Option B. marginal.
The average fixed cost decreases as performance improves. Multiple choice problem. The total or production volume of a particular product or service produced. Total output per unit of work.
Marginal production cost measures the change in the total cost of a product due to the production of one additional unit of that product. Marginal cost (MC) is calculated by dividing the change in total cost (C) (Δ) by the change in quantity (Q).
Marginal cost is calculated by dividing the change in total cost by the change in quantity. Suppose Company A produces 100 units at a cost of $ 100. The company will then produce another 100 units at a cost of $ 90. Therefore, the marginal cost is a change in total cost, which is $ 90.
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The national rifle association is an example of a(n)
the national rifle association in the United States is considered to be a single-issue group.
what is a single-issue group?a single issue group is one that that focuses its advocacy efforts on one particular issue.
in the case of the national rifles association, they are focused solely on the issue of gun rights which is why they are a single-issue group.
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The __________ makes it a crime for a seller to sell at lower prices in one geographic area than elsewhere in the United States to eliminate competition or a competitor. Multiple Choice Federal Trade Commission Act Wheeler-Lea amendment Gramm-Rudman-Hollings Act Robinson-Patman amendment Free Exercise Act
The (D) Robinson-Patman act makes it a crime for a seller to sell at lower prices in one geographic area than elsewhere in the United States to eliminate competition or a competitor.
What is the Robinson-Patman act?The Robinson-Patman Act is a federal statute that was created in 1936 to make pricing discrimination illegal. The Robinson-Patman Act amends the Clayton Antitrust Act of 1914 in order to prohibit "unfair" competition.The Robinson-Patman Act is a federal statute that prohibits pricing discrimination.The law prohibits wholesalers from charging varying pricing to different merchants.The act only applies to interstate commerce and includes an exemption for "cooperative associations."Economists and legal scholars have strongly opposed the measure on a variety of grounds.Therefore, the (D) Robinson-Patman act makes it a crime for a seller to sell at lower prices in one geographic area than elsewhere in the United States to eliminate competition or a competitor.
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Complete question:
The __________ makes it a crime for a seller to sell at lower prices in one geographic area than elsewhere in the United States to eliminate competition or a competitor.
Multiple Choice
(A) Federal Trade Commission Act
(B) Wheeler-Lea amendment
(C) Gramm-Rudman-Hollings Act
(D) Robinson-Patman act
(E) Free Exercise Act
A curve that is derived by summing horizontally individual demand curves is called:________
A curve that is derived by summing horizontally individual demand curves is called market demand curve.
The quantity acquired by all buyers and sellers total of the individual demands—gives "the market demand for each price". Because the sum is calculated over the quantities for each price, this is commonly referred to as a "horizontal sum". The horizontal (quantity) sum of each individual supply curve represents the market supply.
The market demand curve is just the horizontal addition of each consumer's particular demand curves for lattes. When you sum horizontally, you are totaling amount demanded rather than price. You must multiply the quantity by the total market demand at each price point.
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The cost that immigrants impose on governments arise mainly in terms of_______ which are primarily
The costs that immigrants impose on governments arise mainly in terms of public schools and healthcare, which are primarily the responsibilities of the state and local government(s).
Immigration can provide widespread economic benefits – a more flexible labor market, extra capabilities base, elevated call for and a greater diversity of innovation. but, immigration is also controversial. It miles argued immigration can cause troubles of overcrowding, congestion, and additional pressure on public offerings.
An immigration inflow identical to 1% of a town's populace is related to will increase in average rents and housing values of about 1%. The consequences advise an economic impact this is an order of magnitude larger than that discovered in exertions markets.
In fact, immigrants help grow the financial system via filling exertions needs, purchasing items, and paying taxes. Whilst more human beings paint productivity increases. And as increasingly Americans retire in the coming years, immigrants will assist fill the exertions call for and maintain the social safety internet.
The question is incomplete. Please read below to find the missing content.
