Average propensity to consume (APC) counts how much money is spent each year versus saved.
What is Average propensity to consume (APC)?
Average propensity to consume (APC) counts how much money is spent each year versus saved. This might be done by a single person who is curious about where their money is going or by an economist who is interested in tracking the spending and saving patterns of a whole country. In all scenarios, the tendency to consume can be calculated by dividing average household spending by average household income. A high average propensity to consume is typically advantageous for the economy from a larger economic perspective. When customers have a high propensity to consume, they save less and spend more on products and services. This rising demand fuels economic development, corporate growth, and widespread employment.
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Complete Question
Answer:
Developing
Explanation:
A developing country is one where,
- Per capita income is lower which means individuals earn money for basic survival. There are no means of investment and savings.
- Life expectancy is higher due to absence of modern medical facilities in all areas.
- Technology is still reaching people in rural areas. Not everybody has access to modern technology.
- High rates of population and unemployment.
Here, the country has all features of a developing world nation.
Answer:
The correct answer is D. New trade
.
Explanation:
The "new" theory of international trade. These theories are based on imperfect competition. Among them are the following:
- Opportunity Cost Theory, by G. Haberler. Work is not the only resource nor is it homogeneous. It is based on the opportunity cost of a good.
- Monopolistic Competition Model, by Paul Krugman.
The "latest" recent developments that incorporate differences between companies. In this category, differences between companies are considered to understand this area. Among them are:
- Conclusions of Bernard, Redding and Schott. Increase the productivity of the entire industry. The expansion of the production of the exporting companies implies an increase in the demand for factors and an increase in the price of the inputs.
- R. E. Baldwin and R. Forslid. Liberalization brings welfare gains.
Answer:
Pretax income= $28,000
Explanation:
Giving the following information:
A company produces a product with a contribution margin per unit of $36. The company incurs $62,000 in total fixed costs and expects to sell 2,500 units.
The pretax income is calculated by deducting from the total contribution margin the fixed costs.
Pretax income= 2,500*36 - 62,000= $28,000
