Your selection of a layout format for your facility depends on all of the following factors: available space, production volume, the design of the process, and the inventory flow.
Each of these factors plays a critical role in determining the most effective layout for your facility.
For example, available space will determine how much room you have to work with and whether you need to use a compact or spacious layout.
Production volume will impact how many machines or workstations you need to include in your layout. The design of the process will dictate how materials move through your facility and where certain operations should be located.
Finally, the inventory flow will determine how materials are stored and transported throughout the facility, which will impact the overall layout.
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Excise tax is levied in the __ of goods and services
Answer:
its probably buying
Explanation:
an intra-entity inventory sale occurs between an investor and its equity-method investee. what factors determine the amount of gross profit from the sale to be deferred as of the end of the year?
The amount of gross profit from an intra-entity inventory sale to be deferred as of the end of the year between an investor and its equity-method investee is determined by the difference between the selling price and the cost of the inventory, considering any unrealized profit or loss remaining in the inventory.
When an investor and its equity-method investee engage in an intra-entity inventory sale, the amount of gross profit to be deferred is influenced by several factors. Firstly, it depends on the selling price of the inventory, which is the amount at which the investor sells the inventory to its equity-method investee. Secondly, the cost of the inventory is taken into account, representing the initial amount at which the inventory was acquired by the investor. The difference between the selling price and the cost of the inventory determines the gross profit from the sale.
Furthermore, any unrealized profit or loss remaining in the inventory at the end of the year is also a crucial factor in determining the amount of gross profit to be deferred. If the inventory has unrealized profit, which means its fair value exceeds the carrying amount, the portion of the gross profit attributable to that unrealized profit is deferred. On the other hand, if the inventory has an unrealized loss, the portion of the gross profit equal to that loss is recognized immediately.
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Hector is one of four partners in Cross \& Co., a firm of solicitors. Hector orders four new safes from Lock Ltd for the storage of confidential documents, one for the office of each partner in the firm. His three partners all think this an extravagance on Hector's part and an unnecessary expense because each office already has lockable filing cabinets in situ. They seek to cancel the order but Lock Ltd refuses and demands payment. Which of the following best describes the legal position of Cross \& Co. here? (a) Cross \& Co. are bound by the contract because Hector has explicit authority to make such a contract as a partner of the firm. (b) Cross \& Co. are bound by the contract which was made within the implied usual authority of Hector as a partner of the firm. (c) Cross \& Co. are not bound by the contract which was made ultra vires to his powers as a partner of the firm. (d) Cross \& Co. are not bound by the contract because the majority of the partners in the firm have not agreed to it.
Option (b) is the correct answer the legal position of Cross & Co. in this situation is that they are bound by the contract with Lock Ltd because Hector, as a partner of the firm, has the implied usual authority to make such a contract on behalf of the partnership.
In a partnership, partners have the authority to bind the partnership to contracts in the ordinary course of business. This authority is known as implied usual authority, which allows partners to act on behalf of the partnership in matters that are customary or usual for the business. Since Hector ordered the safes for the storage of confidential documents, which can be considered a reasonable and customary action for a law firm, it falls within his implied usual authority as a partner. Even if the other partners in Cross & Co. disagreed with the decision or considered it unnecessary, it does not negate Hector's authority to enter into the contract on behalf of the partnership. The principle of agency law states that partners have the power to bind the partnership, and third parties dealing with the partner in good faith have the right to rely on the partner's authority.
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You have just deposited $10,500 into an account that promises to pay you an annual interest rate of 6.4 percent each year for the next 5 years. You will leave the money invested in the account and 15 years from today, you need to have $29,750 in the account. What annual interest rate must you earn over the last 10 years to accomplish this goal?
