need help please.
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted averag method and it reports the following unit data for the Forming department. Units completed i
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For the forming branch of Fields Company:
a. The equal gadgets of production for Direct = 325,000 equal gadgets and Conversion = 355,000 equivalent units
b. The charges per equivalent unit of manufacturing for Direct Materials is $6.73 in step with equal units and Conversion $6.16 in line with equal unit
c. Using the weighted average method, Units transferred to painting: Units finished and transferred out (295,000 devices) * Costs consistent with equal units (direct substances and conversion) and Ending paintings in method stock: Ending WIP (30,000 devices) * Costs according to the equivalent unit (direct materials and conversion)
a. To calculate the equivalent gadgets of manufacturing for both direct materials and conversion for the forming branch:
Equivalent devices of direct substances:
Beginning work in method (25,000 gadgets) × Direct substances of entirety percent (60%) = 15,000 equivalent gadgets
Units began this period (300,000 gadgets) = three hundred,000 equal units
Total equal gadgets of direct substances = 15,000 + 300,000 = 315,000 equal units
Equivalent gadgets of conversion:
Beginning work in method (25,000 devices) × Conversion completion percentage (forty%) = 10,000 equal devices
Units started this era (three hundred,000 units) = 300,000 equivalent units
Ending work in technique (30,000 gadgets) × Conversion of entirety percent (eighty%) = 24,000 equal units
Total equal units of conversion = 10,000 + 300,000 + 24,000 = 334,000 equal gadgets
b. To calculate the charges in line with an equivalent unit of production for each direct substance and conversion for the forming department:
Cost per equal unit of direct materials:
Total fees to account for direct materials ($1,231,200) / Equivalent units of direct materials (315,000) = $3.91 in step with equal unit
Cost consistent with equivalent unit of conversion:
Total charges to account for conversion ($896,700) / Equivalent devices of conversion (334,000) = $2.68 consistent with the equal unit
c. Using the weighted average approach, prices may be assigned as follows:
The cost assigned to units transferred to painting:
Units transferred to painting (295,000 devices) × (Cost consistent with equivalent unit of direct materials + Cost consistent with equivalent unit of conversion)
The cost assigned to ending paintings in technique:
Ending work in the manner (30,000 devices) × (Cost in line with an equal unit of direct materials + Cost per equal unit of conversion)
The particular values for the cost per equal unit and the ensuing fee assignments might require extra data now not provided within the given information.
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The correct question is:
Related Questions
The buyer of an industrial complex wants the broker to place the earnest money in an interest bearing account. The broker does this, clearly identifying all parties who are to receive the interest and the date the earned interest is to be disbursed. With only the verbal consent of the buyer, he places the money in an insured account in a depository in Florida. When the time comes to disburse the account, the broker will write a check to the buyer for the interest as the buyer agreed. Which statement describing this situation applies?
Answers
Answer:
Explanation:
In this situation, the statement that would best apply would be that the broker does not have the right to ever use an interest-bearing account under Florida Real Estate laws. Since Florida Real Estate laws specifically prohibit a broker from placing a clients money in an interest account then the broker in this scenario is breaking the law and can have his real estate license taken away as well as being fined.
If the economy is shrinking, firms with low operating leverage will experience: A. larger decreases in profits than firms with high operating leverage. B. similar decreases in profits as firms with high operating leverage. C. smaller decreases in profits than firms with high operating leverage. D. no change in profits. Please briefly explain your selection.
Answers
Based on the given scenario, the correct answer would be C. Firms with low operating leverage will experience smaller decreases in profits than firms with high operating leverage.
This is because firms with high operating leverage rely heavily on fixed costs, which do not change with changes in revenue. When the economy shrinks and revenue decreases, these fixed costs become a larger proportion of the firm's total costs, leading to a greater decrease in profits.
On the other hand, firms with low operating leverage have a smaller proportion of fixed costs and a larger proportion of variable costs, which decrease with revenue, leading to a smaller decrease in profits. Therefore, a detailed answer would explain that operating leverage plays a significant role in how firms are impacted by changes in the economy, and it is important for businesses to understand their operating leverage to make informed decisions about their operations.
