amount of the tax, t?
The incidence of the tax on consumers and monopolist: When defining the incidence of the tax on consumers and the monopolist
the incidence of the tax is defined as the price rise experienced by consumers divided by the amount of the tax. In another way, The incidence of the tax is the amount of the tax burden that falls on consumers when the price of a good or service is increased as a result of the tax.Tax incidence refers to the division of the tax burden between consumers and producers.
The incidence of the tax is computed as follows: (Price increase/Tax amount) × 100 percent
For monopolists, the incidence of the tax is computed as follows: (Price increase + reduction in quantity sold) / Tax amount × 100 percent.
In conclusion, the incidence of the tax on consumers and the monopolist if the incidence of the tax is defined as the price rise experienced by consumers divided by the amount of the tax, t, is defined by the formulas outlined above.
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true or false: the idea that an entrepreneur gets rich quickly and enjoys a lot of leisure time while someone else does the work is a myth about entrepreneurship.
The given statement, "The idea that an entrepreneur gets rich quickly and enjoys a lot of leisure time while someone else does the work is a myth about entrepreneurship," is true (T) because starting and running a successful business requires a lot of hard work, perseverance, and dedication.
Entrepreneurship is not an easy road to riches or a life of leisure. It requires a lot of effort and sacrifice, especially in the early stages of the business. An entrepreneur must wear many hats, from managing finances to marketing, sales, operations, and customer service. They have to work long hours, take calculated risks, and overcome various challenges.
Furthermore, many successful entrepreneurs often continue to work hard and invest their time and resources back into their businesses to sustain growth and success. So while entrepreneurship can bring financial rewards, it is far from a shortcut to wealth and leisure.
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tricia is saving for a down payment on a car. if she has $3000 that she invests in an account that draws 8% interest compounded quarterly, how long will it take that account to double?
It will take Tricia's account approximately 8.66 years (or about 8 years and 8 months) to double at an interest rate of 8% compounded quarterly.
To determine how long it will take for Tricia's account to double, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)where:
A = the amount after time tP = the principal (initial investment)r = the interest rate (as a decimal)n = the number of times the interest is compounded per yeart = the time (in years)In this case, Tricia invests $3000 at an interest rate of 8% compounded quarterly. So we have:
P = $3000r = 0.08 (8% expressed as a decimal)n = 4 (quarterly compounding)t = the time we want to findWe want to find the time it takes for the account to double, so we set A = 2P = $6000 and solve for t:
2P = P(1 + r/n)^(nt)2 = (1 + 0.08/4)^(4t)
2 = 1.02^(4t)
ln(2) = ln(1.02^(4t))
ln(2) = 4t ln(1.02)
t = ln(2)/(4 ln(1.02))
t ≈ 8.66
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a consumer price index of 110 for a given year indicates that prices in that year are 10 percent higher than prices in the base year. group of answer choices true. false.
True as A Consumer Price Index (CPI) of 110 for a given year indicates that prices in that year are 10% higher than prices in the base year.
The CPI is an economic tool used to measure the average changes in prices over time of a given basket of goods and services.
This basket of goods and services is used to calculate the CPI and is composed of items that are representative of the average market basket of goods and services consumed by a particular group of consumers.
As prices of goods and services increase, the CPI rises, signaling an increase in the cost of living for the given population.
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rank the left side assets from the most liquid (1) to the least liquid (3) us treasury note house modern gold coins 1) most liquid 2) liquid 3) least liquid
The rank of Most liquid to least liquid would be: 1) Modern Gold coins 2) US Treasury Note 3) House
The most liquid is Modern gold coins followed by US Treasury Note and last is House which is the least liquid.
Modern gold coins are the most liquid of the three options because they are the simplest to sell on the bullion market and have a universally acknowledged value. Modern gold coins are highly liquid assets because they are readily convertible into cash and have a high degree of divisibility.
