Answer:
The correct answer is option a.
Explanation:
The full-employment level of output is $2,000.
The current level of output is $1,900.
The current aggregate demand is $1,850.
There is a need to increase the aggregate demand by $150 to reach full employment level.
The government increases purchasing by $30.
1 - MPC = 
MPC = 1 - 0.2
MPC = 0.8
Answer:
Option (D) is correct.
Explanation:
Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.
Asymmetric information will result in two problems are as follows:
(i) Adverse selection
(ii) Moral hazard
The type of externality where market equilibrium quantity produced will be more than socially optimal quantity in absence of governemtn intervention is Negative externality.
Let understand that whenever a production of good or service negatively affect the unrelated third party who is not directly involved in a market transaction, it is said that negative externality exists in the scenario.
A very good example of commonly cited Negative Externalities are air pollution and noise pollution which was caused during production an affects unrelated third party.
If there is presence of government intervention in the production, then, the production of goods or service will be halted.
Therefore, in conclusion, this type of externality is called the Negative Externality.
Read more about Negative Externality here
<em>brainly.com/question/13901028</em>
Answer:
Dr Land $146,440
Cr Common stock (3,380 shares×$12 par value) $40,560
Cr Paid in Capital in excess of Par common stock $105,880
Explanation:
Arasota Company Journal entry
Dr Land $146,440
Cr Common stock (3,380 shares×$12 par value) $40,560
Cr Paid in Capital in excess of Par common stock $105,880
Answer:
Total contribution margin= $59,800
Explanation:
Giving the following information:
Unitary selling price= 155,400 / 4,200= $37
Unitary variable cost= 100,800 / 4,200= $24
<u>To calculate the total contribution margin, we need to use the following formula:</u>
Total contribution margin= units sold*(selling price - unitary variable cost)
Total contribution margin= 4,600*(37 - 24)
Total contribution margin= $59,800
