Answer: $935,000
Explanation:
Net capital spending refers to the amount spent on acquiring new fixed assets.
= 2020 net fixed assets + 2020 depreciation - 2019 net fixed assets
= 5,800,000 + 335,000 - 5,200,000
= $935,000
State two goals you hope to achieve through applying your coursework this term to your workplace experience.
Explanation:
1. Improve communication skills
2. Apply customer relationship marketing
The current business scenario is globalized and highly competitive, the social dynamics resulting from globalization and new technologies have changed the demands and relations between company / consumer, this new parameter requires companies to be promoters of society's well-being, acting with socio-environmental responsibility in the market, which means that this includes the relationship with all its stakeholders.
Therefore, it is essential that interpersonal communication skills are improved in a management-oriented course and applied to the work environment, as organizations have more and more responsibilities when dealing with people, and negotiation and communication skills with people are increasingly valued. different nationalities and culture, with ethics in communication being an essential factor.
Relationship marketing is also another essential factor that must be applied in the workplace, especially if you work directly with the customer or work using the internet, since companies are closer to customers, and must generate value and engagement that creates market identification and positioning.
A goal is termed as the idea of the future result that is committed to achieving. It can be a plan or envision that is to be accomplished by a group of persons. The deadline is set for the accomplishment of the goals by the group of people.
The two goals to achieve in the workplace are:
1. Improve communication skills
2. Apply customer relationship marketing
The current business scenario is globalized and highly competitive, the social dynamics resulting from globalization and new technologies have changed the demands and relations between company and the consumer. Relationship marketing is also another essential factor that must be applied in the workplace.
Therefore, it is essential that interpersonal communication skills are improved in a management-oriented course and applied to the work environment, as organizations have more and more responsibilities when dealing with people, and negotiation and communication skills with people are increasingly valued.
To know more about the accomplishment of the goals, refer to the link below:
https://brainly.com/question/20813345
Briefly summarize the works of Maslow, Herzberg, McClelland, McGregor, Ouchi, Thamhain and Wilemon, and Covey. How do their theories relate to project management.
Answer:
Following are the solution to this question:
Explanation:
According to Maslow:
He thought that people get a set of incentives related to subconscious and rewarding desires. He stated people are motivated and meet certain criteria. Once the needs are fulfilled, an individual tries to achieve the next one, etc. In each hierarchy of Maslow involves 05 motivating factors, also described in hierarchical levels within a pyramid. It model could be divided through necessities (or shortcomings) (e.g. physiologic, protection, love, and appreciation) and the process produces.The original five-stage template hierarchy includes:
Wind, food, drink, shelter, heat, sexuality, sleep - your anatomical, and physical needs. Security needs – safety, law, laws, restrictions, stability, and safety. Character or love requires - job, family, love, relationship. It needs – self-esteem, achievement, mastery, autonomy, status, domination, reputation, and management responsibility. Requires for self-update – personal capacity development, personality, self-development, or peak knowledge.According to Herzberg:
He shows which work-related to satisfaction were mostly triggered through different causes and did not simply oppose the very same causes as previously believed.
The overall conclusion of Herzberg was clear and clear, and due to the scope and breadth of Herzberg's study design and analysis, Herzberg's figures can be read in several various ways.
According to McClelland:
A motivational model that attempts to explain how the demand for efficiency, intensity, or affiliate affects the actions of people in such a management sense is created by the psychenist, David McClelland's Request Concept.
A desire to master tasks and situations drive people who are motivated by success.A desire to build and sustain personal interactions inspire students via an affiliation. You appreciate participation in a group but want to be loved.According to Ouchi:
Theory Z was identified first as William Ouchi's special organizational structure. He claimed that perhaps the emerging managerial approach, known as Theory Z, will out any to benefit from the many benefits from both structures.
Sustainable employment
That conventional United states organizations, while the workers are afflicted with shorter-term obligations, can unwittingly facilitate managers with much more conventional leadership viewpoints treat workers simply as interchangeable cogs in profitable machines.
Slow assessment and support
Form A usually distinguished by quick performance assessments as well as the prompt promotion of top achievers.
