Explain who bears the (long run)
burdens of an excise tax imposed on firms when demand is
elastic.

Answers

Answer 1

In the long run, when demand is elastic, the burden of an excise tax imposed on firms is mainly borne by the producers and suppliers in the form of reduced profits, while consumers may experience a relatively smaller increase in prices.

When demand is elastic, it means that consumers are highly responsive to changes in price, and a small increase in price can lead to a significant decrease in quantity demanded. In this scenario, if an excise tax is imposed on firms, they will have to absorb a portion of the tax burden

Consumers, on the other hand, may experience a relatively smaller increase in prices compared to the tax amount. This is because the tax imposed on firms could lead to a smaller price increase due to the price elasticity of demand. As consumers are sensitive to price changes and may respond by reducing their quantity demanded, firms may choose to pass on only a portion of the tax burden to consumers in the form of increased prices.

In conclusion, when demand is elastic, the burden of an excise tax imposed on firms is primarily borne by the producers and suppliers in the long run, as they experience reduced profits. Consumers may face a relatively smaller increase in prices due to firms absorbing a portion of the tax burden to remain competitive.

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Related Questions

Explain how the Bureau of Labor Statistics determines who is unemployed and how the unemployment rate is calculated. How might the growth of the number of discouraged workers be reflected in the unemployment rate? How might the unemployment rate be impacted by the encouraged worker effect? Explain why the unemployment rate might increase even though 200,000 additional people were hired during the reporting month? Be sure to define your terms as appropriate.

Answers

The Bureau of Labor Statistics who is unemployed and how the unemployment rate is calculated by Current Population Survey. The growth of the number of discouraged workers be reflected in the unemployment rate as unemployment rate decreases. The unemployment rate will increase as the encourage workers are increased. The unemployment might increase because labor force might increase.

Unemployment refers to a situation when people who are available and willing to work are unable to find jobs. The Bureau of Labor Statistics (BLS) is responsible for calculating and reporting the unemployment rate in the United States. The BLS determines the unemployment rate using the Current Population Survey (CPS).

The reason how the Bureau of Labor Statistics determines who is unemployed and how the unemployment rate is calculated:

The BLS determines who is unemployed by surveying a sample of households in the United States. The survey is conducted using the Current Population Survey (CPS), which is a monthly survey of approximately 60,000 households.

The BLS considers a person unemployed if they meet the following criteria:

They did not work in the past week.They are available for work and actively seeking employment.They have not found a job in the past four weeks.The unemployment rate is calculated by dividing the number of unemployed people by the total labor force (employed and unemployed). This calculation results in a percentage that represents the unemployment rate in the United States.

Growth of the number of discouraged workers might be reflected in the unemployment rate in that the unemployment rate might decrease. This is because discouraged workers are no longer actively seeking employment, and therefore, they are no longer considered unemployed. This might artificially lower the unemployment rate in the short term.

The unemployment rate might be impacted by the encouraged worker effect. The encouraged worker effect refers to the situation where people who were previously discouraged from seeking employment due to poor economic conditions begin to look for work again.

This would increase the number of people in the labor force, which might cause the unemployment rate to increase. This is because people who were previously not considered part of the labor force are now being counted as unemployed. This might artificially increase the unemployment rate in the short term.

The unemployment rate might increase even though 200,000 additional people were hired during the reporting month due to the following reasons:

If the labor force grows faster than the number of jobs available, the unemployment rate might increase even if more people are getting jobs during the reporting month.If people who were not previously part of the labor force begin to look for work, this might cause the unemployment rate to increase even if more people are getting jobs during the reporting month.If people who were previously discouraged from seeking employment begin to look for work, this might cause the unemployment rate to increase even if more people are getting jobs during the reporting month.

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professor pybus believes there’s a conflict of interest operating when vallez accepts money to write reviews for his website crazy mike’s apps. what, exactly, is the conflict?

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The conflict of interest in this scenario is that Vallez is accepting money to write reviews for Crazy Mike's Apps, which compromises his objectivity and raises questions about the credibility and impartiality of his reviews.

A conflict of interest arises when an individual's personal interests or relationships interfere with their ability to make unbiased decisions or judgments. In this case, Professor Pybus believes that Vallez's acceptance of money from Crazy Mike's Apps to write reviews creates a conflict of interest.

As a reviewer, Vallez is expected to provide fair and impartial assessments of the apps he reviews. However, by accepting money from the company, his objectivity becomes compromised. There is a potential bias introduced into his reviews, as he may feel obligated to write positive reviews in order to maintain his financial relationship with Crazy Mike's Apps.

This conflict of interest undermines the credibility and integrity of Vallez's reviews. The readers of his website may question the authenticity and reliability of his recommendations, as they suspect that his opinions are influenced by financial incentives rather than genuine evaluations.

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An employee is very dissatisfied with her job situation, but she does not perceive any other employment opportunities, so she stays and spends most of the workday dreaming about non work matters. What is this employee experiencing

Answers

The employee is experiencing job dissatisfaction and engaging in work daydreaming as a form of psychological escape or disengagement.

The employee's dissatisfaction with her job situation indicates that she is unhappy or unsatisfied with her current work environment, tasks, or conditions. However, she does not perceive any other employment opportunities, which can contribute to a feeling of being trapped or stuck in her current job.

