A positive oil shock: Suppose scientists discover a new way to extract oil from deposits that were previously thought to be unrecoverable. The extra supply of oil leads oil prices to decline. Explain the effect on wages, the employment-population ratio, and unemployment– all for the overall economy.

Answers

Answer 1

Answer:

The impact of decline in oil prices to the overall economy with regard to wages, employment and unemployment is given below.

Explanation:

Oil is used by many firms, some of which use it for production in which case the oil is an input in their related costs while others use it indirectly such as in running of transportation.

When the oil prices decreases it will result in rise in demand for oil by these firms, as they can utilise oil for further production (for direct use) or purchasing & running transportation to be use in their business. This will result in more work and the demand for labour will increase which will cause the wage rate to increase, employment-population ratio to increase and the unemployment to decrease.

Answer 2

The wages would rise, employment ratio would rise and the unemployment in the economy would fall.

A positive supply shock would cause the prices of the oil to decline. This fall in prices is an indirect effect of this discovery. A more direct effect would be a fall that would occur in the cost of production.

Then the fall in oil prices would lead to a rise in the real income of the economy. Also causing a rise in aggregate demand.

This would then lead to a rightward shift of the demand curve. Therefore the wages would rise, employment ratio would rise and the unemployment in the economy would fall.

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Related Questions

What are persuasive messages

Answers

Answer:

A message in which you are trying to get the reader to agree with your opinion. This way the walk away with a new perspective over such topic.


Answer: Persuasive messages are the central message that intrigues, informs, convinces, or calls to action.

Sol purchased land as an investment on February 12, 2018 for $85,000. On January 31, 2019, Sol sold the land for $90,000 cash. What is the nature of the gain or loss?

Answers

Answer:

c)Short term capital gain.

Explanation:

Since in the question it is mentioned that the land is purchased by Sol as on Feb 12,2018 for $85,000 and the land was sold by Sol as on Jan 31, 2019 for $90,000 in cash

So as we can see the difference in the purchase date and sale date would be less than one year and the transactions related to the capital assets would be termed as capital gain

Since it is less than one year so it is a short term capital gain

Hence, the correct option is c.

The level of the Baring market index is 22,300 at the start of the year and 26,800 at the end. The dividend yield on the index is 4.3%. a. What is the return on the index over the year

Answers

Answer: 24.48%

Explanation:

Return on the index over the year is calculated by;

= Dividend yield + (Ending index value - Beginning index value)/ Beginning index value

= 4.3% + (26,800 - 22,300) / 22,300

= 24.48%

Assume that a company’s beginning-of-period price is $10 per common share, its dividends are $0.55 per share, and its end-of-period price is $10.50 per common share. What is the company’s expected cost of equity capital?

Answers

Answer: 10.5%

Explanation:

The expected cost of equity capital is calculated by the formula;

= (Ending value of common share - Beginning value + Dividends) / Beginning value

= (10.50 - 10 + 0.55) / 10

= 10.5%

Monthly production costs in Pesavento Company for two levels of production are as follows:Cost .............................2,000 Units..........................4,000Indirect Labor..............$10,000..............................$20,000Supervisory Salaries.....$5,000.................................$5,000Maintenance.................$4,000..................................$7,000Indicate which costs are variable, fixed, and mixed and give the reason for each answer.

Answers

Answer:

Variable Costs : Supervisory $5,000

Fixed Costs : Salaries $5,000

Mixed Cost : Maintenance $4,000

Explanation:

Variable Costs

These costs vary in direct proportion with the amount of production.

Examples : Materials and Labor

Fixed Costs

Theses costs do not vary with amount of production but stays the same in the relevant range.

Examples : Salaries of Mangers

Mixed Costs

These contain a variable cost element and a fixed cost element

Examples : Telephone Bill and Maintenance Costs

If taxes rise, then aggregate demand shifts:____________ a. left, making unemployment higher than otherwise. b. left, making unemployment lower than otherwise. c. right, making unemployment higher than otherwise. d. right, making unemployment lower than otherwise.

