Chapter 5 – Mankiw SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1. The price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good‚ computed as the percentage change in quantity demanded divided by the percentage change in price. When demand is inelastic (a price elasticity less than 1)‚ a price increase raises total revenue‚ and a price decrease reduces total revenue. When demand is elastic (a price elasticity greater than 1)‚
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Critical Thinking Exercises 1. Jen operates Jen’s Fruits & Vegetables‚ a small market stocked entirely with produce grown on her adjacent farm. Under what clause of the Constitution can the federal government regulate Jen’s activities? Following to the US Constitution reserves to the states all rules do not decide to the federal government. Each state in the union has own constitution and laws. With this case‚ Jen is not belonging to in interstate commerce‚ Jen’s activities were not belonging
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The Hobbit Questions Chapters 1-3 1. The first three chapters reveal Bilbo’s “ordinary world”‚ how he is comfortable and relaxed with his same old life‚ then the “call to adventure”‚ when Gandalf shows up and asks Bilbo for his help and Bilbo’s “refusal of the call”‚ and “meeting with the mentor” was when all the dwarves and Gandalf took over Bilbo’s house‚ then the morning after the “crossing the first threshold” is revealed when Bilbo leaves his house and town accompanying the dwarves into
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1 Problem 1-4. An Analysis of the transactions made by Acme Consulting for the month of July 1. Explain each transaction. 1) $20‚000 is the amount invested by the owner/s into the business 2) $7‚000 is the cost of the equipment purchased for the business. $5‚000 has been paid. $2‚000 is the amount still owed for the purchase. 3) $1‚000 is the amount expended to purchase inventories and supplies for the business. 4) $4‚500 is the amount paid for
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Supply Chain Management Inventory Review Question [1] Toys R’Fun is planning a new line of cuddly toys called “furby.” The plush furby toy will be priced at $27. Toys R’Fun purchases the fur by for $18. The annual demand is estimated to be 36‚400 furbys (or 700 per week). The opportunity cost of capital for Toy R’Fun is 25% per annum. Other relevant holding costs (taxes‚ insurance‚ theft‚ obsolescence‚ etc.) are estimated to be 8% per annum. The cost of capital is 10% per annum. The ordering
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profitable or unprofitable in its operations. A) True B) False This is the correct answer. Feedback: The primary purpose of accounting is to provide information that is useful for decision-making purposes. Accounting is ’not an end’‚ but rather it is a ’means to an end.’ LO 1 2 Costs‚ prices‚ sales volume‚ profits‚ and return on investment are all accounting measurements. A) True This is the correct answer. B) False Feedback: A clear understanding of accounting terms and concepts is required
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Philippines Hopes Better Credit Rating Will Draw Investors The Philippines has shrugged off decades of financial woes to earn its first investment-grade credit rating from one of the world’s leading ratings agencies. Fitch Ratings cites the Aquino administration’s improved money management‚ pro-growth policies and plans to increase revenues through a new "sin tax." Economists say it was only a matter of time before the Philippines would be given an investment-grade rating. They point to the stock
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Public Company Accounting Oversight Board; Will it Protect Investors? The Public Company Accounting Oversight Board (PCAOB) was created by Sarbanes-Oxley Act of 2002. This board was created to oversee the audit of public companies‚ subject to the securities laws‚ in order to protect the interests of investors (15 USC 7201‚ 2002). It was created in wake of the recent financial scandals of Enron‚ WorldCom‚ and Global Crossing to name a few. This "Act" established by Congress is to create an oversight
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Insight Report: Angel Investors On 18th April 2014 Synopsis The report provides market analysis and insights‚ including: Insights on the HNW VC/AI market and the prevailing trends in each region. Insight into investment focal-points of VCs and AIs by industry. Analysis of the key trends‚ drivers and challenges that affect angel investors and venture capitalists‚ and a focus on the role of various entities in the VC/AI market. The report is based on a unique analysis of WealthInsights proprietary
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the following securities will likely have the highest liquidity premium? Answer Selected Answer: a. U.S. Treasury Bond maturing in 2027 Correct Answer: c. Aaa-rated corporate bond maturing in 2015 not actively traded Question 2 0 out of 2 points The curse of competitive markets Answer Selected Answer: a. Means that companies cannot earn exceptional profits. Correct Answer: c. May be lessened by obtaining patents for new ideas that protect companies
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