Banks often estimate inflation. You can see what they think inflation will be if you know how much they charge for loans and how much they expect to earn. Suppose the nominal interest rate is 7% and the real interest rate is 2%. Given these interest rates, the bank thinks inflation will be_________ %

Answers

Answer 1

Answer:

5%

Explanation:

To find the answer, we use the Nominal Interest Rate formula:

Nominal Interest Rate = Real Interest Rate + Inflation Rate

Now, we plug the amounts into the formula, and confirm that the answer is correct:

7% = 2% + 5%

As we can see, the nominal interest rate is the sum of the real interest rate and the inflation rate. Therefore, banks will estimate the nominal interest rate taking into account the expected inflation rate.


Related Questions

Gabriele enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of 1000, and selling for 962. At this price, this price, the bonds yield 6.6 percent.
What must the coupon rate be on the bonds?

Answers

Answer:

The answer is =5.91%

Explanation:

N(Number of periods) = 7 years

I/Y(Yield to maturity) = 6.6percent

PV(present value or market price) = $962

PMT( coupon payment) = ?

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 7; I/Y = 6.6; PV = -962; FV= $1,000; CPT PMT= $59.05

Therefore, the coupon rate of the bond is of the bond is $59.05/1000

=5.91%

You will require $700 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal

Answers

Answer:

PV= $548.47

Explanation:

Giving the following information:

You will require $700 in 5 years. You earn 5% interest on your funds.

To calculate the initial investment, we need to use the following formula:

PV= FV/(1+i)^n

PV= present value

FV= future value

n= number of years

i= interest rate

PV= 700/(1.05^5)

PV= $548.47

Arianna's personal residence has an adjusted basis of $308,150 and a fair market value of $277,335. Arianna converts the personal residence to rental property. What is Arianna's gain basis? What is her loss basis? Arianna's basis for gain is $ and her basis for loss is $

Answers

Answer:

Arianna's basis for loss $277,335

Arianna's basis for gain $308,,150

Explanation:

Calculation for Arianna's gain basis and loss basis

Since the original basis for loss on personal use assets that is been converted to either the business or the income producing use is the lower or lesser of the property's adjusted basis or fair market value on the date of conversion which means that the gain basis for the converted property will tend to be the property's adjusted basis on the date of conversion.

Arianna's basis for loss will be $277,335 (lower of $308,150 adjusted basis and fair market value of $277,335).

The amount of $30,815 that was been decline in value is a personal loss whichncan never be recognized for tax purposes this means that Arianna's basis for gain is $308,,150 (adjusted basis).

A country in South America is experiencing high inflation, around 15% annually, and high unemployment, around 25%. According to the AD/AS model, which of the following is most likely to explain this outcome?
a. A positive real shock
b. A positive aggregate demand shock
c. A negative aggregate demand shock
d. A negative real shock

Answers

Answer:

The correct answer is the option D: A negative real shock

Explanation:

To begin with, in the case presented where the economy has suffered from high inflation and unemployment rates then the most likely situation that could have happened before to explain this outcome is that the country and its economy were harmed badly by a negative real shock. This tend to happen when the aggregate supply is low and this one tends to decline rapidly affecting the economy in its whole due to the fact that the sellers are now producing less of the products and services and therefore the consumption and the real GDP decreases dramastically.

Kate has put a lot of time and effort into streamlining the process to design and produce a greet-ing card. She has documented the entire process in a QuickTime video she produced on her iMac. The video takes the viewer through the step-by-step process of selecting hardware and software, and shows how to design and produce the card. Kate has met many people who would like to get into the production of greeting cards, but are overwhelmed by the process. Kate has decided to sell the entire package (hardware, software, and video tutorial) to aspiring card producers. The cost of the entire package to Kate is $4,500 and she plans to mark it up by $500 and sell it for $5,000. John Stevens, an individual Kate met recently at a greeting card conference, would like to buy the pack-age from Kate. Unfortunately, John does not have this much cash and would like for Kate to extend credit.Kate believes that many of her customers will not be able to pay cash and, therefore, she will need to find some way to provide financing. One option she is exploring is to accept credit cards. She learned that the credit card provider charges a 2.5 percent fee and provides immediate cash upon receiving the sales receipts.Kate would like you to answer the following questions: 1. What are the advantages and disadvantages of offering credit

Answers

Answer:

The disadvantage of offering credit would be that Kate loses $125 on the sale of each $5,000 package.