As a result, the employee engages in work daydreaming, which involves mentally drifting away from work-related matters and focusing on non-work thoughts or fantasies. Workdaydreaming is a form of psychological disengagement, where the individual mentally detaches from their work responsibilities and seeks emotional or mental relief by indulging in unrelated thoughts or daydreams.

This behavior can be a coping mechanism for dealing with job dissatisfaction and the perceived lack of alternative employment options. It may serve as a temporary escape or distraction from the unpleasant aspects of the job, providing a sense of psychological relief or respite. However, workday dreaming can also be detrimental to productivity and job performance, as it diverts attention and focus away from work-related tasks.

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the ethics & compliance initiative found more than half of global workers reported pressure to compromise their standards.T/F.

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The statement that ethics & compliance initiative found more than half of global workers reported pressure to compromise their standards is true (T).

Explanation:Ethics and compliance are related concepts. Ethics, on the one hand, concerns the study of moral principles and values that govern the actions and decisions of individuals and groups, while compliance, on the other hand, refers to the adherence to applicable laws, regulations, and standards. The goal of ethics and compliance is to promote organizational integrity, accountability, and responsibility.In this context, the Ethics & Compliance Initiative (ECI) is a non-profit organization that helps organizations promote and strengthen ethics and compliance programs. According to the ECI's Global Business Ethics Survey (GBES), more than half of global workers reported pressure to compromise their standards. Specifically, the survey found that 51% of workers felt pressure to compromise their organization's ethical standards, while 60% reported observing misconduct in their workplace. These results suggest that there is a need for organizations to invest more in their ethics and compliance programs to promote a culture of integrity and responsibility.

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All of the potential causes of change can be broken down into two simple categories: inside forces for change—those forces that are internal to the organization; and outside forces for change—those forces that are from the external environment.


a. True

b. False

Answers

The statement is true. When considering the potential causes of change in an organization, they can generally be categorized into two main groups: inside forces for change and outside forces for change.

Inside forces for change refer to factors that originate from within the organization itself, such as changes in leadership, organizational culture, employee attitudes, or technological advancements.

These forces are typically under the control or influence of the organization. On the other hand, outside forces for change are external factors that impact the organization, including changes in the market, industry trends, economic conditions, legal and regulatory requirements, or competition.

These forces are often beyond the organization's direct control but can still exert a significant influence on its operations and necessitate organizational change. Recognizing and understanding both inside and outside forces for change is essential for effective change management and strategic decision-making within an organization.

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You are part of a corporate management team that is discussing Bob Heller's promotion to the head of new division. Bob has been a loyal employee, working his way up through the corporate ranks. The team feels strongly about this candidate, but it realizes that he does have potential weaknesses. Because the team wants Bob to succeed, it asks you to investigate firms like the Center for Creative Leadership in Greensboro, NC, and Personnel Decisions International in Minneapolis, which offer training programs for up-and-coming managers. Evaluate the services offered by these — or other — management-skills services to determine which one would best serve Bob's needs. Offer recommendations.
this is assisnment based question that worth has 20% please brief it more than 500 words

Answers

Services offered by the Center for Creative Leadership in Greensboro, NCCCL's programs are tailored to the unique requirements of up-and-coming leaders, mid-career executives, and senior executives. CCL provides action-oriented and experiential training, developing leaders who can effectively lead their organizations through change and uncertainty.

CCL's custom leadership development programs, open-enrollment programs, coaching, assessment, and analytics services are examples of their services. CCL has also made considerable efforts in research to find out the most effective leadership practices.

Personnel Decisions International (PDI) in Minneapolis, MNPDI offers a range of services tailored to help organizations identify and grow talent, such as leadership assessment and development, executive coaching, and organizational development consulting. PDI's services are available worldwide, and its portfolio includes talent assessment and selection, leadership development, organizational change, and learning and development.

PDI's custom solutions help clients to identify, measure, and enhance the effectiveness of their leaders, teams, and organizations. PDI is known for its evidence-based research and data-driven insights, which help clients make better talent management decisions. They also offer a library of resources, including case studies and white papers, on a range of topics relevant to talent management and leadership development.

Both CCL and PDI are known for their effectiveness in delivering customized leadership development programs that meet the unique requirements of their clients. CCL's research-driven approach and PDI's evidence-based practices are both rooted in research, which helps their clients achieve better outcomes. As a result, selecting one over the other might be challenging.

However, one consideration is that PDI has a global presence, while CCL is located in the United States. As a result, if Bob is located outside of the United States, PDI may be a better option because of its worldwide operations. On the other hand, if Bob is based in the United States, he may benefit more from CCL's programs.

In conclusion, both CCL and PDI are excellent options for providing Bob with the skills he needs to succeed as the head of the new division. Both CCL and PDI have a strong reputation in the industry and a track record of success in developing leaders.

CCL's research-driven approach and PDI's evidence-based practices are both rooted in research, which helps their clients achieve better outcomes. If Bob is located outside of the United States, PDI may be a better option because of its global presence. On the other hand, if Bob is based in the United States, he may benefit more from CCL's programs.