As a result, when the economy shrinks and demand decreases, these firms can more easily adjust their variable costs, such as labor and materials. This flexibility helps to mitigate the impact of reduced revenues on profits, leading to smaller decreases in profits compared to firms with high operating leverage, which have higher fixed costs and less flexibility in adjusting expenses.
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The impact of Furman v. Georgia (1972) was that states had to
promise to use the death penalty only with approval from the Supreme Court.
throw out the old Miranda warning and write a new one.
agree to throw out all state laws regarding crime and impose national standards.
create clear standards to be applied fairly before imposing the death penalty.
Answers
Answer: D.create clear standards to be applied fairly before imposing the death penalty.
Explanation: The answer it's right there
The impact of Furman v. Georgia (1972) was that states had to
create clear standards to be applied fairly before imposing the death penalty.The Furman v. Georgia caseThis was a case that had to do with the cruel and the unusual way that people faced in the death penalty.
The case ruled that the death penalty was unconstitutional if it was applied in a discriminatory way.
It ruled that the eight amendment was being violated if used in this way.
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nike owns equipment that cost $98,300 with accumulated depreciation of $67,200. nike asks $36,200 for the equipment but sells the equipment for $33,800. compute the amount of gain or loss on the sale.
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There is a $2800 gain on the sale if Nike sells the equipment for $33,800.
Salvage value can be described as the estimated value of an asset after depreciation. It can be calculated by subtracting the accumulated depreciation from the initial cost. In this case, Nike owned the equipment that cost $98,300 with accumulated depreciation of $67,200, therefore the salvage value can be calculated as follows;
salvage value = $98,300 - $67,200 = $31,000
Now the amount of gain or loss on the sale can be calculated by subtracting the salvage value from the selling price of the equipment which in this case is $33,800, therefore;
amount of gain or loss = $33,800 - $31,000
amount of gain or loss = $2800
Therefore the amount computed on the sale is a gain of $2800.
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Imagine you are an economic adviser to the Commonwealth Government. The Prime Minister wants to increase spending on public transport in major cities, but does not want to raise taxes. Identify alternative sources of revenue for the government to fund its new initiatives.
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Answer: A combination of 1) Increased public transportation fees, 2) raise the gasoline tax, 3) increase or institute highway tolls, or 4) reduce the road construction budget and use that money for public transportation.
Explanation:
Actions 2-4 would provide incentives to use public transportation.
outline 2 advantages to H&H of using secondary market research
Answers
Explanation:
It provides quick information and factual background perspectives
It is less expensive and affordable
Demands for a newly developed salad bar at the Great Professional restaurant for the first six months of this year are shown in the following table. What is the forecast for July if the 3-month weighted moving - average method is used? (Use weights of 0.5 for the most recent demand, 0.3, and 0.2 for the oldest demand.)
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The forecast for July if, the 3-month weighted moving-average method is used is 64.
To calculate the forecast for July using the 3-month weighted moving-average method, we need to take the weighted average of the demands for April, May, and June.
Using the given weights of 0.5 for June, 0.3 for May, and 0.2 for April, we can calculate the weighted average as follows:
July forecast = (0.5 x June demand) + (0.3 x May demand) + (0.2 x April demand)
July forecast = (0.5 x 70) + (0.3 x 60) + (0.2 x 55)
July forecast = 35 + 18 + 11
July forecast = 64
Therefore, the forecast for July using the 3-month weighted moving-average method is 64.
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has the following information available regarding its labor: Managers expected to pay $11 per direct labor hour. Each unit produced should take 1 direct labor hour; actual total usage was 990 direct labor hours. Finally, the company planned to produce 1,000 units, but only produced 950. The direct labor spending variance is $990 (unfavorable). How much did the company actually spend on direct labor per hour
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The company actually spent $19.80 on direct labor per hour ($990 divided by 50).
