Answer:
a. The statement is false because a policy motivated by good intentions may have unintended negative consequences.
d. The statement is false because sound economic reasoning is required to anticipate unintended consequences of policies that are motivated by good intentions.
Explanation:
It is important to have good intentions when creating policies but a sound policy requires more than just good intentions.
To create a sound policy, sound economic principles and reasoning must be employed. This is important to predict and tackle unintended negative consequences that may arise, irrespective of how good the intentions were in creating the policies.
Merely having good intentions does not guarantee sound policy, particularly in economics. Sound economic reasoning is needed to anticipate possible consequences. Thus, the claim that good intentions lead to sound policy in economics is not entirely accurate.
The statement 'The economic way of thinking stresses that good intentions lead to sound policy' is not entirely valid. Merely having good intentions is not enough to ensure a sound policy, especially in an economic context. Economic reasoning is needed to ascertain the possible implications, both positive and negative, of a policy. As such, the elements a. and d. of the given options are correct:
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Answer:
The correct answer is 3.
Explanation:
According to the scenario, the computation of the given data are as follows:
Variable cost = Cost of goods sold (variable) + Supplies
= $50,000 + $10,000 = $60,000
Fixed cost = Cost of goods sold (fixed) + Administrative salaries + Depreciation
= $8,000 + $42,000 +$10,000 = $60,000
So, we can calculate the operating leverage by using following formula:
Operating leverage = Contribution margin ÷ Net operating income
Where, Contribution Margin = Sales revenue - Variable cost
= $150,000 - $60,000 = $90,000
And Net operating income = Contribution Margin - Fixed Cost
= $90,000 - $60,000 = $30,000
By putting the value, we get
Operating leverage = $90,000 ÷ $30,000
= 3
Answer:
Patrick Inc.
Sales Budget
For the First Quarter
January February March Total Quarter 1
Sale Units 41,000 38,000 50,000 129,000
Average Selling Price per Unit $35.00 $35.00 $35.00
Sales Value $1,435,000 $1,330,000 $1,750,000 $4,515,000
Explanation:
The Sales unit for each month is multiplied by its average sales price for e.g for January (41,000 units × by $35 = $ 1,435,000)
The Quarter totals (Units and sales Values in $) are added up to give the answer under the heading of Total Quarter 1.
The working is also attached with the answer.
For Patrick Inc., the sales budget for the first quarter is calculated by multiplying the expected units sold each month by the average price per unit. The total sales for the first quarter amount to $4,515,000.
Preparing a sales budget for Patrick Inc. involves multiplying the units sold each month by the price per unit. The average price for a 5-gallon drum of industrial solvent is $35.
For January: 41,000 units * $35/unit = $1,435,000.
For February: 38,000 units * $35/unit = $1,330,000.
For March: 50,000 units * $35/unit = $1,750,000.
Adding these amounts will give the total revenue for the 1st Quarter: $1,435,000 (January) + $1,330,000 (February) + $1,750,000 (March) = $4,515,000.
So, the sales budget for the first quarter would be as follows:
January: $1,435,000
February: $1,330,000
March: $1,750,000
Total first Quarter: $4,515,000.
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b. Quality problems occur.
c. Cycle time increases.
d. The direction of the workflow changes
How does the cost of learning change as the division of labor increases (having more workers, doing more narrowly defined tasks)?
a. It tends to decrease at first but eventually starts growing again.
b. It tends to increase at first but eventually starts decreasing.
c. It tends to decrease with the growing degree of division of labor.
d. It is unchanged by the division of labor.
Answer: b. Quality problem occurs
• c. It tends to decrease with the growing degree of division of labor
Explanation:
From the scenario on the question, the most likely thing to result is for quality problems to occur. Quality simply has to do with the extent to which a particular product satisfies already specified requirements.
Based on the scenarios such as the worker at the bottleneck station being replaced by another worker who works more slowly than the original worker, the quality will be affected.
Division of labor is when task are being delegated in a workplace so that efficiency can be improved. When there is a rise in the division of labor, learning is affected as there'll be a decrease as division of labor increases. This is because everyone has his or her role to play rather than learning more about other departments or roles, the worker will be typically focused on one role.
Answer:
The correct answer is letter "A": total value from trade in a market.
Explanation:
Canadian economist Alex Tabarrok (born in 1966) explains social surplus as the sum of consumer surplus, producer surplus, and bystanders surplus. Tabarrok takes an integrative approach in consumer surplus by stating social surplus encompasses every economic trade in the market rather than only consumers and producers surplus.
Besides, Tabarrok believes when there are major external costs or benefits, the market will not reach its social surplus.
Social surplus is the combination of consumer surplus and producer surplus, taking into account the price that consumers are willing to pay based on their preferences, and the price that producers are willing to sell their product at, based on their costs.
The question asked here is: Social surplus is the ____________. The correct answer to this question is that social surplus is the sum of consumer surplus and producer surplus. This concept falls under economic principles. Consumer surplus is the difference between the price that consumers are willing to pay based on their preferences, and the actual market equilibrium price. On the other hand, producer surplus is the gap between the price at which producers are willing to sell a product, based on their costs, and the market equilibrium price. Combining both these surpluses gives the social surplus.
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Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2
Explanation:
The computation is shown below:
a. The current account balance equal to $44,400
b. The current account balance equal to
Since the company prepaid rent for two years is $44,400 but we have to compute four four months i.e from September 1 to December 31
We assume the books are closed on December 31
So, the current account balance is
= $44,400 - $7,400
= $37,000
The $7,400 is come from
= $44,400 × 4 months ÷ 24 months
= $7,400
c. And, the adjusting entry is
Rent expense A/c Dr $7,400
To Prepaid rent A/c $7,400
(Being rent expense is recorded)
B. for only the long-run.
C. for both the short-run and the long-run.
D. for only the short-run.
Answer:
The correct option is D
Explanation:
Empirical evidence is the evidence which is defined as the information received through the senses, specifically by documentation as well as monitoring of patterns and behavior via experimentation.
APC stands for Average Propensity to Consume is the one which measures the percentage of income spent instead of savings. And it is evaluated by dividing the average household consumption by average household income.
So, if the empirical evidence states that the APC is falling or decreasing then it is only for short- run or short- period.
Answer:
D. for only the short-run.