According to Thamhain and Wilemon:
Authority: the legal right to issue command spatially. Task: a presumed ability of the project manager to affect future work tasks for the employee. Budget: The perceived capacity of a project manager and authorize the use of extra money by others. Advancement: the ability to develop the position of the employee. Cash: its opportunity to compensate and benefit the employee. Penalty: that ability of the systems engineer to prosecute. Challenge of work: its opportunity to allocate tasks that is focused on the role of a worker. Expertise: unique expertise perceived by the project manager that others consider important.Friendship: A systems engineer can develop good relations.According to Convey:
These 7 habits can be defined as follows:Be positive. Begin to think about the end. First, put the very first things. Think again and win.Seek to understand first, to then understand. Substantially boost. Shake the sight.Process improvement theories:
Ideas mostly on software development linked to Maslow's, Herzberg, McClelland, Ouchi, Thamhain, and Wilemon, and Convey. In the area of human funds, Maslow’s hierarchy is of great importance.
As a customer's product knowledge increases, what typically happens to the amount of search conducted by the consumer
Answer:
It will increase, and then decrease as the customer becomes more knowledgeable
Explanation:
As a customer's product knowledge increases, what typically happens to the amount of search conducted by the consumer is that the amount will first increase, and then decrease as the customer becomes more knowledgeable.
Select the following three roles in a business that do not carry personal liability for any judgments against the company.
the owner in a sole proprietorship
a limited partner in a partnership
a general partner
a corporation shareholder
the CEO of a major corporation
Answer:
first third and fourth
Explanation:
saw it on quizlet
2. Which of the following groups of users would primarily be interested in a company's annual
published financial statements?
A. Shareholders and suppliers
B. Management and employees
C. Shareholders and providers of finance
D General public, environmental pressure groups
Answer:
C. Shareholders and providers of finance
Explanation:
A company's financial report communicates the financial health of a business. It indicates whether a business is profitable and can meet its financial obligations.
Shareholders are the owners of a business. They are interested in the financial reports to know if their venture is making profits. Shareholders expect to earn dividends from the business. Only a profitable business is able to declare dividends. Financial reports guide shareholders in making decisions regarding the future of the business.
Lenders provide debt capital to a business. If the company is profitable, then lenders are happy because their payments are assured. Lenders rely on financial reports in deciding whether to extend or deny credit to businesses.
Explain what a cash budget is and why it is important for all businesses.
Answer:
A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity. A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses.
Explanation:
Jonathan wants to create a web page visually. Which of the following should he use?
HTML
Java
Text Editor
WYSIWYG
Answer:
HTML
Explanation:
Answer:
HTML
Explanation:
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 10%, what annual payments should be made so that both forms of payment are equivalent
Answer:
$16,379.75
Explanation:
Calculation for the annual payments that should be made
Using financial calculator to find the PMT
FV = $100,000
Interest rate = 10%
N= 5 years
PMT?
Hence,
PMT = $16,379.75
Therefore the annual payments that should be made so that both forms of payment are equivalent will be $16,379.75
what is taxable incomeTanya (born 10-31-90) is single, has no dependents and will not itemize deductions. She cannot be claimed as a dependent by anyone else. Tanya can claim adjustments of $800 for her student loan and $1200 for an IRA. She had the following income: Wages $22,594
Answer:
Interests on student loans and IRA contributions are above the line deductions, which means that they decrease a person's AGI before they take any itemized or standard deduction.
Tanya's AGI before taking any deduction = $22,594 - $2,000 = $20,594
Assuming that she is filing her 2020 taxes, the standard deduction for single filers is $12,400, so her total taxable income = $20,594 - $12,400 = $8,194.
Shirts makes business dress shirts. The shirts could have defects in various ways including in the weave or color of the fabric, loose buttons, wrong dimensions, and uneven stitches. 8 shirts are randomly examined, with the following results. What is the LCL for a three-sigma control chart?
Shirts Defects
1 4
2 6
3 3
4 1
5 5
6 6
7 4
8 6
a. 2.00
b. 0.00
c. -1.90
d. 1.90
Answer:
our correct option is b = 0.00 for 3 sigma (σ)
Explanation:
Solution:
Let's tabulate the data given:
Shirts Defects
1 4
2 6
3 3
4 1
5 5
6 6
7 4
8 6
Now, as we can see from the above data,
Number of samples taken = Shirts randomly examined = 8
Now, we have to calculate (C bar), for this we have to divide the sum of defects and total number of samples.
