Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected Activity
Activity Overhead
Measures Cost Product Z9 Product N0 Total
Labor-related DLHs $328,018 6,800 3,400 10,200
Product testing tests 47,747 600 700 1,300
Order size MHs 473,108 4,400 4,700 9,100
$848,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:______.
a. $28.88 per DLH.
b. $48.81 per DLH.
c. $53.94 per DLH.
d. $431.44 per DLH.

Answers

Answer 1

Answer:

Privott, Inc.

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:______.

$32.16

Explanation:

a) Data and Calculations:

                                        Estimated                   Expected Activity

                      Activity      Overhead

                     Measures     Cost            Product Z9      Product N0       Total

Labor-related     DLHs      $328,018           6,800             3,400          10,200

Product testing  tests           47,747              600                 700            1,300

Order size          MHs         473,108            4,400              4,700           9,100

                                        $848,873

The activity rate for the Labor-Related activity cost pool:

= Labor Overhead Cost divided by Total Direct Labor Hours

= $328,018/10,200

= $32.16


Related Questions

A firm's marketing mix consists of 4 major components, which are generally referred to as the four

Answers

The major marketing mix elements of any firm is a product, price, place, and promotion.

What is the importance of marketing mix?

The marketing mix elements place a significant role in the success of any firm. It helps to determine the offered services to the customers and helps them to educate them about what unique services are offered.

These four elements include Product, Price, place, and promotion which help in targeting the intended audience by making the best appropriate strategies that help to cater to them and persuade them to buy and increase sales.

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A plant asset cost ₤320,000 and is estimated to have a ₤40,000 residual value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be?

Answers

Depreciation is the process of allocating the price of a plant asset to expense in the accounting periods benefiting from its use.

How is the whole depreciation of a plant asset calculated?

Determine the value of the asset. Subtract the estimated salvage price of the asset from the cost of the asset to get the whole depreciable amount. Determine the beneficial lifestyles of the asset. Divide the sum of step (2) by using the wide variety arrived at in step (3) to get the annual depreciation amount.

Depreciation is the technique of allocating to expense the cost of a plant asset over its beneficial (service) existence in a rational and systematic manner. Such cost allocation is designed to desirable in shape prices with revenues.

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17. Functions of a business. Name and explain

Answers

Answer:

Glossary

Explanation:

Business functions are the activities carried out by an enterprise; they can be divided into core functions and support functions

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.


Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31

Answers

The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.

The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.

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vv
Answer the following question in 3-4 complete sentences.

Define the following terms:

- crayon manner
- pastel manner
- chalk

Answers

- Crayon manner refers to a technique in drawing or painting that utilizes the application of waxy crayons to a surface.

- Pastel manner refers to a technique in drawing or painting that utilizes the application of soft, powdered pastels to a surface.

- Chalk refers to a soft, sedimentary rock that is composed of microscopic shells and skeletal fragments of marine creatures.

The crayons are used to create distinct and bold lines, with a texture and vibrancy that can be difficult to achieve with other mediums.

Pastels are known for their bright colors and soft, velvety textures. They can be blended and layered to create a wide range of effects and can be used on their own or in combination with other mediums.

Chalk is typically white or pale in color and has a powdery texture. Chalk can be used as a medium in drawing and painting, typically by rubbing the chalk on a surface to create bold, expressive lines and layers of color. Chalk is also commonly used on blackboards for writing or drawing.

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As we go from home operation to international operations, we can potentially receive a _______, but we can also see our ______ increase

Answers

As we go from home operation to international operations, we can potentially receive a rise in our costs, but we can also see our profits increase. This is about business expansion.

What is business expansion?

When a company reaches a certain point in its growth and starts looking for new ways to increase profits, that stage is known as business expansion.

Managing business growth or development is a challenge that successful firms and startups alike eventually encounter.

It is to be noted that while business expansion comes with possible potential increases in profit and net worth, incurring additional costs is a certainty.

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Given the following data at the drive-through of a bank, what is the processing time of the second customer? Customer 1 Arrival Time 8:06 8:10 8:15 8:36 Service Time (minutes) 5 10 2 3 7 4 2 Multiple Choice 20 minutes 15 minutes 11 minutes 10 minutes

Answers

The processing time of the second customer, given the service time, was C. 11 minutes .