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11. To successfully invoke the doctrine of ratification
a. The agent must have had the legal capacity to have so acted.
b. The agent must in fact be the agent of the principal although the action taken was totally without authority
c. The ratification must have been stated expressly.
d. The ratification must be made with knowledge of the material facts of the transaction

Answers

To successfully invoke the doctrine of ratification, the following conditions must be met:

a. The agent must have had the legal capacity to have so acted: This means that the agent must have been legally capable of representing the principal and entering into contracts on their behalf.

b. The agent must in fact be the agent of the principal although the action taken was totally without authority: This means that the agent must have been acting on behalf of the principal, even if the specific action taken was not authorized by the principal.

c. The ratification must have been stated expressly: Ratification must be clearly communicated and explicitly stated by the principal. It cannot be implied or assumed.

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Analyze the roles and responsibilities in the following areas:role, authority, responsibility, and competency that are needed to complete a project. = x Assignment Human Resources Plan: This plan should indude roles and responsibilities, a project staffing management plan. Your plan should: • Analyze the roles and responsibilities in the following areas: Role, Authority, Res that are needed to complete a project. • Include a project organization chart that displays project team members and the • Provide a staffing management plan that includes how human resource manage met by including when and how project team members will be acquired and how 至 Quality Management Plan: This plan should include the quality management plan fo organization's quality policy and the quality metrics. Your plan should: • Examine how the organization's quality policies will be implemented. Explain how the project management team plans to meet the quality requireme Procurement Plan. This nlan should identify the tunes of external.

Answers

In the Human Resources Plan:

Roles: Identify and define the specific roles required for the project, such as project manager, team members, subject matter experts, and stakeholders. Clearly outline their responsibilities and reporting relationships within the project structure.

Authority: Specify the authority levels and decision-making powers assigned to each role. This includes the authority to allocate resources, make project-related decisions, and manage the project team.

Responsibility: Clearly define the responsibilities and tasks assigned to each role. This involves identifying the specific deliverables, deadlines, and performance expectations for each team member.

Competency: Assess the competencies and skills required for each role. Identify the necessary qualifications, expertise, and experience needed to successfully carry out the assigned responsibilities. This can include technical knowledge, project management skills, and communication abilities.

In the Quality Management Plan:

Quality Policies: Define the organization's quality policies and guidelines that will be implemented for the project. This includes outlining the standards, procedures, and methodologies that will be followed to ensure quality deliverables.

Quality Metrics: Establish measurable quality metrics and criteria to evaluate the project's performance. These metrics can include error rates, customer satisfaction scores, compliance measures, or any other relevant indicators of quality.

In the Procurement Plan:-

External Resources: Identify the types of external resources required for the project, such as vendors, suppliers, or contractors. Specify the roles they will play and the responsibilities they will undertake in delivering the required goods or services.

The analysis of roles and responsibilities in these plans is crucial for effective project management. It ensures that the right people with the appropriate competencies are assigned to the project, and that they have the necessary authority and responsibilities to complete their tasks successfully. Additionally, clearly defined quality management policies and metrics help in monitoring and controlling project deliverables, while the procurement plan outlines how external resources will be managed and utilized to support the project's objectives.

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You are attending a performance of a play at your daughter's high school. Since your daughter has a major role in the play, you are using your camcorder to record her scenes. Is this a violation of copyright

Answers

Filming your daughter's performance in a high school play is not a violation of copyright law as long as you do not sell the recording to others.

Copyright is a form of protection provided to the authors of original works. The recording of a school play that features your daughter does not violate copyright law as long as you do not sell the recording to others. However, recording performances is often prohibited by school policies. Schools typically regulate the use of technology on their premises, and filming school performances may require permission from school administrators.

In conclusion, filming your daughter's performance in a high school play is not a violation of copyright law as long as you do not sell the recording to others. However, school policies on the use of technology on school premises may prohibit filming performances, and permission may be required from school administrators.

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The research paper will be selecting a topic in financial accounting that is of interest to you, reading academic, business related papers on the subject and documenting your key findings in a 2-4 page word document. Please find a business or academic article on financial accounting. (Wall Street Journal, Financial Times, Journal of Accounting Research, The Accounting Review are good examples) Please analyze the article with what you learned in the class. Most important part is your comments on the article. What do you find interesting? Why? Do you agree with the article? Why? Why not? What additional information do you have on the article?

Answers

One of the business-related papers that are of interest in financial accounting is the Journal of Accounting Research. The article "Financial Statement Presentation of Intangible Assets and Analysts' Abilities to Anticipate Future Earnings," published in the Journal of Accounting Research, focuses on the effects of non-disclosure of intangible assets on financial statements and the analysts' capabilities to anticipate future earnings.

The article presents how financial reporting transparency plays a crucial role in the decision-making of financial statement users. It states that intangible assets are becoming an increasingly important factor in the current business world. The authors, Barth, Hirst, and Wu, examined whether there is a link between the financial statement users' capacity to forecast future earnings and the level of transparency of intangible assets disclosures.

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what is the yield to maturity of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $9,100 when released?

Answers

9.89% is the yield to maturity of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $9,100 when released

The yield to maturity (YTM) of a one-year, risk-free, zero-coupon bond with a $10,000 face value and a price of $9,100 when released can be calculated using the formula:

YTM = (Face Value / Price)^(1/n) - 1

Where:

Face Value = $10,000

Price = $9,100

n = number of years to maturity = 1

Plugging in the values into the formula:

YTM = ($10,000 / $9,100)^(1/1) - 1

YTM = 1.0989 - 1

YTM = 0.0989 or 9.89%

Therefore, the yield to maturity of the one-year, risk-free, zero-coupon bond is 9.89%.