US Treasury note: This highly liquid asset is regarded as a safe haven asset and can be easily sold on the financial markets. The US Department of Treasury has issued the US Treasury note, debt security, and there is a thriving secondary market where investors can buy and sell them.
House - It can take a while to sell and its value can be very reliant on market conditions, making it the least liquid asset among the three choices. Finding a buyer, negotiating the sale, and completing the necessary paperwork are all time-consuming steps in the lengthy process of selling a home. These steps can take months.
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taxes influence many types of business decisions but generally do not influence personal decisions. group startstrue or false
The statement "taxes influence many types of business decisions but generally do not influence personal decisions." is true as it describes correct information about taxes influence.
Taxes influence many types of business decisions, such as decisions on where to locate the business, what types of investments to make, and what types of products or services to offer. However, taxes generally do not influence personal decisions, such as what type of car to buy or where to go on vacation.
Taxes may, however, affect personal decisions indirectly, by influencing a person’s income or financial resources. For example, higher taxes can reduce the amount of disposable income a person has to spend, and thus could influence decisions on what type of car to buy or where to go on vacation.
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what are at least 5 things you need to make sure you understand before selling your first item online to be compliant with regulations?
In order to be compliant with regulations when selling your first item online, it is important to understand the following five things: Taxes, Regulations, Shipping, return Policy and Privacy and data security.
1. Taxes: Depending on your location and the type of product being sold, there may be certain taxes that need to be collected and paid on the item. It is important to research and understand the applicable taxes in your area.
2. Regulations: Depending on the type of product being sold, there may be additional regulations and laws that need to be complied with. Make sure to research and understand all applicable regulations for the type of product you are selling.
3. Shipping: If you are shipping the item, make sure you understand all applicable shipping regulations, as well as any applicable fees or taxes. Additionally, make sure you understand the process of packaging and shipping the item.
4. Return Policy: Establish a clear return policy that is compliant with all applicable laws and regulations. This policy should include details on the process for customers to return the item, the timeline for processing the return, and any associated fees.
5. Privacy and Data Security: Ensure that you are protecting the privacy of your customers and that all data is secure. This includes following any applicable laws and regulations, as well as utilizing secure payment gateways and other data protection measures.
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returning to problem 3, what if inspection is done by the seat manufacturer in combination with assembly? how does this influence analysis of problem 1?
If inspection is done by the seat manufacturer in combination with assembly, then it will have an influence on the analysis of problem 1. This is because the seat manufacturer's inspection may reveal defects in the seat before it is assembled, allowing for the correction of the defect prior to assembly. This may prevent the assembly of a seat with a defect, thus improving the overall quality of the seat.
The seat manufacturer's inspection is done in combination with assembly, it may reveal defects in the seat before it is assembled, allowing for the correction of the defect prior to assembly, which can improve the overall quality of the seat.
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the following data were extracted from the income statement of shriver inc.: current yearprior year sales$1,124,200 $1,169,500 beginning inventories79,106 55,364 cost of merchandise sold562,100 649,700 ending inventories71,506 79,106 a. determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. round interim calculations to the nearest dollar and the final answers to one decimal place. assume 365 days a year. current yearprior year 1. inventory turnoverfill in the blank 1 fill in the blank 2 2. number of days' sales in inventoryfill in the blank 3 daysfill in the blank 4 days b. the inventory turnover has , while the number of days' sales in inventory has . the sales volume has faster than the inventory, resu
The following data were extracted from the income statement of shriver inc for current year: 1) Inventory turnover is 7.6, 2) Number of days' sales in inventory is 48.0 days For Prior year: 1. Inventory turnover is 9.3, 2) Number of days' sales in inventory is 39.2 days b. The inventory turnover has decreased from 9.3 to 7.6, while the number of days' sales in inventory has increased from 39.2 days to 48.0 days.