Answer:
7.59%
Explanation:
Calculation for What annual interest rate must you earn over the last 10 years to accomplish this goal
Future value required=[Amount of deposit*(1+6.4%)^5]*(1+I)^10
$29,750=[$10,500*(1+6.4%)^5]*(1+I)^10
$29,750=[$10,500*(1+0.064)^5]*(1+I)^10
$29,750=[$10,500*(1.064)^5]*(1+I)^10
$29,750=[$14,318.497198]*(1+I)^10
(1+I)^10=[$29,750/$14,318.497198]
(1+I)^10=2.077732013
(1+I)=2.077732013^(1/10)
(1+I)=1.07586791
Hence, annual interest rate will be:
Interest rate, I=(1.07586791-1)*100
Interest rate=0.07586791*100
Interest rate=7.586791%
Interest rate=7.59% (Approximately)
Therefore the annual interest rate that you must earn over the last 10 years to accomplish this goal is 7.59%
T/F As products enter the growth stage of the product life cycle, prices generally begin to stabilize.
If so-why; if not why not?
The given statement is false that As products enter the growth stage of the product life cycle, prices generally begin to stabilize.
What is Product life-cycle?Product life-cycle is defined as a management strategy. It refers to the company management's succession of strategies as a product progresses through its life cycle.
The circumstances under which a product is marketed evolve throughout time and must be handled as it progresses through its stages.
As products enter the growth stage of the product life cycle, prices generally begin to fluctuate.
Therefore, the given statement is false.
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Consider a bond with maturity 2 year, 100 face value, coupon 4.60%, and yield 7.00%. compute a dollar duration numerically using a dy =0.001%. report you result with two digits decimal accuracy and the correct sign. example: -185.95
The dollar term for security with developing long term, 100 presumptive worth, coupon 4.60%, and yield at 7% is - 0.00174785.
Presently, we should compute the dollar span of this bond.
Security cost at yield 7% = (coupon rate/1 + yield rate) + (coupon rate + 100)/(1 + yield rate) ^2
= 4.6/1.07 + 4.6 + 100/1.07^2
= 4.29906542 + 91.36169098
= 95.6607564
note : with dy = 0.001%, new yield = 7.001%
New security cost with a new yield of 7.001%
= (coupon rate/1 + new yield rate) + (coupon rate + 100)/(1 + new yield rate) ^2
= 4.6/1.07001 + (4.6 + 100)/1.07001^2
= 4.29902524 + 91.35998331
= 95.65900855
Consequently, the dollar span for this bond is = 95.65900855 - 95.6607564
= - 0.00174785.
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Please help me. I will mark you as brainliest !!
The rule of supply and demand says that
A. as price increases, demand decreases
B. supply and demand both increase with price
C. as demand increases, price increases
D. as demand decreases, price increases
Answer:
The answer is C
Explanation:
Let's say that we have 100 cars unique in the world and each car's value is 10000$. Now, let's say that you have 3 cars like the last ones, 3 cars unique in the world? You won't sell them at 10000$, you have to increase the price because the cars are very rare.
what is risk evaluation
In an economy in which the skills, preferences, and motivations of workers vary widely, equality of wage rates would
Considering the situation described above, the equality of wage rates would be lower.
This is because when there are high differences in the level of skills, preferences, and motivations of workers, some workers with high skills, and skills preference and increased motivation will earn higher wages.
On the other hand, the workers with low skills, less preferred by employers, and have less motivation to work, will undoubtedly earn lower wages.
This situation would lead to the equality of wage rates to be lower, as many people earn higher, while many others make lower.
Hence, in this case, it is concluded that massive disparity in skills, preference, and motivations cause lower equality in wage rates.
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in a 3:1 stock split, an investor who owned 3% of the company before the split owns what percentage of the company right after the split?
Investor will get 9% percentage of the company right after the split.
Who is investor?An investor is any individual or other entity (such as a business or mutual fund) who invests money with the hope of making a profit. An investor is a person who invests money in the hope of making money in the future or in order to acquire an advantage (interest). The majority of the time, the investor purchases some kind of property using this assigned funds. Equity, debt, securities, real estate, infrastructure, money, commodities, tokens, derivatives like put and call options, futures, and forwards are a few examples of investment types. There is no distinction between primary market investors and secondary market investors in this definition. In other words, both individuals who invest money in a company and those who purchase stock do so. A shareholder is a stockholder who owns shares.