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Assume you are studying an economy that produces only one good. In Year 1, 92 units of output were produced and the (per-unit) price in Year 1 was $22 In Year 2, 114 units of output were produced and the (per-unit) price in Year 2 was $25 In Year 3, 152 units of output were produced and the (per-unit) price in Year 3 was $34 Assume that Year 2 is the base year. Nominal GDP in Year 3 is $_____________. **You must report your answer as a whole number - do not include a decimal or a dollar sign. For example, 15 or 268 or -173. If you do not report it in this way, it may be marked as incorrect**

Answers

The correct answer is 5168, we are instructed to provide the answer as a whole number without a decimal or a dollar sign, the nominal GDP in Year 3 is 5168.

To calculate the nominal GDP in Year 3, we need to multiply the quantity of output produced in Year 3 by the price per unit in Year 3.

In Year 3, the quantity of output produced is given as 152 units, and the price per unit is $34. Therefore, the nominal GDP in Year 3 is:

Nominal GDP Year 3 = Quantity Year 3 * Price Year 3 = 152 * $34 = $5,168.

Therefore, the nominal GDP in Year 3 is $5,168.

Since we are instructed to provide the answer as a whole number without a decimal or a dollar sign, the nominal GDP in Year 3 is 5168.

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A newcomer in an organization gradually begins to learn the company norms such as dress codes, working hours, and interpersonal relations. This process is known as _____.

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The process in which a newcomer in an organization gradually learns and assimilates the company norms, including dress codes, working hours, and interpersonal relations, is known as organizational socialization.

Organizational socialization refers to the process by which individuals, particularly new employees, acquire the knowledge, skills, attitudes, and behaviors required to adapt and integrate into an organization. It involves learning about and internalizing the organizational norms, values, culture, and expectations.

During the process of organizational socialization, newcomers go through various stages of adjustment and adaptation. They learn the formal and informal rules and practices of the organization, including dress codes, working hours, and appropriate ways of interacting with colleagues and superiors. This process is facilitated through orientation programs, training, mentorship, and informal social interactions within the organization.

The goal of organizational socialization is to help newcomers become productive and committed members of the organization. It helps them understand and align with the organizational values and expectations, fosters a sense of belonging and identity, and facilitates their integration into the social and professional networks of the organization.

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In a particular variety of red flower, the petals turn blue when left in the dark. in the presence of sunlight, the petals remain red.basedon this information, it can be concluded that the color of these petals is due to the:______.

Answers

Based on the information provided, it can be concluded that the color of these petals is due to the presence or absence of sunlight.

Sunlight has a significant impact on the color of the petals of a specific variety of red flowers. The petals turn blue when left in the dark, but they remain red when exposed to sunlight. The conclusion we can draw from this is that the color of the petals is determined by the presence or absence of sunlight.

Therefore, sunlight is the factor that controls the color of the petals of this particular red flower variety.

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For each transaction below, calculate... 7 For each transaction below. calculate the amount of revenue to be recorded in the current period using accrual basis accounting Required: a. Performed $30,000 of services during the month and received full cash payment from customers at the time of service b. Performed $9,500 of services during the month and billed customers. Customers are expected to pay next month c. Received $19,000 cash from customers for services to be provided next month soints 0102.58 Complete this question by entering your answers in the tabs below. Required A Required B Required Performed $30,000 of services during the month and received full cash payment from customers at the time of service Revenue to be recorded Requeda Required B TB EX Qu. 3-214 (Algo) For each transaction below, calculate... 17 3 points For each transaction below, calculate the amount of revenue to be recorded in the current period using accrual basis accounting Required: a. Performed $30,000 of services during the month and received full cash payment from customers at the time of service b. Performed $9.500 of services during the month and billed customers. Customers are expected to pay next month c. Received $19,000 cash from customers for services to be provided next month. 03 010246 Complete this question by entering your answers in the tabs below. Required A Required B Required Performed $9.500 oh Services during the month and billed customers. Customers are expected to pay next month. Ravenue lo bo recorded < Required A Required c> TB EX QU. 3-214 (Algo) For each transaction below, calculate... 7. 3 For each transaction below, calculate the amount of revenue to be recorded in the current period using accrual basis accounting Required: a. Performed $30,000 of services during the month and received full cash payment from customers at the time of service b. Performed $9,500 of services during the month and billed customers Customers are expected to pay next month c. Received $19,000 cash from customers for services to be provided next month. bi 8040151 Complete this question by entering your answers in the tabs below. Required A Required Required Received $19,000 cash from customers for services to be provided next month. Rivenue to be recorded < Required

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To determine the amount of revenue to be recorded in the current period using accrual basis accounting, we need to consider the timing of service performance and cash receipt.

a. Transaction a involves performing $30,000 of services during the month and receiving full cash payment from customers at the time of service. In this case, the revenue to be recorded in the current period is $30,000 since the service was provided and cash was received simultaneously. b. Transaction b entails performing $9,500 of services during the month and billing customers. Customers are expected to pay next month. Here, the revenue to be recorded in the current period is $9,500 since the service was performed, even though cash collection will occur in the following month. c. Transaction c relates to receiving $19,000 cash from customers for services to be provided next month.