The costs that immigrants impose on governments arise mainly in terms of _________, which are primarily the responsibilities of the _________ government(s).
a) administration, state, and local
b) administration, federal
c) public schools and healthcare, state and local
d) public schools and healthcare, federal
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Allen filed his 2021 tax return on May 15th, 2022, and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2021 tax return should end:
E) None of the choices are correct.
Because Allen underreported his gross income by 30 percent, the statute of limitations (SOL) ends six years from the later of
(i) the date the tax return was filed or,
(ii) the tax return's original due date.
Why Is the Internal Revenue Service (IRS) Important?Tax collection and law enforcement are the responsibilities of the Internal Revenue Service (IRS), a branch of the American government (such as the wash sale rule). Abraham Lincoln, the country's sixteenth president, established the agency in 1862. It is governed by the U.S. Department of the Treasury and is primarily responsible for collecting employment and individual income taxes. Estate, gift, corporate, and excise taxes are all managed by the IRS.
How likely is it that the IRS will check my taxes?
The audit rate for individual tax returns in 2020 was 0.63 percent. However, if you earn a lot of money, your chances improve. For those earning $10 million or more in 2020, the rate was 9.8%. The IRS won't audit you based on a single factor, though.
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Correct question:
Allen filed his 2021 tax return on May 15th, 2022, and underreported his gross income by 30 percent. Assuming Allen's underreporting is not due to fraud, the statute of limitations for IRS assessment on Allen's 2021 tax return should end:
A)May 15th, 2023.
B)April 15th, 2023.
C)May 15th, 2024.
D)April 15th, 2024.
E)None of the choices are correct.
Creating a positive work environment that is recognized inside and outside the firm is an important copoentn of?
The answer is recruitment.
"Positive" work environments are ones that foster trust, cooperation, safety, risk-taking support, responsibility, and equity. When considering a pleasant work environment, there are certain abstract notions to consider.
Recruitment is the process of actively searching, identifying, and hiring persons for a certain position or vocation. The right person is placed at the right position to get the work done in the best possible perfection. The recruitment definition comprises the whole hiring process, from initial screening through the individual recruit's integration into the organization.
Therefore, the answer is recruitment which creates positive work environment that is recognized inside as well as outside.
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An asset which costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600. What amount of gain or loss will be recognized when the asset is sold
A loss of $1,200 will be recognized when the asset is sold.
An asset that costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600. What amount of gain or loss will be recognized when the asset is sold?
Cost of asset = $18,800
Depreciation= $6,000
Asset value after depreciation= $18,800 - $6,000
= $12,800
Sold for the price = $11,600
Loss= $12,800- $11,600 =$1200
What is depreciation in accounting?
The accounting technique of spreading out the cost of a tangible item over its useful life is known as depreciation. The amount of depreciation shows how much of an asset's worth has been utilized. Purchasing assets over a predetermined length of time enable businesses to generate income from the assets they own.
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Accrued are earned in a period that are both unrecorded and not yet received in cash.
Accrued income is the income that is earned but has not yet been received by the company.
What is Revenue?Revenue is the income earned by a company, this is the sole reason for the existence of the company and company ensures that the expenses incurred by the company are less than the income earned so that the company stays to compete in the market.
Accrued income is the income for which the company have fulfilled its performance objectives which means the company have provided goods or services but the cash / income is not yet received by the customer, and it will be received in the future.
The company records a double entry for the accrued income and receivable, when cash is received this entry is reversed and sales and cash received is recorded. The accrual recording is a key task and should be performed by expert individuals.
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If the domestic government of a small open economy reduces government spending, the real exchange rate will __________ and net exports will ___________ a. Increase, decrease b. Increase, increase c. Decrease, increase d. decrease
Increase, decrease
A small open economy's domestic government reducing back on spending will result in an increase in the real exchange rate and a drop in net exports.
Government spending
Government spending refers to funds used by the public sector for the purchase of products and the delivery of services, including those related to defense, social protection, healthcare, and education. If government spending results in the unemployed finding work, they will have more money to spend, which will increase aggregate demand even more. When the economy has excess capacity, government expenditure may result in a greater final gain in GDP than the initial exposure.