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(A) Suppose in Autarky they produce Betty: IR and 1C Ann: 1F and 2C What is the total produced? (g) If each specializes in the production of the good in which she has companative advantage, then how much will each produce? What will be the total produced? What will be the gain from specializatio"? (h) What will be the range for the terms-of-trade (TOT)? (i) Draw the social PPF for this socicty if these are the only two individuals in this socicty. 10. Assume that Betty and Ann live on a desert island. With a day's labor they can either catch fish (F) or collect coconuts (C). The individual RPRs are given by the following equations:
To answer your questions, I will assume that "IR" stands for "Island Resources." Based on the given information, Betty can produce 1 unit of Island Resources (IR) and 1 unit of Coconuts (C), while Ann can produce 1 unit of Fish (F) and 2 units of Coconuts (C).
(a) In autarky (self-sufficiency), the total production will be the sum of Betty's and Ann's production:
Total produced = Betty's production + Ann's production
= 1 IR + 1 C + 1 F + 2 C
= 1 IR + 1 F + 3 C
(g) If each specializes in the production of the good in which she has a comparative advantage, Betty will specialize in producing Coconuts (C) and Ann will specialize in producing Fish (F). Therefore, Betty will produce only Coconuts, and Ann will produce only Fish.
Betty's production: 0 F + 3 C
Ann's production: 1 F + 0 C
The total production will be:
Total produced = Betty's production + Ann's production
= 0 F + 3 C + 1 F + 0 C
= 1 F + 3 C
(gain from specialization) The gain from specialization can be calculated by comparing the total production in specialization to the total production in autarky:
Gain from specialization = Total production in specialization - Total production in autarky
= (1 F + 3 C) - (1 F + 3 C)
= 0
(h) The terms-of-trade (TOT) represent the exchange ratio between the two goods. Since Betty specializes in Coconuts and Ann specializes in Fish, the range for the TOT will depend on the preferences and negotiation power of Betty and Ann. Without specific information on their preferences or external factors, it is not possible to determine the exact range for the TOT.
(i) To draw the social PPF (Production Possibilities Frontier), we need to know the maximum production possibilities of the society given the resources and technology available. Please provide information on the maximum production possibilities for Betty and Ann or any additional details necessary to construct the PPF.
Please provide any missing information or clarify further if needed.
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Walter is in dire need of $482. Out of other alternatives, he decides to take a cash advance on his credit card. His credit card has a cash advance fee of 3.4%. How much is his advance fee?
Walter needs $482 in urgent, and his credit card has a cash advance fee of 3.4%. Hence, his advance fees would be 3.4% of $482 which is $16.39.
What does place when you obtain a cash advance?A cash advance is a loan that your credit card company provides. When you obtain a cash advance, you are borrowing funds from the available credit on your credit card. This loan must be repaid, and the amount transferred cannot be greater than the balance that is currently available on your credit card.
What dangers exist with cash advances?When you take out a cash advance, especially one for a sizable sum, your utilization rate may rise, which could lower your credit score. One of the risks of credit card cash advances is a lower credit score. Cash advance grace periods do not exist.
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a smaller standard deviation of a normal distribution indicates that the distribution
The Relationship between Standard Deviation and Distribution Variability is essential for accurately interpreting statistical data.
Introduction:
In statistics, the standard deviation of a normal distribution is a measure of variability or dispersion of data points around the mean. Understanding the relationship between the standard deviation and the distribution's characteristics is essential for interpreting and analyzing data effectively.
Body:
A smaller standard deviation in a normal distribution indicates reduced variability or dispersion of data points from the mean. This means that the values are clustered more closely around the mean, resulting in a narrower and taller distribution curve. In contrast, a larger standard deviation implies a wider spread of values, leading to a broader and flatter distribution curve.