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Problem 7.10 (Current Yield, Capital Gains Yield, and Yield to Maturity) eBook Problem Walk-Through Pelzer Printing Inc. has bonds outstanding with 19 years left to maturity. The bonds have a 7% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $890.20. The capital gains yield last year was -10.98%. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % b. For the coming year, what are the expected current and capital gains yields? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places. Expected current yield: % Expected capital gains yield: % c. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ? I. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors should equal the YTM. II. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will not cause the price to change and as a result, the realized return to investors should equal the YTM. III. As rates change they will cause the end-of-year price to change and thus the realized capital gains yield to change. As a result, the realized return to investors will differ from the YTM. IV. As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors will differ from the YTM. V. As long as promised coupon payments are made, the current yield will not change as a result of changing interest rates. However, changing rates will cause the price to change and as a result, the realized return to investors should equal the YTM. -Select- I II III V

Answers

As long as promised coupon payments are made, the current yield will change due to changing interest rates. Changing rates will cause the bond's price to change, resulting in the realized return to investors differing from the YTM.

The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. To calculate the YTM, we need to find the discount rate that equates the present value of the bond's future cash flows (coupon payments and the final principal payment) to its current market price.

In this case, the bond has 19 years left to maturity, a 7% annual coupon rate, and was issued at par value ($1,000) 1 year ago. The current market price of the bond is $890.20, and the capital gains yield last year was -10.98%.

a. To find the YTM, we can use the bond pricing formula. The formula is as follows:

Market Price = (Coupon Payment / YTM) x [1 - (1 / (1 + YTM)^n)] + (Par Value / (1 + YTM)^n)

Where:

Market Price = $890.20

Coupon Payment = 7% of Par Value = 7% x $1,000 = $70

YTM = ?

n = 19 (years)

Substituting the values into the formula and solving for YTM:

$890.20 = ($70 / YTM) x [1 - (1 / (1 + YTM)^19)] + ($1,000 / (1 + YTM)^19)

Solving this equation will give us the YTM.

b. The current yield is defined as the annual coupon payment divided by the current market price. The capital gains yield is the percentage change in the price of the bond. To calculate the expected current and capital gains yields for the coming year, we need to make assumptions about the changes in interest rates and how they will affect the bond's price.

Given the information provided, we do not have explicit information about the changes in interest rates or any assumptions to calculate the expected yields for the coming year. Therefore, it is not possible to provide numerical values for the expected current and capital gains yields.

c. Among the given options (I, II, III, V), the correct answer is option IV: As long as promised coupon payments are made, the current yield will change as a result of changing interest rates. However, changing rates will cause the price to change, and as a result, the realized return to investors will differ from the YTM.

Changes in interest rates will affect the bond's price. If interest rates increase, the bond's price will decrease, leading to a higher current yield (as the coupon payment relative to the lower price becomes a higher percentage). Conversely, if interest rates decrease, the bond's price will increase, resulting in a lower current yield. Therefore, the actual realized return to investors will differ from the YTM, which represents the expected return if the bond is held until maturity.

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If an adjustable-rate 30-year mortgage for $120,000 starts at 4.0 percent and increases to 5.5 percent, what is the amount of increase of the monthly payment

Answers

The new monthly payment is $680.09.The monthly payment has increased by:$680.09 - $572.90 = $107.19Thus, the amount of increase of the monthly payment is $107.19.

A $120,000 30-year adjustable-rate mortgage with an initial interest rate of 4.0% that increases to 5.5 percent after a certain amount of time. Find out what the monthly payment increase is. This is a two-step problem. To begin, we must first determine the initial monthly payment and then compare it to the new monthly payment after the interest rate rises

Step 1: Initial Monthly Payment Calculation

We can use the following formula to calculate the initial monthly payment:P = L[c(1 + c)n]/[(1 + c)n - 1]

Where:P = Monthly PaymentL = Loan Amountc = Interest Rate Per Monthn = Number of MonthsTo find the value of P, we need to plug in the given values:P = 120000[0.003333(1 + 0.003333)360]/[(1 + 0.003333)360 - 1]= $572.90 (rounded to the nearest cent)Thus, the initial monthly payment is $572.90.

Step 2: Calculate Increase in PaymentThe monthly payment is recalculated using the new interest rate of 5.5 percent instead of the initial 4.0 percent using the same formula:P = 120000[0.004583(1 + 0.004583)360]/[(1 + 0.004583)360 - 1]= $680.09 (rounded to the nearest cent)

Thus, the new monthly payment is $680.09.The monthly payment has increased by:$680.09 - $572.90 = $107.19 Thus, the amount of increase of the monthly payment is $107.19.

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Suppose the Government wishes to reduce the budget deficit by reducing public spending.
With the assumption that monetary authorities make the money supply constant explain in depth why the decrease in public spending will reduce output more in the keynesian cross model instead of the IS-LM model.
Please provide an in depth explanation with graphs to support your findings

Answers

The Keynesian cross model is a macroeconomic framework that analyzes how aggregate demand affects output in the short run. In contrast, the IS-LM model analyzes how changes in interest rates and the money supply affect output and interest rates in the medium run.  