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Support Material
Business functions
Activity 1:
Study the following scenarios and answer the questions that flow:
1.1 The sales department is constantly running out of stock because stocks are not ordered on time. The admin clerk is new and files the documents in the wrong place. The purchasing department was not even aware that they should order more stock.
1.1.1 Which department created the problem?
1.1.2 What will the consequences be if the sales department constantly runs out of stock?
1.1.3 How can the problem be solved?
1.2 The creditors are not paid on time and added interest to the account of the business.
1.2.1 Which department created the problem?
1.2.2 What will be the consequences if this continues to happen?
1.3 The workers are always complaining of the third grade stock they have to sell to customers.
1.3.1 Which department created the problem?
1.3.2 How can the problem be solved?
1.4 Clients are constantly surprised on the new items they get on the shelves and some of which they have not seen before?
1.4.1 Which department created the problem?
1.4.2 How can this problem be prevented in future?
In the scenario given, the department that was said to have created the problem is the admin department because the document to show that there was low stocks was filled in the wrong place and as such, the purchasing department was not made aware.
1.1. What will the consequences be if the sales department constantly runs out of stock?The consequences are:
They will have issues with customers demanding product and unfulfilled orders.Complains and lastly they will lose customers.How can the problem be solved?There should be a computerized system on all product and their quantities should be included such that when the product is getting low on stock, the system will alert the admin and appropriate steps to new buy product will be taken
1.2. Which department created the problem?Since the creditors were not paid on time, the department that created the problem is also the admin department
What will be the consequences if this continues to happen?They we be close done.They will not have anyone who will sell products to them.1.3.Which department created the problem?The purchasing department created this problem.
How can the problem be solved?The purchasing department need to buy quality Stocks. They can hire a professional who knows the quality so that he or she can help with the purchase.
1.4.
Which department created the problem?The sales department created this problem
How can this problem be prevented in future? The sales department need to use a method that will not surprise the people such that they can be create an ad or place the new product one at a time not all new product at the same time.
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A merchant sued a company for breach of contract, alleging that the products she purchased failed to conform to contract specifications. Shortly before the trial was to begin, the merchant suffered a stroke that left
The Court will rule the Objection in the following manner : -
The right Response will be Option D.
Overruled because the merchant's claim was made beyond the parameters of the privilege according to the circumstances in which it was made.
Reasons to overrule the Argument:It's likely that the semi-pro team's owner will win. Although the parties referred to the $500 per week damages as a "penalty," it actually functions as a fair liquidated damages clause. If the sum agreed upon is a fair prediction of compensatory damages in the case of a breach and I damages are difficult to determine at the time the contract is created, the parties to the agreement may specify what damages are to be paid in the event of a breach. This situation satisfies these requirements. The owner estimated that it would cost him several thousand dollars to hire a new management in the middle of the season, which seems like a realistic estimate of the compensatory damages.
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Correct Question - A merchant sued a company for breach of contract, alleging that the products she purchased failed to conform to contract specifications. Shortly before the trial was to begin, the merchant suffered a stroke that left her paralyzed and virtually unable to communicate. Her guardian was properly substituted as the plaintiff in the lawsuit. At trial, following presentation of the plaintiff's case, the company calls as a witness a priest to question him about a conversation he had with the merchant at a church fundraiser. In this conversation, the merchant told the priest in confidence that the products she received were actually quite functional, but that she had become aware of a lower price being offered by another vendor, and thus wanted to get out of her contract with the company. The plaintiff's attorney immediately objects on the basis of clergy-penitent privilege.
How should the court rule on the objection?
A Sustained, because the merchant's statement was made to the priest in confidence.
B Sustained, because this is not a criminal case.
C Overruled, because the privilege can be invoked only by the person who made the confidential statement.
D Overruled, because the circumstances under which the merchant made the statement take it outside the scope of the privilege.