For instance, consider two normal distributions: Distribution A with a smaller standard deviation and Distribution B with a larger standard deviation. Distribution A's narrower curve indicates that the data points are concentrated within a smaller range and closer to the mean. On the other hand, Distribution B's wider curve suggests a greater spread of values and a higher degree of variability.
The smaller standard deviation in Distribution A indicates a higher level of precision and consistency in the data. It implies that the observations or measurements are more likely to be closer to the mean, with fewer extreme deviations. This characteristic is valuable in various fields where minimizing variability and increasing reliability are important, such as finance, quality control, and scientific research.
Conclusion:
In conclusion, a smaller standard deviation in a normal distribution signifies reduced variability and a tighter clustering of data points around the mean. It represents a more precise and consistent dataset, which is valuable in making reliable inferences and informed decisions. Understanding the relationship between the standard deviation.
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Determining the needed requirements and desired requirements are both part of what project management phase? (a) planning Ob) organizing Oc) monitoring d) adjusting
(a) Planning. Determining the needed and desired requirements is an essential part of the planning phase in project management, where project managers gather information and define project objectives to establish a roadmap for successful project completion.
Determining the needed requirements and desired requirements are part of the planning phase in project management. During this phase, project managers gather information, define project objectives, and identify the specific requirements that need to be met in order to successfully complete the project. This includes identifying the essential requirements that are necessary for project success (needed requirements) as well as additional requirements that are desirable but not critical (desired requirements). By determining these requirements during the planning phase, project managers can create a roadmap for the project and establish the necessary resources and strategies to meet those requirements.
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for purposes of international capital budgeting, which of the following statements is not true? an array of nonfinancial payments can generate cash flows from subsidiaries to the parent, including payment of license fees and payments for imports from the parent. managers must evaluate political risk because political events can drastically reduce the value or availability of expected cash flows. parent cash flows must be distinguished from project cash flows. each of these two types of flows contributes to a different view of value. all of the above are true statements.
All of the statements are true, thus none of them is not true. All of the given statements are true and relevant to the process of international capital budgeting.
International capital budgeting involves evaluating potential investments in foreign countries and requires managers to consider various factors such as political risk, currency exchange rates, and potential cash flows. In this context, it is essential to distinguish between parent cash flows and project cash flows as they contribute to different views of value. Additionally, non-financial payments from subsidiaries to the parent, such as license fees or import payments, can generate cash flows that must be considered in capital budgeting decisions. Finally, managers must evaluate political risk as it can significantly impact the value and availability of expected cash flows. Therefore, all of the given statements are true and relevant to the process of international capital budgeting.
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. For each action, write YES or NO for whether it will likely decrease your credit score:
a. You request a copy of your credit report
b. You open 5 new credit cards in one month
c. You are 3 months late paying your student loan bill
d. You lose your job, & it takes 4 months to find a new one
_____ enables employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive medical, dental or optical benefits have the right to pay to continue receiving benefits for themselves and their dependents under the employer's policy.
Answer:
employment and labor law
Expliquen la siguiente frase:
El mero crecimiento económico no es suficiente para terminar con la pobreza y preservar el medio ambiente
Answer:
Efectivamente, el mero crecimiento económico no es suficiente para terminar con la pobreza y preservar el medio ambiente, sino que dicho crecimiento debe ir acompañado de un desarrollo estructural que contemple el acceso igualitario a los distintos servicios por parte de la sociedad, así como también el establecimiento de controles sanitarios y medioambientales que preserven el bienestar de los individuos en el marco del desarrollo de las actividades económicas.
Equiano tells his own story. he writes an eye-witness account of his experiences on board a slave ship from first-person point of view. question 1 options: true false
The statement that Equiano tells his own story from first-person point of view is TRUE.
What did Equiano do?Equiano was a man who was kidnapped as a boy and taken into slavery where he was able to purchase his own freedom.
Equiano recounted his experience when he was on the ship that took him to the West Indies and because it was an eye-witness account, it was from a first-person point of view.