$125 is 2.5% of $5,000

Her expected gain is shortened by $125 and now becomes (500 - 125 = $375).

Explanation:

The advantage of offering credit would be that immediate cash is provided, upon presentation of the sales receipts.

Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $9,200. Emma Co. prepaid the $840 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period?
A. Accounts Payable-Emma Co. $15,000
Freight In $750
Cash $14,250
B. Accounts Payable-Emma Co. $15,750
Merchandise Inventory $300
Cash $16,050
C. Accounts Payable-Emma Co. $15,750
Merchandise Inventory $300
Cash $15,450
D. Accounts Payable-Emma Co. $15,000
Freight In $750
Cash $15,750

Answers

Answer:

Dr Accounts Payable-Emma Co. $10,040

Cr Merchandise Inventory $184

Cr Cash $9,856

Explanation:

The Journal entry that Isabella Co. will make to record the payment for the merchandise if Isabella Co. pays within the discount period.

Dr Accounts payable-emma Co. $10,040

($9,200+$840)

Cr Merchandise inventory $184

(2%*$9,200)

Cr Cash $9,856

($10,040-$184)

company's retained earnings have a financing cost associated with them because retained earnings belong to which of the following? a. The common stockholders b. The company's long-term debt holders c. The preferred stockholders d. The company

Answers

Answer:

a. The common stockholders.

Explanation:

A company's retained earnings have a financing cost associated with them because retained earnings belong to the common stockholders.

Retained earnings can be defined as the accumulated profits or net income generated by an organization but are not distributed or given as dividends to the stockholders, rather are reinvested in to the business.

Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.

Retained earnings represents the total stockholders' equity reinvested back into the company.

How have or will external factors result in the overhaul of a traditional industry of your choice (such as retail or any other) as we know it? Please explain and cite examples.

Answers

Explanation:

External factors can directly impact the revision of a traditional sector.

Considering the retail sector as an example, we can see how it was impacted by new technologies such as the insertion of commercial activities in an online environment.

New technologies such as the internet are tools for interaction and information exchange where companies can prospect customers and create relationship marketing that promotes greater value and positioning for a company.

For a retailer who wants to remain competitive, it is important to adapt to new ways of making sales, reinventing and updating their payment, delivery, sales and marketing processes and systems.

Carter Co. acquired drilling rights for $18,550,000. The oil deposit is estimated to produce a total of 74,200,000 gallons. During the current year, 6,000,000 gallons were drilled. Record the journal entry on December 31 to recognize the depletion expense for the year. In your journal entry be sure to clearly indicate what accounts/amounts you are debiting and what accounts/amounts you are crediting.
Journal
Date Description Post. Ref. Debit Credit

Answers

Answer:

Depletion expenses Dr $1,500,000  

          To Accumlated depletion  $1,500,000

(Being the depletion expense is recorded)

Explanation:

The journal entry is shown below:

Depletion expenses Dr $1,500,000  

          To Accumlated depletion  $1,500,000

(Being the depletion expense is recorded)

For recording this we debited the depletion expense as it increased the expense and credited the accumulated depletion as it reduced the assets

The computation is shown below:

The purchase price is

= Aquired value ÷ estimated production

= $18,550,000 ÷ 74,200,000

= $0.25 per gallons

Now depletion allowance is

= current year production × purchase price

= 6,000,000 × $0.25

= $1,500,000

The appropriate journal entry to record the transaction is:

Debit Depletion expense $1,500,000

Credit Accumulated depletion $1,500,000

First step is to calculate the depletion rate

Depletion rate = Cost/Estimated size

Depletion rate = $18,550,000/74,200,000

Depletion rate = $0.25 per gallon

Second step is to calculate the depletion expense

Depletion expense = Depletion rate × Quantity extracted

Depletion expense = $0.25 × 6,000,000 gallons

Depletion expense = $1,500,000

Third step is to prepare the journal entry for Carter Co.