The final step in all three methods (direct, sequential, and reciprocal services) of allocating $600,000 in support department costs to production departments is to:________
In support department costs to production departments is to apply production department costs to products. The term "Department Expenses" refers to costs associated with the Department carrying out and administering its powers, duties, and functions in relation to Mortgage Loans.
This includes, but is not limited to, salaries, supplies, utilities, labor, and furnishings. Cost allocation from support departments to producing department is necessary to apply the support expenses, which are portion of the overall product costs, to the products. Calculate the producing departments' predetermined overhead rates. Production something is the act of creating something out of components or raw resources.
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Several managers were having a budget meeting. At first, they were all focused on the issues, though there was mild disagreement. Tensions increased as the participants wanted more of the fixed pool of money than was available. The discussion then moved away from the budget to personal insults and sniping. The first part of this meeting illustrates ________ conflict, which later turned into ________ conflict. Group of answer choices relationship; task task; constructive constructive; task task; relationship
The correct option is task; relationship. The first part of this meeting illustrates the task conflict that later turned into relationship conflict.
How to manage a conflict?It is necessary that organizational departments understand the normality of conflicts in the organizational environment, where there are people with different values and personalities. To reduce tensions, it is necessary to strengthen communication, increase employee motivation and create a culture favorable to development.
Therefore, in the organizational environment there are several types of conflicts with different scopes, which can be reduced through the creation of strong personal relationships and clear and objective communication.
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What buffer system have you formed in the container? Give the formulas of the conjugate acid-base pair that comprise the buffer system
In chemistry, a buffer system is a type of solution that is able to resist changes in its pH when small amounts of an acidic or basic substance is added to it
What is a buffer system?In practice, a buffer solution contains either a weak acid and its conjugate base or a weak base and its conjugate acid.
An important example of a buffer system is blood, which acts as a buffer inside the human body to maintain a pH between 7.35 and 7.45.
There are various other examples of buffer solutions, including The phosphate buffer system (which also occurs in the cells of the body) Buffer of acetic acid (weak acid) with sodium acetate.
Note that the question is incomplete, hence a general overview was stated to guide you.
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New brands with small market shares tend to spend more on advertising and sales promotions than those with large market shares because _______.
New brands with a small market share tend to spend proportionately more for advertising than those with a large market share because of the reasons for higher advertising cost for smaller business is:
First, after a certain level of spending, diminishing returns make a place in the returns..
-Secondly sales or market share will decrease without mattering how much is spent on advertising and sales promotion. This is known as the advertising response function.
-Thirdly, new brands always tend to require higher spending to maintain a fixed minimum level of exposure to affect the purchase habits of the customers measurably.
New brands always require higher spending to reach that minimum level of exposure needed to affect purchase habits of the consumers.
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Any factor that leads businesses to collectively expect lower rates of return on their investments ______ investment demand.
Any factor that leads businesses to collectively expect lower rates of return on their investments reduces investment demand.
The aggregate call includes consumption and funding demand. aggregate call for is the call for of total items and services in the economy as it is not possible to be counted all the bodily quantities the overall expenditure on all goods and offerings are taken into consideration.
Investment call for refers to the demand with the aid of corporations for physical capital items and offerings used to hold or extend its operations. Think of it because the workplace and factory space, machinery, computer systems, desks, and so forth might be used to operate an enterprise.
Funding is a part of combination demand; modifications in funding shift the aggregate call for curve by the amount of the preliminary exchange times the multiplier.
The question is incomplete. Please read below to find the missing content.
Any factor that leads businesses to collectively expect lower rates of return on their investments _____.
Multiple choice question.
A) reduces output
B) increases output
C) increases investment demand
D) reduces investment demand
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The integrated marketing communications process refers to which of the six ps in the marketing mix?
The answer is promotion.
The four main components of a marketing strategy are product, pricing, location, and promotion, often referred to as the marketing mix or the four P's of marketing. The following four elements of the marketing mix can help a company increase the likelihood that a product will be seen and purchased by customers:
Product; The item or service being offered must meet the needs or wants of the customer.