Answers

Answer:

a. left, making unemployment higher than otherwise

Explanation:

An increase in taxes is a contractionary form of fiscal policy. When taxes are increased, there is usually a decrease in aggregate demand because more taxes will cause a reduction in income which is goes further to cause a reduction in consumption. A rise in taxes will make businesses to lay off workers because there would be less money to pay all workers which makes the unemployment to be higher, thereby shifting aggregate demand inwards that is left of the aggregate demand curve.

On January 2 Fred paid $18,000 for 900 shares of common stock of Acme Company. Fred received a $0.80 per share dividend on the stock at the end of each year for four years. At the end of four years, he sold the stock for $22,500. Fred has a goal of earning a minimum return of 12% on all of his investments.

Required:
a. Determine the net present value.
b. Did Mr. Critchfield earn a 12% return on the stock?

Answers

Answer:

a) initial outlay = -$18,000

cash flow 1= $0.80 x 900 = $720

cash flow 2= $0.80 x 900 = $720

cash flow 3= $0.80 x 900 = $720

cash flow 4= $720 + $22,500 = $23,220

NPV = -$18,000 + $720/1.12 + $720/1.12² + $720/1.12³ + $23,220/1.12⁴ = -$1,513.95

b) no, he actually earned 9.43% (IRR) on the stock. If Fred had earned 12% or more, then the NPV would be positive.  

The list of steps required to get the same regult each time a task or activity is performed is known as the:
Select one:
a. shop policy.
b. shop regulations.
c. shop procedure.
d. shop system.

Answers

Answer:

The answer is C. procedure

Explanation:

I found it here: https://quizlet.com/155356515/chapter-3-automotive-vocab-flash-cards/

You have assigned the following values to these three firms: Price Upcoming Dividend Growth BetaEstee Lauder $50.00 $1.70 16.50% 0.74Kimco Realty 82.00 1.68 11.00 1.51Nordstrom 10.00 0.60 13.00 1.02Assume that the market portfolio will earn 10.00 percent and the risk-free rate is 4.00 percent. Compute the required return for each company using both CAPM and the constant-growth model. (Do not round intermediate calculations and round your final answers to 2 decimal places and do not include a % symbol.)CAPM Constant-Growth Model
Estee Lauder required return ____.__% ____.__%
Kimco Realty required return ____.__% ____.__%
Nordstrom required return ____.__% ____.__%

Answers

Answer and Explanation:

The formula to compute the required rate of return using the CAPM and constant growth model is as follows

Under CAPM

The Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)

Constant growth model = Dividend ÷ Price + Growth rate

For Estee lauder,

Under CAPM = 4% + 0.74 × (10% - 4%)

= 4% + 0.74 × 6%

= 4% + 4.44%

= 8.44%

Under the Constant growth model

= $1.70 ÷ $50 + 16.50%

= 19.90%

For Kimco realty,

Under CAPM = 4% + 1.51 × (10% - 4%)

= 4% + 1.51 × 6%

= 4% + 9.06%

= 13.06%

Under the Constant growth model

= $1.68 ÷ $82 + 11%

= 13.05%

For Estee lauder,

Under CAPM = 4% + 1.02× (10% - 4%)

= 4% + 1.02 × 6%

= 4% + 6.12%

= 10.12%

Under the Constant growth model

= $0.60 ÷ $10 + 13%

= 19.00%

17. On the circular flow diagram of the economy, the arrow from the producer sector to the
overseas sector usually represents
A. Export receipts
B. Import payments
C. Producer income
D. Tariffs​

Answers

Answer:

A. Export receipts

Explanation:

This arrow represents dollars (or other currency) that are being received by domestic producers in exchange for the export of goods or services that they are sending overseas.