December 31

Debit Depletion expense $1,500,000

Credit Accumulated depletion $1,500,000

Learn more here:https://brainly.com/question/16922056

A proposed project has fixed costs of $47,000 per year. The operating cash flow at 11,000 units is $69,000. a. Ignoring the effect of taxes, what is the degree of operating leverage

Answers

Answer: 1.68

Explanation:

From the question, we are informed that a proposed project has fixed costs of $47,000 per year and that the operating cash flow at 11,000 units is $69,000.

Ignoring the effect of taxes, the degree of operating leverage will be:

= 1 + ($47,000/$69,000)

= 1 + 0.68

= 1.68

On November 1, Bahama Cruise Lines borrows $3.5 million and issues a six-month, 9% note payable. Interest is payable at maturity. Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.

Answers

Answer:

Bahama Cruise Lines

Journal Entries:

November 1:

Debit Cash Account $3,500,000

Credit 9% Notes Payable $3,500,000

To record the issue of a six-month note payable.

December 31:

Debit Interest Expense $52,500

Credit Interest Payable $52,500

To record the interest expense for the period.

Explanation:

a) With Bahama Cruise Lines borrowing $3.5 million on November 1 and issuing a six month, 9% note payable, the accounting entries are a debit to the Cash account for the cash received and a credit to the Note Payable account to establish the liability in the accounts.

b) Bahama Cruise Lines will accrue interest on the Note Payable for 2 months for the ending in order to comply with the accrual concept and the matching principle of generally accepted accounting principle.  The accrual basis for accounting for transactions requires that expenses are recognized when incurred and not when cash is paid.  The amount of the interest for the year is calculated as $52,500 ($3.5 million * 9%)/12 * 2.  This also accords with the matching principle which requires that expenses are matched to the revenues of the same period.

Game Depot manufactures video games that it sells for $39 each. The company uses a fixed manufacturing overhead allocation rate of $6 per game. Assume all costs and production levels are exactly as planned. The following data are from Game Depot's first two months in business during 2018: EEB
Read the requirements.
Requirement 1. Compute the product cost per game produced under absorption costing and under variable costing. October 2018 AbsorptionVariable costing costing Total product cost per game

Answers

Answer:

Using variable cost per unit method $20.15 per game

Using absorption costing $17 per game

Explanation:

Cost per game is ;

overhead allocation rate is $6

variable cost is $11

Fixed manufacturing overheads 16,200

Fixed selling and administrative cost 8,500

units sales in month of October is 1,700 units

Production units 2,700 units

Total Fixed Overheads 16,200 + 8,500 = 24,700

Overhead rate = 24,700/ 2700 = 9.15

Total cost per unit (Variable + Fixed) = $20.15 / unit

First​ Class, Inc., expects to sell 22,000 pool cues for $12.00 each. Direct materials costs are $4.00​, direct manufacturing labor is $6.00​, and manufacturing overhead is $0.84 per pool cue. The following inventory levels apply to​ 2019: Beginning inventory Ending inventory Direct materials 26,000 units 26,000 units Work−in−process inventory 0 units 0 units Finished goods inventory 1,000 units 2,900 units What are the 2019 budgeted costs for direct​ materials, direct manufacturing​ labor, and manufacturing​ overhead, respectively?

Answers

Answer:

budgeted costs for direct​ materials

$88,000

budgeted direct manufacturing​ labor

$132,000

budgeted manufacturing​ overhead

$18,480

Explanation:

Direct materials costs are $4.00 per pool cue.

Direct manufacturing labor is $6.00​ per pool cue.

Manufacturing overhead is $0.84 per pool cue.

total budgeted direct materials = 22,000 x $4 = $88,000

total budgeted direct labor = 22,000 x $6 = $132,000

total budgeted manufacturing overhead = 22,000 x $0.84 = $18,480

The information about the beginning and ending inventories is not relevant to this question since it only deals with budgeted or estimated costs which may or may not differ from actual costs.

The Western Capital Growth mutual fund has: Total assets$812,000,000Total liabilities$12,000,000Total number of shares 40,000,000 What is the fund's net asset value (NAV) per share?

Answers

Answer:

The fund's net asset value (NAV) per share is $20.

Explanation:

Net Asset Value (NAV) = (Assets - Liabilities) ÷ Number of Shares

                                      = ($812,000,000 - $12,000,000) ÷ 40,000,000

                                      = $20

Conclusion :

The fund's net asset value (NAV) per share is $20.

