Option two is the choice because the $2,716 savings difference in total interest from option two outweighs the $1,043 in interest savings from option one. Here the simulator reveals that loan option one is the correct choice. Loan option one is the best choice to solve the working capital shortfall because even though it has a higher interest rate, there is no prepayment limitation and has a total interest payment of only $32,603 after three months. The Financial Dictionary explains that “prepayment is good for the borrower because it relieves him/her of the debt, but it deprives the lender of interest he/she would have received otherwise” (Financial Dictionary, p. 1,
An increase in wages will increase the average variable cost. The more people required to produce additional units of output will be more expensive due to an increase in wages. A lower material cost will result in a lower average variable cost because more units can produced at a lower cost. If the firm produces the same amount of units the cost will fall. The fixed tax will not change the average variable cost.
• In 2011, the percentage of lone parent family children is higher than in 1996, and the percentage of ‘couple families’ children is lower than in 1996. This would suggest that there are more lone parent families in 2011 than there were in 1996. • The approximate ratio of ‘couple families’ children to ‘lone parent’ children in 1996 is 4:1, whereas in 2011 this is reduced to approximately 3:1. Word count: 157 Part B Consider two different types of household and, by using one example, describe how a decision made by government affects the flow of money between government and each of these households. Explain how this decision would also affect how money flows between these two different households and corporations.
3. Considering the economic systems of your chosen countries, which country do you think would be the most open to trade with the United States and why? Japan would be the most open to trade with the U.S because Japan’s economic freedom score is 72.8 making its economy the 22nd freest in the 2010 index. its score is 1.2 pts lower than last year, with a particularly significant decline in the control of government spending. Japan is ranked 7th out of 41 countries in the Asia-Pacific region.
The profit percentage of assets varies by industry, but in general, the higher the ROA the better. We can see a good trend over years in the company. Comments: Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. The formula for ROE is: ROE is more than a measure of profit; it's a measure of efficiency. A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital.
d) The equilibrium interest rate increases to bring desired investment into equilibrium with the reduced quantity of national saving. e) The equilibrium quantity of investment is reduced via the increase in the interest rate by an amount equal to the increase in government spending. Question 5 (15 marks) a) capital is added. No, MPK does not diminish because it does not decline as more is also acceptable. b) L = 100: L = 110: L = 120: 0. .
Chapter 24 Potential GDP Page 631 7. What is the quantity of labor employed, potential GDP, and the real wage rate, and total labor income? Table 2 Labor Market | Real Wage Rate (dollars per hour) | Quantity of labor demanded | Quantity of labor supplied | 1.00 | 10 | 50 | 0.80 | 20 | 40 | 0.60 | 30 | 30 | 0.40 | 40 | 20 | Table 1 Production Function
This ensures us to get the reinvestment return from the cash flow on the WACC without worrying about the scale problem. I find that developing the new technologies in the house has higher MIRR than purchasing; the two rates are 17.40% and 15.40% respectively. 2. NPV, the sum of the present value of the cash outflows and inflows can measure the expected change in wealth from undertaking the project. The NPV for purchasing the technologies is 94.71 million and the NPV for developing the technologies is 127.24 million.
As of 2010, with the total population of the United States at 310.2 million individuals, White Non-Hispanic Americans are 64.7 percent of the United States population. While the second largest racial group in America is Hispanics with 16 percent of the population. According to the trends, the population is estimated to be at about 439 million in the year 2050. That's quite a rise in the population in the next 40 years (129 million) and who knows the impact it will have on our economy and job availability. It is also estimated that White Non-Hispanic Americans will be less than half the population at this point with 46.3 percent of the population being that race.
Issues of definition and measurement 4 3.1 GDP 4 3.2 GNH 4 3.3 HDI 5 3.4 Alternative methods 5 4. Conclusion 7 5. References 8 1. Introduction This report provides an overview of different scientific perspectives and their particular types of measurement concerning economic growth and happiness. Economic growth involves the rise of output in an economy by using gross domestic product (GDP) to measure ‘the total value of everything produced in an economy in a time period (…)’ (Fribbance, 2009, p. 21) Research on happiness outlines the limitations and complexity of people´s well-being on a global basis.