Based on the given information, the company planned to produce 1,000 units but only produced 950. The actual total usage of direct labor hours was 990. The direct labor spending variance is $990 (unfavorable). To find out how much the company actually spent on direct labor per hour, we can divide the unfavorable variance by the difference in units produced: Direct labor spending variance = $990Difference in units produced = 1,000 - 950 = 50Therefore, the company actually spent $19.80 on direct labor per hour ($990 divided by 50).
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Suppose the supply and demand curves for wheat are given by: S=2P−1
D=5−P
where P is the price of wheat per bushel, D is the quantity of wheat demand (in millions of bushels), and S is the quantity of wheat supply (in millions of bushels). Suppose the free trade price of wheat is $1.00 and that a tariff of $0.50 is being considered by the government. If the country is a small importer calculate the following: i. The value of the increase in pryducer surplus expected due to the tariff. ii. The value of the decrease in consumer surplus expected due to the tariff. iii. The value of the tariff revenue expected due to the tariff. iv. The value of the change in national welfare expected due to the tariff.
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When the price of a commodity goes up, it leads to a change in consumer and producer surplus. Producer surplus (PS) and consumer surplus (CS) are affected by a tariff.
Here is the calculation:Given the supply and demand curves:S=2P−1D=5−PAt a free trade price of $1.00, demand and supply are balanced, and the equilibrium quantity is 2 million bushels of wheat at a price of $1.00 million bushels.i. Value of the increase in producer surplus due to the tariffThe new price for wheat in the domestic market is $1.50 due to a tariff of $0.50.
To get the new equilibrium point, we must first calculate the supply and demand quantities. At $1.50, the supply is 3 million bushels, while the demand is 2 million bushels. The new producer surplus (PS) can be calculated as follows:PS = ½ * (new P – old P) * new Q= ½ * ($1.50 - $1.00) * 3= $0.75 millionii. Value of the decrease in consumer surplus expected due to the tariffThe new consumer surplus (CS) can be calculated as follows:CS = ½ * (old P – new P) * old Q= ½ * ($1.00 - $1.50) * 2= -$0.5 millioniii.
The value of the tariff revenue expected due to the tariff. The tariff revenue can be calculated as follows:T = tariff * Q= $0.50 * 2= $1.0 millioniv. Value of the change in national welfare expected due to the tariff.The total welfare gain or loss from the tariff can be calculated as follows:ΔW = ΔCS + ΔPS + ΔT= -$0.5 + $0.75 + $1.0= $1.25 million.
Therefore, the value of the increase in producer surplus due to the tariff is $0.75 million, the value of the decrease in consumer surplus expected due to the tariff is -$0.5 million, the value of the tariff revenue expected due to the tariff is $1.0 million, and the value of the change in national welfare expected due to the tariff is $1.25 million.
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application of marginal cost
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Marginal cost is a concept widely used in economics and business to make informed decisions about resource allocation and pricing. Its application can be seen in various areas:
Production and Pricing: Marginal cost helps businesses determine the optimal level of production by comparing the additional cost of producing one more unit with the additional revenue generated. It assists in setting prices that cover variable costs and contribute to profit maximization.
Investment Analysis: When considering investment decisions, businesses analyze the marginal cost of capital to evaluate the potential return on investment. By comparing the expected marginal benefits with the marginal cost of financing, they can assess the viability of investment projects.
Cost Control: Identifying the marginal cost of each activity or input helps in cost control. Businesses can allocate resources efficiently by weighing the incremental cost against the incremental benefit to ensure that resources are used optimally.
Supply Chain Management: Marginal cost analysis aids in optimizing supply chain operations. By assessing the additional cost incurred at different stages of the supply chain, businesses can identify bottlenecks, make informed decisions about outsourcing, and streamline processes to minimize overall costs.
In summary, the application of marginal cost enables businesses to make informed decisions regarding production levels, pricing strategies, investment choices, cost control, and supply chain optimization. It assists in maximizing efficiency and profitability by considering the incremental cost associated with each decision.
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in a(n) blank , there are no tariffs or quotas when members trade, and each member maintains its own external tariff on goods arriving from countries in the rest of the world.