If the arrow was pointing backwards, it would represent dollars that are leaving the economy in order to pay for imports.

The item called "Export receipts" is the arrow on the circular flow diagram which depicts the producer sector to the overseas sector.

The Export receipts arrow the currency that are being received by domestic producers in exchange for the export of goods or services that they are sending overseas.

If the Export receipts arrow are pointing backwards,then, it means that dollars are leaving the economy in order to pay for imports.

Hence, the "Export receipts" is the arrow on the circular flow diagram which depicts the producer sector to the overseas sector.

Therefore, the Option A is correct.

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Product-oriented layout is characterized by high demand for the same or similar products. Another name for this layout is

Answers

Answer:

Repetitive layout

Explanation:

In simple words,  Product-oriented layouts can be understood as the model that is  grouped around items with equivalent high low commodities or families. Consumer demand is strong enough to warrant the high investment in specialized equipment in such a design. The commodity is standardized or entering a life cycle period that justifies investments in advanced equipment.

2. _____ had the most volatile actual annual returns during 1926-2016. Small-company stocks Long-term corporate bonds Intermediate-term government bonds Large-company stocks U.S. Treasury bills

Answers

Answer: Small-company stocks

Explanation:

Small company stock returns are more volatile than the other options lifted and so had the most volatile actual annual returns during 1926-2016. This is because small companies are more prone to adverse market conditions than large-company stocks.

Long-term corporate bonds are more stable than stock in general and Government bonds as well as U.S. T-bills are usually the most stable of all the options.

Flight attendants rarely have to travel for their job. A True B. False​

Answers

Answer:

B  false

Explanation:

they have to travel cause the help out on the plane

Answer:

False

Explanation:

Flight attendants provide their assistance on planes, which travel around the world.

A bank charges a commercial borrower a 6.55 percent interest rate on a one-year loan. The bank also charges a 0.5 percent origination fee and requires compensating balances of 7 percent in the form of demand deposits. Reserve requirements are 10 percent. What is the promised gross rate of return on the loan?

Answers

Answer:

the promised gross rate of return on the loan is 7.52%

Explanation:

The computation of the promised gross rate of return is shown below:

= (Rate of interest + Origination fees) ÷  [1 - (Demand deposit x (1 - Reserve requirement)]

= (6.55% + 0.5%) ÷ [1 - (7% × (1 - 10%)]

= (0.0655 + 0.005) ÷ [1 - (0.07 × (1 - 0.10)]

= 0.0705 ÷ (1 - 0.063)

= 0.0705 ÷ 0.937

= 0.07524 or 7.52%

Hence, the promised gross rate of return on the loan is 7.52%

As part of their annual evaluation, a violence prevention organization reported that their violence prevention program saved over one million dollars per year by preventing 300 shootings per year. What type of economic evaluation is this?
A. Cost description
B. Cost analysis
C. Cost comparison
D. Cost-effectiveness
E. There is not enough information to determine this.

Answers

Answer:

D. Cost-effectiveness

Explanation:

The cost effectiveness refers to an output where it is produced in a good way without incurring a lot of money

Here in the given situation, it is mentioned that the organization i.e. violence prevention reported the violence prevention that they saved over one million dollars in term of year by preventing the 300 shooting per yer

So this situation represents the cost effectiveness

hence, the correct option is d.

Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the chart above, listing some potential costs and benefits of expansion. What concept does this chart most clearly illustrate? Businesses must respond to consumer demand. Competition requires businesses to expand. Economic choices result in trade-offs. The benefits of economic growth outweigh the costs.

Answers

Answer: Economic choices result in trade-offs.

Explanation:

The chart simply purports to show that when making economic decisions, you will have to accept trade-offs because resources are not infinite.

For instance, in order to expand, you will need to take on more financial risk. In that same vein, in order to serve more people, you will have to divide time between two stalls and might end up closing a stall.

Trade-offs simply have to be made.

Economics..Match the following..