Price: An item should be offered for sale at a price that is appropriate for consumer expectations, neither too high or too cheap.
Promotion: The public needs to be informed about the product and the features it has to understand how it fills to their needs or the desires.
Place : The location where the product can be purchased is crucial for optimizing the sales.
Therefore, the answer is promotion.
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a(n) is a situation in which at least one party involved in a negotiation beleives that reachin an agreement is not
A impasse is simply a situation in which at least one party believes that reaching an agreement is not imminent.
What is Negotiation?Negotiation refers to a process in which two or more parties participate with the purpose of reaching an agreement. Although the parties know that they do not want the exact same thing, they both express their willingness to compromise.
What is Impasse in negotiation?A deadlock in negotiations between management and labor occurs when the two parties cannot reach an agreement to settle their differences. This is called an Impasse.
When a deadlock happens, both parties withdraw their delegates to reassess their position. As this happens, management generally goes ahead to implement the changes it proposed during the negotiation as it waits for another chance to negotiate with labor.
An impasse occurs when the parties end a negotiation without coming to an agreement, either because one or both parties prefer no agreement, or because they could not reach an agreement despite benefitting from doing so.
Hence , from the given scenario of the question the correct answer is D.
Your question is incomplete, but most probably your full question was:
A(n) ____ is simply a situation in which at least one party believes that reaching an agreement is not imminent.
A. arbitration
B. mediation
C. strike
D. impasse
E. lock out
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Many times brokers are compensated by being paid a percentage of the purchase price at closing. this is known as a/an:________
Many times brokers are compensated by being paid a percentage of the purchase price at closing. this is known as a/an commission
A fee is paid to an agent or employee to execute a transaction or provide a service. Specifically, the percentage of the amount received from the total paid to the agent responsible for the transaction. He receives a commission for every car he sells.
Employees work for a boots trading company and receive basic income in addition to receiving 6% of total income from sales. If an employee sold a total of $ 1,000 last month, he earned a commission of $ 60. December 13, 2021
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What happens when an appraiser determines a property’s value to be less than the pre-approved loan amount?
When an appraiser determines a property’s value to be less than the pre-approved loan amount then most buyers will have an appraisal contingency, so they can go back and get a serious money back.
An appraisal is an unbiased professional opinion on the value of a home and is used whenever a mortgage involves the purchase, refinance, or sale of that property.
A qualified appraiser generates a report based on direct inspection, using recent sales of similar properties, current market trends, and aspects of the home (e.g.: amenities, floor plans, square footage, etc.) square feet) to determine the assessed value of the property. Borrowers typically pay due diligence fees, which can run up to several hundred dollars.
When the appraised value is lower than expected, the transaction may be delayed or even canceled. Almost all mortgage applications require the lender to appraise the home as part of the underwriting process. Ideally, the lender wants to see the appraised value equal to or greater than the price agreed upon by the buyer and seller, but sometimes the appraised price is lower. In these situations, the buyer and seller must come to a mutually beneficial solution to ensure the transaction goes through.
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What do we call the person or group who provides funding for the development of the new system?
We call the person or group who provides funding for the development of the new system as a client.
In the business, commerce, as well as economics, a client is known as a person who receives advice or services from a professional.
For example services by a lawyer or a health care provider. Clients are different from customers.
In that customers are thought of as "one-time buyers" while clients can be considered as "long-term recipients.
For example: Lawyers and attorneys also have different clients. An important aspect of a lawyer's job is developing and managing relationships with clients.
If the lawyer works for a government agency or corporation, the client's employees can work for him. Lawyers give legal advice to their clients as part of the legal process.
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Recent surveys have demonstrated that americans are willing to forego technological innovation and the availability of new technology in favor of universal health insurance coverage.
a. True
b. False
Recent surveys have demonstrated that Americans are willing to forego technological innovation and the availability of new technology in favor of universal health insurance coverage
This statement is false.