Current year:
1. Inventory turnover: To calculate inventory turnover, use the formula (Cost of Merchandise Sold) / ((Beginning Inventory + Ending Inventory) / 2). So, for the current year, the inventory turnover is (562,100) / ((79,106 + 71,506) / 2) = 7.6
2. Number of days' sales in inventory: To calculate the number of days' sales in inventory, use the formula 365 / Inventory Turnover. So, for the current year, the number of days' sales in inventory is 365 / 7.6 = 48.0 days
Prior year:
1. Inventory turnover: For the prior year, the inventory turnover is (649,700) / ((55,364 + 79,106) / 2) = 9.3
2. Number of days' sales in inventory: For the prior year, the number of days' sales in inventory is 365 / 9.3 = 39.2 days
b. The inventory turnover has decreased from 9.3 to 7.6, while the number of days' sales in inventory has increased from 39.2 days to 48.0 days. This means that the sales volume has decreased faster than the inventory, resulting in a lower inventory turnover and a higher number of days' sales in inventory.
This could be due to various reasons such as lower demand, a decrease in the efficiency of the inventory management process, or changes in the product mix. In order to improve this situation, Shriver Inc. should analyze the factors contributing to the decline in sales volume and the increase in days' sales in inventory, and implement strategies to address these issues. This may involve optimizing inventory levels, improving demand forecasting, or implementing more effective marketing and sales strategies.
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Assume an economy is currently in long-run equilibrium. What would be the long-run impact of an increase in consumer confidence?
In an economy that is currently in long-run equilibrium, an increase in consumer confidence will lead leading to a rise in inflation
An increase in consumer confidence would lead to an increase in consumer spending, which would shift the aggregate demand curve to the right. In the short run, this increase in demand would lead to an increase in output and prices. However, in the long run, the increase in aggregate demand would be offset by an increase in aggregate supply as firms respond to higher prices by increasing production.
In the long run, the increase in aggregate supply would restore the economy to its long-run equilibrium, but at a higher level of output and prices than before. This is because the increase in consumer confidence would lead to an increase in investment, which would increase the capital stock and labor productivity, thereby increasing potential output. This would cause the long-run aggregate supply curve to shift to the right.
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which of the following is an accurate formula for the mankiw rule to calculate the federal funds rate? the function of the real federal funds rate, inflation rate, inflation gap, and the gdp gap the function of the consumer price index core inflation rate over the previous 12 months and the gdp gap the function of the consumer price index core inflation rate over the previous 12 months and the seasonally adjusted unemployment rate
The accurate formula for the Mankiw Rule to calculate the Federal Funds Rate is the following: Real Federal Funds Rate = Inflation Rate + Inflation Gap + GDP Gap.
What is mankiw rule?Mankiw’s Rule is a macroeconomic policy proposed by Harvard professor and former Chairman of the Council of Economic Advisers, Gregory Mankiw. The rule states that governments should try to keep the nominal rate of growth of the money supply at a rate that is equal to the long-term rate of growth of the economy’s output plus the inflation rate. This policy aims to ensure that the economy is stable and that the purchasing power of money is maintained over time.
Real Federal Funds Rate = Inflation Rate + Inflation Gap + GDP Gap, where Inflation Rate is the Consumer Price Index Core Inflation Rate over the previous 12 months and GDP Gap is the seasonally adjusted unemployment rate.
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hen a company changes its work processes, such as changes in the sequence of workstations or assembly line processes, the change is in the area of .
Hen a company changes its work processes, such as changes in the sequence of workstations or assembly line processes, the change is in the area of operations management.
What is the change?When a company changes its work processes, such as changes in the sequence of workstations or assembly line processes, it is making changes in the area of operations management.
Process changes can be made to improve efficiency, reduce costs, increase quality, or better meet customer needs. By changing the sequence of workstations or assembly line processes, a company may be able to reduce the time it takes to produce a product or service, reduce the risk of errors, or better utilize resources.
Overall, the objective of changing work processes is to improve the performance of the company's operations, which can ultimately lead to increased profitability, customer satisfaction, and competitive advantage.
