Answer:
Social Security tax
= Social security tax rate * Earnings subject to Social security tax
= 6.2% * 8,800
= $545.60
Medicare taxes.
These will be on the total earnings as there is no limit to the amount it can be applied to:
= 1.45% * 9,500
= $137.75
Billions of Dollars
Investment 80
Capital consumption allowance (depreciation) 45
Exports 40
Imports 15
Government purchases 160
Consumption 375
Indirect business taxes 35
Social insurance taxes 5
Corporate profit taxes 4
Undistributed corporate profits 6
Transfer payments 50
Personal taxes 110
Compensation of employees 455
Corporate profits 90
Rental income (of persons) 5
Net interest 25
Proprietors' income 25
Income earned from the rest of the world 80
Income earned by the rest of the world 40
The five components of GDP from the table that together sum to national income are ___________, ____________, ___________, and ______________
Answer:
Note: Some words are missing and are attached as picture below
The 5 components of GDP from the table that together sum to national income are:
a. Compensation of employees
b. Corporate profits
c. Net interest
d. Proprietors' income
e. Rental income
Disposable Income = Personal Income - Personal Taxes
Personal Income = Disposable Income + Personal Taxes
Personal Income = 525 + 110
Personal Income = 635
National income = Personal Income + Social Insurance Tax + Corporate Profit Taxes + Undistributed Corporate Profits - Transfer Payments
National income = 635 + 5 + 4 + 6 - 50
National income = 600
Explain how planning involves making decisions today that will have an impact later.
Planning is figuring out what you will do and when. If you plan to play video games instead of doing homework, then tomorrow at school you will get in trouble. If you plan on dropping out of high school, later in life you will not be able to get as many jobs.
Answer: Decision making is the core of planning. Unless a decision has been made, a plan cannot be implemented in the field. ... Decisions can be made without planning but planning cannot be done without making decisions. Planning can be defined as the process of selecting a future course of action.\
Relative to a competitively organized industry, a monopoly Group of answer choices produces more output and charges a higher price. produces less output and charges a higher price. produces more output and charges a lower price. produces less output and charges a lower price.
Answer:
A higher-priced less output
Explanation:
A monopoly has full rain on a certain item in the country or state, for example we have a sort of diamond monopoly, There are so many diamonds in the world but they choose to only produce a small amount for jewlery or other such things to drive the price up.
Please for future reference when typing out a multiple choice question type it in the
- one
- two
- three
format. That is so we can better help you!
Von Bora Corporation is expected pay a dividend of $1.40 per share at the end of this year and a $1.50 per share at the end of the second year. You expect Von Bora's stock price to be $25.00 at the end of two years. Von Bora's equity cost of capital is 10%. The price you would be willing to pay today for a share of Von Bora stock, if you plan to hold the stock for two years is closest to:
Answer:
Price of share today = $23.17
Explanation:
The value of a stock using the dividend valuation model, is the present value of the expected cash inflows discounted at the required rate of return. The required rate of return is the cost of equity.
The cost of equity is 10% in this scenario
The price of the share will be determined as follows:
$
Present value of Dividend in yr 1 = 1.40× 1.1^(-1)= 1.27
Present value of Dividend in yr 2 = 1.50 × 1.1^(-2)=1.24
Present value of share in yr 2 = 25× 1.1^(-2) = 20.66
Present value of total cash inflow 23.17
Price of share today = $23.17
Stocks are considered as a financial instruments that represents a firm's ownership stake. Stocks are tool for investors to grow their money and surpass inflation over time.