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a provisional broker is conducting a real estate transaction under the supervision of their broker in charge during the course of the transaction the provisional broker makes a willful misrepresentation about the property to their client. The client files a complaint with the North Carolina Real estate commission. What is most likely to occur?
A. The broker in charge alone will become the subject of a commission investigation
B. The provisional broker alone will become the subject of a commission investigation
C. The provisional broker and broker in charge will become subjects of a commission investigation MY ANSWER
D. The broker in charge will be prohibited from supervising the provisional broker in future transactions.
5. A North Carolina real estate licensee is working with a buyer under an oral buyer agency agreement that authorizes dual agency. The buyer becomes interested in a property listed by the licensee's real estate firm. The licensee must obtain written permission from the buyer to act as a dual agent prior to the licensee
A. Submitting an offer on the property. MY ANSWER
В. showing the listed property to the buyer-client.
С. providing a CMA for the buyer to determine offer price.
D. providing confidential information about the seller to the buyer
6. A North Carolina broker obtains a 120-day listing on a property for $150,000. Shortly thereafter, the broker is working with a buyer as a seller’s subagent and obtains an offer from the buyer for $140,000. The buyer informs the broker that if the seller will not accept the offer they will probably increase their offer by $3,000 but not to tell the seller. When presenting the offer, the broker should
A. comply with the buyer’s request MY ANSWER
B. advise the seller to accept the offer for $140,000
C. tell the seller exactly what the buyer said
D. mention the buyers willingness to pay more only if the seller is dissatisfied with the $140,000 offer.
For question 5:
A North Carolina real estate licensee is working with a buyer under an oral buyer agency agreement that authorizes dual agency.
buyer becomes interest in a property listed by the licensee's real estate firm. The licensee must obtain written permission from the buyer to act as a dual agent prior to the licensee...
:
A. Submitting an offer on the property.
When representing both the buyer and the seller in a dual agency situation, the licensee must obtain written permission from the buyer to act as a dual agent. This written permission should be obtained before submitting an offer on the property. It is important to have clear and explicit consent from the buyer before engaging in dual agency representation.
For question 6:
A North Carolina broker obtains a 120-day listing on a property for $150,000. Shortly thereafter, the broker is working with a buyer as a seller’s subagent and obtains an offer from the buyer for $140,000. The buyer informs the broker that if the seller will not accept the offer, they will probably increase their offer by $3,000 but not to tell the seller. When presenting the offer, the broker should...
:
D. Mention the buyer's willingness to pay more only if the seller is dissatisfied with the $140,000 offer.
As a seller's subagent, the broker's primary loyalty is to the seller. The broker should present the offer of $140,000 to the seller without mentioning the buyer's willingness to pay more. However, if the seller expresses dissatisfaction with the offer, the broker may disclose the buyer's willingness to increase the offer by $3,000. The broker should act in the best interest of the seller and provide all relevant information that could impact the seller's decision.
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consumers tend to view sponsorships in a positive light because:
Consumers tend to view sponsorships in a positive light because they are clearly connected to events that matter to the target audience.
Businesses should noway dissect their client accession cost on its own. rather, they must examine it in relation to another critical metric client continuance value( CLV). This indicates the profit that a client will induce throughout their entire relationship with a company. It’s important to weigh the CAC against the client continuance value, given that not all acquired guests bring the same value to a company. The CLV divulges two crucial aspects of a client’s value their profit value, along with their anticipated lifetime doing business with a company. therefore, the longer a client purchases products and services from a business, the lesser their CLV becomes. The CLV allows businesses to discover the most significant client parts in their target request. This is because indeed a small portion of these kinds of guests add the topmost value to the profit.
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How did the pressure change from when it was your turn to be a leader, than when you were just a supporting member? (Take your time please and thank you)
Answer with Explanation:
The pressure changed a lot when I became a leader. I was expected to supervise my group members and assign them the tasks they have to perform. I gave them a sense of direction, particularly, towards the group's goal. I was pressured to meet the targets expected from us, and I always put my effort at its best for fear of failing or becoming a failure to the group. I needed to do things in a calm fashion, so I could inspire my members and be a better role model for them.