Note: We denoting (C bar) as B. So,
B = Sum of defects/ Number of samples
Sum of defects = 4 + 6 + 3 + 1 + 5 + 6 + 4 + 6
Sum of defects = 35
(C bar) = B = 35/8
B = 4.37
Formula to find out LCL for 3 sigma (σ):
LCL = B - [tex]z\sqrt{B}[/tex]
where z value for 3 sigma = 3
LCL = 4.37 -(3[tex]\sqrt{4.37}[/tex])
LCL = 4.37 - (3 x (2.092)
LCL = 4.37 - (6.276)
LCL = -1.901
So, now, when the LCL = negative, it is taken as 0.0
Hence, our correct option is b = 0.00 for 3 sigma (σ)
In 2009, an agricultural company introduced a new cropping process which reduced the cost of growing some of its crops. If sales in 2008 and 2009 were steady at $30 million, but the gross margin increased from 2.9% to 3.2% between those years, by what amount ($) was the cost of sales reduced
Answer: $90,000
Explanation:
If sales in 2008 and 2009 were steady at $30 million, but the gross margin increased from 2.9% to 3.2% between those years, the amount by which the cost of sales would be reduced would be:
= $30 million × (3.2% - 2.9%)
= $30 nillioy× 0.3%
= $30 million × 0.003
= $90,000
what Is quality Control
Answer:
a system of maintaining standards in manufactured products
1.2. What are five foundations of economics?Eleanor works at a department store and is paid by the hour. She can work as many hours as she wants each week. When not at work, Eleanor likes to spend her time reading. The store recently increased her hourly wage.Fill in the blanks to complete the passage describing Eleanor’s situation.
Answer:
There is a connection between work and the incentive to work.
The more incentive we have to work, the more work we get done. One of the incentives that we have to work is wages or money.
With the increase in the hourly wage, Eleanor will now weigh how much she would gain or lose in wages every time she chooses to work or not. In order words, the opportunity cost of reading at home. The more time she spends reading rather than working, the more money she loses.
Cheers
True or False: Food Corp., a business with its headquarters and major operations in the United States of America, also has an office overseas in France. Since Food Corp.’s headquarters are in the U.S.A., it is subject to U.S. Federal minimum wage laws in both its office here in the U.S.A. and overseas in France
Answer: False
Explanation:
The Minimum Wages Law is simply referred to as a labour law which entails that employees should be paid a certain amount of minimum wage and shouldn't be paid below that.
We should note that the wages law are different for countries. Thereby the minimum wage law set in USA may be different from that of France.
Therefore, even if Food Corp.’s is subject to U.S. Federal minimum wage laws in its office in the U.S.A, it can't be subjected to U.S. Federal minimum wage laws in overseas in France.
Therefore, the answer is false.
which of the following is a common risk of using credit to make purchases
overspending
having to wait a longer for the good
underspending
losing payment records
Answer:
overspending
Explanation:
Credit purchases encourage one to spend more than they can afford. The fact that the sellers do not demand cash when goods change hands entices people to buy more. In credit purchases, cash is not required, only a commitment to pay later, which leads to overspending.
Overspending increases the probability of defaulting on credit payments. When the debt to income level rises too much, the borrower may be forced to miss some installment payments and cater to basic needs.
Answer:
overspending
Explanation:
yaba daba doo hubba da old navy
proud family inc., produces a variety of products. the average cost of one widget using ABC costing is closets to
Answer:
b. $156.59
Explanation:
Note: The full question is attached as picture below
As the company is under traditional costing system and the allocation base is machine hours.
Variable OH per hour = Total variable cost / Total machine hours
Variable OH per hour = 513,600/32,000
Variable OH per hour = $16.05
Average cost of producing one unit of widget = Direct material per hour + Direct labor per hour + Variable OH per hour
= $95.52 + $51.04 + ($16.05*750/1200)
= $95.52 + $51.04 + $10.03
= $156.59
Question # 6
Fill in the Blank
Complete the following sentence. Remember to spell correctly.
Limiting the amount of imported sugar that can be brought into the United States is an example of a(n) ______
Answer: Import quota
Explanation:
Import quotas are a means of controlling trade into a country. It is usually done because the good being imported is produced in the importing country but when it is imported it is cheaper which will have the effect of harming the domestic producers.
