Homework Answers
Answer -
b. physical capital, like investment in human capital, has an opportunity cost.
Physical Capital, Human Capital, natural Resources and Technological knowladge determine productivity.
Physical capital (or just capital): The stock of equipment and structures that are used to produce goods and services. Note that these tools and machines are themselves the output from prior human production.
Human capital: The knowledge and skills that workers acquire through education, training and experience. Note that human capital, like physical capital, is a human-made or produced factor of production.
Investment in human capital can generate higer productivity result in opportunity cost.
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QQQ Corp. needs you to compute the cost of capital of an investment opportunity. QQQ has compiled the following informa...
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Find true or false
1. TRUE/FALSEC 1 mark per question, 20 marks in total) aj An economy's income is the same as its expenditure because every transaction has a buyer and a seller. 12 GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. t 3) Ifnominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. Other things equal, in countries with higher...
32) Landslide Company has two service departments, Maintenance and Human Resources. Landslide Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The following information has been gathered for the current year: Human Maintenance Resources Mixing Finishing Direct costs $126,000 $84,000 $105,000 $175,000 Square footage 800 1,600 1,200 Number of employees 24 32 If the step down method is used to allocate...
QQQ Corp. needs you to compute the cost of capital of an investment opportunity. QQQ has compiled the following information from public companies that in are same industry as the investment opportunity. Assuming that the project will be financed with only equity, what is the project's cost of capital? Enter your answer as a percent, do not include the % sign. Round your final answer to two decimals. JAAA BBB Equity Beta 1.8 2.0 1.0 D/E 0.35 0.40 Expected Market...
Question 2 Because resources are scarce, the opportunity cost to an economy of investment in capital assets is zero. forgone future consumption. forgone present consumption. infinite. According to Figure 1 below, as the economy moves from Po A to Point E, the opportunity cost of motorcycles, measured int o ondan Hybrid cars Motorcycles Figure 1 decreases increases remains constant initially increases, then decreases estion 4 Refer to Table 1 below. Table 1 Molly Pete Avatar Design Tattoo Design Which of...
Professor Wendy Smith has been offered the following opportunity: A law firm would like to retain her for an upfront payment of $49,000. In return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment arrangement, the firm would pay Professor Smith's hourly rate for the eight hours each month. Smith's rate is $540 per hour and her opportunity cost of capital is 15% per year. What does the...
1. TRUE/FALSE( 1 mark per question, 20 marks in total) 11] An economy's income is the same as its expenditure because every transaction has a buyer and a seller. [21 GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. 3] If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. 14) Other things equal, in countries with higher levels of real...
1. TRUE/FALSE(1 mark per question, 20 marks [i] An economy's income is the same as its expenditure because every transaction P) GDP is the market value of all final goods and services produced by a country's (3] If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. has a buyer and a seller. citizens in a given period of time. 41 Other things equal, in countries with higher levels of real GDP per person,...
Find true or false
1. TRUE/FALSEC 1 mark per question, 20 marks in total) aj An economy's income is the same as its expenditure because every transaction has a buyer and a seller. 12 GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. t 3) Ifnominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. Other things equal, in countries with higher...
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