You have the following information for goods X and Y: Goods Price elasticity Cross-price elasticity Income elasticity X 0.4 -0.7 -1.8 Y 0.9 -0.7 0.6 Fill out the spaces in the following statements: Based on the price elasticity, we can say that good X is price ___________________ Based on the cross-price elasticity, we can say that goods X and Y are _______________ Based on the income elasticity, we can say that good Y is _________________
In: Economics
2.) Pure public goods are those supplied by the public sector and private goods are those supplied by the private sector.
3.) Nonrival goods may be provided by the private sector, but only if they are excludable.
In: Economics
All inferior goods must have been normal at some income level, but normal goods don’t necessarily ever have to be inferior. Explain
In: Economics
Lin spends her income on green goods (G) and born goods (B). Her utility function is
Her marginal utility for green goods is
Her marginal utility for brown goods is
|
Find Lin's demand for brown goods expressed in terms of exogenous parameters |
In: Economics
Exercise 3-3 (Algo) Schedules of Cost of Goods Manufactured and Cost of Goods Sold [LO3-3]
Primare Corporation has provided the following data concerning last month’s manufacturing operations.
| Purchases of raw materials | $ | 32,000 |
| Indirect materials used in production | $ | 4,930 |
| Direct labor | $ | 58,300 |
| Manufacturing overhead applied to work in process | $ | 88,200 |
| Underapplied overhead | $ | 4,160 |
| Inventories | Beginning | Ending | ||
| Raw materials | $ | 10,100 | $ | 19,700 |
| Work in process | $ | 55,100 | $ | 68,300 |
| Finished goods | $ | 33,200 | $ | 42,900 |
Required:
1. Prepare a schedule of cost of goods manufactured for the month.
2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
In: Accounting
what factors affect buyers demand for goods?
what factors affect sellers supply of goods?
how do supply and demand determine the price of a good and the quantity sold?
In: Economics
Exercise 3-6 Schedules of Cost of Goods Manufactured and Cost of Goods Sold; Income Statement [LO3-3]
The following data from the just completed year are taken from the accounting records of Mason Company:
| Sales | $ | 657,000 |
| Direct labor cost | $ | 85,000 |
| Raw material purchases | $ | 131,000 |
| Selling expenses | $ | 100,000 |
| Administrative expenses | $ | 48,000 |
| Manufacturing overhead applied to work in process | $ | 204,000 |
| Actual manufacturing overhead costs | $ | 225,000 |
| Inventories | Beginning | Ending | ||
| Raw materials | $ | 8,400 | $ | 10,500 |
| Work in process | $ | 5,500 | $ | 20,400 |
| Finished goods | $ | 71,000 | $ | 25,500 |
Required:
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.
In: Accounting
1. GDP includes
a. All final goods.
b. All final services.
c. Both final goods and final services.
2. Which of the following is counted in US GDP?
a. Used car purchased by a student for his commute to school
b. Used oven purchased by a baker for her cake shop
c. Drill purchased by a construction company
d. b & c only
e. None of the above
3. Which of the following is counted in US GDP?
a. A New video game made in China but purchased in the United States
b. New growth in rainforests
c. A new quilt made by Jane and given to her grandmother for her 80th birthday
d. a & c only
e. None of the above
4. Real GDP controls for
a. changes in preferences.
b. changes in population.
c. changes in prices.
d. a & c only
e. a, b, & c
5. True or false: nominal GDP is always larger than real GDP.
a. True
b. False
6. True or false: real GDP is always larger than real GDP per capita.
a. True
b. False
7. True or false: if a country’s nominal GDP increases, it means the country is producing more goods and services.
a. True
b. False
8. Real GDP per capita in the US ____________ during the great recession of 2009.
a. increased
b. decreased
c. did not change
9. Real GDP per capita is positively correlated with all of the following except
a. malaria cases per capita.
b. life expectancy.
c. happiness.
d. education.
e. b & d only
f. a, b, c, & d
10. Real GDP per capita is usually used to compare the standard of living of
a. the same country at different points in time.
b. two different individuals at one point in time.
c. two different countries at one point in time.
d. a & c only.
e. None of the above.
11. True or False: Government purchases includes all of the following: social security payments, government employee wages, and tanks purchased by the government.
a. True
b. False
12. Measuring GDP using the national spending approach includes
a. Consumption.
b. Net exports.
c. Government spending.
d. a & b only
e. a, b, c
13. Measuring GDP using the factor income approach includes
a. Employee compensation.
b. Interest.
c. Profit.
d. b & c only
e. a, b, c
14. Which job is least likely to be negatively affected by increases in global markets and technology?
a. Plumber
b. Uber driver
c. Umpire
d. Factory worker
15. What percent of jobs in the US require some form of occupational licensing?
a. 15%
b. 25%
c. 40%
d. 50%
e. none of the above
16. Which of the following individuals are counted as unemployed?
a. A military soldier.
b. An adult who is out of work, wants a job, and applied to a job 2 weeks ago but not since then.
c. An adult in prison.
d. An adult who is out of work, wants a job, and applied to a job 5 weeks ago but not since then.
e. a and b only.
f. b and d only.