How to find the processing time ?

The processing time of the second customer can be found by the formula :

= Waiting time + Service time

The Service time is given on the table to be 10 minutes .

The waiting time would be :

= Time first customer left - Time second customer arrived

= 8 : 11 - 8 : 10

= 1 minute

Customer 2 processing time  is:

= 10 + 1

= 11 minutes

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Which of the following is a sign that you have a budget deficit?

Answers

When liabilities outweigh assets, imports outweigh exports, or expenses over revenues, a deficit results. The national debt is increased by federal budget deficits. Government spending and tax policies are used by fiscal policy to affect macroeconomic factors such as inflation, employment, and total demand.

What are liabilities?

The term "liability" can refer to both being held accountable for something as well as owing someone money or services. A homeowner's tax liability, for instance, may be determined by how much in property taxes he must pay to the city or in income taxes to the federal government. Financial accounting defines liabilities as the obligations a company has to its customers. Money owing to suppliers, or accounts payable, is a typical liability for small firms. On a company's balance sheet, a typical financial statement produced by financial accounting software, you can see liabilities.

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what is the proper way to eat in class

Answers

The proper way to eat in class is to follow the rules and teacher's instructions, choose quiet and odorless foods, eat discreetly, and be respectful of others.

1: Be mindful of the class rules and teacher's instructions. Different schools and teachers may have different policies regarding eating in class. Make sure you are aware of these rules before proceeding.

2: Choose appropriate foods. Opt for foods that are quiet, odorless, and easy to eat without making a mess. Avoid foods that are crunchy, smelly, or require utensils, as they may disrupt the class or distract other students.

3: Prepare in advance. If you know you will be hungry during class, have a small snack or meal before class starts to curb your hunger. This way, you won't be tempted to eat during the class session.

4: Eat discreetly. If you do need to eat something during class, do so discreetly. Choose a moment when the teacher is not actively speaking or when there is a break in the lesson. Take small, quiet bites and avoid making unnecessary noise.

5: Be respectful of others. Ensure that your eating habits do not disturb or distract your classmates. Avoid chewing loudly, slurping drinks, or engaging in messy eating habits. Keep your focus on the class material while eating.

6: Clean up after yourself. Dispose of any food wrappers or containers properly in designated trash cans. If you accidentally make a mess, clean it up discreetly and quickly to avoid drawing attention.

7: Follow teacher's instructions. If your teacher explicitly prohibits eating in class, respect their rules and refrain from eating until an appropriate time, such as during designated breaks or lunchtime.

Remember, the primary purpose of being in class is to learn and engage in educational activities. Eating should only be done when necessary and in a manner that does not disrupt the learning environment.

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(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.

Answers

International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.

One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.

In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.

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FILL IN THE BLANK the general electric model can be compared to swot analysis. market attractiveness corresponds to the_____element is swot analysis, whereas business strength corresponds to the_______ element.

Answers

Swot analysis and the general electric model are comparable. In a swot analysis, company strength refers to the internal aspect, while market attractiveness corresponds to the external element.

Which of the following actions could a marketer do while conducting a situational analysis?

A situational analysis determines possible clients, examines predicted growth, evaluates competitors, and creates a realistic assessment of your company using market research. It entails focusing on the specific goals of the company and determining the elements that help or hinder those goals.

When a company launches a new product or service, which growth approach is employed?

Market development plan is a growth strategy used by businesses or organizations to reach target consumers they haven't yet attained or aren't already serving with their offerings.

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Under corporate law, corporations are given the same rights as
A. the Federal Reserve
B. intellectual property
C. individuals
D. foreign countries

Answers

Answer:

C. individuals

Explanation:

The law treats corporates organizations as legal citizens. It gives them commercial right to own property, enter into contracts, and incur debts. Corporates have tax obligations, just like individuals. They can sue and be sued.

The law considers a corporate as a separate entity from its owners. It distinguishes the assets and liabilities of the institutions as different from those of its founders. A corporate has an infinite life. The death of its shareholders does not automatically mean its termination.

Answer:

C. Individuals is the correct option

Explanation:

in preparation of standard cost we consider what situation macroeconomics or microeconomics???​

Answers

When preparing standard costs, we primarily consider microeconomics, which is the study of the behavior of individual consumers, firms, and industries. Standard cost is the estimated cost of producing a unit of product or service, based on historical data and budgeted costs.

