If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years. Compounded interest allows for more money that simple interest would. 2. A) If the individual retires at the age of 65, having started the program at age 40, there would be $219,318 in the account. $3,000 x (8% in 25 years) 3000 x 73.106 = $219,318 B) If
In an attempt to increase the value of their lifeless bodies, millions of people invest money every month into a life insurance policy. Consequently, we are further developing the capitalistic mindset. Perhaps Willy is correct in saying “a man is not a piece of fruit (82)” one can “eat…and throw…away (82).” The efficiency of today’s world will not allow this to occur. Humanity has become so engulfed in the goal of making money, that we have designed a method of doing so past a person’s “useful” period. Whether we choose to end our own life, or let nature take it for us, we are all like Willy Loman.
Suppose a constitutional amendment is adopted which requires the federal government to balance its budget annually. If the budget is currently balanced and now policymakers wish to increase the equilibrium level of the national product by $30 billion, the federal government: A. would be unable to bring about this change through fiscal policy. B. should increase both its spending and taxes by $15 billion. C. should increase both its spending and taxes by $30 billion. D. should reduce both its spending and taxes by $30 billion.
The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital?
Borrowers who did not meet their standards were forced to pay higher interest rates to subprime lenders, but the companies essentially persuaded investors to treat a vast number American families as if they were interchangeable. They took messy bunches of loans, with risks as variable as snowflakes, and created securities of uniform quality, easy to buy and sell. The result was one of the most popular investment products ever created. And in its absence, experts on housing finance say that fewer borrowers would qualify for the best interest
He found out that england’s debt has doubled in 10 years. In 100 euros!! !So the ministry needed to find a new place to get money. And even so, the british were already being highly taxed. Since the colonists were benefits from wartime funds, he thought that anglo-americans should pay the larger share to run the empire!!
The strength of the economy encouraged Americans to take out more loans and buy more stocks, making them susceptible to future changes in the economy. The freedom caused financial markets to crash globally which helped power the Great Depression. Another example of lack of government intervention was the robber barons, a term referring to the wealthy and powerful businessmen in the 18th century. They were also known as “pure capitalists”, because they believed in an economic system that involved minimal interference from the government. Those working for robber barons were beaten and threatened, and the working conditions were terrible.
This type of result would only occur if the minimum wage was increased by a tremendous amount. A solution to this epidemic is underway: “the Fair Minimum Wage Act of 2013-would over the course of three years, gradually increase the minimum wage to $10.10…The bill would increase the gross earnings of a full-time minimum wage employee by $5,700 a year, lifting a family of three above the poverty line” (Martin). If this act is implemented, we would save millions of families, increase spending, and heal out economy in
The Super Rich Are Killing Our Democracy It was foretold by Thomas Jefferson that the downfall of a democracy is the accumulation of wealth by the rich and the lack of money for the poor. This is now happening with the Super Corporations controlling the flow of money and the flow of money controlling our politicians. Barbara Ehrenreich, in her article, “The Trouble With The Super Rich”, talks about: America being divided more and more by money. The upper class is shrinking in size, but not in wealth. Having such a small amount of people possessing such a large amount of the wealth will pull down society.