If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts output will grow and that the new steady state will approach: A. a higher output level than before. B. the same output level as before. C. a lower output level than before. D. the Golden Rule output level.

Answers

Answer 1
Answer:

Answer:

B. The same output level as before.

Explanation:

If there is a war broke out in a country and because of the war a large potion of the country's capital stock is destroyed but the thing that is unchanged is saving rate.

So according to the solow model the output will grow and the steady state that is new will be the same level of output as before.


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In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice: "Toyota shares were over $90 as recently as Jan. 19, 2010. They closed Tuesday (February 02, 2010) at $78.18, which strikes me as a modest decline under the circumstances. If I owned shares, I’d seize the chance to get out.Required:
Would a believer in the efficient markets theory be likely to follow Stewart's advice?

Answers

Answer:

Of course not. Someone that believes in the efficient market theory (or hypothesis as it is generally called), believes that the market is always right. As an individual investor, you might be right or wrong, but the market as a whole has access to perfect information and the price of each stock already has been determined factoring all possible events and outcomes. I.e. the market's price is always the correct price and there is no way in which an individual investor can make a profit by buying or selling undervalued or overvalued stocks.

Personally, I disagree with this hypothesis, and the reason why most people call is a hypothesis is that they disagree with it. If the market is always right, then this theory is no good.

Given the following data, calculate the Total Variable Cost variance. Planning Budget Actual Results Revenue $73,000 $75,000 Variable costs $23,000 $20,000 Contribution margin $50,000 $55,000 Fixed costs $15,000 $10,000 Profit before taxes $35,000 $45,000 a. $3,000 Favorable b. $3,000 Unfavorable c. $5,000 Favorable d. $5,000 Unfavorable e. $2,000 Unfavorable f. $2,000 Favorable

Answers

Answer:

a. $3,000 Favorable

Explanation:

Variable cost variance is the difference between the budgeted variable cost and actual variable cost for a period.

Use following formula to claculate the variable cost variance

Variable cost variance = Budgeted Variable cost - Actual variable cost

Placing values in the formula

Variable cost variance = Budgeted Variable cost - Actual variable cost

Variable cost variance = $23,000 - $20,000

Variable cost variance = $3,000

As the actual cost is less than the budgeted cost, so the $3,000 is saved in respect of variable cost.

Cameron Corp. purchased a mine on January​ 1, 2018, for​$530,000, which is estimated to contain​ 35,000 tons of iron ore. There is no residual value. The business extracted and sold​ 7,500 tons of ore in 2018 and​ 10,800 tons of ore in 2019. What is the depletion expense for​ 2019? (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​dollar.) A.

​$277,062

B.

​$252,838

C.

​$113,550

D.

​$163,512

Answers

Answer:

D.$163,512

Explanation:

Depletion expense is a charge against profits for the use of natural resources.

Depletion rate = cost to purchase resource/ number of units = $530,000/ 35,000 tons = $15.14 per ton

Depletion expense for 2019 = Depletion rate * number of units extracted and sold in 2019 = $15.14 * 10,800 =  $163,512

1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.

Answers

Answer: $20

Explanation:

The sales commission is 6% and the selling price per unit is $340.

The Sales commission per unit saved therefore is;

= 340 * 6%

= $20.40

= $20

1. How business driven MIS, value driven business, E-business, and information security relate to each other. 2. Please provide examples of companies when possible and ensure that you justify your response.

Answers

Answer:

2. Google is an example for this type of business.

Explanation:

These terms (MIS, Value driven business, E-Business, and information security) are interlinked in today technological era of businesses.

As the example is given above about google, it is being explained right here.

As we all know google is a technology based organization which is working on the concept of Management information system. Its recent case study shows that how this organization is a value driven business.

Google actually, takes really care about its employees, it has all necessary facilities to offer for its employees such as on-site doctors, cafeteria led by famous chefs, so that means they are value driven business too.

it is also providing E-business facilities to other businesses. And its information security is one of the top on list.

McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows:Debbie Tara Annual Salary $ 150,000 $ 81,000 Billable Hours 2,000 1,800 The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara’s services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 20 percent markup.Required:(1) Compute the predetermined overhead rate.(2) Compute the hourly billing rate for Debbie and Tara. (Do not round your intermediate calculations.)

Answers

1. Predetermined Overhead Rate ≈ $160.27

2. Hourly Billing Rate for Tara ≈ $245.73

(1) To compute the predetermined overhead rate, we need to calculate the total cost of services (salary plus overhead) for both appraisers and then divide it by the total billable hours.

Total Overhead Costs = $378,210

Total Salary Costs = Salary of Debbie + Salary of Tara = $150,000 + $81,000

= $231,000

Total Billable Hours = Billable hours of Debbie + Billable hours of Tara

= 2,000 + 1,800

= 3,800

Predetermined Overhead Rate = (Total Overhead Costs + Total Salary Costs) / Total Billable Hours

Predetermined Overhead Rate = ($378,210 + $231,000) / 3,800

Predetermined Overhead Rate = $609,210 / 3,800

Predetermined Overhead Rate ≈ $160.27 (rounded to 2 decimal places)

(2) To compute the hourly billing rate for Debbie and Tara, we'll use the formula:

Hourly Billing Rate = (Total Cost of Services + 20% Markup) / Total Billable Hours

For Debbie:

Total Cost of Services for Debbie = Salary of Debbie + (Predetermined Overhead Rate × Billable hours of Debbie)

Total Cost of Services for Debbie = $150,000 + ($160.27 × 2,000)

Total Cost of Services for Debbie = $470,540.00

Hourly Billing Rate for Debbie = ($470,540.00 + 0.20 × $470,540.00) / 2,000

Hourly Billing Rate for Debbie ≈ $282.32 (rounded to 2 decimal places)

For Tara:

Total Cost of Services for Tara = Salary of Tara + (Predetermined Overhead Rate × Billable hours of Tara)

Total Cost of Services for Tara = $81,000 + ($160.27 × 1,800)

Total Cost of Services for Tara = $369,486.00

Hourly Billing Rate for Tara = ($369,486.00 + 0.20 × $369,486.00) / 1,800

Hourly Billing Rate for Tara ≈ $245.73 (rounded to 2 decimal places)

Learn more about overhead rate here:

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Final answer:

The predetermined overhead rate is found to be 163.77%, and the hourly billing rates for Debbie and Tara (including a 20% markup) are $237.40 and $142.44, respectively.

Explanation:

To calculate the predetermined overhead rate, we need to divide the total overhead costs by the total salary costs of both appraisers. In this case:

Total Overhead Costs = $378,210

Total Salary Costs = Debbie's Salary ($150,000) + Tara's Salary ($81,000) = $231,000

Predetermined Overhead Rate = Total Overhead Costs / Total Salary Costs = $378,210 / $231,000 = 1.6377 or 163.77%

To calculate the hourly billing rate for each appraiser, you add their salary cost per hour, the overhead cost per hour, and then mark up the total cost by 20%. For Debbie:

Debbie's Salary per Hour = $150,000 / 2,000 hours = $75

Debbie's Overhead per Hour = 1.6377 × $75 = $122.83

Total Cost per Hour for Debbie = $75 + $122.83 = $197.83

Hourly Billing Rate for Debbie (with 20% markup) = Total Cost per Hour × 1.20 = $197.83 × 1.20 = $237.40

Similarly, for Tara:

Tara's Salary per Hour = $81,000 / 1,800 hours = $45

Tara's Overhead per Hour = 1.6377 × $45 = $73.70

Total Cost per Hour for Tara = $45 + $73.70 = $118.70

Hourly Billing Rate for Tara (with 20% markup) = Total Cost per Hour × 1.20 = $118.70 × 1.20 = $142.44