17. Complete the following equation: Unemployment Rate = (Unemployed/ ______________)*100
a. Employed
b. Labor Force
c. US adult population
d. US population
e. None of the above.
18. Since 1950, in which year was the unemployment rate 0%?
a. 1953
b. 1969
c. 1994
d. a and b only.
e. It’s never been 0%
19. Calculate the unemployment rate with the following data: Unemployed: 10 million, US Population: 200 million, Employed: 90 million
a. 3%
b. 5%
c. 8%
d. 10%
20. According to the video, the average unemployment rate between 1950 and 2015 was approximately
a. 0%
b. 3%
c. 6%
d. 8.5%
e. None of the above.
21. The official unemployment rate definition
is
a. An adult out of work who has been looking for work in the past
year.
b. An adult who is out of work and has been looking for work in the past 15 weeks.
c. An adult who is out of work and has been looking for work in the past 4 weeks.
d. An adult who is out of
22. Discouraged workers are unemployed individuals who say they want a job, but although they haven’t looked for work in the past ________ , they have looked in the past ________.
a. 4 weeks, 15 weeks
b. 4 weeks, year
c. 15 weeks, year
d. 2 weeks, 15 weeks
23. If we include discouraged workers as unemployed when calculating the unemployment rate,
a. Stays the same.
b. Doubles.
c. More than doubles.
d. Less than doubles.
24. True or false. It would be very beneficial for the US economy if we could greatly reduce or eliminate frictional unemployment.
a. True
b. False
25. If the news reported that 100,000 “new” jobs were created and there were 1,000,000 job separations in the United States in July 2016, how many new hires occurred in the US that month?
a. 100,000
b. 900,000
c. 1,000,000
d. 1,100,000
e. 1,500,000
25. In the above scenario, how many jobs are created for every job destroyed?
a. .1
b. .9
c. 1
d. 1.1
e. 1.5
26. Which of the following is a major cause of structural unemployment?
a. Short-term unemployment caused by college graduates searching for employment.
b. Large and long-lasting shocks to the economy.
c. Decreases in labor force participation amongst older workers.
d. a and b only.
27. Cyclical unemployment is defined as:
a. The amount of workers who have given up looking for work but would still take a job if it paid enough.
b. The natural rate of unemployment.
c. Unemployment correlated with business fluctuations.
d. Short-term unemployment caused by the difficulty of matching employees to open positions.
e. Persistent, long-term unemployment caused by long-lasting shocks to the economy.
28. Which of the following contribute to why wages are considered sticky?
a. People get upset when wages fall, particularly if they think their employer is causing the wage cut, which negatively impacts workplace morale.
b. If wages were easily cut, workers might respond by working less or disrupting their work, thus negatively affecting productivity.
c. Minimum wage requirements make it difficult to lower wages quickly or often.
d. All of the above.
29. The natural rate of unemployment is defined as:
a. Frictional plus structural unemployment.
b. Cyclical plus frictional unemployment.
c. Cyclical unemployment.
d. The rate at which workers retire from the labor force.
e. Structural unemployment plus the rate at which domestic jobs are replaced by outsourcing skills internationally.
In: Economics
Gross Domestic Product (GDP)
Definition
Calculation – Expenditure and income approaches
Final goods versus intermediate goods
Are used goods counted in GDP?
Are stocks and bonds (financial assets) counted in GDP?
How are inventories treated in GDP?
Calculation of real GDP & current GDP
Definition of the standard of living
Limitations of GDP per person as a measure of the standard of living – e.g., is household production included in GDP? What about underground economic activity? What about leisure and environmental quality?
In: Economics
You are graduating in May 2020 with a B.S. and want to attend graduate school full time for two years for an MBA. Though scholarships, support from your parents, and savings, you don’t have any debt for your undergraduate education, and you've agreed to pay for graduate school on your own. You estimate that you will need to borrow about $40,000 in each of the next two years: $40,000 in August 2020 and $42,000 in August 2021. The term of each loan will be 15 years, paid monthly. Your first payment will be due October 1, 2020 and the first payment of the second loan will be due October 2, 2021. You’ve researched student loans and found the following rates that are guaranteed not to be any higher over the next 20 years: Direct unsubsidized loans – capped at $20,500 @6.08% for fifteen years Direct PLUS loans @ 7.08% for fifteen years There are also origination fees – that are subtracted from the loan amount you receive but does not affect the principal or monthly payment. The rates are: Direct unsubsidized loans: 1.059% Direct PLUS loans: 4.236% Question 1 1 Point How much money do you expect to receive in August 2020? Question 2 1 Point How much money do you expect to receive in August 2021? Question 3 1 Point What will be the remaining principal in October 2020? Question 4 1 Point What will be the remaining principal in November 2021? Question 5 1 Point What is the total monthly payment in August 2020? Question 6 1 Point What is the total monthly payment in July 2025? Question 7 1 Point What is the remaining principal in August 2028? Question 8 1 Point How much do you expect to pay in total for both loans? Question 9 1 Point What is the effective simple interest rate for the Direct unsubsidized loans: (interest + Origination fees)/(Loans)? Question 10 1 Point What is the effective simple interest rate for the Direct PLUS loans (interest + Origination fees)/(Loans)
In: Accounting