Answer:
Effect of Transaction on Cash Flows
Effects Amount
1. Cash Payment $239,000
2. Cash Receipt $252,000 (12000*$21)
3. Cash Receipt $91,400
4. Cash Payment $491,000
5. Cash Payment $86,000
6. Cash Receipt $188,100 (190,000*0.99)
7. Cash Payment $353,400 (6,200*$57)
8. Cash Payment $36,100 [1.90*(23,000-4,000)]
Yams unlimited has total payroll of $60,000 for the month of September the income taxes to be withheld or $12,000 and FICA taxes are $4,590. What is the journal entry Yams should record for the payroll?
Answer:
Dr Salaries expense 60,000
CrIncome tax payable 12,000
CrFICA tax payable 4,590
Cr Salaries payable 43,410
Explanation:
Preparation for the journal entry that Yams should record for the payroll
Dr Salaries expense 60,000
Cr Income tax payable 12,000
Cr FICA tax payable 4,590
Cr Salaries payable 43,410
[60,000-(12,000+4,590)]
(60,000-16,590)
=43,410
(Being to record the payroll amount)
Please help me with these accounting questions
1. How can a business entity have controlling interest of another business entity when it does not own over 50% of the parent company ordinary share capital?
2. Why are inventories excluded when calculating the Acid test ratio under “Liquidity ratios"?
3. Why are the intra-group profits eliminated during consolidation? Explain with an example
4. Provide one reason on why the amount paid for a business (during takeover) may differ from that of the balance sheet value of its net assets?
Answer:
In summary, types of business entity should be differentiated in Ownership; ... Credit transactions: the buyer does not have to pay for the item on receipt, but is allowed ... Dr.Cash 600 Cr.Irrecoverable debt expense 600 8.2 An allowance for ... the day is as follows: Assets Capital + Liabilities （Inventory $50）
Explanation:
PLEASE HELP VRO
When the economy is on the downfall it is called
A) A recession
B) A depression
C) The downfall
Answer:
A I don't know how to explain it but the answer is A
A clothier makes coats and slacks. The two resources required are wool cloth and labor. The clothier has 150 square yards of wool and 200 hours of labor available. Each coat requires 3 square yards of wool and 10 hours of labor. Each pair of slacks requires 5 square yards of wool and 4 hours of labor. The profit for a coat is $50, and the profit for slacks is $40. The clothier wants to determine the number of coats and pairs of slacks to make so that profit will be maximized.
a. Give the Objective function.
b. Give the constraints
c. Graph the solution
d. Give the optimal Point
Answer:
a. Give the Objective function.
Let c = #coats to be produced
Let s = #slacks to be produced
b. Give the constraints
3c+5s≤150
10c+4s≤200
d. Give the optimal Point
The profit function would be P(x,y)=50c+40s
Explanation:
Let c = #coats to be produced
Let s = #slacks to be produced
Our first constraint deals with square yards of wool. We cannot exceed 150 square yards. Using the fact that coats require 3 sq yds and slacks require 5 sq yds, we can identify this constraint.
3c+5s≤150
Our second constraint deals with the number of hours available being 200. Coats require 10 hrs and slacks require 4 hrs. Now we have our second constraint.
10c+4s≤200
We might also assume that some of each will be produced, so we can list the following as constraints as well.
c>0 and s>0
The profit function would be P(x,y)=50c+40s
The final step in the decision-making process is _____.
know yourself
select the best plan
develop a plan of action
none of the above
Answer:
C) Develop an Action Plan
Explanation:
Hope that helps
Sorry if it is wrong
What do price controls give us?
Answer:
Price controls are government-mandated minimum or maximum prices set for specific goods and are typically put in place to manage the affordability of the goods. ... Over the long term, price controls can lead to problems such as shortages, rationing, inferior product quality, and black markets.
