Kate and Sarah own a bakery together. The two figures illustrate the production possibilities available to them if they work at their bakery for 8 hours a day.
If kate and sarah both specialize in the good in which they have a comparative advantage the;
Answer;
-the total production of bread will be 16 and total production of pies will be 17.
Explanation;
-Comparative advantage is the ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.
-It is important to note that a comparative advantage is not the same as an absolute advantage. The latter implies that one is the best at something, while the former relates more to the costs of the particular endeavor.
Answer:
Gain/loss= $7,500 loss
Explanation:
Giving the following information:
Selling price= $24,000.
Lassen bought the machine for $52,000 and has claimed $20,500 of depreciation expense on the machine
First, we need to calculate the book value:
Book value= original price - accumulated depreciation
Book value= 52,000 - 20,500= $31,500
If the selling price is higher than the book value, the company gain from the sale.
Gain/loss= 24,000 - 31,500= $7,500 loss
Answer:
b. jobs that are classified as part-time are jobs that can be done in a shorter amount of time than that of a full-time job, whereas job sharing creates one full-time position out of two part-time employees
Explanation:
Based on the scenario been described, we can say that the difference between part time job and job sharing is, jobs that are classified as part-time are jobs that can be done in a shorter amount of time than that of a full-time job, whereas job sharing creates one full-time position out of two part-time employees, so option b is the correct answer. In part-time job, job are done in short period of time, whereby the employee will come and do his/her job within a short period of time and leave, while job sharing is a full time job but is been shared among full time employees to do their turns.
Answer:
Midwestern Mutual Bank's Balance Sheet
Equity:
Owners' Equity - $100
Liabilities:
Deposits $1,200
Debts $200
Total - $1,400
Equity and Liabilities = $1,500
Assets:
Reserves - $150
Loans $600
Securities $750
Total Assets - $1,500
a) If a new customer adds $100 to his account, this would increase the loans account with $100 and the deposits account with $100.
b) The leverage ratio is the measure of the bank's core capital to total assets.
Old leverage ratio = 100 / 1500 x 100% = 6.67%
The new leverage ratio is 100 / 1600 x 100% = 6.25%.
c) The intended goal of capital requirement is protect the interests of those who hold equity in the bank.
Explanation:
Banks are highly leveraged. This means that they usually maintain high leverage ratios. The liabilities are always much compared to the capital.
Leverage ratio is the ratio of a bank's core capital (shareholders equity) to its total assets.
This is why the Federal Reserve introduces capital requirements for banks. This tries to protect shareholders' equity that is usually written down when leverage ratios increase. This is because the capital portion of assets to which the debts are tied can be written down, but the debts cannot.