Import quotas will restrict trade by limiting the amount of the specific good that can be imported into the country within a given period. For instance, the U.S. mandating that only 30,000 tonnes of sugar may come into the country in a year. After that amount, no more sugar will be allowed in.
is the grouping of jobs
into working units usually called
units, groups, or divisions.
Answer:
units is the closest thing
Explanation:
it's usually called departmentalization but units is the next thing
Guys I need a kawaii Username for YT the person that had the best one I will crown branliest I'm giving 40 points!
Answer:
Sweetlolipie
Explanation:
Answer:
What about "TedyBear","PixelII" and "PoohBear"???
Florida Palms Country Club adjusts its accounts monthly. Club members pay their annual dues in advance by January 4. The entire amount is initially credited to Unearned Membership Dues. At the end of each month, an appropriate portion of this amount is credited to Membership Dues Earned. Guests of the club normally pay green fees before being allowed on the course. The amounts collected are credited to Green Fee Revenue at the time of receipt. Certain guests, however, are billed for green fees at the end of the month.
The following information is available as a source for preparing adjusting entries at December 31.
1. Salaries earned by golf course employees that have not yet been recorded or paid amount to $9,600.
2. The Tampa University golf team used Florida Palms for a tournament played on December 30 of the current year. At December 31, the $1,800 owed by the team for green fees had not yet been recorded or billed.
3. Membership dues earned in December, for collections received in January, amount to $106,000.
4. Depreciation of the country club's golf carts is based on an estimated life of 15 years. The carts had originally been purchased for $180,000. The straight-line method is used. Note: The clubhouse building was constructed in 1925 and is fully depreciated.)
5. A 12-month bank loan in the amount of $45,000 had been obtained by the country club on November 1. Interest is computed at an annual rate of 8 percent. The entire $45,000, plus all of the interest accrued over the 12-month life of the loan, is due in full on October 31 of the upcoming year. The necessary adjusting entry was made on November 30 to record the first month of accrued interest expense. However, no adjustment has been made to record interest expense accrued in December.
6. A one-year property insurance policy had been purchased on March 1. The entire premium of $7,800 was initially recorded as Unexpired Insurance.
7. In December, Florida Palms Country Club entered into an agreement to host the annual tournament of the Florida Seniors Golf Association. The country club expects to generate green fees of $4,500 from this event.
8. Unrecorded Income Taxes Expense accrued in December amounts to $19,000. This amount will not be paid until January 15.
Required:
a. For each of the above numbered paragraphs, prepare the necessary adjusting entry (including an explanation). If no adjusting entry is required, explain why.
b. Four types of adjusting entries are described at the beginning of the chapter. Using these descriptions, identify the type of each adjusting entry prepared in part a above.
c. Although Florida Palms's clubhouse building is fully depreciated, it is in excellent physical condition. Explain how this can be.
Answer:
Florida Palms Country Club
a. Adjusting Journal Entries:
1. Debit Salaries Expense $9,600
Credit Salaries Expense Payable $9,600
To record the unpaid salaries.
2. Debit Accounts Receivable (Tampa University Golf Team) $1,800
Credit Green Fee Revenue $1,800
To record earned revenue not yet billed and recorded.
3. Debit Unearned Membership Dues $106,000
Credit Membership Dues Earned $106,000
To record membership dues earned.
4. Debit Depreciation Expense on Golf Carts $12,000
Credit Accumulated Depreciation $12,000
To record depreciation expense for the year.
5. Debit Interest Expense $300
Credit Interest Expense Payable $300
To accrue interest expense for the month of December.
6. Debit Insurance Expense $6,500
Credit Insurance Prepaid (Unexpired Insurance) $6,500
To record insurance premium for 10 months.
7. No entry is required because the period in which the tournament will be hosted is not disclosed. Revenue is only recorded when performance obligations have been fulfilled.
8. Debit Income Taxes Expense $19,000
Credit Income Taxes Expense Payable $19,000
To record accrued expenses for the year.
b. The types of adjusting entries prepared in part a above are:
Accrued Expenses
Accrued Revenue
Deferred Revenue
Depreciation estimate
c. That Florida Palm's clubhouse is fully depreciated but remains in excellent physical condition results from the fact that depreciation is a systematic allocation of the cost of the clubhouse costs over its estimated useful life. This implies that depreciation is merely an accounting estimate that spreads the cost of the clubhouse over its useful life and not an attempt to put a value on the clubhouse.