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traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs. traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs. true false
The given statement "traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs." is true because it helps to ensure that tasks are completed efficiently and effectively, and that everyone is working together towards a common goal.
Traditional job design is marked by formal organization charts, clear and precise job descriptions and specifications, and well-defined relationships between jobs.
Formal organization charts are a visual representation of this interconnected network, providing a clear and hierarchical view of the organization.
Clear and precise job descriptions and specifications are also an important aspect of traditional job design. These descriptions outline the specific tasks and responsibilities associated with each job, providing a clear understanding of what is expected of each employee.
Well-defined relationships between jobs are also a key feature of traditional job design. This involves creating clear lines of communication and responsibility between different roles within the organization.
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during periods of uncertainty about the economy, there is a shift from risky money market securities to treasury securities. a. true b. false
The statement "During periods of uncertainty about the economy, there is a shift from risky money market securities to treasury securities" is True.
What are Money Market Securities?Money market securities are short-term debt instruments issued by corporations, the government, and financial institutions to fund daily expenses. The maturity of these securities is 1 year or less. The main function of these securities is to provide liquidity to the money market as well as to the economy.
Money market securities are regarded as safe, low-risk investments with low returns.Money market securities include, but are not limited to, the following types of investments:Treasury Bills (T-bills)Certificate of Deposit (CD)Commercial Paper (CP)Repurchase Agreement (Repo)
What are Treasury Securities?Treasury securities are long-term financial instruments issued by the U.S. Treasury Department to finance the government's activities. Treasury securities' maturity periods are more than a year long, and they are classified as either short-term, medium-term, or long-term securities. T
reasury securities are considered to be a safe investment and are backed by the full faith and credit of the United States Government. Because they are backed by the government, they are virtually risk-free. These securities are traded in the secondary market by individual investors, financial institutions, and banks.
Treasury bills, notes, and bonds are the three types of Treasury securities, with varying maturity dates. Treasury securities are used by investors who are looking for a safe and steady investment that will provide a return that is typically greater than money market securities.
ConclusionDuring periods of uncertainty about the economy, there is a shift from risky money market securities to treasury securities. Treasury securities are considered to be low-risk investments, making them appealing to investors during periods of uncertainty. They are considered to be a safe and steady investment that will provide a return that is typically greater than money market securities.
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the marginal propensity to consume is: group of answer choices normally expected to be between zero and one. normally assumed to increase as disposable income increases. normally assumed to decrease as disposable income increases.
The MPC measures the increase in consumer spending due to an increase in disposable income and is normally expected to be between 0 and 1. However, it typically decreases as disposable income increases due to increased savings.
The increase in consumer spending brought on by a rise in disposable income is quantified by the economic concept known as the marginal propensity to consume (MPC). It shows how much extra money customers spend on products and services. As people typically spend some of any gain in their disposable income, the MPC is typically predicted to be between zero and one.
However, it is commonly believed that the MPC will decline as disposable income rises, which means that as people become wealthier, they will tend to save a greater percentage of their income. Because people tend to have their essential needs and want to be met as their discretionary income rises, they may decide to save more of their increased money rather than spend it.
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buying stock on margin meant purchasing only a few shares. purchasing inexpensive stock. making only a small down payment. purchasing little-known stock.
Buying stock on margin meant making only a small down payment.
What is a margin?A margin is a form of debt security in which an investor borrows funds from a broker to buy shares. It's the collateral that the investor uses to trade equities. The investor only pays a portion of the purchase price, which is referred to as a margin deposit, while the broker provides the remainder by lending money.
Margin trading amplifies gains and losses by allowing you to buy more shares than you could without using margin. The danger of loss from buying on margin arises when the stock price falls below the margin account's collateral value, causing the broker to issue a margin call.
The brokerage may issue a margin call if the stock price drops, requiring you to deposit more money or sell some or all of your shares. The broker is a stockbroker who purchases and sells securities for their own account or on behalf of others. The investor who trades on margin is required to keep a margin account with the broker who lent the funds.
