Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
<span>Answer;
Every time the procurement purchase or procures goods or services it is participating in the economy.
when you pay taxes to the government you are supporting the economy. Having a job to support your financial needs such as mortgages and bills will save you from going bankrupt and hurting the bank.
Explanation;
Financial decisions are important in any business, for the growth and development of the business, these includes, investments decisions, wages, purchases, loans and debtors.
These financial decisions have a direct or indirect impact on the economy; for example the purchase of goods and services impacts the economy directly, as it facilitates trade, and also the tax charged on the purchased goods and services.</span>
Answer:
journal entry are given below
Explanation:
given data
amount of interest = $150
solution
we know that as June 30 the interest earn company bank reconciliation is
$150
Therefore, it should be a cash debit and interest income should be deposited in the account as
journal entry are as June 30
Cash A/c $150 Dr.
To Interest revenue $150
record the interest revenue earned
Answer:
9.00%
Explanation:
If Ken Francis' original investment (P) is $2,745 and the future value (FV), after a period (n) of 15 years, is $10,000, the annual interest rate (r) for this investment is given by:
![FV = P*(1+r)^n\\r=\sqrt[n]{\frac{FV}{P}} -1\\r=\sqrt[15]{\frac{10,000}{2,745}} -1\\r=0.0900 = 9.00\%](https://tex.z-dn.net/?f=FV%20%3D%20P%2A%281%2Br%29%5En%5C%5Cr%3D%5Csqrt%5Bn%5D%7B%5Cfrac%7BFV%7D%7BP%7D%7D%20-1%5C%5Cr%3D%5Csqrt%5B15%5D%7B%5Cfrac%7B10%2C000%7D%7B2%2C745%7D%7D%20-1%5C%5Cr%3D0.0900%20%3D%209.00%5C%25)
The annual rate of interest for this investment is 9.00%.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
The balance in the Work-in-Process Inventory account was $10,000 at the beginning of the month and $22,000 at the end of the month. During the month, the company incurred direct materials cost of $63,000 and the direct labor cost of $39,000. The actual manufacturing overhead cost incurred was $40,000. The manufacturing overhead cost applied to Work-in-Process was $43,000.
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 10,000 + 63,000 + 39,000 + 40,000 - 22,000= $130,000