When I was just a supporting member, I didn't really mind about which direction my group should take, so the pressure from stress wasn't a big deal. I was very laid back because I just needed to perform what was asked of me by our leader. No one was constantly looking upon me, thus, I didn't feel like I really needed to do my best.
A soft-drink bottling company fills and ships soda in plastic bottles with a target volume of 354 milliliters. the filling machinery does not deliver a perfectly consistent volume of liquid to each bottle, and the three quartiles for the fill volume are q1 =351, q2=355, and q3=357. a fill volume of 368 ml is considered high.
required:
would a fill volume of 368 ml be considered an outlier based on the iqr rule?
To determine whether a fill volume of 368 ml is considered an outlier based on the IQR rule, we first need to calculate the IQR. A fill volume of 368 ml is an outlier based on the IQR rule, and the company should take steps to address this issue to maintain consistency in their product.
IQR = q3 - q1
IQR = 357 - 351
IQR = 6
According to the IQR rule, any value outside of the range of Q1 - 1.5 x IQR to Q3 + 1.5 x IQR is considered an outlier.
Q1 - 1.5 x IQR = 351 - 1.5 x 6 = 342
Q3 + 1.5 x IQR = 357 + 1.5 x 6 = 366
Therefore, a fill volume of 368 ml would be considered an outlier based on the IQR rule. This indicates that the filling machinery is delivering a volume that is significantly higher than the majority of the fill volumes. The company should investigate the cause of this high fill volume and take measures to ensure consistency in their filling process.
In conclusion, a fill volume of 368 ml is an outlier based on the IQR rule, and the company should take steps to address this issue to maintain consistency in their product.
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Suppose a total of 2,500 students are allowed in the engineering programs at all of the colleges in a particular city. From the previous three years' record, it shows that the number of students who enroll in the entrance exam for the engineering program increases if there is an increase in the number of IT recruiters the previous year.This year there is a total of 3,200 students who have enrolled to take the entrance exam of which only up to 2,500 of those who passed would get in. Based on either the students' perspective or the college perspective, what combination of economic key concepts does the situation follow? A. Optimization and empiricism B. Equilibrium and empiricism C. Optimization and equilibrium D. Optimization, equilibrium, and empiricism
Answer:
D. Optimization, Equilibrium and Empiricism.
Explanation:
Economics is based on three key concepts which are Optimization, Equilibrium and Empiricism. Optimize is the first principle which means people will select best available option. Second important principle is that economy is always in a state of equilibrium which means if one gains the other also gets best available value. Third concept is that economists use data to make policies. The situation given in the scenario follows all the key concepts of economy.
The average U.S. worker is MOST likely to hold about _____ jobs between the ages of 18 and 25. Please choose the correct answer from the following choices, and then select the submit answer button. three two seven five
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as ___________________
Answer:
A shortage
Explanation:
If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. This is known as market shortage.
What is market shortage?This is a state that occurs in an economy where the quantity that is demanded of a good is more than the quantity that is supplied.
When this issue exists, customers are unsatisfied because they cannot buy the quantity of goods that they want.
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In Canada in 2009, during the economic recession, the unemployment rate was 8.4 percent. If the natural rate of unemployment is assumed to be 6.5 percent, then the real unemployment rate exceeded the natural rate by 1.9 percent (8.4 minus 6.5). This means that GDP could have been 3.8 percent higher (1.9 percent times 2). The actual real GDP during the economic downturn in 2009 was $1 549.8 billion, but it could have been 3.8 percent higher, or $58.9 billion more, in terms of dollars ($1 549.8 × 0.038). This figure represents the GDP gap. The potential GDP of the Canadian economy in 2009 was $1 608.7 billion—if only it had been able to achieve full employment.