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In a free trade area, there are no tariffs or quotas when members trade, and each member maintains its own external tariff on goods arriving from countries in the rest of the world.
What is a free trade area?These areas are related among the group of countries that are committed to removing all barriers to the free flow of goods and services between each other but also pursuing an independent external trade policies.
In these area, there are usually no tariffs or quotas when members trade and each member maintains its own external tariff on goods arriving from countries in the rest of the world.
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RWJ 6-3 Josephine is studying for FRL 3000 Exam, help her decide which compounding period produces the highest present value given a stated annual interest rate and a future value?
Group of answer choices
a.Monthly
b.Annual
c.Semi-annual
d.Weekly
Answers
If josephine wants to maximize the present value, she should choose a compounding period of "daily" if it is available.
the compounding period that produces the highest present value given a stated annual interest rate and a future value is "daily".
the more frequently compounding occurs, the higher the present value will be. in this case, the given s are monthly, annual, semi-annual, and weekly. however, none of these s represent compounding on a daily basis.
compounding daily would result in the highest present value compared to the given s. daily compounding allows for the interest to be calculated and added to the account balance more frequently, resulting in a higher accumulation of interest over time.
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During a project, it is determined that some of the necessary equipment will arrive 1 week later than anticipated. In order to keep the project moving, the project manager decides to begin the second step of the project before the first step is completed. During what phase of the project management process would this occur in?.
Answers
Perceiving and researching demands is the initial stage in creating educational software. The strategic plans for project management, human resources, or individual development may already include requests for employee education.
A management technique for organizing and overseeing products or the execution of a task is project management. This procedure, which is focused on the beginning principles of the process and overall task control, starts once the patron has given their approval based on the terms of the contract.
A mission's preferred results are explained, arranged, and successfully delivered using the four phases that make up the ITS challenge control Lifecycle. These include Initiation, Planning, Execution, and Closing.
To deliver something of value to people, project management uses a variety of specialized knowledge, abilities, tools, and procedures. Projects include the creation of software for enhanced corporate processes, the construction of a building, the relief effort following a natural disaster, and the growth of sales into a new geographic market.
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DECISION MAKING Suppose the Tracers decide they want to adjust their budget
so they can save for a special summer vacation that will cost $5,000. How would
you suggest they go about revising their budget to meet their goal?
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Explanation:
The tracers will have to adjust their budget before planing for a summer vacation for that they will have to be saving $1000 each every month .To revive their budget to meet their goal they will have to be planing their budget every day like $50
Can you really answer the question of whether an opportunity is real before developing a product concept?
Answers
Answer:
Yes
Explanation:
For example, it has been said that what prompted e-commerce on platforms such as Amazon, eBay, etc was a result of the opportunity their founders saw with the invention/adoption of the internet.
In other words, they saw a real opportunity (through the internet growth rate) and thus decided to develop a product concept. Hence, we could thus conclude with a yes to the question.
if your paycheck provides enough to pay rent and buy groceries and necessities, you are probably eanring a
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The possibility that a paycheck provides to cater for paying rent and buying groceries and necessities implies that you're probably earning a good salary.
What is a Paycheck?
Traditionally, a paycheck is a paper document delivered by an employer to compensate an employee for services performed or rendered.
The employee cashed the cheque to collect payment. The employee may also choose to have their salary instantly transferred into their bank account, ensuring that their money is there on payday.
A paycheck may be sent out or issued on a weekly or bimonthly basis. Thus, the possibility that a paycheck provides to cater for paying rent and buying groceries and necessities implies that you're probably earning a good salary.
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Answer:
b
Explanation:its b
Suppose that Grinch and Grubb go into the wine business in a small country where wine is difficult to grow. The demand for wine is given by p = $480 – 0.2Q where p is the price and Q is the total quantity sold. The industry consists of just the two Cournot duopolists, Grinch and Grubb. Imports are prohibited. Grinch has constant marginal costs of $ 60 and Grubb has marginal costs of $45. How much is Grinch's output in equilibrium?