Explanation:
hope you get it right! ✋
Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in which it is located. This building was built at a cost of $647,000 and is currently appraised at $819,000. The counters and fixtures originally cost $148,000 and are currently valued at $65,000. The inventory is valued on the balance sheet at $319,000 and has a retail market value equal to 1.2 times its cost. Jake expects the store to collect 98 percent of the $21,700 in accounts receivable. The firm has $26,800 in cash and has total debt of $414,700. What is the market value of this firm?
a) $857,634
b) $900,166
c) $919,000
d) $1,314,866
e) $1,333,700
Answer:
b) $900,166
Explanation:
The computation of the market value of the firm is given below:
The Market value of building $819,000
Add: Market value of counter and fixtures $65,000
Add: Retail price of inventory ($319,000 × 1.20) $382,800
Add: Collection from accounts receivables ($21,700 × 98%) $21,266
Add: Cash available $26,800
Total value of assets $1314,866
Less: Total debt -$414,700
Market value $900,166
Which option in a table would violate the 1NF rules of normalization?
A.Each cell of the table has a single value.
B.Some cells of the table have multiple values.
C.The table does not contain repeating groups.
D.The table depends on a primary key that is unique.
The option that violates the 1NF rules of normalization is that B. Some cells of the table have multiple values.
What are the 1NF rules of normalization?This is a normalization form that calls for the deletion of groups of data that are repeating to ensure that redundant data is removed.
If some cells of a table have multiple values therefore, it would mean that there are repeating data which will violate the 1NF rule.
In conclusion, option B is correct.
Find out more on normalization at https://brainly.com/question/25766696.
Answer:
B
Explanation:
Suppose Tran studies in Vietnam. He buys a bowl of pho (noodle soup) for 250 baht. Tran remembers paying $8 for a similar bowl of pho before he left the United States. If purchasing power parity held exactly, the exchange rate would be ________baht per dollar (round your answer to two decimal places).
Answer:
31.25 baht/$1
Explanation:
It is obvious that the dollar is a stronger currency among the two currencies, hence, in order to determine the amount of baht that one dollar would exchange for, we need to divide the price of bowl of pho in the weaker currency by the amount of the same bowl of pho in the stronger currency as shown by the formula below:
baht/$=price of bowl of pho in baht/price of bowl of pho in $
price of bowl of pho in baht=250 baht
price of bowl of pho in $=$8
baht/$=250 baht/$8
baht/$ exchange rate=31.25 baht/$1
Assume Ireland and Mauritania can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Ireland can produce 10t of grain or 5t of dates in a season. Each farmer in Mauritania can also produce 10 t of grain or 25 t of dates. Please answer the four questions.
1. Which country has the absolute advantage in producing dates?
a. Niger
b.Sweden
c. Neither
2. Which country has the absolute advantage in producing grain?
a. Niger
b.Sweden
c. Neither
Answer:
Mauritania has an absolute advantage in the production of dates
Neither countries have an absolute advantage in the production of grains
Explanation:
A country has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Ireland and Mauritania produces 10t grains. None of the countries have an absolute advantage in the production of grains
Mauritania produces 25t of dates while Ireland produces 5t of dates. 25 is greater than 5, so Mauritania has an absolute advantage in the production of dates
The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers.
A. Bill’s collected $15,600 from customers for services related to games played in July.
B. Bill’s billed a customer for $600 for a party held at the center on the last day of July. The bill is to be paid in August.
C. The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,850 for the fall season that starts in September.
D. Bill’s received $1,500 from credit sales made to customers last month (in June).
Prepare journal entries to record the above transactions
Record the collection of $16, 400 from customers for services related to games played in July. Record the entry for billing a customer for $405 for a party held at the center on the last day of July. The bill is to be paid in August. Record the advance payments made by the men's and women's bowling leagues totaling $1, 550 for the fall season that starts in September. Record the receipt of $1, 700 from credit sales made to customers last month (in June).
Answer:
A. Bill’s collected $15,600 from customers for services related to games played in July.
Dr Cash 15,600
Cr Service revenue 15,600
B. Bill’s billed a customer for $600 for a party held at the center on the last day of July. The bill is to be paid in August.
Dr Accounts receivable 600
Cr Service revenue 600
C. The men’s and women’s bowling leagues gave Bill’s advance payments totaling $1,850 for the fall season that starts in September.
Dr Cash 1,850
Cr Unearned service revenue 1,850
D. Bill’s received $1,500 from credit sales made to customers last month (in June).
Dr Cash 1,500
Cr Accounts receivable 1,500
Roman Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $40,000. Budgeted cash receipts are $101,000, while budgeted cash disbursements are $123,000. Roman Company wants to have an ending cash balance of $45,000. How much would Roman Company need to borrow to achieve its desired ending cash balance?
