An automatic stabilizer:________
a) increases inflationary pressure during expansions.
b) increases the drop in disposable income during recessions and increases the jump in disposable income during expansions.
c) increases tax revenue relative to government spending throughout the business cycle.
d) decreases tax revenue relative to government spending throughout the business cycle.
e) reduces the drop in disposable income during recessions and reduces the jump in disposable income during expansions.

Answer:

E

Explanation:

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments

In an expansion, progressive tax increases the tax paid and this reduces disposable income

In a contraction, tax paid is reduced and this increases disposable income

Automatic stabilizers contrasts with discretionary fiscal policies.

Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.

Discretionary fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes

Consider a firm that has fixed costs of $300. The firm also faces a marginal cost of $600 for producing the first unit of output, $200 for producing the second unit, and $100 for producing the third unit. What is the average total cost of producing three units of output?

Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2020, Tamarisk's Goods and Ivanhoe Enterprises. Determine the missing amounts

Decision tree probabilities are primarily used to a.find overlooked choices to the problem. b.analyze more complex problems and to identify an optimal sequence of decisions. c.analyze less complex problems while identifying the optimal sequence of decisions. d.None of these choices are correct.

Which of the following statements is INCORRECT. All else equal, 1. If a bond's yield-to-maturity (YTM, i.e., market interest rate) is greater than its coupon rate, then the bond is trading at a premium. 2. Duration measures the sensitivity of a bond's price to changes in interest rate. 3. If a bond's market value is equal to its par amount, then its YTM will be equal to its coupon rate. 4. The estimated market price of a bond is the sum of its future discounted cash flows.

Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows:

Bouquet Production Delivery Other
Wages and salaries 60% 30% 10%
Other overhead 50% 35% 15%


Riverside anticipates making 20,000 bouquets and 4,000 deliveries in the upcoming year. The cost of wages and salaries and other overhead that would be charged to each bouquet made is closest to:

a. $12.50.
b. $7.15.
c. some other amount.
d. $8.75.
e. $13.75.

What are the solution to unknown gunmen problem

Zero-coupon risk-free bonds are available with the following maturities and yield rates (effective, annual):

Maturity(in years) Yield %
1 6
2 6.5
3 7

You need to buy corn for producing ethanol. You want to purchase 10,000 bushels one year from now, 15,000 bushels two years from now, and 20,000 bushels three years from now. The current forward prices, per bushel, are $3.89, $4.11, and $4.16 for one, two, and three years respectively. You want to enter into a commodity swap to lock in these prices. Which of the following sequences of payments at times one, two, and three will NOT be acceptable to you and to the corn supplier?

a. $38,900; $61,650; $83,200
b. $39,083; $61,650; $82,039
c. $40,777; $61,166; $81,554
d. $41,892; $62,340; $78,997
e. $60,184; $60,184; $60,184 73.2

DEFINE visible trade and invisible trade​

C Corporation is investigating automating a process by purchasing a machine for $803,700 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $138,500 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,300. The annual depreciation on the new machine would be $89,300. The simple rate of return on the investment is closest to (Ignore income taxes.):

On its balance sheet, Walgreen Co. reports treasury stock at cost of $4,114 million. The company has a total of 1,100,000,000 shares issued and 950,000,000 shares outstanding. What average price did Walgreen pay for treasury shares?
a. $3.15.b. $3.29.c. $3.03.d. $38.1.

A short forward contract that was negotiated some time ago will expire in 12-month and has a delivery price of $49.25. The current forward price for the 12-month forward contract is $46.00. The 12-month risk-free interest rate (with continuous compounding) is 6.65%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92

Given the following information, calculate the funds from operation (FFO).

Net income: $1,200,000
Gain/losses from infrequent and unusual events: $0
Amortization of tenant improvements: $120,000
Amortization of leasing expenses: $75,000
Depreciation (real property): $2,675,000.

a. $195,000
b. $1,395,000
c. $2,870,000
d. $4,070,000

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
Maximum capacity with present facilities 11,000 units
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
Required:
The number of units of CK74 that Ruby must sell to break- even is:________.
a. 12,900.
b. 4,577.
c. 7,095.
d. 6,050.