This GDP gap can have a compounding effect over time. In Figure 12.6, the significance of labelling the two axes "Capital Goods" and "Consumer Goods" lies in the fact that, if the economy were fully utilizing its resources, the potential for producing more capital goods, without sacrificing any consumer goods, exists. The production of more capital goods in the present would translate into an outward shift of the production possibilities curve in the future because more capital goods would be available as inputs for the production process. If a country produces at point A, its future production possibilities curve (PPC) only shifts to PPC1 because of the relatively smaller amount of capital goods it is adding to the productive resource base compared with point B. If that same country were to produce at point B, its future PPC curve shifts to PPC2 instead because it has added relatively more capital goods for use in production without sacrificing any consumer good production. In future years, this "loss" of capital goods would continue to hold PPC curves to levels below what they could have been. This means that the GDP gap in the present has a significant long-term impact in the future—the loss of potential growth.
APPLYING ECONOMIC THINKING
1. In 2016, Canada’s GDP was $1 803.3 billion, and the unemployment rate was 7.0 percent. If the natural rate of unemployment is 6.5 percent, what was Canada’s GDP gap in 2016?
2. The data in the table below are from the Organisation for Economic Co-operation and Development (OECD). The "natural rate of unemployment" in the OECD table is called the Non-Accelerating Inflation Rate of Unemployment (NAIRU). Calculate the GDP gap for each country presented in the table. (Data from stats.oecd.org)Country 2015 Nominal GDP ($ billions) 2015 Unemployment Rate (%) NAIRU (Natural Unemployment Rate) (%) Australia 6.1 5.6 1638.1 (AUD) Canada 6.9 6.6 1995.0 (CAD) Greece 24.9 16.0 176.0 (euro) Korea 3.6 3.4 1486 076.4 (won) Spain 22.0 15.5 1080.0 (euro) 5.3 4.5 United States 18 120.7 (USD).
The potential GDP of the US economy in 2015 was $18 410.6 billion if it had been able to achieve full employment.
1. If the natural rate of unemployment is 6.5 percent, then the real unemployment rate exceeded the natural rate by 0.5 percent (7.0 minus 6.5). This means that GDP could have been 1.0 percent higher (0.5 percent times 2). The actual real GDP in 2016 was $1 803.3 billion, but it could have been 1.0 percent higher, or $18.0 billion more, in terms of dollars ($1 803.3 × 0.01). This figure represents the GDP gap. The potential GDP of the Canadian economy in 2016 was $1 821.3 billion if it had been able to achieve full employment.
Therefore, Canada’s GDP gap in 2016 was $18.0 billion.
2. GDP gap for each country is as follows:Australia: If the natural rate of unemployment is 5.6 percent, then the real unemployment rate exceeded the natural rate by 0.7 percent (6.3 minus 5.6). This means that GDP could have been 1.4 percent higher (0.7 percent times 2). The actual real GDP in 2015 was 1638.1 billion Australian dollars, but it could have been 1.4 percent higher, or 22.9 billion Australian dollars more, in terms of dollars (1638.1 × 0.014). This figure represents the GDP gap. The potential GDP of the Australian economy in 2015 was 1660.9 billion Australian dollars if it had been able to achieve full employment.
Canada: As calculated in Part 1, Canada’s GDP gap in 2015 was $18.0 billion.
Greece: If the natural rate of unemployment is 18.0 percent, then the real unemployment rate exceeded the natural rate by 2.0 percent (16.0 minus 18.0). This means that GDP could have been 4.0 percent higher (2.0 percent times 2). The actual real GDP in 2015 was 176.0 billion euros, but it could have been 4.0 percent higher, or 7.0 billion euros more, in terms of euros (176.0 × 0.04). This figure represents the GDP gap. The potential GDP of the Greek economy in 2015 was 183.0 billion euros if it had been able to achieve full employment.
Korea: If the natural rate of unemployment is 3.4 percent, then the real unemployment rate exceeded the natural rate by 0.6 percent (4.0 minus 3.4). This means that GDP could have been 1.2 percent higher (0.6 percent times 2). The actual real GDP in 2015 was 1 486.4 trillion won, but it could have been 1.2 percent higher, or 17.8 trillion won more, in terms of won (1 486.4 × 0.012). This figure represents the GDP gap. The potential GDP of the Korean economy in 2015 was 1 504.2 trillion won if it had been able to achieve full employment.
