The conflicting and perplexing observation that water, which is more useful than diamonds, is priced lower than diamonds was proposed by economists in the 1800s as a means of understanding the role utility plays in the demand and price of a good by differentiating between total utility and marginal utility. Adam smith is considered to be the first presenter of this paradox. The diamond - water paradox states that even though water which is relatively more useful for human activity (it is…
Exercise 17-7 1. Current ratio = Current asset Current liability 2008 ($378,00+502,00+54,000+5,000 )/($51,250) = 2.87 : 1 2009 ($35,625+62,500+82,500+9,375)/($75,250) = 2.52 : 1 2010 ($31,800+89,500+112,500+10,700)/($129,900) = 1.88 : 1 The current ratio is declining from 2008 , 2.87 : 1 to 2010 ,1.88 : 1.Therefore, the short-term debt-paying ability for Simeon Company is decrease. 2. Acid –test ratio = cash+ short-term investment+ Current receivable…
Singapore’s total fertility rate has been steadily decreasing since 1970 from 3.07 to 1.19 in 2013 (Singapore Department of Statistics 2014, p. vi), a phenomenon that has mirrored other capitalist economies in Asia such as Japan, Taiwan, Hong Kong and South Korea. In fact, Singapore’s total fertility placed third lowest in these 5 Southeast Asian Countries (Wong 2012). Such a phenomenon has been a cause for widespread concern due to the host of societal problems it could potentially create such…
Market share and potential growth 4.1.1 As a small business, “Your Space” is not likely to achieve a significant share of the market as a whole. Within its geographical location of North Wales, however, it stands to gain a modest proportion. 4.1.2 According to the Instant Group survey, currently there are around 37 coworking spaces in Wales and only 5-7 are located in North Wales. 4.1.3 The market share at these conditions can be very high for location in Llandudno, as there is competition only…
This cycle involves several stages or steps over a particular period of time.An accounting cycle shows the steps to collect and record business information systematically. Therefore, financial reports or statements can be presented to the…
7% over the past five years. The second advisor tells the investor that the mutual fund has seen above-average returns in the past 10 years but has been declining in recent years. According to prospect theory, even though the investor is presented with the same mutual fund, he or she is more likely to buy the mutual fund from the first advisor, who expressed the rate of return as an overall 7% gain, rather a combination of both high returns and losses. Prospect theory is based on the…
The purpose of this project is to be able use the speedometer readings to approximate the distance traveled with a midpoint Riemann sum. This method is used to approximate the value of a definite integral using subintervals. To complete this project, I first had to ask my parent to take me for a twenty minutes drive on the street. As a passenger, I first had to record the initial odometer reading and then for every two minutes, I ask the driver for the exact speedometer reading and record my…
JPMorgan Chase & Co. posted higher profit than Wall Street expected as higher credit-card spending and investment banking fees combined to overpower sliding revenue from bond-trading. Earnings of $1.82 a share in the three months through June compared with the $1.59 average of analysts' estimates from FactSet, and net income rose 13% to $7.03 billion. Rising interest rates after two hikes this year by the Federal Reserve pushed net interest income -- the difference between what banks charge to…
ConocoPhillips (COP) Is Set To Soar ConocoPhillips (NYSE:COP) shares soared nearly 23% in the last three months alone, supported by higher crude oil prices and the company’s cost-cutting strategies. COP is the largest independent exploration and production company. It had experienced a massive decline in its sales and earnings in the last two years, amid a cyclical downturn in energy markets and commodity prices. On the other hand, during the period of lower oil prices, ConocoPhillips took…
“A penny saved is a penny earned” (Franklin). What does that mean for Americans today? When Benjamin Franklin made this statement, the penny was worth much more. In fact, a family could most likely buy something at the general store for a few pennies back then. The values of pennies in that time were the equivalent of the values of the more valuable coins today. In current times, however, you cannot buy much of anything. In fact, it is not worth the time it takes to save enough pennies to buy…