OPR finds its cases through all of the following except which one? A. The investigation division of OPR.

Answers

Answer:

The investigation division of OPR.

Explanation:

OPR stands for Office of Professional Responsibility. It is a section of department of justice whose task is to monitor any misconduct in the government departments. It is responsibility of OPR to find any allegations that result in misconduct in department of attorney. The OPR finds its cases through all except the own division. There will be chance of familiarity and self review threats in such monitoring.

An organization should integrate security awareness education into a new hire’s ongoing job orientation and make it a part of every employee’s on-the-job security training.
a) true
b) false

Answers

Answer:

a) true

Explanation:

Security awareness is the knowledge of risks and attitude of the members of the organization regarding the protection of physical and informative assets and it consists of trade secrets, private and classified information, etc. It helps people to become aware of the damages and the damage of crimes and criminal activity.

A company's income before interest expense and income taxes is $350,000 and its interest expense is $100,000. Its times interest earned ratio is:

Answers

Answer:

Times interest earned ratio is 3.5 times.

Explanation:

The times interest earned (TIE) ratio refers to a measure of the ability of company to honor its debt obligation form the current income of the company. TIE is also refereed to as interest coverage ratio and it can be calculated using the following formula:

TIE = EBIT / Interest expense .......................... (1)

Where;

EBIT = Earnings before interest and taxes = $350,000

Interest expense = $100,000

Substituting the values into equation (1), we have:

TIE = $350,000 / $100,000 = 3.5 times

This indicates that the income of the company is 3.5 times greater than its interest expense.

Assessing the communication forms and orientations of coworkers and assessing their sources of identity is an example of which phase of the risk negotiation cycle

Answers

Answer:

Attending

Explanation:

There are four steps in the risk negotiation cycle that includes attending, sensemaking, transforming and maintaining.

While assessing and analyzing the forms of communication and the workers orientations with respect to identify the sources reflects the attending phase whether the employees attend the orientations and according to that the analyzed could be done

Therefore this is an attending phase  

True or False: Firms operating in more price-competitive industries, or exhibiting lower levels of market power, generally exhibit lower levels of business risk, all other things being equal. This statement is: True False

Answers

Answer:

The statement is false

Explanation:

Determining the profitability depends on market power. At a higher market power, the level of profitability will be high.

Conversely, a company operating in a system where its market power is low which results into inability to compete with other companies will cause a low probability.

A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions for the library. A preclosing trial balance of the library permanent fund follows:
Trial Balance-December 31, 2017 Debits Credits
Cash $8,500
Investments 18,000
Additions to permanent endowments $510,000
Investment income 48,000
Expenditures-subscriptions 39,500
Intergovernmental grant 8,000
Net increase in fair value of investments 2,000
Accrued interest receivable 2,000
Accounts payable $568,000 $568,000
Required:
A. Prepare any closing entries necessary at year-end.
B. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund.
C. Prepare a balance sheet for the Library Permanent Fund (Use Assigned to Library for any spendable fund balance).

Answers

Answer:

a.                                         Journal entries

                  Particulars                      Debit            Credit

Revenue: Addition to permanent     $510,000

endowment

Revenue investment income            $48,000

Revenue : increase in fair value        $8,000

of investment

Expenditure - subscription                                        $39,500

Fund balance                                                             $526,500

b. Statement of revenue , expenditure , and changes in fund balance

         Particulars                                     Amount

Revenue

Addition to permanent endowment     $510,000

Investment income                                 $48,000  

Increase in fair value of investment      $8,000

Total revenue                                          $566,000

Expenditure

Library subscription                               $-39,500

Net change in fund balance                $526,500

Beginning fund balance                             0          

Ending fund balance                             $526,500

c.                       Balance sheet

Assets

Cash                                         $8,500

Investments                              $5,18,000

Accrued interest receivable    $2,000

Total assets                             $528,500

Liabilities and fund balance

Liabilities

Accounts payable                                                $2,000.00  

Fund balance

Non spendable permanent   $510,000

fund principal

Assigned to library                 $16,500

($526,500 - $510,000)

Total fund balance                                               $526,500

Total liabilities and fund balance                      $528,500

Justin hires Miguel to sell his baseball glove for $560. As part of their contract, Justin will pay him $100 to conduct the sale. Justin is a _______________________. Group of answer choices

Answers

Answer: Factee

Explanation:

This is a factorage transaction in which Justin will pay Miguel to act as an intermediary who will sell the baseball glove and receive a commission. That commission is known as a Factorage.