It is used as a benchmark to compare actual costs with expected costs and to analyze the variances between them. In order to determine standard costs, we need to consider the cost of each individual input such as direct materials, direct labor, and overheads. This analysis is done at the microeconomic level because it involves the behavior and decision-making of individual firms and their interactions with suppliers, customers, and competitors.

The macroeconomic factors such as inflation, interest rates, and unemployment rates may also have an impact on the cost of production but these are generally outside the scope of standard cost analysis. Therefore, while macroeconomics can indirectly influence the cost of production, the focus of standard cost analysis remains on the microeconomic factors that affect the cost of individual inputs.

Overall, standard cost preparation involves a detailed microeconomic analysis to determine the estimated cost of producing a product or service, which is then compared with the actual costs to identify any variances and improve the cost efficiency of the firm.

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In the early 1980's the Fed tightened monetary policy. Over the next few years
A. inflation fell but unemployment rose temporarily. B. inflation remained high and unemployment rose. C. inflation and unemployment fell. D. inflation and unemployment rose.

Answers

The Imf tightened its monetary policies during the beginning of the 1980s. The following several years saw rising unemployment and persistently high inflation.

What is unemployment?

The OECD defines unemployment as individuals over a specific age who also are currently looking for work but are not engaged or self-employed. The unemployment level, which can be used to determine the degree of unemployment, is calculated using the number of unemployed people as a percent of the labor force. The phrase "unemployed" generally refers to somebody who is not working or otherwise earning a living. There are several various kinds of unemployment, including involuntary, cyclical, frictional, structural, and voluntary.

There are essentially two types of unemployment in India. There are 3 major types of unemployment in an economy: frictional, structural, cyclical, et seasonal. Each category has a unique reason.

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Question 2 of 10
What is one benefit of buying preferred stocks?
A. Preferred stocks are easy to evaluate.
B. Preferred stocks are low risk.
C. Preferred stocks have a predictable long-term performance.
D. Preferred stocks tend to grow with the economy.

Answers

Preferred stocks have a predictable long-term performance. Option C

The benefit of buying preferred stocks

Preferred stocks offer several benefits compared to common stocks, and one of them is their predictable long-term performance.

Preferred stocks typically have a fixed dividend rate, which means that the investors know in advance the amount of dividend they will receive. This predictability can be appealing to investors who prefer a stable income stream.

.

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Mark​ Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of 4 ​years, a par value of ​$1000​, and a yield to maturity of 8.70. The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of ​%6.315 paid annually. The second ​ bond, issued by Malfoy​ Enterprises, has a coupon interest rate of 8.90 ​% paid annually.
a. Calculate the selling price for each of the bonds.

Answers

1. Selling Price of Bond 1 issued by Crabbe Waste Disposal = $1031.08

2. Selling Price of Bond 2 issued by Malfoy Enterprises = $1269.50

How can we calculate the selling price (SP) for each bond?

Bond 1: Issued by Crabbe Waste Disposal

Coupon Interest Rate (CIR) = 6.315%

Yield to Maturity (YTM) = 8.70%

Maturity (n) = 4 years

Par Value (PV) = $1000

To calculate the selling price of Bond 1, we can use the following formula:

SP = (CIR/100) * PV + [(PV - (CIR/100) * PV) / (1 + YTM/100)^n]

Putting the values:

CIR = 6.315%

PV = $1000

YTM = 8.70%

n = 4 years

SP for Bond 1 = (6.315/100) * 1000 + [(1000 - (6.315/100) * 1000) / (1 + 8.70/100)^4]

SP = $632.36 + $398.72

Selling Price of Bond 1 issued by Crabbe Waste Disposal = $1031.08

Bond 2: Issued by Malfoy Enterprises

Now, let's calculate the selling price for Bond 2 issued by Malfoy Enterprises.