Answers

Answer:

1

4

2

5

3

Explanation:

You purchased a share of a German firm's stock. The company did not pay out any dividends and the price of the stock rose by 15% over the year. In addition, the value of the Euro was $1.00 per Euro at the outset and it rose by 10% over the year. What was your total percentage rate of return in dollars for this investment

Answers

Answer:

16.67%

Explanation:

Holding period return = [(actual value - purchase cost) + dividends received] / purchase cost.

First we can calculate the HPR in euros = [(1.15€ - 1€) + 0€] / 1€ = 0.15 = 15%

We now need to convert our earnings to US dollars. We will gain an additional 10% due to the currency appreciation of the euro:

total percentage rate of return = 15% / (1 - 10%) = 15% / 0.90 = 16.67%

Snickers decides it wants to develop a broader customer base for its brand. It introduces the Snickers ice cream bar in the summertime to rave reviews. What brand strategy did Snickers employ with the new product rollout

Answers

Answer: brand extension

Explanation:

Brand extension is when a company with an already established brand uses this brand to launch new products or go into other product categories. The logic here is that with people trusting the brand, they will be more likely to give the new product a try.

This is what Snickers relied on. They are an established brand in candy, when they introduced another product under the Snickers name, people bought it and gave it rave reviews because they trusted Snickers already.

An effort to reduce externalities, through taxation comparable to the cost of the damage caused by the externality is a/an:_______

Answers

Answer: A 3 : Pigouvian tax

Explanation:

A Pigovian tax is one that is introduced on companies producing a negative externality in the environment. The tax imposed is the cost of the damage caused by the negative externality.

Pigovian taxes are done in an effort to dissuade companies from producing negative externalities such as pollution by charging them the correct amount for the damage they cause so that it forces them to seek better methods of production that would reduce the externality.

In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the strategic management process does this represent?

a. Execute the strategies
b. Maintain strategic control
c. Assess the current reality
d. Formulate corporate, business, and functional strategies
e. Establish the mission, vision, and values statements

Answers

Answer: c. Assess the current reality

Explanation:

The stage of the strategic management process does this represent is assess the current reality. This is done in order to ascertain where the company stands. At this stage, anything that could be done differently in order to maximize efficiency is done. Some of the tools that are being used to address current reality are SWOT analysis, Benchmarking and forecasting.

On March 10, 2019, Dearden, Inc., purchased 11,200 shares of Jaffa stock for $47 per share as a long-term passive investment. Dearden’s year ends on December 31. The following information pertains to the price per share of Jaffa stock:

Price
12/31/2019 $45
12/31/2020 48
12/31/2021 44

Dearden sold all of the Jaffa stock on September 12, 2022, at a price of $42 per share. Prepare any journal entries that are required by the facts presented in this case.

Answers

Answer:

Dearden, Inc.

Journal Entries to record the transactions:

March 10, 2019:

Debit Investment in Jaffa $526,400

Credit Cash $526,400

To record the purchase of 11,200 shares at $47 per share.

December 31, 2019:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $47 to $45 per share.

December 31, 2020:

Debit Investment in Jaffa $33,600

Credit Gain on Investment $33,600

To record the gain on investment from $45 to $48 per share.

December 31, 2021:

Debit Loss on Investment $44,800

Credit Investment in Jaffa $44,800

To record the loss on investment from $48 to $44 per share.

September 12, 2022:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $44 to $42 per share.

Debit Cash Account $470,400

Credit Investment in Jaffa $470,400

To record the sale of the investment in Jaffa at $42 per share.

Explanation:

For Dearden, Inc. journal entries are recorded on the acquisition date to record the purchase of the investment in Jaffa.  Records are also made every December 31 to record the movements in the share price of the investment.  Finally, on the date of disposal, records are also made to record the sale of the investment.

