Answer:
d. Qualified opinion or adverse opinion.
Explanation:
A qualified opinion is used in an auditor's report that accompanies this entity audited financial statements. It is an auditor's opinion that suggests this entity has not capitalized a material amount of leases in the financial statements and there is a materiality of departure from the generally accepted accounting principles (GAAP) .
The adverse opinion is when an entity needs to reiterate and complete another audit of its financial statements.
As part of her company's SWOT analysis, Valerie is assessing the company's internal environment, including
a. competition.
b. the economy.
c. strengths and weaknesses.
d. demographics.
e. opportunities and threats.
Answer: Strengths and weaknesses
Explanation:
Valerie's SWOT analysis of her company, in it's internal environment would make her consider the strength and weakness of her company.
SWOT analysis is a form self assessment where individuals/organizations check for their internal strengths and weaknesses and also for external opportunities and threats.
Madson Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 60,000 subscriptions in January at $10 each. What entry is made in January to record the sale of the subscriptions?a.Prepaid Subscriptions................600,000..................Cash...................................600,000b.Subscriptions Receivable..........600,000................Subscription Revenue.............600,000c.Cash...........................600,000............Unearned Subscription Revenue.....600,000d.Subscriptions Receivable.............100,000.............Unearned Subscription Revenue....100,000
Answer:
C) Cash...........................600,000............Unearned Subscription Revenue.....600,000
Explanation:
January 31: 60,000 subscriptions sold
Dr Cash account 600,000 Cr Unearned Subscription Revenue account 600,000Since cash is an asset account and it increases, then it should be debited.
Unearned revenue is a liability account, since the company received money in advance for future publications. When liabilities increase, they should be credited.
The sympathetic and parasympathetic divisions of the ANS:_______ A. Never innervate the same organ. B. May work together, each controlling a stage of a complex process. C. Cannot work independently. D. Always have opposing effects.
Answer:
B. May work together, each controlling a stage of a complex process.
Explanation:
The sympathetic and parasympathetic divisions of the ANS: May work together, each controlling a stage of a complex process.
When Simple Semiconductors was operating at the minimum efficient scale of 10,000-12,000 units per month, the firm's cost per unit was $45. However, when the output level was increased beyond 12,000 units, the cost per unit increased to $47. This increase was attributed to the wear-and-tear of the machinery, and complexities of managing and coordinating. What is this phenomenon known as?A) Minimum efficient scaleB) Diseconomies of scaleC) Experience curve effectD) Learning-curve effect
Answer:
Option A
Explanation:
It is the lowest point on the cost curve where company produces at competitive price while producing at maximum output.
The city council of Lake Jefferson wants to establish a small botanical garden in the city park. The council decided to put aside funds in the amount of $22,000 to build and establish the botanical garden. At the end of the fiscal year, $3,000 of the funds had been spent. How should the remainder of the funds be reported?
Answer:
These are the options for the question:
A) Committed Fund Balance
B) Assigned Fund Balance
C) Restricted Fund Balance
D) Nonspendable Fund Balance
And the correct answer is:
B) Assigned Fund Balance
Explanation:
Assigned Fund Balance is the cateogry of the government fund that is intended to be used in something specific, as determined by the respective legislative or executive authority.
In this case, the city council has already assigned a total of $22,000 for the construction of the botanical garden, and after $3,000 have been spent, it needs to keep the remaining $19,000 in the Assigned Fund Balance category.
Ceteris paribus, if the price of Pepsi increases, the equilibrium price of Coca-Cola will ________ and the equilibrium quantity of Coca-Cola will ________.
Answer:
Rise
Rise
Explanation:
Pepsi and Coca cola are considered substitutes. If the price of Pepsi increases, consumers would begin to consume more coca cola and the demand for coca cola would increase. This would lead to an excess of demand for coca cola over supply and prices would rise.
I hope my answer helps you
Final answer:
Ceteris paribus, if the price of Pepsi increases the equilibrium price of Coca-Cola will increase, and the equilibrium quantity of Coca-Cola will increase as well.
Explanation:
Ceteris paribus, if the price of Pepsi increases, we can expect a substitution effect where consumers switch their preference to a similar but cheaper alternative like Coca-Cola. Assuming Pepsi and Coca-Cola are close substitutes, the equilibrium price of Coca-Cola will increase, and the equilibrium quantity of Coca-Cola will increase as well.
