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2 years ago

consider a hypothetical economy in which households spend 0.5 of each additional dollar they earn and save the remaining 0.5

Business

1 answer:

Sliva [168]2 years ago

5 0

hypothetical economy in which households spend 0.5 of each additional dollar they earn and save the remaining 0.5

<h3>What is hypothetical economy?</h3>

The paper investigates the consequences for a hypothetical economy of a set of government tax and spending policies that are unsustainable in the long run and are recognized as such by private individuals.

Comparative Economic Systems is a sub-category of economics that deals with the comparative study of various economic organization systems such as capitalism, socialism, feudalism, and the mixed economy.

The marginal propensity to consume is calculated by dividing the change in consumption by the change in income.

Each economy operates under its own set of conditions and assumptions. Traditional economies, command economies, mixed economies, and market economies are the four major types of economic systems.

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Answer:

C) $4,000

Explanation:

To calculate economic profit we can use the following formula:

economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs

where:

accounting profit = total revenue - accounting cost = $50,000
implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000

economic profit = $50,000 - $46,000 = $4,000

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3 years ago

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3 years ago

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Answer: D) B

Explanation:

The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.

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4 years ago

Gould Enterprises sells computer disks for $1.50 per disk. Unit variable expenses total $0.90. The breakeven sales in units are

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Answer:

1,300 units

$1,950

Explanation:

The computation of margin of safety in units is given below :-

Margin of safety in units = Budgeted sales in units - Break-even sales in units

= 4,300 units - 3,000 units

= 1,300 units

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Margin of safety in dollars = Margin of safety in units × Selling per unit

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3 years ago

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4 years ago

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