The computation of the capital gain for the first year is shown below;
Current value = Future dividend and value × Present value of discounting factor(rate%, time period)
= $1.4 ÷ 1.1 + $1.5 ÷ 1.1^2 + $25 ÷ 1.1^2
= $23.15
Hence, the capital gain for the first year is $23.15
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brendamunsamy00
Where u at
Answer:
Bombay
the company has a charged net income for a year and an earthquake
AN IMPLIED CONTRACT CAN BEST BE DEFINED AS: WILL NOT BE RECOGNIZED AS ENFORCEABLE BY THE COURTS A TRUE FORM OF A FORMAL CONTRACT THE INTENTIONS OF THE PARTIES ARE INFERRED FROM THEIR CONDUCT BY THE COURT AS WELL AS THE CIRCUMSTANCES OF THE CONTRACT WHICH EXISTS IN THE EYES OF THE LAW, EVEN THOUGH THE PARTIES HAVE NOT IN ANY WAY INTENDED TO FORM THE CONTRACT
Answer: the intentions of the parties is inferred from their conduct by the court as well as the circumstances of the contract
Explanation:
An implied contract is referred to as an agreement that's legally-binding which was created due to the actions, or circumstances of the parties that were involved.
In an implied contract, the parties typically possess no written contract, but an obligation is created by the law based on the conduct of the parties involved.
Black Horse Transportation's sales budget for the first quarter follows: January$125,000 February 300,000 March290,000 All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no uncollectable accounts. The March cash receipts are:
Answer:
$260,000
Explanation:
Cash Receipts Calculation - March
March Credit Sales ($290,000 x 50%) $145,000
February Credit Sales ($300,000 x 30%) $90,000
January Credit Sales ($125,000 x 20%) $25,000
Total $260,000
Therefore,
The March cash receipts are $260,000
Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation. Joint processing costs up to the split-off point total $385,000 per month. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price Monthly Output Gasoline $ 27.00 per gallon 14,400 gallons Heating Oil $ 21.00 per gallon 22,400 gallons Jet Fuel $ 33.00 per gallon 5,600 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product Additional Processing Costs Selling Price Gasoline $ 89,220 $ 32.80 per gallon Heating Oil $ 129,170 $ 27.80 per gallon Jet Fuel $ 60,160 $ 41.80 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point
Answer:
Molo Oil Company
The financial advantage of further processing of each of the three products beyond the split-off point is:
= $182,430
(which is the additional profit gained from the further processing).
Explanation:
Joint processing costs = $385,000 per month
Product Selling Price Monthly Output Sales Value
Gasoline $ 27.00 per gallon 14,400 gallons $388,800 ($27*14,100)
Heating Oil $ 21.00 per gallon 22,400 gallons 470,400 ($21*22,400)
Jet Fuel $ 33.00 per gallon 5,600 gallons 184,800 ($33*5,600)
Total sales value = $1,044,000
Joint costs = 385,000
Profit = $659,000
Allocation of joint processing costs of $385,000
Gasoline = $143,379 ($388,800/$1,044,000 * $385,000)
Heating Oil 173,471 ($470,400/$1,044,000 * $385,000)
Jet Fuel 68,150 ($184,800/$1,044,000 * $385,000)
Total cost $385,000
Total costs:
Additional
Joint Cost Monthly Cost Total Costs
Gasoline $143,379 $29,740 $173,119
Heating Oil 173,471 43,057 216,528
Jet Fuel 68,150 20,053 88,203
Total costs $385,000 $92,850 $477,850
Product Additional Processing Selling Price
Costs (per quarter)
Gasoline $ 89,220 $ 32.80 per gallon
Heating Oil $ 129,170 $ 27.80 per gallon
Jet Fuel $ 60,160 $ 41.80 per gallon
Product Additional Processing Selling Price
Costs (per month)
Gasoline $ 29,740 $ 32.80 per gallon
Heating Oil $ 43,057 $ 27.80 per gallon
Jet Fuel $ 20,053 $ 41.80 per gallon
Determination of profit after further processing:
Product Selling Price Monthly Output Sales Value
Gasoline $ 32.80 per gallon 14,400 gallons $462,480 ($32.80*14,100)
Heating Oil $ 27.80 per gallon 22,400 gallons 622,720 $27.80*22,400)
Jet Fuel $ 41.80 per gallon 5,600 gallons 234,080 ($41.80*5,600)
Total sales revenue = $1,319,280
Total costs = 477,850
Profit = $841,430
Financial advantage
Profit after further processing = $841,430
Profit with Joint processing = 659,000
Financial advantage = $182,430
TaeHwan Company accrues bad debt expense during the year at an amount equal to 3% of credit sales. At the end of the year, a journal entry adjusts the allowance for uncollectible accounts to a desired amount based on an aging of accounts receivable. At the beginning of 2018, the allowance account had a credit balance of $18,000. During 2018, credit sales totaled $480,000 and receivables of $14,000 were written off. The year-end aging indicated that a $21,000 allowance for uncollectible accounts was required. TaeHwan's bad debt expense for 2018 would be:
Answer: $17000
Explanation:
TaeHwan's bad debt expense for 2018 would be calculated as the difference between the desired year end balance and the beginning balance written off. This will be:
= $21000 - ($18000 - $14000)
= $21000 - $4000
= $17000
Therefore, TaeHwan's bad debt expense for 2018 would be $17000.