This is because the demand for Coca-Cola will rise as consumers look for a substitute for the more expensive Pepsi. The market for Coca-Cola adjusts to this higher demand by increasing the price and the quantity supplied to reach a new equilibrium.
When market price of a security has reached an equilibrium, transaction cost will be?
Answer:
The correct answer is (A)
Explanation:
Equilibrium in a security market shows that buyers and sellers have identified a price at which they can sell and purchase securities. This means that the gap between the bid price and ask price is small. Active trading takes place in a state where a security market reaches equilibrium, in this situation the commission or transaction cost tends to be lower.
Final answer:
At market price equilibrium, transaction costs will typically be at their lowest because all gains from trade have been exhausted and there is no incentive for market participants to change their behavior.
Explanation:
When the market price of a security has reached an equilibrium, the transaction cost will typically be at its lowest. This is because at equilibrium, the quantity demanded equals the quantity supplied, and no participant in the market has an incentive to change their behavior, making the market transactions efficient. In this state, all the gains from trade have been exhausted, and the price most accurately reflects the true discounted present value of the asset being traded. Buyer and seller interactions at this price will not create pressures for the price to change, thus the transaction cost, which includes the cost of finding a trading partner and negotiating a deal, is minimized.
In presidential elections, voters often find that they do not agree with any single candidate in all issues that matter to them this is known as
a. rent seekingbehaviorb. lack of accountabilityc. principal agent problemd. limited and bundled choice problem
In presidential elections, voters often find that they do not agree with any single candidate in all issues that matter to them this is known as limited and bundled choice problem.
Option d
Explanation:
In presidential elections, the voter has to select the candidate who is going to have the power of selecting the public services and goods that has to be financed by the tax money given by the voters.
The limited and bundled choice issue reduces the economic efficiency as a politician selects the programs with either positive or negative net benefits. The choices are bundled in that the limited set of candidates would govern over a multiple issues, and the preferences of the voters may not be perfectly aligned with any candidate.
suppose american winemakers convince the federal government to issue a directive to serve only domestically produced wine at governement functions. This would be an example of.
a) principle agent problem
b) rent seeking behavior
c) moral hazard
d) logrolling
Answer:
B) rent seeking behavior
Explanation:
Rent seeking behavior refers to actions carried out by businesses that try to seek benefits through government policies. In other words, the businesses will try to make the government give them some type of special treatment or special benefit at the expense of the general population.
In this case, the American winemakers were able to convince government officials to only serve domestic wine at government events. The problem is that the general population (taxpayers) are the ones that pay for that wine. American winemakers will benefit at the expense of the taxpayers.
The production budget is the first component of the operating budget. true or false
Answer:
false
Explanation:
The first component of an operational budget is the Income statement. The income statement shows all the earnings of the business.
Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion. If the MPC is 0.625, what change in aggregate expenditures is needed to achieve full employment?
Answer:
increase the aggregate expenditure to $15 billion ($40-$25)
to achieve full employment.
Explanation:
Note:
If change in aggregate expenditures is equal to change in aggregate income then MPC=1.
Formula for MPC:
MPC=Change in Consumption or expenditure/ Change in Income
Given MPC=0.62
0.625=Change in Consumption or expenditure/ (240-200)
Change in Consumption or expenditure=[tex]0.625 * 40\\[/tex]
Change in Consumption or expenditure=$ 25 billion
Since the change in income is $40 billion($240-$200) and Change in aggregate expenditure we calculated above is $25 billion so we need to increase the aggregate expenditure to $15 billion ($40-$25)
to achieve full employment i.e to make MPC to 1.
New investment is usually put into an economy when profit expectations are __________.
a- both b and c.
b- high
c- low
d- none of the above
Answer:
Thr correct answer is b. high.
Explanation:
New investment is usually put into an economy when profit expectations are high.
The rate of economic growth (means profit opportunity) affects the level of investment. Business investment tends to be quite volatile. If businesses see an improvement in economic forecasts, they will increase investment to meet future demand. Therefore, an improvement in the rate of economic growth can cause a substantial rise in investment. But, if there is an economic downturn and a fall in the rate of economic growth, business will cut back on investment.
However, in addition, to the profit expectations, the level of investment also depends on the rate of interest, business confidence, technological progress and, government regulations and policies .
Texarkana Company exchanged equipment that cost $85,000 and has accumulated depreciation of $29,800 and a fair value of $60,000. It receives in exchange an equipment with a fair value of $48,000 and received $12,000 cash. The exchange lacks commercial substance. The gain to be recognized from the exchange is __________.