To begin with, let us suppose that the government wishes to reduce the budget deficit by reducing public spending. Under the assumption that monetary authorities make the money supply constant, the reduction in public spending would shift the aggregate demand curve to the left. This is shown in the figure below:

In the Keynesian cross model, the intersection of the aggregate demand curve and the 45-degree line determines output. As we can see from the graph, the reduction in public spending causes output to decrease from Y1 to Y2. This is because the reduction in government spending decreases aggregate demand, which reduces output.

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if a firm is willing to borrow more funds at the same interest rate, it is implied that the demand curve for loanable funds has shifted to the

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If a firm is willing to borrow more funds at the same interest rate, it implies that the demand curve for loanable funds has shifted to the right.

The demand curve for loanable funds represents the relationship between the quantity of loanable funds demanded and the interest rate.

When a firm is willing to borrow more funds at the same interest rate, it suggests an increase in the quantity of loanable funds demanded.

This indicates a shift in the demand curve to the right. A rightward shift means that at each interest rate, firms are now willing to borrow more funds.

It can be due to various factors such as expansion plans, increased investment opportunities, or higher financing needs.

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The following information was taken from the production budget of Piwte Corporation for next quarter: January February March Units to be produced 128,000 140,000 152,000 Desired ending inventory of finished goods 30,000 36,000 38,000 How many units is the company expecting to sell in the month of February

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The company expecting to sell in the month of February the company expects to sell 146,000 units of goods in the month of February. The production budget is fiscal policy used to identify the quantity of goods that will be produced.

To identify how many units of goods are going to be sold, the cost of goods sold budget is used. It is calculated as follows Beginning inventory of finished goods + Units produced - Ending inventory of finished goods = Cost of goods sold.

Using the above formula, calculate the production for each month:January Units to be produced: 128,000Desired ending inventory of finished goods: 30,000 (for January)Units available for sale: 158,000 (128,000 + 30,000)February Units to be produced: 140,000Desired ending inventory of finished goods: 36,000Units available for sale: 154,000 (140,000 + 30,000 - 36,000)Therefore, the company expects to sell 146,000 units of goods in the month of February.

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It costs a publishing company $0. 55 to print one copy of a certain novel. This company paid $725,000 for the rights to the novel. If they can sell a copy of the novel for $6. 75, how many copies of the novel must they sell to break even, to the nearest hundred? a. 195,300 b. 116,900 c. 107,400 d. 99,300 Please select the best answer from the choices provided A B C D.

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So the publishing company needs to sell at least (b) 116,900 copies of the novel to break even.

Given that,

It costs a publishing company $0.55 to print one copy of a certain novel.

They paid $725,000 for the rights to the novel.

The selling price of one copy of the novel is $6.75.

To find:

Let the number of copies that need to be sold to break even = x

So, the cost of printing one copy of a certain novel = $0.55

Total cost of printing x copies of the novel = $0.55 x Total revenue on selling x copies of the novel = $6.75x

According to the problem, The publisher must sell enough copies of the novel to break even their cost,

So, total cost = total revenue

$0.55x + $725,000 = $6.75xx(6.75 - 0.55)

= 725,000x

= 725,000 / 6.2x

= 116935.48 ≈ 116,900 (approx.)

Therefore, the correct option is (b) 116,900.

Given a publishing company has bought the rights to a novel for $725,000.

They need to calculate the number of copies of the novel they need to sell to break even if the cost of printing one copy of the novel is $0.55, and the selling price is $6.75.

To solve the problem, let the number of copies they need to sell be x.

The cost of printing one copy of the novel is $0.55, therefore the cost of printing x copies of the novel is $0.55x.

The revenue generated by selling x copies of the novel is $6.75x.

To break even, the total revenue generated by selling x copies of the novel should be equal to the total cost. Therefore,

$0.55x + $725,000 = $6.75x0.55x

= $725,000x

= $725,000 / $6.20x

= 116,935.48 ≈ 116,900

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You are the manager of a monopoly and your demand and cost functions are given by
P=3000-2Q and C(Q)= 500 + Q2
What price-quantity combination maximizes your firm’s profits?
Depict the situation diagrammatically.
Estimate the profits of the firm.
Estimate the elasticity of demand at that point. It is elastic or inelastic?
What price-output combination would have prevailed if this product were sold by firms in a perfectly competitive market?
Is there deadweight loss from this monopoly? Estimate it & indicate the area on the graph.
What is the consumer surplus if this product is produced by the monopoly? What is the consumer surplus if the product were produced by multiple firms in a perfectly competitive market?
What is the price mark-up in this case? What is the significance of this number?
How is elasticity of the demand for the product, price mark-up, the firm’s market power & the deadweight loss related?

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The problem describes a monopoly with given demand and cost functions. The task is to determine the price-quantity combination that maximizes the firm's profits, analyze the elasticity of demand.

To maximize profits, the monopoly needs to set its output where marginal revenue (MR) equals marginal cost (MC). To find the equilibrium point, we first need to calculate the MR function, which is twice the slope of the demand function. In this case, MR = 3000 - 4Q. Equating MR and MC, we get 3000 - 4Q = 2Q. Solving for Q, we find Q = 500. Substituting this value back into the demand function, we can calculate the price as P = 3000 - 2(500) = 2000. Therefore, the price-quantity combination that maximizes the firm's profits is P = $2000 and Q = 500.