In a Factorage transaction, the intermediary being paid to sell the product is considered to be the Factor and the person who will pay for the product to be sold is the Factee. Justin in this scenario is paying for the baseball glove to be sold and so is the Factee.

Tri Fecta, a partnership, had revenues of $373,000 in its first year of operations. The partnership has not collected on $45,200 of its sales and still owes $38,700 on $170,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $27,100 in salaries. The partners invested $41,000 in the business and $25,000 was borrowed on a five-year note. The partnership paid $2,250 in interest that was the amount owed for the year and paid $8,000 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta.

Answers

Answer:

Cash balance = $225,150

Explanation:

Cash balance can be calculated by calculating the difference of cash inflows and cash outflows

Cash inflow

Investment              $41,000

Borrowed                $25,000

Cash collection(w)  $327,800

Total Collection      $393,800

Less:

Cash outflow

Merchandise(w)      $131,300

Salaries paid           $27,100

Interest paid           $2,250

Insurance paid       $8,000

Total cash paid     $168,650

Cash Balance = Total Collection - Total Cash paid

Cash balance = $393,800 - $168,650

Cash balance = $225,150

Working

Cash collection = The partnership has not collected on $45,200 of its sales

Cash collection = Sales - 45,200

Cash collection = $373,000 - $45,200

Cash collection = $327,800

Merchandise = Tri Fecta still owes $38,700 on $170,000 of merchandise it purchased

Merchandise = $170,000 - $38,700

Merchandise = $131,300

Demron is in serious negotiations to purchase a welding machine that will enable them to perform their own welding. They currently have their welding outsourced at a cost of $1.50 per weld and a fixed cost of $45,000. Their marketing team feels that they can sustain an annual sales volume sufficient to require 35,000 welds. If a fancy new welding rig costs $13,500 what is the maximum variable cost per weld that Demron should be willing to pay in order to bring this process in-house

Answers

Answer:

Demron

Outsourcing welding or Purchasing a welding machine for in-house welding:

Cost of outsourcing:

Variable cost = $1.50 x 35,000 = $52,500

Fixed cost                                        45,000

Total outsourcing costs               $97,500

Cost of purchasing a welding machine:

Fixed cost =                          $13,500

Maximum Variable costs = $84,000

Total in-house cost =          $97,500

Maximum variable cost per weld

= $84,000/35,000

= $2.40

Explanation:

This problem of outsourcing welding activities of Demron Company or buying the welding machine to enable in-house welding is like a make or buy decision challenge.  The appropriate approach to tackling this challenge is to determine the total costs under each option.  The option that yields the greater outcome is chosen.  However, for Demron's case, a determination of the maximum variable costs that are acceptable for in-house option to be selected is made.  The level required for this determination is the level of costs that makes no difference between outsourcing and in-housing welding.

Sales 22160 units Cash, beginning balance $34000 Selling and administrative (of which depreciation, $5,000) $53000 Required minimum cash balance $66480 If necessary, the company will borrow cash from a bank on the first day of March. Assume that the borrowing can be made in any (exact) amount, but bears interest at 3% per month. The March interest will be paid during subsequent months. Q: What is the closest amount of cash that must be borrowed on March 1 to cover all cash disbursements and to obtain the desired March 31 cash balance

Answers

Answer:

Loan taken:                           58,320

Explanation:

We add up the beginning cash with the receipts and subtract the expenses.

Then, we compare agaisnt the mnimum required balance

Beginning Cash   34,000

Cash Receipts

Sales                    22,160

Total cash form operations: 56,160

Cash disbursements

S&A expense (w/o depreciations) 48,000

Ending Cash from operations 8,160

Minimum Balance:               66,480  

Loan taken:                           58,320

intext:"Pelcher Co. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies, $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. Based on this information, the amount of cash in the fund before the replenishment is"

Answers

Answer:

$84

Explanation:

Calculation for the amount of cash in the fund before the replenishment for Pelcher Co.