Final answer:
The gain to be recognized from the exchange of equipment lacking commercial substance is $960. This is calculated by determining the book value of the old equipment, the total gain on disposal, and then recognizing the proportion of cash received as part of the gain.
Explanation:
The question relates to the accounting treatment of non-monetary exchanges, specifically when an exchange lacks commercial substance. To calculate the gain to be recognized on the exchange of equipment, we first need to determine the book value of the old equipment and then the gain on disposal.
The book value of the old equipment is the original cost minus the accumulated depreciation. In this case, the book value is $85,000 cost - $29,800 accumulated depreciation = $55,200 book value.
The next step is to calculate the total gain on disposal, which is the difference between the fair value and the book value of the old equipment. This gives us a total gain of $60,000 fair value - $55,200 book value = $4,800.
However, because the exchange lacks commercial substance and cash is received, the gain to be recognized is the proportion of cash to total consideration received. We calculate this as $12,000 cash received / ($48,000 fair value of new equipment + $12,000 cash) total consideration = 20%.
The gain that is recognized is then 20% of the total gain, which is 0.20 × $4,800 = $960.
Lifeworks is a nongovernment not-for-profit organization that recently received a large gift from a donor in the amount of $3,000,000 in cash. The donor wishes to leave a legacy and therefore specified that Lifeworks cannot spend the $3,000,000 but can invest the $3,000,000 and use any earnings from the investments to support the organization. In the first year, $100,000 was earned but has not yet been spent. How would the $3,000,000 gift and the $100,000 in earnings impact the net assets of Lifeworks?
Answer:
Explanation:
The net assets would increase. This is because the $100,000 earnings from investments are additional cash inflows hence an increase in current assets. For the $3,000,000 if invested, it will be considered an asset. It is a cash donation invested to generate earnings for the non-profit organization. Thus, these two instances add onto the net asset value of Lifeworks.
Explain what a debit memorandum is by completing the following sentence.When a buyer returns or takes an allowance on merchandise, the __________ issues a debit memorandum to inform the __________ of a debit made to the seller's account inthe buyer's records
When a buyer returns or takes an allowance on merchandise, the Buyer issues a debit memorandum to inform the Seller of a debit made to the seller's account in the buyer's records
Explanation:
A debit memorandum is an information recording adjustment for three particular cases: reducing the account balance of a bank customer, under filling goods or services or a small credit balance internally offset to a customer account.
A debit receipt is provided to an account holder in financial institutions stating that now the balance of the account was reduced due to a cause apart from cash withdrawal or cash search. Because of bank fees or bundled check expenses, debit memos may arise. Usually, the memos and their monthly bank statements are forwarded to bank clients.
A primary reason that a firm would use average-cost pricing is that it
A primary reason that a firm would use average-cost pricing is that it helps in making decisions about production output and purchasing during short run period.
What is average cost?Average cost refers to the cost per unit of goods produced or manufactured in production, which comprises fixed costs, which are important for production, that does not change no matter the output.
Average cost represents the average amount of money spent to produce a product. However, average-cost pricing works well if the firm actually sells the quantity it used to calculate the average-cost price.
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"Securitization" is used to pool contractual debt together and resell this debt in the form of securities to investors. Which of the following debt can be "securitized"?
I. Residential Mortgages
II. Commercial Mortgages
III. Student Loans
IV. FHA Mortgages
Answer:
the correct answer is ALL OF THEM
Explanation:
Most forms of contractual debt can be securitized. This includes all of the choices listed here, as well as auto loans, personal loans, credit card debt, etc. CMOs are one of the most common "securitizations" that exist
GOOD LUCK
Securitization can apply to a range of debts, including residential and commercial mortgages, student loans, and FHA mortgages. It allows banks to sell loans as securities to investors, providing advantages like risk diversification and balance sheet improvements, although it can also lead to credit assessment issues.
Securitization is a financial technique that pools various types of contractual debts such as residential mortgages, commercial mortgages, student loans, and FHA mortgages and sells consolidated debt as securities to investors. The debt that can be securitized includes:
I. Residential Mortgages
II. Commercial Mortgages
III. Student Loans
IV. FHA Mortgages
This process has been made easier and more cost-effective due to technological improvements, especially the use of computers. These securitized loans offer diversification against default risk and are attractive to institutional investors seeking large, round sums. Through securitization, banks can specialize in originating loans and improve their balance sheets by selling off loans, which in turn enables them to fund new loans. Investors are drawn to these securities for their assumed steady stream of income. However, the reliance on credit rating agencies during the rise of mortgage-backed securities sometimes led to overly lenient credit assessments, presenting significant risk exposure.