Answers
The value of q1, we need to solve the above two equations for q1. Solving the equations, we get:q1 = 160q2 = 128. Thus, the optimal output of Grinch is q1 = 160 units.
Cournot duopoly is a market situation where a small number of firms compete against one another. These firms offer differentiated or homogeneous goods and services. Cournot's solution explains the output levels and equilibrium prices under oligopoly.
In the given problem, Grinch and Grubb go into the wine business in a small country where wine is difficult to grow. It has been given that the demand for wine is given by p = $480 – 0.2Q, where p is the price and Q is the total quantity sold.
The total quantity sold is given by: Q = q1 + q2where, q1 is the output of Grinch and q2 is the output of Grubb.
The marginal cost (MC) of Grinch is $60, and the marginal cost of Grubb is $45. The marginal cost is the additional cost that the firms incur in producing one extra unit of the good. Therefore, the total cost (TC) of producing a given quantity of the output is given by:TC1 = 60q1 andTC2 = 45q2In the Cournot duopoly, each firm maximizes its profit by considering the output decision of its competitor.
The output decision of Grinch, q1, depends on the output decision of Grubb, q2. Thus, the optimal output decisions of Grinch and Grubb can be expressed as:q1 = (a – b.q2) / 2q2 = (a – b.q1) / 2 where, a = 480 and b = 0.2Substituting the values of a and b, we get:q1 = (480 – 0.2q2) / 2q2 = (480 – 0.2q1) / 2
Multiplying both sides by 2, we get:2q1 = 480 – 0.2q22q2 = 480 – 0.2q1. Simplifying the above two equations, we get:q1 = 144 – 0.1q2q2 = 144 – 0.1q1 .
Therefore, to find the value of q1, we need to solve the above two equations for q1.
Solving the equations, we get:q1 = 160 q 2 = 128. Thus, the optimal output of Grinch is q1 = 160 units.
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On May 27, Buzz Off Inc. reacquired 5,500 shares of its common stock at $23 per share. On August 3, Buzz Off sold 3,200 of the reacquired shares at $26 per share. November 14, Buzz Off sold the remaining shares at $22 per share.
Journalize the transactions of May 27, August 3, and November 14. For a compound transaction, if an amount box does not require an entry, leave it blank.
May 27_____
Aug. 3_____
Nov. 14_____
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Answer:
May 27
Dr Treasury Stock $126,500
Cr Cash $126,500
Aug. 3
Dr Cash $83,200
Cr Treasury Stock $73,600
Cr Paid-in Capital from Sale of Treasury Stock $9,600
Nov. 14
Dr Cash $50,600
Dr Paid-in Capital from Sale of Treasury Stock $2,300
Cr Treasury Stock $52,900
Explanation:
Preparation for the Journal entries for Buzz Off Inc
May 27
Dr Treasury Stock $126,500
(5,500 × $23)
Cr Cash $126,500
Aug. 3
Dr Cash $83,200
(3,200 × $26)
Cr Treasury Stock $73,600
(3,200 × $23)
Cr Paid-in Capital from Sale of Treasury Stock $9,600[3,200 × ($26 – $23)]
Nov. 14
Dr Cash $50,600
($5,500-$3,200 × $22)
Dr Paid-in Capital from Sale of Treasury Stock $2,300
[$5,500-$3,200 × ($23 – $22)
Cr Treasury Stock $52,900
(2,300 × $23)
Pretend you are President of the United States. The Citizens and the economy of the USA need financial assistance to get back on their feet. List and describe three fiscal Policies you would initiate (describe each policy in 3 sentences):
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Assuming i am the President of U.S. and the country needs a financial assistance to get back on their feet. The most likely fiscal Policies we would initiate are the:
contractionary fiscal policyexpansionary fiscal policyWhat do we call a Fiscal policy?In economics, a fiscal policy refers to a governmental decision to increase or decrease taxation and spending. Most time, a Fiscal and monetary policy are often used together to influence the economy. But the fiscal policy can affect a company’s growth, hiring ability and taxes.