When you trade on margin, you borrow money from the broker to buy shares that you otherwise couldn't afford. You're using debt to increase your investment's earning power. Therefore, buying stock on margin meant making only a small down payment.
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price elasticity of supply shows how much price changes relative to changes in quantity supplied. how responsive consumers are to price changes. how responsive producers are to price changes. none of the above
Price elasticity of demand shows A. how responsive consumers are to price changes.
Price elasticity of demand is measured using the following formula: Ped = (Percentage change in quantity demanded) / (Percentage change in price)Ped is usually negative since quantity demanded and price have an inverse relationship. As a result, the numerator and denominator of the formula may either have the same or opposite signs. It is the absolute value of Ped that matters when determining the degree of elasticity.
Types of price elasticity of demand Price elasticity of demand can be classified into four types:
Perfectly elastic demand: A slight price increase results in a significant decrease in quantity demanded. As a result, Ped is infinite (i.e., equal to ∞). Perfectly elastic demand is depicted as a horizontal line. Perfectly inelastic demand: Quantity demanded remains unchanged when the price changes. As a result, Ped is zero. The demand curve is a vertical line.The complete question is :
Price elasticity of demand shows
A how responsive consumers are to price changes.
B whether the demand curve is positive or negative
C how price changes in response to changes in quantity demanded
D none of the above
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company 7 has a gross profit of $70 million and net sales of $150 million. what is the gross profit ratio for that company?
The gross profit ratio for Company 7 is 46.7%.
Given:
1. Gross Profit = $70 million
2. Net Sales = $150 million
3. Gross Profit Ratio = Gross Profit/Net Sales
4. Gross Profit Ratio = $70 million/$150 million
5. Gross Profit Ratio = 46.7%
Gross profit ratio is an accounting ratio used to determine the relationship between gross profit and net sales. It is calculated by dividing gross profit by net sales, which results in a percentage. The gross profit ratio is sometimes referred to as the gross margin ratio.
The formula is as follows: Gross profit ratio = Gross profit / Net sales × 100
In this instance, Gross profit = $70 million, Net sales = $150 million
Gross profit ratio = $70 million / $150 million × 100Gross profit ratio = 0.46667 × 100 = 46.667%Therefore, the gross profit ratio for that company is 46.667%.
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a claim of superiority based on specific attributes of a product with the intent of preventing competition is known as a .
A claim of superiority based on specific attributes of a product with the intent of preventing competition is known as a trade barrier.
Trade barriers are government-imposed limitations on trade between two or more countries. They are used to regulate international trade in order to control the import and export of goods and services.
Trade barriers come in a variety of forms and can be both economic and non-economic in nature. They can also be created by both domestic and foreign governments. Tariffs, quotas, embargoes, subsidies, and regulations are all examples of trade barriers.
Trade barriers are not always beneficial for the economy. While they can protect domestic industries from foreign competition, they can also lead to higher prices for consumers and reduce the competitiveness of domestic industries in the long run.
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All of the following statements about subsidies and positive externalities are true, except: select the correct answer below:
- the government should not want the party creating the positive externality to receive a greater share of the social benefits. - in the case of vaccines, an effective government public policy might be to provide a subsidy to those who choose to get vaccinated.
- when the government uses a subsidy to those who choose to get vaccinated, it can produces the socially optimal quantity of vaccinations.
- none of the above; all of the statements are true.
All of the statements about subsidies and positive externalities mentioned above are true. Subsidies can be an effective government public policy to help address positive externalities, such as the production of vaccines.
By providing a subsidy to those who choose to get vaccinated, the government can help ensure that the socially optimal quantity of vaccinations is reached.
This helps to ensure that the social costs of not vaccinating are minimized. Additionally, it can also help to ensure that the party creating the positive externality receives a proportionate share of the social benefits.
Therefore, it is important for the government to properly utilize subsidies to address positive externalities and help ensure that the social costs and benefits are balanced.
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