A firm with a production function Q = KL (where K is units of capital and L is units of labor) has an expansion path that is given by K = 2L. The wage rate (W) is $20 and the rental on capital is $10. Assuming that the firm is using the optimal mix of inputs for any given output level, the total cost when using three units of labor is: $__________. A. 40 B. 80 C. 120 D. 160

Answers

Answer:

C. 120

Explanation:

The computation is shown below:

                                      (L × K)

Labor L      Capital K   Quantity of Output Q         Total cost TC

1                    2                      2                                       $40

2                   4                      8                                       $80

                                                                   (2 × $20 + 4 × $10)

3                    6                    18                                       $120

                                                                  (3 × $20 + 6 × $10)

4                    8                     32                                      $160

                                                                 (4 × $20 + 8 × $10)

As we can see that if we considered 3 units of labor so the total cost is $120

Hence, the correct option is c.

what is the theoritical foundation of leadership​

Answers

Behavior theories of leader ship are based upon the belief that great leaders are made not born, rooted in behaviorist, this leadership theory focuses on the actions of leaders, not on mental qualities or internal states. This theory can help you become leader through the aching and observing.
Hope this helps!! :))

True of False: You can reduce impulse buying by doing research before each purchase.

Answers

Answer:

true

Explanation:

Brian explains that blogging is a type of inbound marketing. Which type of blog typically provides the highest level of digital marketing control for companies

Answers

Answer:

Corporate blog

Explanation:

Blogging is a self publishing activity where an individual writes content in categories and posts on a website called a blog.

The most recent posts are usually the first to be displayed on the website while others follow below chronologically.

Corporate blog are websites that are published by a company as a way to reach out to it's clients and meet organisation goals.

They have a well structured conversation threads and centralised hosting for the website.

So this is the type of blog that typically provides the highest level of digital marketing control for companies.

Oil Well Supply offers 6.8 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000?

Answers

Answer:

Bond Price​= $958.32

Explanation:

Giving the following information:

Face value= $1,000

Cupon= (0.068/2)*1,000= $34

Number of periods= 6/2= 12 semesters

YTM= 0.0768/2= 0.0384

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 34*{[1 - (1.0384^-12)] / 0.0384} + [1,000/(1.0384^12)]

Bond Price​= 322.08 + 636.24

Bond Price​= $958.32

Al Dente Pasta Company overstated its inventory by $10 million at the end of 2021. The discovery of this error during 2022, before adjusting or closing entries, would require:_______.

Answers

Answer:

Retained earnings would be debited and inventory would be credited for $10 million each.

Explanation:

In the given scenario Al Dente Pasta Company overstated its inventory by $10 million.

This is an overstatement of assets of the company.

This also gives an understatement of the retained earnings of the company.

Adjusting entry in 2022 will now require Retained earnings would be debited and inventory would be credited for $10 million each.

What benefit does a corporation have that a partnership and a sole
proprietorship do not?
A. An unlimited life span
B. A single owner
C. The ease of starting the business
D. Fewer rules and regulations

Answers

Answer:

A. An unlimited life span

Explanation:

Corporations, unlike partnerships and sole proprietorships, are fully separate legal entities from their owners, meaning that if the owners pass away or sell their shares in the corporation, the corporation can still continue to exist.

In fact, there are corporations that are over 100 years old, a lifespan that clearly very few humans surpass, let alone when taking into account the amount of years that usually takes a person to start a corporation.

Ivanhoe Corporation has fixed costs of $518,400. It has a unit selling price of $8, unit variable cost of $6.40, and a target net income of $1,620,000. Compute the required sales in units to achieve its target net income.

Answers

Answer:

1,336,500 units

Explanation:

Selling price per unit  $8    

Less variable cost       $6.40  

Contribution per unit  $1.60

Fixed cost                      $518,400

Target net income        $ 1,620,000

Total amount required $2,138,400

Sales unit required = total amount required / Contribution per unit

= $2,138,400 / $1.60    

= 1,336,500 units

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