Spain: If the natural rate of unemployment is 15.5 percent, then the real unemployment rate exceeded the natural rate by 0.5 percent (16.0 minus 15.5). This means that GDP could have been 1.0 percent higher (0.5 percent times 2). The actual real GDP in 2015 was 1 080.0 billion euros, but it could have been 1.0 percent higher, or 10.8 billion euros more, in terms of euros (1 080.0 × 0.01). This figure represents the GDP gap. The potential GDP of the Spanish economy in 2015 was 1 090.8 billion euros if it had been able to achieve full employment.
United States: If the natural rate of unemployment is 4.5 percent, then the real unemployment rate exceeded the natural rate by 0.8 percent (5.3 minus 4.5). This means that GDP could have been 1.6 percent higher (0.8 percent times 2). The actual real GDP in 2015 was $18 120.7 billion, but it could have been 1.6 percent higher, or $289.9 billion more, in terms of dollars ($18 120.7 × 0.016). This figure represents the GDP gap.
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Explain the limitations of statistics
to be successful, strategic planning requires a company to have a ______ orientation.
To be successful, strategic planning requires a company to have a long-term orientation.
What is strategic planning?Strategic planning can be defined as the way of making use of techniques that will enables a company to achieve their future goals and objective.
On the hand long-term orientation can be defined as the future goals they a company or an organization has the plan to achieve.
Therefore the statement that filled the gap is long term.
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There has been a rumor that Company Z may become a takeover target for another company in the industry, or even for a private equity fund in a leveraged buy-out (LBO). Here is the updated data on Company Z: Current Capitalization (Millions of EUR) Currency Million EUR Shares Price $ 47.0 Shares Outstanding 357.0 Market Capitalization 16,779.0 - Cash & Short Term Investments 1,125.0 + Total Debt 4,287.0 + Pref. Equity - + Total Minority Interest - =Total Enterprise Value (TEV) 19,941.0 Book Value of Common Equity 1,357.0 + Pref. Equity - + Total Minority Interest - + Total Debt 4,287.0 Total book capital 5,644.0 a) Given the data above, what is your guess for the value of the offer that an acquirer would have to make in order to buy Company Z? (7 points)
Offer = Million Euros b) Discuss the following statement: this company is not a great candidate for an LBO, because its book leverage ratio is very high. (7 points)
a) Therefore, an acquirer would have to make an offer of around 19,941.0 million euros to buy Company Z, b) Therefore, the company is not a good candidate for an LBO.
a) Given the data above, the estimated value of the offer that an acquirer would have to make in order to buy Company Z is calculated as follows:
Total Enterprise Value = Market Capitalization + Total Debt - Cash & Short Term Investments
Total Enterprise Value = 16,779.0 + 4,287.0 - 1,125.0
Total Enterprise Value = 19,941.0 million euros
Therefore, an acquirer would have to make an offer of around 19,941.0 million euros to buy Company Z.
b) The company is not a great candidate for an LBO because its book leverage ratio is very high.
Book leverage ratio refers to the ratio of total debt to total book capital of a company.
This ratio indicates how much debt a company is using to finance its assets relative to the amount of equity.
A high book leverage ratio indicates that a company has high debt relative to its equity and could pose a risk to lenders.
In the case of Company Z, the book leverage ratio is calculated as follows:
Book Leverage Ratio = Total Debt / Total Book Capital
Book Leverage Ratio = 4,287.0 / 5,644.0
Book Leverage Ratio = 0.76
The book leverage ratio of Company Z is 0.76, indicating that the company has high debt relative to its equity.
This makes it an unattractive candidate for a leveraged buyout because it would make it difficult for the acquirer to obtain additional debt financing.
Additionally, the high leverage could make it challenging for the company to pay back its debt obligations and increase the risk of default.
Therefore, the company is not a good candidate for an LBO.
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