Universal health coverage means that all the people should have access to the health services which are needed by them. It also includes the full range of essential health services, including from health promotion to treatment, prevention, palliative care and rehabilitation.
Universal health coverage should always be based on strong, and primary health care. Good health systems generally have roots in the communities which are served by them.
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QUESTION 5 (C-SOLN-01) Fill in the blanks. When selecting a solution, the ________ , cost and timeliness of the improvement must be balanced against the ________ ________. Difficulty , Competitor's Capabilities Impact , Business Needs Precision , Process Capability Reliability , Lifecycle Cost Accuracy , Fielded Cost
Impact; Business Needs
When selecting a solution, the impact, cost, and timeliness of the improvement must be balanced against the business needs.
What is balanced scorecard?A strategic management performance indicator known as the balanced scorecard (BSC) is used to identify and enhance various internal business activities and the results they have on the outside world. Balanced scorecards are a widespread tool used by businesses in the United States, the United Kingdom, Japan, and Europe to measure and provide feedback to organizations. In order to provide quantitative results, data collecting is essential because managers and executives must acquire and analyze the data. The decision-making of company personnel for the future of their organizations can be improved with the help of this knowledge.
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The cooperative organization of work into specialized tasks and roles is the?
The cooperative organization of work into specialized tasks and roles is the Division of labor.
Division of labor, division of work process into multiple tasks. Each task is performed by a different person or group of people. This is most commonly applied to mass production systems and is one of the basic organizing principles of assembly lines.
The division of labor increases production and efficiency by dividing the individual tasks of creating objects among different people. This simplifies the work that each person has to do.
The division of labor increases productivity, which also means that it is cheaper to produce goods. This in turn leads to cheaper products. If you divide it into five people who specialize in work, it will be faster and more efficient. In return, the number of product .
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The definition of states: The process of solving the everyday problems that occur. It is less formal than decision making and usually calls for quicker action.
Answer:
What is the question?
Explanation:
Determine which of the following statements is correct regarding the relationship of ending inventory and beginning inventory.
The ending inventory of the previous period is the beginning inventory of the current period.
Beginning inventory is the amount of a product. A commercial enterprise has in stock at the start of an accounting length which includes a month or 12 months. due to the fact each accounting length connects to the subsequent, the beginning inventory of one length will be similar to the ending inventory of the previous.
Beginning inventory, or opening inventory, is your inventory cost at the beginning of an accounting duration. For that reason, finishing inventory, or last inventory is the cost of the stock at the top of an accounting duration.
Ending inventory is the value of goods nevertheless available for sale and held via a business enterprise at the end of an accounting length. The dollar amount of ending stock may be calculated by the usage of multiple valuation techniques.
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Access Figure 1 and Figure 2 here. Which countries are in the top 10 of both human development and productivity indexes
Countries are in the top 10 of both human development and productivity indexes are "Norway had the highest level of the Human Development Index (HDI) worldwide in 2019, followed by Ireland, Germany 6th, Netherland 9th and Denmark on 10th position"
What is Human Development Index?The Human Development Index is a statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development.
What is Productivity Index?The productivity index is a measure of the well potential or ability to produce and is a commonly measured well property. The symbol J is commonly used to express the productivity index.
Hence, Norway, Ireland, German, Netherland and Denmark are correct answer.
Your question is incomplete, but most probably your full question was:
Which countries are in the top 10 of both human development and productivity indexes? Check all that apply.
Norway
Germany
Denmark
United States
Belgium
Netherlands
Ireland
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For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because
People though that electricity producers were an example of a natural monopoly because the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region.
What is a natural monopoly?A monopoly is when there is only one firm operating in an industry. This is due to the high barriers to entry of other firms. A monopoly earns economic profit in the long run.
A natural monopoly is a type of monopoly characterised by high infrastructural costs when compared to the size of the industry. This high infrastructural costs creates a barrier to entry for other firms and gives the largest supplier an advantage when compared with other suppliers in the industry.