Clinicke Inc. sells merchandise of $800,000 in 2020 that includes a two-year limited warranty against manufacturing defects as part of the selling price. Warranty costs are estimated to be 1% of sales. If the company incurred $2,200 of actual costs in responding to warranty claims in 2020 (related to 2020 sales), how much should Clinicke record in warranty expense for 2020
Answer:
the amount recorded in the warranty expense is $8,000
Explanation:
The computation of the amount recorded in the warranty expense is shown below:
= Sale value of merchandise inventory × estimated percentage
= $800,000 × 1%
= $8,000
hence, the amount recorded in the warranty expense is $8,000
So the above formula should be applied
Interest rates on 4-year Treasury securities are currently 5.55%, while 6-year Treasury securities yield 7.7%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places.
Answer:
12.13%
Explanation:
Calculation to determine what the market believe that 2-year securities will be yielding 4 years from now using a geometric average
Yield=((1+6 year rate)^6/(1+4 year rate)^4)^(1/2)-1
Yield =((1+7.7%)^6/(1+5.55%)^4)^(1/2)-1
Yield =0.1213*100
Yield =12.13%
Therefore what the market believe that 2-year securities will be yielding 4 years from now
using a geometric average will be 12.13%
H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H. Tillman a legal fee of approximately $12800 by issuing 3100 shares of its common stock (par $1). The stock trades on a daily basis and the market price of the stock on the day the debt was settled is $3.90 per share. Given this information, the journal entry for J. Laney. to record this transaction is:
Answer:
The journal entry for J. Laney to record this transaction is
Dr legal expenses $12,990
______Cr Common stock $3,100
_______Cr Share premium $8,990
Explanation:
The common stocks are carried at par value of $1. This implies that any price paid in excess of the par value is made provision for in the share premium account.
Again, the common stocks issued are measured at the price required to settle the legal expenses and are paid in excess of par value of $1.
Share premium = ($3.90 - $1) × 3,100
Share premium = $8,990
To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 13% discount. During May, employees purchased 15,000 shares at a time when the market price of the shares on the New York Stock Exchange was $13 per share. KL will record compensation expense associated with the May purchases of:
Answer:
$25,350
Explanation:
Calculation to determine what KL will record compensation expense associated with the May purchases of
Compensation expense =[(15,000 shares
x $13 per share)*13%]
Compensation expense =$195,000 x 13%
Compensation expense =$25,350
Therefore KL will record compensation expense associated with the May purchases of $25,350
Which is not true of strategic alliances?
Question Completion with Options:
a. Strategic alliances refer to cooperative agreements between potential or actual competitors.
b. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners.
c. Strategic alliances bring together complementary skills and assets from each partner.
d. Joint venture is not a type of strategic alliances.
Answer:
d. Joint venture is not a type of strategic alliances.
Explanation:
A Joint venture is one of the strategic alliances that companies can form. Other forms of strategic alliances include equity and nonequity strategic alliances. In the first place, a strategic alliance is a corporate arrangement that enables two or more companies to undertake some mutually beneficial projects. With the alliance, each company still retains its independence, knowledge and resources are shared, and new products and markets are developed.