To estimate the profits of the firm, we need to subtract the total cost (TC) from the total revenue (TR). TR is equal to P multiplied by Q, which is $2000 multiplied by 500, resulting in $1,000,000. TC is the sum of fixed cost (FC) and variable cost (VC). The given cost function C(Q) = 500 + Q^2 implies that FC = $500 and VC = Q^2. For Q = 500, VC equals 500^2 = $250,000. Therefore, TC = $500 + $250,000 = $250,500. Profits (π) are TR minus TC, so π = $1,000,000 - $250,500 = $749,500.

To estimate the elasticity of demand at the equilibrium point, we can use the formula: elasticity (ε) = (dQ/dP) * (P/Q). Taking the derivative of the demand function, we find dQ/dP = -2. Substituting the equilibrium values, we have ε = (-2) * (2000/500) = -8. Since the absolute value of the elasticity is greater than 1, demand is considered elastic at this point.

If the product were sold in a perfectly competitive market, the price-output combination would be determined by the intersection of the market supply and demand curves. Since the given information does not include the market supply function, we cannot determine the exact price-output combination for perfect competition.

There is deadweight loss in this monopoly scenario. Deadweight loss refers to the loss of economic efficiency that occurs when the monopoly restricts output and charges a higher price compared to a perfectly competitive market. On the graph, the deadweight loss is the triangle formed by the demand curve, the marginal cost curve, and the monopoly's quantity level.

Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay. In the monopoly scenario, consumer surplus is represented by the area below the demand curve and above the price line, up to the quantity level sold by the monopoly. In a perfectly competitive market, where the price is determined by the intersection of supply and demand, consumer surplus is the larger area below the demand curve and above the market price line.

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According to the liquidity premium theory of the term structure, a downward-sloping yield curve
indicates that short-term interest rates are expected to
A) rise in the future.
B) remain unchanged in the future.
C) decline moderately in the future.
D) decline sharply in the future.

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According to the liquidity premium theory of the term structure, a downward-sloping yield curve indicates that short-term interest rates are expected to rise in the future.

The liquidity premium theory of the term structure suggests that longer-term interest rates include a liquidity premium or an additional yield investors require for holding longer-term bonds. This theory posits that when the yield curve is downward-sloping, it indicates that short-term interest rates are expected to increase in the future.

Investors demand a higher yield for longer-term bonds to compensate for the risk and uncertainty associated with future interest rate movements. If the market anticipates higher short-term interest rates in the future, investors will require a higher yield on longer-term bonds to hold them, resulting in a downward-sloping yield curve.

Therefore, the correct answer is (A) rise in the future. A downward-sloping yield curve suggests that short-term interest rates are expected to increase.

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If $1,120 is invested at an interest rate of 15% per year and is compounded continuously, how much will the investment be worth in 7 years? Use the continuous compound interest formula: A = Pert. $565. 91 $1,131. 82 $1,244. 00 $3,200. 57.

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The value of the investment after 7 years will be $3,200.57 ,by using the formula  A = Pert.  

In this case, the principal amount is $1,120, the interest rate is 15% (or 0.15 as a decimal), and the time period is 7 years. Plugging these values into the formula, we get A = 1120 * e^(0.15 * 7).

Using a calculator or mathematical software, we can evaluate this expression to find the future value: A ≈ $1,244.00. Therefore, the investment will be worth approximately $1,244.00 after 7 years if compounded continuously. Continuous compounding assumes that the interest is constantly being reinvested and added to the principal, resulting in exponential growth. This differs from regular compounding, where interest is typically compounded at fixed intervals such as annually, semi-annually, or quarterly.

Continuous compounding is a theoretical concept used for mathematical convenience and approximation, as it simplifies calculations and provides an upper bound on the future value. In practice, actual investments may compound at regular intervals, such as daily or monthly, but not continuously.

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Suppose you have $30 and you are going to rent some movies and buy some sodas. Suppose movie rentals are $6.00 each and sodas are $1.00 each. Your original consumption bundle is 3 movies and 12 sodas. Show all calculations. (Hint: put movie rentals on the X axis)

Answers

It's worth mentioning that the slope of the budget line is -6/1 = -6. Therefore, it is possible to buy more sodas than movies by purchasing fewer movies and more sodas.

The given details are as follows:

Initial budget, B = $30Price of one movie rental, Pm = $6Price of one soda, Ps = $1

Consumption Bundle = (3,12)

Initial bundle gives us a starting point for budget line calculation.

Pm = $6.00, Ps = $1.00The following table illustrates the combination of movies and soda that can be bought at different prices of movie rentals:

Price of movies, PmUnits of movies, XUnits of sodas, Y

Total Spent, M  $6.00  5 10 $40.00  $6.00  4 12 $36.00  $6.00  3 14 $32.00  $6.00  2 16 $28.00  $6.00  1 18 $24.00  $6.00  0 20 $20.00  $6.00  -1 22 $16.00  $6.00  -2 24 $12.00  $6.00  -3 26 $8.00  $6.00  -4 28 $4.00  $6.00  -5 30 $0.00  From the above table, the maximum movies that can be rented at $30 is 5 movies and 10 sodas.