If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system

or each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of Bloomington Inc. at December 31, 2019. Next to each situation, enter the liability amount reported on Bloomington's balance sheet. If the amount is not reported as a liability, enter zero as your answer. a. Bloomington owes $220,000 at year-end 2019 for inventory purchase. Answer b. Bloomington agreed to purchase a $28,000 drill press in January 2020. Answer c. During November and December of 2019, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2020 are $3,100. Answer d. Bloomington provides a profit-sharing bonus for its executives equal to 5%

Plastic Products Ltd is a company business whole the country that produces and markets plastic cups, teaspoons, knives and forks for the catering industry. The company was established in 2010 in response to the changes taking place in the catering industry. The growth of the fast-food sector of the market was seen as an opportunity to provide disposable eating utensils which would save on human resources and allow the speedy provision of utensils for fast customer flow. In addition, Plastic Products has benefited from the growth in supermarkets, convenience stores and food processed manufacturers. The expansion of sales and outlets has led Mr. Long, the sales manager, to recommend to Mr. An, the general manager, that the present sales force should be increased. Mr. Long believes that the new recruits should have experience of selling fast-moving consumer goods since essentially that is what his products are. Mr. An believes that the new recruits should be familiar with plastic products since that is what they are selling. He favors recruiting from within the plastics industry, since such people are familiar with the supply, production and properties of plastic field.

A region is in the middle of a very cold and snowy winter. As a result, hot chocolate has become more desirable, and many of the shipping channels for imported goods have closed due to the weather. What will happen to the price and quantity sold of hot chocolate made with imported cocoa?1) Price and quantity will both increase2) Price will increase and the effect on quantity cannot be determined3) Price will increase and quantity will decrease4) Neither the effect on quantity nor the effect on price can be determined

List at least four factors a project manager should consider when identifying individuals to work on a project. Why is each important

Liz has been screened for potential group membership. She fits all criteria; however, she seems to lack the desire to participate. In the eyes of the leader Jacque, she just doesn’t seem to "want" it enough. What should be considered?

If the amount of beachfront land in Malibu supplied to the market remains the same even when the price of beachfront land in Malibu increases, the:_________.
a. demand for beachfront land in malibu must be perfectly inelastic,
b. supply of beachfront land in Malibu must be perfectly elastic.
c. demand for beachfront land in Malibu must be perfectly elastic.
d. supply of beachfront land in Malibu must be perfectly inelastic.

Select all that apply The margin of safety is: (Check all that apply.) Multiple select question. the difference between expected sales and break-even sales divided by expected sales. the amount sales can drop before the company incurs a loss. adequate if greater than 15% to 20%. always expressed as a dollar amount (not in units or percentages).

Curtis purchased stock with an initial share price of $140, and sold it when the share price was $119. While he owned the stock, he earned $10 in dividends.

What was his total percentage return on the investment?


-17.65%

-15.00%

-9.24%

-7.86%

Cavan Company prepared the following reconciliation between book income and taxable income for the current year ended December 31, year 1.
Pretax accounting income ...............................$1,000,000
Taxable income ...................................................(600,000)
Difference $ 400,000 Book-tax differences:
Interest on municipal income ...........................$ 100,000
Lower financial depreciation................................300,000
Total......................................................................$ 400,000
Cavan’s effective Federal and state income tax rate for year 1 is 30%. The depreciation difference will reverse equally over the next three years at enacted tax rates as follows.
Year Tax Rate Year 2 30% Year 3 25% Year 4 25%
In Cavan’s year 1 income statement, the deferred portion of its provision for income taxes should be: __________.
a. $120,000
b. $80,000
c. $100,000
d. $90,000

A dozen eggs cost $0.96 in December 2000 and $1.82 in December 2017. The average wage for workers in private industries was $14.28 per hour in December 2000 and $22.31 in December 2017. By what percentage did the price of a dozen eggs rise

In a production operation of an electronics firm, a company manufactures I/O circuit chips that is used in a final assembly process. The chips, manufactured in batches sizes are

Assume the following information for a merchandising company: Net operating income $ 19,000 Variable selling expenses $ 25,000 Cost of goods sold $ 295,000 Fixed administrative expenses $ 50,000 Fixed selling expenses $ 40,000 Variable administrative expenses $ 5,000 What are the company's sales

Skysong Industries borrows $22000 at 5% annual interest for six months on October 1, 2022. Which is the appropriate entry to accrue interest if Skysong employs a December 31, 2022, fiscal year?

Retained earnings, December 31, 2012 $311,900  
Cost of equipment purchased during 2013 30,000  
Net loss for the year ended December 31, 2013 4,550  
Dividends declared and paid in 2013 15,200  
Decrease in cash balance from January 1, 2013, to December 31, 2013 12,800  
Decrease in long-term debt in 2013 15,900  


Required:
From the above data, calculate the retained earnings balance as of December 31, 2013. (Negative amounts should be indicated by a minus sign.)

A manufacturer reports the following costs to produce 10,000 units in its first year of operations: Direct materials, $10 per unit, Direct labor, $6 per unit, Variable overhead, $70,000, and Fixed overhead, $120,000. The total product cost per unit under absorption costing is

Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: Cost of new equipment and timbers $ 370,000 Working capital required $ 115,000 Annual net cash receipts $ 130,000 * Cost to construct new roads in year three $ 43,000 Salvage value of equipment in four years $ 68,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: a. What is the net present value of the proposed mining project? b. Should the project be accepted?