Answer:
$27,000
Explanation:
Budgeting is the process by which a business projects it's expenditures and revenues within a given period and plans to obtain funds to run the business on the basis of these projections.
In the given scenario Roman company have projected the cash reciepts and cash disbursement within the period.
They now need a particular loan amount to gain cash level of $45,000 at the end of the period.
Final cash balance = Opening balance + Cash receipts - Cash disbursement + Loan
$45,000 = $40,000 + $101,000 - $123,000 + Loan
45,000 = 18,000 + Loan
Loan = 45,000 - 18,000
Loan = $27,000
What transfer pricing alternatives is based on determining an appropriate markup?
Answer:
Resale-price method.
Explanation:
Resale-price method is a transfer pricing alternatives which is typically based on determining an appropriate markup and as such, the markup is based on gross profits of unrelated firms selling similar products.
This ultimately implies that, it is a transfer pricing alternatives which is typically based on the price at which a particular product or goods purchased from an associated enterprises is then resold to a third-party such as an independent enterprise.
Use the information about Company X below to help answer this question:
The company just paid out $60M in dividends.
Dividends will grow at 12% for each of the next 5 years.
Dividends will grow at 8% every year thereafter (beginning in year 6)
The company has 75M shares outstanding
The company's cost of equity is 16%
The company's WACC is 10%
Using the Dividend Discount Model for Non-Constant growth, the value of one share of the company's stock today is closest to:_______
a. $12.00
b. $12.67
c. $22.40
d. $41.50
e. $51.50
Answer:
b. $12.67
Explanation:
The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.
Year 1 dividend=current year dividend*(1+12%)
Year 1 dividend=$60m*(1+12%)=$67.20m
Year 2 dividend=$67.20m*(1+12%)=$75.26m
Year 3 dividend=$75.26m*(1+12%)=$ 84.30m
Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m
Year 5 dividend=$ 94.41m*(1+12%)=$105.74m
the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)
the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m
value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5
value of the company=$956.00 m
value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)
Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $5,600 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
The first payment is received at the end of the first year, and interest is compounded annually.
The first payment is received at the beginning of the first year, and interest is compounded annually.
The first payment is received at the end of the first year, and interest is compounded quarterly.
Answer:
(a) The present value is $20,186.75.
(b) The present value is $22,609.16.
(b) The present value is $20,828.46.
Explanation:
(a) The first payment is received at the end of the first year, and interest is compounded annually.
The present value can be determined using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value =?
P = Annuity payment = $5,600
r = Annual interest rate = 12%, or 0.12
n = number of years = 5
Substitute the values into equation (1) to have:
PV = $5,600 * ((1 - (1 / (1 + 0.12))^5) / 0.12)
PV = $5,600 * 3.60477620234501
PV = $20,186.75
(b) The first payment is received at the beginning of the first year, and interest is compounded annually.
This can be calculated using the formula for calculating the present value (PV) of annuity due as follows:
PV = P * ((1 - [1 / (1 + r))^n) / r) * (1 + r) .................................. (1)
Where;
Where;
PV = Present value =?
P = Annuity payment = $5,600
r = Annual interest rate = 12%, or 0.12
n = number of years = 5
Substitute the values into equation (1) to have:
PV = $5,600 * ((1 - (1 / (1 + 0.12))^5) / 0.12) * (1 + 0.12)
PV = $5,600 * 3.60477620234501 * 1.12
PV = $22,609.16
(c) The first payment is received at the end of the first year, and interest is compounded quarterly.
The present value can be determined using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value =?
P = Quarterly payment = Annuity payment / 4 = $1,400
r = Quarterly interest rate = Annual interest rate / 4 = 12% / 4 = 0.12 / 4 = 0.03
n = number of quarters = 5 years * 4 = 20
Substitute the values into equation (1) to have:
PV = $1,400 * ((1 - (1 / (1 + 0.03))^20) / 0.03)
PV = $1,400 * 14.8774748604555
PV = $20,828.46
You are working at the campus bookstore, earning $9.00 per hour. Your manager tells you that in the upcoming year, you will get a 2% raise.
a. What is the approximate change in your real wage if inflation is 1%?
b. What is the approximate change in your real wage if inflation is 2%?
c. What is the approximate change in your real wage if inflation is 3%?