The prime interest rate is offered by banks to customers with the largest accounts and with very high credit ratings.
A) True
B) False
Answer:
A) True
Explanation:
The prime interest rate is that rate which interprets the creditworthiness of the customer that means which have the highest credit rating, the bank or financial institution gives the prime rate to the customers who maintain the largest accounts with the bank or financial institution.
The prime interest rate depends on loans like a business, personal loans, etc
The Virginia House of Burgesses:____________
A) Was dissolved by King James because he objected to all representative government.
B) Was created as part of the Virginia Company’s effort to encourage the colony’s survival.
C) Banned the importation of servants.
D) Had more power than the governor.
E) Was included in the original charter for the Jamestown Colony.
Answer:
B)
Explanation:
The Virginia House of Burgesses was created as part of the Virginia Company’s effort to encourage the colony’s survival. This house was created in 1642 as the elected representative element of the Virginia General Assembly which had been established in the year 1619. Which is known today only as the General Assembly.
Final answer:
The Virginia House of Burgesses was established by the Virginia Company in 1619 to provide a form of representative government in the American colonies, evolving into the lower house of the Virginia General Assembly.
Explanation:
The Virginia House of Burgesses is significant for being the first legislative assembly in the American colonies, established by the Virginia Company in 1619. Initially meeting in Jamestown's church, it included property-owning white men as members who were selected to vote on matters such as taxation and local laws, reflecting the influence of the British Parliament. Over time, the House of Burgesses expanded and evolved, becoming the lower house of the Virginia General Assembly, with the Governor's Council acting as the upper house. The council members were appointed by the Crown and served for life, indicating a level of governance separate from the governor's immediate control.
Regarding the options provided in the student's question, Option B is the most accurate: The Virginia House of Burgesses was created as part of the Virginia Company’s effort to encourage the colony’s survival. It was not included in the original charter for Jamestown Colony, it did not ban the importation of servants, and it did not have more power than the governor. King James did not dissolve it specifically because he objected to all representative government, rather it was part of the company's efforts to ensure the colony thrived economically and politically.
By diversifying, the risk of holding stock
a. can be reduced but not eliminated. On average over the past two centuries stocks paid a lower average real return than bonds.
b. can be eliminated. On average over the past two centuries stocks paid a higher average real return than bonds.
c. can be reduced but not eliminated. On average over the past two centuries stocks paid a higher average real return than bond econ
Answer: Option C
Explanation: In simple words, diversification refers to the process in which the holder of a portfolio purchases and includes different types of securities with no or negative correlation between them. By doing so, the risk of the portfolio can be reduced but cannot be eliminated as the systematic risk due to the market inefficiencies cannot be eliminated.
It is evident that over the past two years stocks paid higher returns than bond due to the fact that globalization has increased the market for the companies leading to hoover share which further results in higher return for stock holders in comparison to bond holders who have a fixed return.
Since the end of World War II, the trend in the corporate tax rate has been __________ relative to shifts in the entire economy.
Answer:
downward
Explanation:
Just after World War II ended, the corporate tax rate was lowered to 38%a little to encourage economic growth.
Then around the 1950s it started to increase as the American economy flourished (corporate tax rate during 1951 was 50%). The American economy's growth rate was extremely high during the 1950s and 1960s, and the corporate tax rate continued to increase until it reached a maximum of 52.8% in 1969.
Then the 1970s came around and recession with them, and the corporate tax rate started to lower to 48%.
During the early 1980s, the economy was still in a very bad shape and the corporate tax rate fell from 46% fro 1980 to 34% for 1990. During the middle years of the Reagan presidency the economy rebounded, but it again fell into recession when president Bush took over.
The 1990s again saw a surge of the American economy, during president Clinton's double term American economy grew a lot, and the corporate tax rate increased by 1%.
Then again another president Bush came and the economy sank again, and the Great Recession happened. The corporate tax rate remained unchanged.
Then came president Obama and the economy rebounded and started growing again, and luckily the growth hasn't stopped yet. President Trump decided to lower the corporate tax rate to 21% starting 2018.