Explanation:
a) Data and Calculations:
1. Depreciation Expense on the golf carts = $180,000/15 years = $12,000 per annum based on the straight-line method of depreciation.
2. Interest expense on the bank loan = $45,000 * 8% * 1/12 = $300
3. Insurance Premium Expense = $7,800 * 10/12 = $6,500
Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
Answer:
globalization and localization.
Explanation:
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Also, localization (local responsiveness) refers to the degree of requirements and conditions to which a manufacturing firm should significantly adjust their products and methods of production in a particular country to. Thus, a firm that is facing both strong cost pressures and strong pressures for localization should ensure that it adopts a global standardization strategy.
Hence, two major variables in choosing the structure and design of an organization are the opportunities and need for globalization and localization because the opportunities that abound in the market would determine the level of revenues (cash-inflows) that the organization can generate.
Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, which account is debited
Answer:
✓Debit to WIP Inventory-Finishing
✓credit to WIP Inventory-Coloring.
Explanation:
From the question, we are informed about Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, WIP Inventory-Finishing is to be debited, while WIP Inventory-Coloring is credited in the journal entry . WIP can be regarded as part of the overhead cost as well as raw materials, and labor cost at each stages during the process of production. When recording on the journal entry, journal entry can be regarded helps in recording any transaction as far as accounting system is concerned. Several recording are found in journal, and can fall in debit or credit side . At the journal entry, Debit side is at the left-hand side and credit side is at the right-hand side
2008 crisis question.
Answer: b. Glass Steagal separated the commercial loan balance sheet of a bank from the investment banking arm (a much riskier part of bank operation). It was important because without this separation, when a bank fails due to bad investments, it also fails all of its commercial duties to keep the economy liquid.
Explanation:
The 1920s came with a fast rising American economy. The stock market portrayed this rise by making huge profits for the public and so people wanted to get into stocks more and more until the stock market crashed and million lost money.
Some of those who participated had borrowed the funds from commercial banks which now had losses as they had loaned out money that could be used for other commercial duties. The proponents of Glass Steagal believed that separating a bank's commercial side from investing would fix this.
Briefly describe what is meant by the industrial market structure (IMS). Why is an understanding of the IMS so important for companies in their strategic management process
Answer is given below:
Explanation:
Industrial market structure is a systematic representation of different organization based on the level of competition for these products or services the nature and nature of these products or services in the market. Industry market is structured is important in a company's strategic management process for the following reasons Clearly assess business objectives Knowing how much competition there is in the market. Get details of your competitor's business development. Competing in the marketDecision making is often a biased and flawed process. This activity is important because a person who can identify and be aware of their biases may be able to make better decisions for themselves and may be able to diagnose flawed decisions that affect their workplace. The goal of this exercise is to test your knowledge of the nine fundamental decision-making biases given below.
a. Availability Bias
b. Representativeness Bias
c. Sunk-Cost Bias
d. Anchoring and Adjustment Bias
e. Confirmation Bias
f. Overconfidence Bias
g. Hindsight Bias
h. Framing Bias
i. Escalation of Commitment Bias
Answer:
a. Availability bias ⇒ Cori
This bias refers to the mind's tendency to evaluate a topic based on the examples that they already know of and therefore come to their mind first. Cori thought of her weather at home first and related it to Australia.
b. Representativeness Bias ⇒ Trinity
This bias is one that people make when things are related. They assume that if it is the case for an event, related events should work the same as well.
c. Sunk-cost bias ⇒ Zion
This bias refers to the making of decisions based on sunk costs. Zion's transmission is a sunk cost but he used it as a basis to fix the brakes.
d. Anchoring and Adjustment bias ⇒ Nishka
This bias occurs when we look upon new information with a biased view as Nishka did when they looked at the prices of cheaper cars.
e. Confirmation bias ⇒ Declan
Confirmation bias is when we only listen to information that supports our view much like Declan here who disregarded information that criticized his car model.
f. Overconfidence bias ⇒ Milo
This bias results from having unfounded confidence in our ability to do something much like Milo here who believed he was good enough to invest as his broker who had to go through more intensive training.
g. Hindsight bias ⇒ Sai
Believing that we always knew something was going to happen after the thing happens.
h. Framing bias ⇒ Rosa
This bias occurs when decisions are made based on one aspect due to the decision being framed from that aspect.
i. Escalation of Commitment Bias ⇒ Amara
This bias occurs when we continue to follow a decision path even though that decision has proven to provide negative consequences.