Answer:
a. $0.09
b. $0
c. -$0.09
Explanation:
Real rate = Nominal rate - inflation rate
a. Real rate = 2% - 1%
= 1%
Change in real wage = 9 * 1% = $0.09
b. = 2% -2% = 0%
Change in real wage = 9 * 0% = 0
c. = 2% - 3%
= -1%
Change in real wage = 9 * -1% = -$0.09
A strategy to manage unexpected surges in demand that The Gap, a retail store, can utilize is:______
a. Inventory buffers
b. Reducing flexibility
c. IT systems
d. Outsourcing
e. a and b
Answer:
a. Inventory buffers
Explanation:
When a retail store foresee unexpected increase in the demand of its products, such could use what is called inventory buffers to manage the situation.
Inventory buffers helps to provide better customer service by ensuring that a situation where a retail store is out of stock is prevented; thus eliminate the severity of stock out scenario. Essentially, inventory buffers also known as safety stock help to curb supply, which be excessive in terms of demand forecast.
The following information is provided about the Town of York’s General Fund operating statement and budgetary accounts for the fiscal year ended September 30. (Note: The town has no restricted, committed, or assigned fund balances.) Estimated revenues $ 32,150,000 Revenues 32,190,000 Appropriations 32,175,000 Expenditures 32,185,000 Fund Balance—Unassigned (beginning of the fiscal year) 500,000 Required Prepare the journal entry to record the budget. (
Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
Select all the items that describe the role of a producer.
1. You want to charge a price that does not cover fixed costs.
2. You want to charge a price that covers variable costs.
3. You want to charge a price that earns profits.
4. You want to have a large market share.
Answer:
2. You want to charge a price that covers variable costs.
3. You want to charge a price that earns profits.
4. You want to have a large market share.
Explanation:
Producers would like to charge a price that will enable them to cover their variable costs. A price lower than their variable costs will bring losses and a shutdown.
They would also like to charge a price that brings profits to them and their shareholders and this is the aim of doing business.
Producers would also like a large market share as this would mean more profit because more people would be buying their goods and services.
Spaniards can produce 10 gallons of wine or 8 gallons of olive oil per worker hour. Americans can produce 9 gallons of wine or 6 gallons on olive oil per worker hour. Which of these exchange rates would allow both countries to gain from selling wine in exchange for olive oil?
a. Americans, Spanish
b. Americans, Americans
c. Spanish, Spanish
d. Spanish, Americans
Answer:
a. Americans, Spanish
Explanation:
Particulars Wine Olive Oil Opportunity Opportunity cost of Olive oil
cost of Wine
Spaniards 10 8 0.8 1.25
Americans 9 6 0.67 1.5
From the above table, the first option is correct
Which of the following explains why products made under a command economy are more likely to be low quality?
O A) The workers who make them have little incentive to make them well.
O B) The workers who make them are not given quality-control guidelines.
O C) The workers who make them are left to manage production facilities on their own.
O D) The workers who make them are forced by tradition to use old-fashioned methods.
Answer:
O A) The workers who make them have little incentive to make them well.
Explanation:
In a command economy, the government does all the production through its agencies and institutions. The government employs all the workers. Public interest is the motive for engaging in commercial activities. Production is not profit-motivated; hence goods and services are availed to customers are low prices. The employees' pay is not high as organizations don't generate a lot of profits. Employee morale is low due to the low pay.
In command economies, there is no business competition. Government institutions are monopolies. Without competition, there is little innovation in the country. Employees are not challenged to develop new products as consumers have no other alternatives.
When Christopher dies, he wants to leave one half of his adjusted gross estate to his spouse and the other half of the estate to the American Cancer Society. What type of will does he need to create?