Every licensed broker must keep and maintain a file of agency disclosures, listings, offers, closing statements and other transaction-related documents for a period of _________ years.
Answer:
3 years
Explanation:
Based on the information provided within the question it can be said that the licensed brokers must keep and maintain all of this information for a period of 3 years. This is in case that the information is needed in the future for any kind of reason such as an audit. The auditor can ask for the information and the broker must present it or risk prosecution.
A recession tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________. increase; rise; falls decrease; fall; rises increase; fall; rises decrease; rise; falls'
Answer:
increase; fall; rises
Explanation:
A recession is when there's a contraction in economic activities. It is when the GDP of a country is negative for two consecutive quarters.
When there's a recession, the government undertakes expansionary fiscal policy to stimulate the economy. Therefore, the government would increase its spending or reduce amount of tax paid. Therefore , government spending rises.
Also, during a recession, tax revenues falls because income of individuals, firms fall and therefore revenue from tax would fall.
I hope my answer helps you.
Each bank must report its legal reserves as well as its deposit liabilities (depositors’ funds) to the __________________ in order to show compliance with the required reserves policy ..
Answer: Federal Reserve
Explanation: The Federal Reserve is USA's central banking system. The Federal Reserve is responsible for issuing money to banks in the US, and setting the policy on monetary affairs in America. In essence every bank operates under the Federal Reserve and because of this, must report their financial status, which includes their legal reserves and deposit liabilities to the Federal Reserve. This ensures that the banks comply with the reserves policy.
Answer:
The Federal Reserve
Explanation:
Also known as the Fed represents United State's Central Bank. Like every other Central Bank around the world, it is responsible for ensuring the stability, safety and flexibility of the United State's monetary system.
Basically, there are four functions of the Federal Reserve:
1. Monitoring national monetary policies to ensure the stability of the financial system
2. Supervision of banks and protection of the right of citizens
3. Ensuring the stability of the financial market by containing any risk that may occur
4. Providing specific monetary or financial services to the government of the United States.
The need for banks to report their legal reserves and depositors' funds to the Federal Reserve is apparently a part of the supervisioning responsibility of the Federal Reserve.
The amount of capital equipment used up or destroyed is called the ____________..
Answer:
Consumption of fixed capital (CFC)
Explanation:
Consumption of fixed capital (CFC) is a phrase used for the depreciation of fixed assets ,or write-offs, in business accounts, tax assessments and national accounts.
CFC is used in addition to depreciation to demonstrate how fixed capital is used up as a result of creating new revenue.
CFC can also include certain expenses incurred in the use or construction of fixed assets beyond real depreciation costs.
The term normally applies only to manufacturing companies, but it sometimes also applies to real estate assets.
Bulldog, Inc. has budgeted sales for the first quarter of the next year to be 35,000 units. The inventory on hand at the beginning of quarter is 5,000 units. The desired ending inventory is 3,000 units. Calculate the budgeted production for the first quarter.
A. 2,000 units
B. 42,000 units
C. 32,000 units
D. 30,000 units .
The budgeted production for the first quarter is 32,000 units. This is calculated by adding the budgeted sales (35,000 units) to the desired ending inventory (3,000 units) and subtracting the beginning inventory (5,000 units). Option C is correct.
To calculate the budgeted production for the first quarter, we need to consider the desired ending inventory.
[tex]\[ \text{Budgeted Production} = \text{Budgeted Sales} + \text{Desired Ending Inventory} - \text{Beginning Inventory} \][/tex]
- Budgeted Sales = 35,000 units
- Beginning Inventory = 5,000 units
- Desired Ending Inventory = 3,000 units
Substitute these values into the formula:
Budgeted Production = 35,000 + 3,000 - 5,000
Budgeted Production = 33,000
Therefore, the correct answer is:
C. 32,000 units
The Hackman's home is valued at $650,000. Properties in their area are assessed at 60% of the value, and the local tax rate is $2.85 per one hundred dollars of assessed value. How much are the Hackman's MONTHLY taxes?
Answer:
$926.25
Explanation:
First, we obtain the assessed value:
$650,000 * 60% = $390,000
Now, we obtain the benchmark for determining the yearly tax. We divide the assessed value by one hundred because the local tax rate is $2.85 per one hundred dollars of assessed value. In other words, one hundred dollars is the benchmark:
$390,000 / 100 = $3,900
Now, to find the total tax paid in a year we simply multiply the local tax rate by the benchmark:
$2.85 x 3,900 = $11,115
Finally, we divided the yearly value by twelve to obtain the monthly value:
$11,115 / 12 = $926.25
Final answer:
The Hackman's' monthly property taxes are $926.25.