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What is a possible issue in international shipping for a global
firm? Group of answer choices
Dishonest customs agents
Prohibitive shipping costs
Inconsistent address formats
All of the above

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International shipping is a complex process that can present challenges to a global firm. One possible issue that can arise in international shipping is dishonest customs agents.Dishonest customs agents can be a major issue in international shipping for a global firm.

These agents may try to extort money from the firm or cause delays in order to extract bribes. This can lead to increased shipping costs, lost revenue, and damage to the firm's reputation.Another potential issue in international shipping is prohibitive shipping costs. Shipping costs can vary significantly between countries, and some countries may impose high tariffs or taxes on imported goods. This can make it difficult for a global firm to compete in the international marketplace.Inconsistent address formats can also be an issue in international shipping. Different countries may have different formats for addresses, which can lead to confusion and delays in shipping. This can be especially problematic for firms that ship to multiple countries.All of the above are possible issues that can arise in international shipping for a global firm. It is important for firms to be aware of these potential issues and take steps to mitigate them as much as possible. This may include conducting thorough research on customs regulations and shipping costs in different countries, as well as developing systems to ensure that addresses are properly formatted and accurate.

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What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.

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Answer:

A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOU

Ray and Chuck own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Chuck each works full time (over 1,000 hours per year) managing Alpine. Alpine’s debt (at both the beginning and end of the year) consists of $1,500,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Chuck each had a tax basis of $250,000 in his respective LLC interest, including his share of the nonrecourse mortgage debt. Alpine’s ordinary business losses for the current year totaled $600,000, and neither member is involved in other activities that generate passive income. Assume CARES Act applies.

d. If both Ray and Chuck are single and Ray has a current-year loss of $50,000 from a sole proprietorship, how much trade or business loss can each deduct on his tax return?

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Ray and Chuck own 50% capital and profits interests in Alpine Properties LLC. Both of them are actively involved in the day-to-day management of the business. Alpine builds and manages rental real estate. At the beginning of the year, Ray and Chuck each had a tax basis of $250,000 in his respective LLC interest.

Including his share of the nonrecourse mortgage debt. Alpine’s ordinary business losses for the current year totaled $600,000. Assume that the CARES Act applies. Alpine's debt consists of $1,500,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties.Calculating the taxable income of Ray and ChuckThe first step is to calculate the allocable share of the losses. The total loss of $600,000 is allocated equally to each partner. Therefore, each partner's share of the loss would be $300,000 ($600,000/2). Ray also has a current-year loss of $50,000 from a sole proprietorship.Business loss limitation under CARES ActUnder the CARES Act, the limit on business losses is suspended for 2020, and excess business losses for 2018, 2019, and 2020 may be carried back five years. This means that Ray and Chuck can offset all of their income with business losses in 2020, subject to the basis limitation. Since both Ray and Chuck each had a tax basis of $250,000 at the beginning of the year, they can deduct up to $250,000 each in business losses ($500,000 combined) on their tax returns. They cannot deduct the excess loss because their tax basis is less than the allocable share of the loss. Ray and Chuck can each deduct $250,000 in trade or business losses on their tax returns.

In conclusion, Ray and Chuck each can deduct $250,000 in trade or business losses on their tax returns. The total loss of $600,000 is divided equally between them. As per CARES Act, the business loss limitation is suspended for 2020 and excess business losses for 2018, 2019, and 2020 may be carried back five years. Since both Ray and Chuck each had a tax basis of $250,000 at the beginning of the year, they can deduct up to $250,000 each in business losses ($500,000 combined) on their tax returns. However, they cannot deduct the excess loss as their tax basis is less than the allocable share of the loss.

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The annual demand for a product is 79000 units. The annual carrying cost per unit of product is 12 dollars. The ordering cost per order is 700 dollars. Each time we order 1300 units. Compute the total annual ordering cost. Enter your answer as a whole number with no decimal point.

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The total annual ordering cost for a product is the cost that is incurred each time a new order is placed. It is calculated by dividing the total number of units by the number of units in each order and then multiplying the result by the ordering cost per order.

The annual demand for the product is 79000 units and we order 1300 units each time, which gives us a total of 79000 / 1300 = 60.77 orders per year (rounded up to 61 orders).The ordering cost per order is $700, so the total annual ordering cost will be 61 × $700 = $42,700. Hence, the total annual ordering cost for the product is $42,700.Answer: 42700.

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When the crime rate falls in the area around a factory, what probably happens to wages at that factory

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When the crime rate falls in the area around a factory, it is likely that wages at that factory will increase.

A decrease in the crime rate in the vicinity of a factory can have several positive effects on the overall economic environment, which can ultimately impact wages at the factory. Lower crime rates contribute to a safer and more stable community, creating a more attractive living and working environment for employees. This, in turn, can lead to increased job satisfaction, productivity, and employee retention.

When a factory operates in a safer area with reduced crime, it may experience a decrease in costs associated with security measures, such as surveillance systems or hiring security personnel. This cost savings can potentially be redirected towards employee wages or other benefits, resulting in an increase in wages for the workers.

Furthermore, a decline in crime rates can also attract new businesses or investments to the area, leading to economic growth and increased competition for skilled labor. In response to this increased demand for workers, factories may offer higher wages to attract and retain qualified employees. Overall, when the crime rate falls in the area around a factory, it is likely that wages at that factory will increase due to improved economic conditions, reduced security costs, and increased competition for labor.

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