Features of natural monopolies include:
A high fixed cost and low marginal cost of productionNatural monopolies occur through the free market and not by government regulations.Here are the options:
A. the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region.
B. the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region.
C. electricity is a special non-excludable good that could never be sold in a competitive market.
D. the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region.
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If the government wants to expand aggregate demand, it can ________ government purchases or ________ taxes.
If the government wants to expand aggregate demand, it can "rebate" government purchases or "cut" taxes.
What is aggregate demand?The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.
Some characteristics of aggregate demand are-
The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.The correlation between output and all prices can be seen on an aggregate demand curve. In the end, the aggregate demand curve slopes downward because it predicts a fall in real gross domestic product (GDP) as prices rise.Consumer spending, investment spending, government spending, and the difference between exports and imports are all added together to determine aggregate demand. When one of these variables changes but the overall supply stays unchanged, aggregate demand will alter.To know more about the aggregate demand and aggregate supply model, here
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Case a. kapono farms exchanged an old tractor for a newer model. the old tractor had a book value of $13,000 (original cost of $30,000 less accumulated depreciation of $17,000) and a fair value of $9,200. kapono paid $22,000 cash to complete the exchange. the exchange has commercial substance. case b. kapono farms exchanged 100 acres of farmland for similar land. the farmland given had a book value of $510,000 and a fair value of $720,000. kapono paid $52,000 cash to complete the exchange. the exchange has commercial substance. rev: 06_22_2019_qc_cs-171508, 01_16_2020_qc_cs-195439 1. what is the amount of gain or loss that kapono would recognize on the exchange of the land? 2. assume the fair value of the farmland given is $408,000 instead of $720,000. what is the amount of gain or loss that kapono would recognize on the exchange? what is the initial value of the new land? 3. assume the same facts as requirement 1 and that the exchange lacked commercial substance. what is the amount of gain or loss that kapono would recognize on the exchange? what is the initial value of the new land?
The amount of gain or loss that Kapono would recognize on the exchange of the tractor is: $3,800.
Gain or lossCase A.
1. Amount of gain or loss
Book value of old tractor $13,000
Fair value of old tractor ($9,200)
Loss on exchange to recognized $3,800
Initial value
Fair value of old tractor $9,200
Cash paid to complete the exchange $22,000
Initial value of new tractor $31,200
2. Amount of gain or loss
Book value of old tractor $13,000
Fair value of old tractor $16,000
Gain on exchange to recognized $3,000
Initial value
Fair value of old tractor $16,000
Cash paid to complete the exchange $22,000
Initial value of new tractor $38,000
Case B
1. Amount of gain or loss
Book value of old farmland $510,000
Fair value of old farmland ($720,000)
Gain on exchange to recognized $210,000
Initial value
Fair value of old farmland $720,000
Cash paid to complete the exchange $52,000
Initial value of new land $772,000
2. Amount of gain or loss
Book value of old farmland $510,000
Fair value of old farmland $408,000
Loss on exchange to be recognized $102,000
Initial value
Fair value of old farmland $408,000
Cash paid to complete the exchange $52,000
Initial value of new land $460,000
3. Amount of gain or loss
Gain will not be recognized because the exchange lacked commercial substance.
Initial value
Book value of old farmland $510,000
Cash paid to complete the exchange $52,000
Initial value of new land $562,000
Therefore the amount of gain or loss that Kapono would recognize on the exchange of the tractor is: $3,800.
The complete question is:
Case A.
Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $13,000 (original cost of $30,000 less accumulated depreciation of $17,000) and a fair value of $9,200. Kapono paid $22,000 cash to complete the exchange. The exchange has commercial substance.
1. What is the amount of gain or loss that Kapono would recognize on the exchange of the tractor?
2. Assume the fair value of the old tractor is $16,000 instead of $9,200. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
Case B.
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $510,000 and a fair value of $720,000. Kapono paid $52,000 cash to complete the exchange. The exchange has commercial substance.
1. What is the amount of gain or loss that Kapono would recognize on the exchange of the land?
2. Assume the fair value of the farmland given is $408,000 instead of $720,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
3. Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
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