Financial reports are created and used to evaluate the financial performance of the business. Which function is responsible for creating the reports
The correct answer to this open question is the following.
Although there are no options attached, we can say the following.
Financial reports are created and used to evaluate the financial performance of the business. The function that is responsible for creating the reports is Financial Accounting.
One of the most important areas of a company is the financial department because it has to keep healthy numbers and finances in order to make the corporation to prosper.
Financial Accounting is the area that records and reports every single transaction of the company and then prepares all the reports needed by lay to show the transparency of the records. Among others, these reports are the cash flow statement, the balance sheet, and all the financial statements that show managers and owners how the company is doing.
A company decided to scan all of its salespersons' important work that existed only in paper form into a central computer database that could be easily accessed using portable computers, thereby saving salespersons the effort of lugging their paper files all over the country. The project was a dismal failure, however; salespersons rarely accessed the database and continued to rely on many paper files, which they had refused to turn over to the staff responsible for creating the database.
Which one of the following, if true, most helps toaccount for the failure described above?
a. Some of the salespersons gave huge paper files to the staff responsible for creating thedatabase while other salespersons gave themmuch smaller files.
b. Most of the salespersons already had portablecomputers before the new database was created.
c. The papers that the salespersons found mostimportant all contained personal informationabout employees of client companies,which the salespersons did not want in acentral database.
d. All of the salespersons were required to attend aseries of training sessions for the new databasesoftware even though many of them found thesoftware easy to use even without training.
e. The number of staff required to create thedatabase turned out to be larger thananticipated, and the company had to payovertime wages to some of them.
Answer:
c. The papers that the salespersons found most important all contained personal information about employees of client companies, which the salespersons did not want in a central database.
Explanation:
Most salespeople earn their salaries through sales commissions. A salesperson not only competes with other competing companies, but also competes against other salespeople of the same company. It is likely that they didn't want to share their trade secrets with other salespeople within the same company.
The United States is an example of a __________ economy?
a)traditional
b)command
c)market
d)private
Answer:
C. Market
Explanation:
I majored in Health
The overall unemployment rate in Lebanon stands at 24 percent, and youth unemployment exceeds 35 percent. In the face of job crisis, Lebanon should introduce reforms in the education system to adapt to future labor market needs. At the same time, it is crucial to develop a viable information and communications technology sector and to speed up the process of finalizing the oil and gas exploration and production projects. Also essential to job creation are small- and medium-size enterprises.
Source: The Daily Star, December 24, 2014
a. On the basis of the news clip, what is the main type of unemployment that Lebanon should use
policies to control? Explain.
b. How might these policies impact Lebanon’s natural unemployment rate? Explain.
Answer:
a. Lebanon should address the structural unemployment issue in the economy to support the current labor force with the new methods and technologies of production. Policies would be aimed at boosting the productivity of labor and hence the demand for labor force. From the given scenario it is comprehensible that the major issue prevailing is lack of competency due to structural and technological changes.
b. Policies aimed at fighting structural unemployment would cause the natural rate of unemployment rate to fall. Natural rate of unemployment would change when there arises changes in factors such as technology, productivity etc.
The Gondwanaland Chairman of Production reported that the new Altair chariots (most modern, horse drawn family chariot) had a PRICE elasticity of 3 and an INCOME elasticity of 2. The supply of these Altair chariots is elastic. Evaluate the following statements and explain why you think they are true, or false.
a. A 20% increase in the price of the Altair chariot will cause the quantity demanded to fall by an astounding 60%.
b. An increase in Gondwanaland consumers' incomes will cause prices to rise, but the total quantity demanded will also increase.
Answer:
a. true
The statement is true because the price elasticity is 3 .
Price elasticity = percentage change in quantity demanded / percentage change in price
= 60% / 20% = 3
This corresponds with the price elasticity given. Demand is elastic so a rise in price would lead to a greater change in quantity demanded
b. false
Income elasticity measures the relationship between income and quantity demanded. The income elasticity for luxury goods is usually greater than 1. If income of Gondwanaland consumers' increases, the quantity demanded increases. Prices are not affected
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.