We have 3 types of fiscal policy which includes a neutral, expansionary, and contractionary fiscal policy. The neutral policy is one where government takes no steps to provide economic support because it feels the economy is healthy and stable, the expansionary fiscal policy mainly involves increasing spending or cutting taxes to prevent or end a recession or depression and the contractionary fiscal policy involves cutting spending or raising taxes to slow down unsustainable economic growth.
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jill is selling her property to carl. after they agreed upon a sale price they both signed the sales contract. carl is reviewing the disclosure form, which shows the septic system is in the process of being repaired. there is a waiver attached to the property due to the failed septic system. what options does carl have regarding the purchase of jill's property? select one: a. carl is allowed to back out of the contract and get his full deposit refunded b. carl is obligated by the sales contract to buy jill's property c. carl can ask to back out of the sales contract but he risks a breach and loss of his deposit d. carl will have to take the matter to court
Answers
Regarding the purchase of jill's property the correct answer is (C) - Carl can ask to back out of the sales contract but he risks a breach and loss of his deposit.
When purchasing a property, it is common for the seller to provide a disclosure form to the buyer. The disclosure form provides information about the condition of the property, including any repairs or maintenance that have been made or are in progress. In this case, the disclosure form shows that the septic system is in the process of being repaired and there is a waiver attached to the property due to the failed septic system.
After signing the sales contract, Carl has the option to back out of the contract if he discovers something about the property that he is not comfortable with. However, if he chooses to do so, he risks breaching the contract and losing his deposit. The terms of the sales contract will determine the amount of the deposit and the circumstances under which it can be forfeited.
If Carl believes that the information in the disclosure form was not provided in good faith or that Jill misrepresented the condition of the property, he may have grounds for legal action. However, in most cases, it is best to try to resolve any issues through negotiation or mediation before resorting to legal action..
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Using the profitability index, which of the following projects would you choose if you have limited funds? Project 1 2 3 4 5 Initial investment ($) 100,000 80,000 60,000 40,000 105,000 NPV ($) 30,000 25,000 15,000 17,000 40,000 Project 1 Project 2 Project 3 O Project 4 O Project 5
Answers
The profitability index is a financial tool that measures the amount of return per dollar invested. It is calculated by dividing the present value of the expected future cash flows by the initial investment. In this case, the projects that have the highest profitability index should be chosen, as they will provide the greatest return for the amount of money invested.
Using the profitability index formula, the results for each project are as follows:
Project 1: PI = ($30,000 / $100,000) = 0.3
Project 2: PI = ($25,000 / $80,000) = 0.31
Project 3: PI = ($15,000 / $60,000) = 0.25
Project 4: PI = ($17,000 / $40,000) = 0.43
Project 5: PI = ($40,000 / $105,000) = 0.38
Based on the profitability index, Project 4 has the highest PI, which means it provides the greatest return for every dollar invested. Therefore, if limited funds are available, Project 4 should be chosen over the other projects.
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A country usually imposes an embargo on another country for economic reasons rather than political reasons.
True or False
Answers
Answer:
True
Explanation:
Hopefully this helps.
Answer:
False
Explanation:
Took test
when developing contingency plans, your textbook recommends developing a minimum of contingencies?
Answers
The textbook recommends developing at least three contingencies for any given situation.
What is contingency?
A contingency plan, as well known as Plan B informally, is a strategy developed to deal with a situation that is not anticipated in the regular (expected) plan. It is frequently used in risk management for just a rare risk that, while unlikely, could have disastrous results. Creating a contingency plan is frequently done by governments or businesses. The process of putting a contingency plan into action involves five steps: assembling a planning team, determining the extent of the issue, developing a plan, testing the plan, and maintaining the plan's accuracy. For instance, if a company's employees are all travelling on the same plane and it crashes, killing everyone on board, the company may be severely strained and even destroyed.
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Which of the following refers a reduction the production and availability of a good or service in due to a decrease in its market price? a. An increase in the supply for a product b. An increase in the quantity supplied for a product C. A decrease in the supply of a product d. A decrease in the quantity supplied for a product
Answers
Answer:
B. an increase in the quantity supplied for a product.
Explain how long-term profitability affects pricing.