a) marital share will
b) exemption trust will
c) stated amount will
d) simple will
Answer:
I believe it is marital will
mm company predicts sales of 50,000 for may ,the company manger salary 4,900 plus 6% sales dollars the production manager found a way to reduce the amount of packaging the company uses may sales are predicted to increase by 8% in addition the shipping costs decrease from 4% to 3%
Answer:
1. $54,000
2. $9,760
Explanation:
1) Computation of budgeted sales
Budgeted sales = $50,000 + ( $50,000 × 8%)
Budgeted sales = $50,000 + $4,000
Budgeted sales = $54,000
Therefore the Budgeted sales will be $54,000
2). Calculation for the budgeted selling expenses for May using this formula
Budget selling expense for May= Manager salary + ( Commission on budget sales) + (Shipping cost on budget sales)
Let plug in the formula
Budget selling expense for May= $4,900 + ($54,000 × 6%) + ( $54,000 × 3%)
Budget selling expense for May= $4,900 + $3,240 + $1,620
Budget selling expense for May=$9,760
Therefore the Budget selling expense for May will be $9,760
A dealer in New Jersey has surveyed the cars on his lot and has recorded a dataset with following variables:
1. Make/ Model,
2. Miles per Gallon,
3. Car Type (e.g., economy, full size),
4. Price, and
5. Color, The data collected for above variables 1, 2, 3, 4, and 5 are:
nominal, ordinal, nominal, interval, nominal
ordinal, interval, ordinal, ordinal, ordinal
ordinal, interval, ordinal, interval, nominal
nominal, interval, nominal, interval, nominal
The current price of crude oil is $59. What type of scale is used to measure the price of the crude oil?
a. Ratio
b. Interval
c. Ordinal
d. Nominal
Question 1
Answer:
nominal, interval, nominal, interval, nominal
Explanation:
Levels of measurement are used to properly define the characteristics of variables of interest in a statistical study.
A variable is a quantity that varies across a population of interest.
Different levels of measurement are listed below:
- nominal scales has to do with naming or labelling. The assigned label cannot be quantified. They are not arranged in order
- ordinal scale is when variables are labelled and arranged in a particular order
- interval involve a specific interval between the variables in addition to labelling and order
- ratio is a scale that bears all the characteristics of interval scale in addition to having a value of zero for variables that don't exist.
From the question
1. Make/ Model, is nominal
2. Miles per Gallon, is interval
3. Car Type (e.g., economy, full size), is nominal
4. Price, is interval
5. Color, is nominal
Question 2
Answer:
Ratio
Explanation:
Price of $59 is a ratio scale because there is a specific interval that exists between each dollar in the scale, and there is an arbitrary zero value for money.
Zero value of money means absence of money.
For example difference between $59 and $65 is $6 which is measured in specific $1 amounts
Piper, a US citizen owns 100% of the stock of FORco, a foreign manufacturing and sales subsidiary. In 2020, FORco had $10 million of income from the manufacturing and sale of widgets in Europe and paid $3 million in foreign income taxes. FORco distributed no dividends. In January of 2020, FORco invested/deposited $7 million with a US Bank earning 1% annual interest (US sourced income). What are the U.S. tax consequences (if any) to Piper?
Answer:
$70000
Explanation:
We have been give in this question that a 100 percent of FORcos share belongs to piper. He owns a 100 percent fully. Piper has to include that which he deposited. 7 million dollars of 2 percent
= 7million dollars x 1 percent
= 7000000 x 0.01
= $70000
So piper has to include in gross income her share of FORcos f income for investment in united states property and this has been calculated as 70000
Sean Matthews is a waiter at the Deluxe Lounge. In his first weekly pay in March, he earned $300.00 for the 40 hours he worked. In addition, he reports his tips for February to his employer ($500.00), and the employer withholds the appropriate taxes for the tips from this first pay in March.
Calculate his net take-home pay assuming the employer withheld federal income tax (wage-bracket, married, 2 allowances), social security taxes, and state income tax (2%).
Answer:
$147.80
Explanation:
Calculation for his net take-home pay
Gross pay $300
Less Federal income tax ($72)
($800 - $810 tax bracket)
Less Social security taxes - OASDI ($49.60)
(6.2%*$800)
Less Social security taxes - HI ($11.60)
(1.45%*$800)
Less State income tax ($16)
($800 x 0.02)
NET PAY $147.80
Therefore his net take-home pay will be $147.80
If a corporate building has nine office suites that rents for $14,800 per month each, but suffers from a 14% vacancy rate and annual expenses of $21,100, what is the NOI of the building
Answer:
=$1,353, 524
Explanation:
NOI stands for net operating income
In this case, NOI will be calculated as follows
Rent per suit = $14,800
Number of suits 9
The monthly rent will be
=$14,800 x 9
=$133,200
Annual rent will be monthly rent x 12
= $133,200 x 12
=$1,598,400
Considering a 14 % vacancy rate, expected annual rent collection
=$1, 598,400 minus 14% of $1, 598,400 or 86% of $1, 598,400
= 86/100 x $1, 598,400
=$1,374,624
Adjusting for annual expenses
= $1,374,624 - $21,100
=$1,353, 524
The phrase gains from trade refers to the: increase in total output that is realized when individuals specialize in particular tasks and trade with each other. profits obtained from sales of a good or service. gains that one obtained by taking advantage of an uninformed buyer and selling at a higher than average price. gains that one obtains by taking advantage of a temporary discount, or sale price.