Petty Cash $400

Less : Office Supplies ($110)

Less: Merchandise Inventory ($140)

Less :Miscellaneous ($70)

Add Cash Overage $4

Cash in Fund $84

Therefore the amount of cash in the fund before the replenishment for Pelcher Co will be $84

The_____ will solve for the expected return measured in an investor’s domestic currency for a foreign asset denominated its own currency.

Answers

Answer:

The Intertemporal Capital Asset Pricing Model (ICAPM)

Explanation:

The Intertemporal Capital Asset Pricing Model (ICAPM) is an useful way to calculate investor returns.

This method which involves predicting model allows an investor to measure their expected return in his own domestic currency. In a sense, It tells the investors the risk to profit gain of an investment.

Suppose a​ seven-year, $ 1 comma 000$1,000 bond with aa 7.7 %7.7% coupon rate and semiannual coupons is trading with a yield to maturity of 6.45 %6.45%. a. Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain. b. If the yield to maturity of the bond rises to 7.36 %7.36% ​(APR with semiannual​ compounding), what price will the bond trade​ for?

Answers

Answer:

a. Premium

b. $1,018.34

Explanation:

a. For computing the present value we need to apply the formula which is shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 6.45%  ÷ 2 = 3.225%

NPER = 7 years × 2 = 14 years

PMT = $1,000 × 7.7% ÷2 = $38.50

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $1,069.53

Since the present value is more than the face value so the bond is currently sold at a premium

b. For computing the present value we need to apply the formula which is shown in the attachment below:

Given that,  

Future value = $1,000

Rate of interest = 7.36% ÷ 2 = 3.68%

NPER = 7 years × 2 = 14 years

PMT = $1,000 × 7.7% ÷2 = $38.50

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $1,018.34

Consider the economies of Hermes and Gobbledigook, both of which produce gobs of goo using only tools and workers. Suppose that, during the course of 20 years, the level of physical capital per worker rises by 4 tools per worker in each economy, but the size of each labor force remains the same. Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2016 and 2036.
Year Hermes
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)
2016 11 30 3,000
2036 15 30 3,600
Year Gobbledigook
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)
2016 8 30 2,400
2036 12 30 3,600
Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2016 to 2036, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a_______ amount than productivity in Gobbledigook. This illustrates the effect_______which makes it______for countries with low output to catch up to those with higher output.

Answers

Answer:

Hermes

Productivity (Gobs per worker)

2016    100

2036    120

Gobbledigook

Productivity

(Gobs per worker)

2016    80

2036    120

Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2016 to 2036, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a SMALLER  amount than productivity in Gobbledigook. This illustrates the effect OF CATCH UP which makes it POSSIBLE for countries with low output to catch up to those with higher output.

Explanation:

Hermes

Year Physical Capital Labor Force Output Productivity

(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)

2016    11    30      3,000  3,000/30=100

2036    15     30     3,600  3,600/30=120

Gobbledigook

Year Physical Capital Labor Force Output Productivity

(Tools per worker) (Workers) (Gobs of goo) (Gobs per worker)

2016   8   30   2,400 2,400/30=80

2036 12    30 3,600   3,600/30=120

Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2016 to 2036, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a SMALLER  amount than productivity in Gobbledigook. This illustrates the effect of CATCH UP which makes it POSSIBLE for countries with low output to catch up to those with higher output.

Mr. White contracts with his wife Ms. White to watch their kids, Joe and Jimmy, one night for $50. What is the status of the contract between Mr. White and Ms. White?

Answers

Answer:

There is no any form of contract between Mr. Smith and Ms. White

Explanation:

Based on the information given there is no contract between Mr. Smith and Ms. White reason been that Ms. White gave inadequate consideration .

Based on this inadequate consideration is not void because it can tend to make a contract between two parties unenforceable because of lack procedure defect when bargaining between two parties .

When you work within an organization youre typically taught to

Answers

Correct question;

When you work within an organization, you're typically not taught to

A. follow a supervised plan for managing your time.

B. act as your own supervisor.

C. act in ways that are derived from established procedures

D. identify yourself with your job or position.

Answer:

B. act as your own supervisor.

Explanation:

This is the case in most organisations today, because by providing supervisors for employees, the organization can achieve quality job performance.

Spervisors are needed in order to ensure job tasks are done properly. So as the saying goes, "when one works within an organization, you're typically not taught to act as your own supervisor.

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