Answers
Answer:
A price increase
Deals and promotions
Poor customer experiences
Innovation that delivers value
Explanation:
What were his earnings for this week? answer please
Answers
Answer:
$23,175
Explanation:
The commission sales are 3%, and the sales amount is $22,500.
Divide 22,500 by 100 to find the cost per percentage.
$22,500 / 100 = $225
So, $225 = 1% of commissions
Now, $225 x 3 = $675
3% of commissions = $675
$22,500 + $675 = $23,175
I hope this helps!
what was the intent of lenin's new economic policy nep
Answers
The intent of Lenin's New Economic Policy (NEP) was to introduce a temporary retreat from strict socialist economic policies and adopt limited elements of capitalism to stimulate the Soviet economy, which had been severely damaged by the Russian Civil War and economic dislocation.
Lenin recognized that the war communism policies implemented during the Civil War, such as forced requisitioning of grain and centralized state control over industry, had resulted in economic decline, food shortages, and widespread discontent among the population. The NEP aimed to address these issues by allowing for some degree of private enterprise and market mechanisms.Under the NEP, small-scale private businesses, known as "Nepmen," were allowed to operate and engage in trade, while peasants were permitted to sell their surplus agricultural produce on the open market. State control over major industries was maintained, but a system of limited economic freedom was introduced to encourage production, incentivize farmers, and restore economic stability.
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i will give 100 points please help
Answers
Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the long run? Answer A. a reduction in real GDP. B, a recessionary gap. C. an inflationary gap. D. none of the above.
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If the economy is initially operating at full employment, a reduction in the size of the budget deficit will likely cause none of the above outcomes in the long run. The Correct option is D
This is because a reduction in the budget deficit implies either an increase in government revenue or a decrease in government spending. Both of these measures may lead to a decrease in aggregate demand and a potential slowdown in economic activity in the short run.
However, in the long run, the reduction in the budget deficit may lead to greater confidence in the economy and improved economic stability, ultimately supporting sustained economic growth without inflationary or recessionary gaps.
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In detail, please discuss CUSMA, and how does this differ than NAFTA. Please provide ten examples from both the agreements.
Answers
CUSMA, also known as the Canada-United States-Mexico Agreement, replaces the North American Free Trade Agreement (NAFTA) that has been in effect since 1994.
It was signed on November 30, 2018, and went into effect on July 1, 2020.
This agreement is designed to modernize and update the existing NAFTA, with a particular emphasis on digital trade, labor rights, and environmental protections. The CUSMA agreement differs from NAFTA in several ways.
Here are ten examples of the differences between the two agreements:
1. Digital trade: CUSMA includes new rules that govern cross-border data flows, data localization, and e-commerce, while NAFTA did not address these issues.
2. Labor standards: CUSMA includes stronger labor protections, such as requiring Mexico to pass new labor laws that give workers the right to unionize and bargain collectively, while NAFTA only required that labor laws be enforced.
3. Environmental protections: CUSMA includes stronger environmental protections, such as requiring the parties to maintain high levels of environmental protection and to enforce their environmental laws.
4. Auto rules: CUSMA requires that a certain percentage of a car's content be made by workers earning at least $16 an hour, while NAFTA had no such requirement.
5. Intellectual property: CUSMA includes stronger protections for intellectual property, such as extending the length of copyright protection, while NAFTA had weaker protections.
6. Dispute resolution: CUSMA includes a new dispute resolution mechanism that replaces the old NAFTA system, which critics said favored corporations over workers and the environment.
7. Dairy: CUSMA gives the United States greater access to Canada's dairy market, while NAFTA had limits on dairy imports.
8. Sunset clause: CUSMA includes a sunset clause that requires the agreement to be reviewed and potentially renewed every 16 years, while NAFTA had no such clause.
9. Textiles: CUSMA includes new rules for textile and apparel trade, such as requiring that certain products be made from North American-sourced materials.
10. Sunset review: CUSMA has a sunset review process that allows the parties to review the agreement every six years to ensure it remains relevant and effective, while NAFTA had no such process.
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