At the beginning of the tax year, Barnaby's basis in the BBB Partnership was $50,000, including his $5,000 share of partnership debt. At the end of the tax year, his share of debt was $8,000. His share of the partnership's income for the year was $20,000, and he received cash distributions totaling $12,000. In addition, his share of the partnership's nontaxable income was $1,000.
Required:
Determine Barnaby's basis at the end of the tax year.
Answer:
$62,000
Explanation:
Calculation to Determine Barnaby's basis at the end of the tax year
Using this formula
Ending tax year Barnaby's basis in the partnership=[BBB Partnership basis+( Share of debt-Share of partnership debt)+ Share of Partnership's income +Share of partnership's nontaxable income-Cash distributions]
Let plug in the formula
Ending tax year Barnaby's basis in the partnership =$50,000 + ($8,000-$5,000) + $20,000 + $1,000 - $12,000
Ending tax year Barnaby's basis in the partnership =$50,000 + $3,000 + $20,000 + $1,000 - $12,000
Ending tax year Barnaby's basis in the partnership = =$62,000
Therefore Barnaby's basis at the end of the tax year will be $62,000
What does ceteris paribus mean?
ОА.
other things remain unequal
OB. other things remain constant
Oc. other things remain irregular
OD. other things remain unbalanced
Ceteris paribus mean : B. other things remain constant.
What is Ceteris paribus ?Ceteris paribus was a latin word that tend to means other things remain constant or the same.
Example of Ceteris paribus is when a marketer might say "ceteris paribus, we expect sales to increase by 20% if we lower the price of our product" to show that they are assuming that all other factors affecting sales such as advertising, competition, and consumer sentiment will remain the same
Therefore the correct option is B.
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In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was:
Answer:
The sales volume variance is $20,000 Unfavorable.
Explanation:
Particular : Actual ; Flexible Budget ; Variance
Sales : 240,000 ; 300,000 ; 60,000 U
Variable Cost : 200,000 ; 192,000 ; 8,000 U
Contribution Margin : 40,000 ; 108,000 ; 68,000 U
Fixed Cost : 25,000 ; 80,000 ; 55,000 U
Operating Income : 15,000 ; 28,000 ; 20,000U
Hernandez Company has 350,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 10% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by:_______.
a. $1,242,500.
b. $525,000.
c. $192,500.
d. $175,000.
Answer:
b. $525,000.
Explanation:
Dividends distributions are always made out of the distributable profits found in the Retained Earnings.
The first step thus is to calculate the amount of dividends distributed.
1st Declaration :
Dividends = 350,000 shares x $10 x 10% = $350,000
2nd Declaration :
Dividends = 350,000 shares x $0.50 = $175,000
Therefore,
Total Dividends = $350,000 + $175,000 = $525,000
Conclusion :
As a results of the dividends distribution, retained earnings decreased by $525,000.
All details related to an employee's earnings deductions and net pay throughout the year would be found in
Answer:
All details related to an employee's earnings deductions and net pay throughout the year would be found in the individual earnings record.
Explanation:
A random Quizlet had the answer when I searched the question up lol
You plan to visit Geneva, Switzerland in three months to attend an international business conference. You expect to incur the total cost of SF 5,000 for lodging, meals and transportation during your stay. As of today, the spot exchange rate is $0.60/SF and the three-month forward rate is $0.63/SF. You can buy the three-month call option on SF with the exercise rate of $0.64/SF for the premium of $0.05 per SF. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 6 percent per annum in the United States and 4 percent per annum in Switzerland.
Required:
a. Calculate your expected dollar cost of buying $F5,000 if you choose to hedge by a call option on SF.
b. Calculate the future dollar cost of meeting this SF obligation if you decide to hedge using a forward contract.
c. At what future spot exchange rate will you be indifferent between the forward and option market hedges?
d. Illustrate the future dollar cost of meeting the SF payable against the future spot exchange rate under both the options and forward market hedges.