Explanation:
To calculate the Hackman's' monthly property taxes, first determine the assessed value of the home by multiplying the home's value by the assessment rate. Then, calculate the annual taxes by applying the local tax rate to the assessed value. Finally, divide the annual taxes by 12 to find the monthly taxes.
The assessed value is 60% of the home's value:
$650,000 x 0.60 = $390,000.
The annual tax is then calculated by the tax rate per hundred dollars of assessed value:
$390,000 / 100 = 3,900 (hundreds of dollars);
3,900 x $2.85 = $11,115 (annual taxes).
To find the monthly taxes, divide by 12:
$11,115 / 12 = $926.25.
Therefore, the Hackman's' monthly property taxes are $926.25.
Which of the following is a way to recognize potentially disruptive innovations?
A. Pay attention to slow-expensive advancements in technology.
B. Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff.
C. Become more consumer-focused. Indulge in bottom-line obsession.
D. Increase conversation within same product groups.
Answer:
B. Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff.
Explanation:
Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff is a way to recognize potentially disruptive innovations.
B. Seeking the opinions of venture capitalists, research academics, and passionate internal engineering staff.
Recognizing potentially disruptive innovations involves identifying unique, transformative ideas that could alter the market landscape. One effective approach is to consult with venture capitalists, who often have insights into emerging technologies and market trends.
Additionally, research academics provide valuable theoretical knowledge and empirical data on technological advancements, while passionate internal engineering staff can offer practical perspectives on the feasibility and implementation of these innovations.
By combining these diverse viewpoints, businesses can better identify innovations that might seem unimportant initially but could eventually transform industries. This collaborative evaluation process helps in spotting technologies that have the potential to disrupt existing markets effectively.
Ignoring the conventional approach of focusing solely on current consumer needs or internal product discussions enables companies to foresee future trends and invest in groundbreaking innovations earlier, ensuring competitiveness in a rapidly evolving market.
A landowner conveyed his land to his wife, son, and daughter "as joint tenants with right of survivorship." The daughter then conveyed her interest to a friend. The wife subsequently executed a will devising her interest to the daughter. Then the son mortgaged his interest to a lender, who promptly and properly recorded the mortgage. The wife died, then the daughter's friend died, leaving a will that bequeathed her entire estate to the daughter. The daughter and the son survived. If the jurisdiction follows the title theory, who owns what interest in the land?
Answer:
The daughter and the son, unless the son does not pay his debt, which result in the lender owning interest to the land.
In this case the land was owned by three tenants, and the actions of one tenant may affect only their interest on the land, not the interest of the other tenants. Therefore the brother is still owner of the land unless he doesn't pay and the lender takes possession of joint tenancy of the land with the sister (or daughter to the deceased parents).
When the daughter conveyed her interest to a friend she only severed her own interest in the land, not the other tenants'. Since the friend and the wife stated in their will that the daughter was to inherit their share in the land, when they died the daughter regained ownership of the land (at least 2/3 ownership of the land).
At the end, the daughter will own 2/3 of the land and the son (or lender if he doesn't pay) will own the other 1/3 of the land.
In July 2007 The Wall Street Journal (WSJ) reported that a growing shortage of skilled labor in Eastern European countries such as Slovakia was driving up wages in key industries and reducing business income. The reason for the shortages was a large migration of skilled Eastern European workers to Western European countries. According to the simple immigration model, the supply of workers will a. rise in both Western European and Eastern European countries until the wage rates fall in both countries.
b. fall in both Western European and Eastern European countries until the wage rates rise in both countries.
c. fall in Western European countries and rise in Eastern European countries until the wage rates become more equal.
d. rise in Western European countries and fall in Eastern European countries until the wage rates become more equal.
Answer:
D) rise in Western European countries and fall in Eastern European countries until the wage rates become more equal.
Explanation:
Two important factors must be considered:
wages in western European nations are still much higher than those in eastern European nationsworkers that come from member countries of the European Union may travel freely and work in any country that they can and that belongs to the European Union.As long as the wages in western European countries continue to be higher and European workers can establish themselves in those counties, the supply of workers will continue to flow from poorer eastern European countries to richer western European countries.
rise in Western European countries and fall in Eastern European countries until the wage rates become more equal.