Coupon Interest Rate (CIR) = 8.90%

Yield to Maturity (YTM) = 8.70%

Maturity (n) = 4 years

Par Value (PV) = $1000

Using the same formula as above:

SP = (CIR/100) * PV + [(PV - (CIR/100) * PV) / (1 + YTM/100)^n]

Putting the values:

CIR = 8.90%

PV = $1000

YTM = 8.70%

n = 4 years

SP of Bond 2 = (8.90/100) * 1000 + [(1000 - (8.90/100) * 1000) / (1 + 8.70/100)^4]

SP = $889 + $380.50

Selling Price of Bond 2 issued by Malfoy Enterprises = $1269.50

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5.6 Last month Quick Industries produced 900 units. This month they produced 1,264 units. What is the rate of change in production? a. 29.8% b. 32.8% c. 40.4% d. 60% ​

Answers

Answer: C. 40.4%

Explanation:

To find the rate of change in production, we can use the following formula:

Rate of change = (New value - Old value) / Old value * 100

Where,

Old value = Production of last month = 900

New value = Production of this month = 1264

Substituting the values in the formula,

Rate of change = (1264 - 900) / 900 * 100= 364 / 900 * 100= 0.404 * 100= 40.4%

Therefore, the rate of change in production is 40.4%, which is an option (c). I hope that this answer has helped you!

Answer:

The correct answer is C.

Explanation:

The rate of change in production is: (1264 - 900) / 900 = 0.404 or 40.4%. So, the correct answer is c. 40.4%

​M&M's Proposition II suggests that in a world of no taxes and no​ bankruptcy, ________. A. in simple​ terms, as the firm adds more debt to the financing​ mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt B. no matter what the debtequity ratio​ is, the Ra or WACC of the firm increases with debt C. the value of the firm is sensitive to the funding choice between debt and equity D. Statements​ A, B, and C are all incorrect.

Answers

Answer:

A

Explanation:

Based on your risk tolerance, which strategy do you think you would use--dollar-cost averaging or
lump sum investing? Explain your reasoning.

Answers

Dollar-Cost Averaging is less risky than Lump-Sum Investing but with lower returns. A person who has a low tolerance for risk will opt for Dollar-Cost averaging.

What Is Dollar-Cost Averaging?

This refers to an investment strategy that involves dividing up the total amount to be invested across periodic purchases of a particular asset. This serves to reduce the impact of volatility.

What is Lump-Sum Investing?

As the name implies, this means that investor puts all or a huge bulk of their money into the market all at once.

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Bernie Company sells buttons to fabric stores. Sales are expected to be $2,011,666 in January, $2,387,984 in February and $3,177,651 in March. Bernie Company sets their prices so that they earn an average 49% gross profit on sales revenue. What is budgeted cost of goods sold for February

Answers

Based on the information given, the budgeted cost of the gods that are paid in February will be $1217872.30

A budgeted cost refers to a forecasted future expense that a business is expected to incur in the future. It's simply an estimated expense that is anticipated by a company.

The budgeted cost will be:

= Sales revenue - Gross profit

= $2,387,984 - (49% × $2,387,984)

= $2,387,984 - 1,170112.6

= $1217872.30

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Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:

Answers

Answer:

$636,364

Explanation:

Calculation to determine what The break-even point for Gardner Corporation for the current year is

First step is to calculate the Variable costs

Variable costs = $250,000 + $150,000 + $75,000 + $200,000

Variable costs = $675,000

Second step is to calculate the Contribution margin ratio

Contribution margin ratio = (Sales - Variable costs) / Sales

Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000

Contribution margin ratio= 0.55*100

Contribution margin ratio = 55%

Now let calculate the Break-even point

Break-even point = Fixed costs / Contribution margin ratio

Break-even point= ($100,000 + $250,000) / 0.55

Break-even point = $636,364

Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364

Identify what constitute the combination of traits, which result from the interaction of genes and environment.
O personality
O locus of control
O ethnocentrism
O perception

Answers

Answer:

Personality

Explanation:

the combination of traits, which result from the interaction of your genes and your environment, they constitute your personality

The personality from the interaction of genes and environment.

What is combination of traits?

It could involve anything from managing a team of people to swaying opinions and guiding an organization's development.

Whatever your personal definition of leadership may be, we can all agree on one thing: Great leaders regularly exhibit certain characteristics as opposed to mediocre ones.

Effective leaders play a critical role in ensuring that people are inspired, engaged, and properly prepared to provide their best work at all levels of a business.

Therefore, The personality from the interaction of genes and environment.