Answer:
A. 3403.75 dollars
B. 3150
C. 0.579
D. Is an attachment
Explanation:
A. We first find the premium cost
= 0.05x5000 x 1+0.06/4
= 250x1.015
= 253.75
From here we find expected dollar cost
= Exchange rate x units + premium
= 0.63x5000+253.75
= 3,403.75 dollars
B. Forward rate = 0.63
Total cost of dollar
= 0.63x5000
= 3150
C. The investor would be indifferent at 0.579
Forward rate = unit * future + premium
3150 = 5000 * future + 253.75
3150-253.75 = 5000*future
We solve and divide through by 5000
Future = 0.579
D is in the attachment
The expected dollar cost of buying $F5,000 through the call option is $3403.75.
The first thing to do is to calculate the premium cost. This will be:
= (5% × 5000) × (1 + 6%/4)
= (0.05 × 5000) × (1 + 0.06/4)
= 250 × 1.015
= 253.75
The expected dollar cost will be:
= Exchange rate × Number of units + Call premium cost
= 0.63 × 5000 + 253.75
= 3403.75
The future dollar cost of meeting this SF obligation will be calculated thus:
= Forward rate × Number of units
= 0.63 × 5000
= $3150
The future spot exchange rate that the person will be indifferent will be:
= (3150 - 253.75) / 5000
= $0.579
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The Miller Manufacturing Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 2019. During the year, the Cutting Division prepared 60,000 cords of wood at a cost of $660,000. All the lumber was transferred to the Assembly Division, where additional operating costs of $6 per cord were incurred. The 600,000 boardfeet of finished wood were sold for $2,500,000. Required: Determine the operating income for each division if the transfer price is $9 per cord.
Answer and Explanation:
The computation of the operating income in the case when the transfer price is $9 per cord
Particular Cutting Assembly
Revenue $540,000 $2,500,000
(60,000 × $9)
Cost of service
Incurred $660,000 $360,000
(60,000 × $6)
Transfered in $0 $540,000
Total $660,000 $900,000
Operating income -$120,000 $1,600,000
Richland Company has a calendar year reporting period. On July 1, 2020, Richland’s equipment, with an original cost of $29,000, was sold to Quaker Corporation for $15,000. The January 1, 2020, balance in the Accumulated Depreciation account was $10,000. Depreciation for the first six months of 2020 was $2,000. The journal entry to record the transaction would include a
Answer and Explanation:
The journal entry would be
Cash Dr $15,000
Accumulated depreciation ($10,000 + $2,000) $12,000
Loss on disposal - Plant assets $2,000
To equipment $29,000
(Being the sale of the equipment is recorded)
here the cash, accumulated depreciation and loss would be debited as it increased the assets and losses while on the other hand the equipment is credited as it decreased the assets
Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash balance is $19,900, expected cash receipts for April are $244,400, and cash disbursements are expected to be $253,300. How much cash, if any, must be borrowed to maintain the desired minimum monthly balance
Answer:
the amount must be borrowed is $8,900
Explanation:
The computation of the amount must be borrowed is shown below:
Opening cash balance $19,900
Add: cash receipts $244,400
Less: cash disbursements -$253,300
Cash balance after disbursements $11,000
Minimum monthly cash balance $19,900
Amount to be borrowed $8,900
hence, the amount must be borrowed is $8,900
The benefit of establishing a company over other forms of ownership
Answer:
limited liability
tax advantages
establishing credibility
unlimited life
raising capital
A lottery winner can take $6million now or be paid $600,000 at the end of each year for the next 16 years. The winner calculates the internal rate of return of taking the money at the end of each year, and estimating that the discount rate across this period will be 5%, decides to take the money at the end of each year. Was her decision correct
Answer:
yes
the present value of the 16 year annuity is 6502661.74. this is greater than $6 million
Explanation:
Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2018, at a market interest rate of 8 percent. The bonds had a total face value of $250,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation accounts for the bond using the shortcut approach.