Answer:
increase in total output that is realized when individuals specialize in particular tasks and trade with each other.
Explanation:
gains from trade in economics can be regarded as net benefits that an
economic agents derived as a result of of voluntary trading between the agents, it can be also regarded as high change in lower tariffs of consumer and producer surplus. It should be noted The phrase gains from trade refers to increase in total output that is realized when individuals specialize in particular tasks and trade with each other.
In 2018, Faye, a cash-basis individual taxpayer, received an $8,000 bill for Cook County real estate taxes. Believing the amount to be over-stated by $1,000, Faye paid the full amount in 2018 but immediately started an appeal. In June 2019, the matter was settled and she received a $500 refund. Faye itemizes her deductions on her tax returns. Her total itemized deduction exceeded the standard deductions by $3000 in 2018 What would be her best course of action?
A. She should deduct the $8,000 in her 2018 federal income tax return and should report the $500 refund as income in her 2019 federal income tax return.
B. She should not deduct any real estate taxes on her 2018 federal tax return and should deduct $7,500 on her 2019 federal income tax return
C. She should deduct $7,000 on her 2018 federal income tax return and she does not need to include the $500 refund in her 2019 gross income
D. She cannot deduct any amount for the real estate tax on her 2018 income tax return, and should file an amended 2018 federal income tax return in 2019.
Answer:
As a cash-basis individual taxpayer, Faye should:
A. She should deduct the $8,000 in her 2018 federal income tax return and should report the $500 refund as income in her 2019 federal income tax return.
Explanation:
Itemized deductions are the expenses that can be subtracted from Faye's adjusted gross income (AGI) to reduce her tax bill. They are normally listed on Schedule A of Form 1040. Some of the itemized deductions are Home mortgage interest, Property, state, and local income taxes (like the $8,000 bill for Cook County real estate taxes), Investment interest expense, Medical expenses, Charitable contributions, and other miscellaneous deductions.
Penguin Island produces two goods: ice and genetically engineered fish. Due to recent technological advances, its economy has experienced growth in both ice and fish production. Show this growth in relation to the production possibilities frontier (PPF).
Which of the following economic activities have led to an increase in the standard of living worldwide over the last century?
a. investments in education and infrastructure
b. increases in international trade
c. increases in farm productivity
d. increases in technology
Answer:
1. Point on x-axis will increase and so will the point on the y-axis
2. All of the above
Explanation:
1. The Production Possibilities Frontier shows the amount of resources needed to produce different quantities of two goods. It therefore allows one to see the trade-off in resources for producing more of one good vs the other.
When a factor of production leads to more efficiency in the production of a good, the frontier will increase. In this scenario, there has been a growth in technology which means that more of both goods can be produced. This will increase the PPF on both axis. (Refer to attached file).
2. All of the listed options have led to increases in the standard of living in the last century. More education means people can get better jobs and build more infrastructure. International trade has increased market access and increased wealth. Farm productivity is better so more people can be fed and improvement in technology is the main driver for growth.
The PPF would shift from PPF1 to PPF2 due to technological advancement.
All the given factors have greatly led to an increase in the standard of living worldwide over the last century.
What is the production possibility frontier?PPF is used to graphically present the resources used by the economy for the production of two goods with the technology present in the nation.
Hence, with an increase in technology for both goods, PPF would shift rightwards demonstrating the improvement in production techniques in the economy.
What factors are contributing to increased living standards?The economies globally have widely contributed to education and infrastructure, which increased employment and higher pay opportunities to people for improving their living standards.
The enhancement in technology also provided various options for international trade and agricultural productivity, which again added to a higher standard of living.
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