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what is credit? in your own words. economics.​

Answers

Answer:

credit is like owing someone money for a long period of time and isn't payin it

institutional investors are important in today's business world because multiple choice as large investors, they have more say in how businesses are managed. they have a fiduciary responsibility to the workers and investors that they represent to see that the firms they own are managed in an ethical way. as a group they can vote large blocks of stock for the election of board members. all of the options are correct.

Answers

Institutional investors have become increasingly important in today's business world due to their size and influence. As large investors, they have a fiduciary responsibility to the workers and investors that they represent to ensure that the companies they own are managed in an ethical way.

Additionally, they can hold companies to higher standards when it comes to corporate governance and transparency, creating better conditions for workers and investors. All of the options mentioned are correct and demonstrate why institutional investors are important in today's business world.

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what are five ways you can make sure the customers experience is the best that can possibly turn them into a loyal customer?

Answers

Answer:

Here is 6 ways

Explanation:

1. Set up ways to communicate with your customers

2. Provide extra perks for your most loyal customers

3. Consider different payment plans

4. Provide great customer service

5. Don’t rely too much on technology

6. Offer a head start

During the year, Morgan makes the following donations to his church: cash of $5,500 and stock worth $50,000. Morgan had purchased the stock six years ago for $38,000 and held it as an investment. Morgan's AGI for the year is $80,000.

Answers

Based on his transactions during the year, Morgan's potential deduction is $55,500.

The question asks about the potential deductions if percentage limitations are ignored.

If percentage limitations were not applied, Morgan would be able to deduct all the donations to his church as the church is a not for profit organization.

The potential deduction is therefore:

= 5,500 + 50,000

= $55,500

In conclusion, the potential deduction is $55,000.

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Which of the following is true if you find a better rate on an external 3rd party channel within 24 hours of making a reservation through one of Marriott's direct channels?

Answers

If you find a better rate on an external 3rd party channel within 24 hours of making a reservation through one of Marriott's direct channels, the Marriott’s Best Rate Guarantee policy comes into effect.

Marriott’s Best Rate Guarantee policy is a commitment to providing the lowest rate possible. If you find a lower rate within 24 hours of booking through one of Marriott’s direct channels, Marriott will match that rate and offer an additional discount of 25%.

This policy applies to any Marriott brand including Ritz-Carlton, St. Regis, Westin, Sheraton, Aloft, and othersYou need to first book your reservation through Marriott’s direct channels like Marriott.com, the Marriott Mobile app, Marriott Bonvoy app, the Marriott Reservation Center, or directly with the hotel.

After that, you should look for lower rates on other third-party websites. If you find a lower rate within 24 hours, contact Marriott’s Customer Care team, and they will match that rate plus an additional discount of 25%.The policy does come with some terms and conditions.

The lower rate you find on the third-party website must be for the same hotel, same room type, same dates, same number of guests, same currency, and with the same booking conditions. It also excludes rates that are only available to members of certain groups or organizations, package rates that include flights, car rentals, and other amenities, and rates that are not available to the general public

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H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $12800 by issuing 3100 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.90 per share. Given this information, the journal entry for J. Laney. to record this transaction is:

Answers

Answer:

The journal entry for J. Laney to record this transaction is

Dr legal expenses $12,990

______Cr Common stock $3,100

_______Cr Share premium $8,990

Explanation:

The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.

Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.

Share premium = ($3.90 - $1) × 3,100

Share premium = $8,990

Which action would a government most likely take to reduce its
unemployment rate?
A. Increase spending to create government jobs
B. Cut off loans to businesses in order to reduce the money supply
C. Increase taxes on businesses that operate outside the country
D. Cut taxes on businesses that operate with very few workers

Answers

Option (a), The action that a government would most likely take to lower its unemployment rate is to increase expenditure to generate government jobs.

What would happen to the unemployment rate if government spending increased?

Fiscal policy may lower unemployment by accelerating economic growth and total demand. The government will need to implement a broad budgetary policy, which calls for decreasing taxes and increasing general government spending.

Which government initiative has the most chance of reducing cyclical unemployment?

To lower cyclical unemployment, policymakers should focus on raising output, which is best achieved by increasing demand. A fiscal strategy that is more expansive aims to increase government spending and decrease taxes in order to increase aggregate demand and economic growth.

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