Required:
Prepare the required journal entries to record the bond issuance and the first interest payment on December 31.
Answer and Explanation:
The journal entry is shown below:
Cash Dr $300328
To Bonds Payable $250000
To Premium on Bonds payable $50328
(Being bond issued at a premium is recorded)
Interest Expense Dr $24026 ($300,328 × 8%)
Premium on bonds payable Dr $3474
To Cash $27500 ($250,000 ×11%)
(Being interest expense recorded)
These two entries should be recorded for the given situation
Topic: How Banks Create Money
Skill: Definition
33) Suppose the required reserve ratio is 20%, A $40 million cash deposit will, at most, allow an
expansion of the money supply to
Answer:
$200 million
Explanation:
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited /required reserve requirement
Required reserve requirement is the percentage of deposits required of banks to keep as reserves by the central bank
$40 million / 0.2 = $200 million
Unintentionally, David built in his backyard a garage that encroached two feet across the property line onto property owned by his neighbor, Harold. When the mistake was recognized immediately thereafter, David and Harold agreed in writing that David did not need to move the garage. The statutory period for the running of adverse possession in the state where the property is located is 15 years. Five years after the garage was completed, David sold his property to Nancy. Twenty years after Nancy purchased the property from David, Nancy claimed she had acquired the two feet of property through application of the doctrine of adverse possession. In a legal dispute between Nancy and Harold over ownership to the two feet Nancy now claims, which statement is most accurate:
Answer:
Nancy will prevail as she has used the property, openly as hers for over 15 years.
Explanation:
Since in the question it is given that nancy would prevail as she is able to used the property and for her it is open for above 15 years
Also the conditions related to the adverse possession would be fulfilled
So as per given situation, the above represent the answer
the same would be relevant
Going by the principle of adverse possession, the fact that Nancy has used the land beyond the statutory period of 15 years means that "Nancy will prevail as she has used the property, openly as hers for over 15 years."
The principle of adverse possession affirms that the possession of somebody else's land for an extended period of time might give the occupant the legal right of claiming ownership of the land. Nancy has up he land for 20 years since she purchased it from David, which is beyond the statutory period.Hence, Nancy would prevail since going by the principle of adverse possession.
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A public good rev: 04_09_2018 Multiple Choice generally results in substantial negative externalities. can never be provided by a nongovernmental organization. costs essentially nothing to produce and is thus provided by the government at a zero price. cannot be provided to one person without making it available to others as well.
Answer:
cannot be provided to one person without making it available to others as well.
Explanation:
A public good is a good that is non excludable and non rivalrous. It cannot be provided to one person without making it available to others as well. If one person is using it, it does not stop other people from using it also. An example of a public good is roads.
Public goods contrasts with club goods and private goods
A club good is a type of public good. It is excludable but non-rivalrous. For example paid streaming services are an example of a club good. Those who do not subscribe are excluded from using the service. But all subscribers have equal assess to the service
A private good is a good that is excludable and rivalrous.e.g. a privately owned car
The local police department gives a detective test. Everyone who takes the test must have been a police officer for at least five years. The people taking the exam are rated from highest to lowest based on their test scores. If a detective position becomes available, it is filled on the basis of who has the highest score. What best describes this practice?
Answer:
Internal Recruitment/Selection, based on merit.
Explanation:
The local police department gives a Detective test and these are the features of that test;
1. The test is for persons who are already police officers.
This is called internal sourcing / internal recruitment. Instead of having fresh candidates, the police department picked up on employed police officers.
2. Everyone sitting for the test has been a police officer for at least 5 years.
This quality shows that everyone sitting for the test has experience on the job of policing. This also means that the test candidates will be familiar with terms on the test script.
3. The criterion for selection of best candidate is score.
This is a merit selection, hence if an officer of 15 years scores 65% and an officer of 5 years scores 80%, the officer of 5 years takes the vacant detective position.