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11) The average capital balances of partners Bridget and Emily are $3,000 and $6,000, respectively. Both women work at the business full-time. The business earned a net income of $12,000 for the period. The partners have agreed to share earnings based on the percentage of original investment. Bridget’s share of the net income is
A. $4,000.
B. $6,000.
C. $8,000.
D. indeterminable.

12) Which method of allocating profits and losses is based on a percentage of initial investment by the partners?
A. Salary allowance
B. Salary expense
C. Profit and loss ratio
D. Interest allowance

14) A general partner is
A. personally liable for all of the debts of the partnership.
B. liable for only the amount of his investment.
C. liable for the amount of taxes paid each period.
D. None of the above
7) When a partnership is terminated, the assets are turned into cash, and obligations are paid. This process is called
A. dissolution.
B. termination.
C. realization.
D. None of the above

9)The accounting procedures for sole proprietorships are the same as for partnerships except
A. that the asset section includes more than one cash account.
B. for the liability section.
C. for the revenue section.
D. that the capital section is now divided per the number of partners.

10) Which of the following is an incorrect step in the process of partnership liquidation?
A. Paying any liabilities
B. Closing all accounts payable
C. Allocating gains and losses to partners
D. Selling the assets
3) Laura’s investment in a new partnership includes $1,000 in cash and $5,000 of equipment. The new partnership is assuming $500 of Laura’s accounts payable. The partnership entry should be which of the following?
A. Debit Laura’s Capital $5,500; debit Accounts Payable $500; credit Cash $1,000; credit Equipment $5,000
B. Debit Cash $1,000; debit Equipment $5,000; credit Laura’s Capital $6,000
C. Debit Cash $1,000; debit Equipment $5,000; credit Accounts Payable $500; credit Laura’s Capital $5,500
D. Debit Laura’s Investment $5,500; credit Capital $5,500

4) A statement of partner’s equity is the same as a statement of owner’s equity except that
A. there’s a capital account for all partners.
B. net income is assigned to one partner.
C. no additional investments by partners are shown on the statement.
D. There’s no difference in the statements.
Suppose a consumer has a utility function: u( x₁ , x₂) = min {x₁, 2x₂},

ii.) Prove that, for any bundles (x₁, x2) and (y1, y2), the utility function satisfies:
u( x₁/2 + y1/2 , x₂/2 +y2/2 ) ≥ min { u(x₁, x₂) , u(y1 , y2)}
what is a PPC? And what assumptions are made by drawing it? Why is it generally concave to the origin?
2. What is opportunity set? Explain the opport. Set for a society with a PPC?
3. State and explain the law of diminishing Marginal Utility? How is law of demand related to it?
4. Explain the law of equi-marginal utility and how does it explain consumer's equilibrium?
5. Distinguish between the cordinal utility and ordinal utility?
Which is more realistic?
1. What is macro-economics? How does it differ from micro-economics?
2. Briefly discuss some important problem which constitute the main theme of macro-economics?
3. What do you mean by 'injection into' and 'leakage from' the circular flow of income? Why is saving called a leakage and investment called a injection?
4. How is the circular flow of income measured in all the four sectors of the economy?
If you are saving money with an interest lower than the inflation, you are losing money, but how will it look if you are saving an extreme amount of money? Let's say 1 billion with a 1 % interest, and 2 % inflation. Then you get 10 million a year, and if you only spend a million a year, would you say you are still worse off? Is the answer as simple as yes, but it doesn't matter because you have enough?
Assume realistically that the U.S. receives capital flows from the rest of world. In
addition, assume that foreign capital increases the level of total factor productivity from 1 to 2, by funding research and developments of new technologies. Do foreign capital inflows shift the supply curve, or the demand curve, or both curves in the capital market? Depict a diagram and explain effects of foreign capital inflows on the MPK, and the real rental rate of capital.
discuss weather an older skilled worker patter of expenditure and saving likely to be different younger unskilled worker
discuss what might happen in a economy if government increases income tax rates
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