Answer:
Partly by the market mechanism and partly by the political process.
Explanation:
Capitalist Economy is private owned economy, with no state control, having profit maximisation objective. Socialist economy is state (govt) owned economy, having social welfare objective.
Mixed Economy is an economy co-owned by private & government sector. The goal is to achieve balance between profit maximisation & social welfare. The central problems of economy 'what, how, for whom to produce' are solved by both private & government sector. Output is allocated both on the basis of free market demand & supply mechanism, also on the basis of state/ govt (political) process. The govt (political) process regulates & monitors private role through various market interventions :- maximum quotas, price ceiling, price floor etc.
Answer:
$305,000
Explanation:
Given that,
Net income for the year = $290,000
Increase in accounts receivable = $21,000
Decrease in accounts payable = $9,000
Depreciation Expense = $45,000
Net cash provided by operating activities:
= Net Income of current year - Decrease in Accounts Payable + Depreciation Expense - Increase in Accounts Receivable
= $290,000 - $9,000 + $45,000 - $21,000
= $305,000
Answer:
Minimun cost: $2000
Explanation:
We solve for the optimal order size using the
Economic Order Quantity:
<u>Where: </u>
D = annual demand = 2,000 boxes
S= setup cost = ordering cost = $ 100
H= Holding Cost = $10.00
EOQ 200
It should order: 2,000 demand / 200 order size = 10 times
At a cost of 1,000 dollar (100 units x $ 10)
It will face an average inventory of 100 units thus holding cost:
100 units x 10 dollar per unit = 1,000
Total cost: 1,000 + 1,000 = 2,000
Answer:
A) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )
B)
i) Change in input price
ii) Change in production cost
iii) Increase in labor supply or increase in capital stocks
Explanation:
A) Effects of higher income taxes on aggregate demand curve
i) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )
B) The factors that will cause the short-run aggregate supply curve to shift
a) Change in input price
b) Change in production cost
c) Increase in labor supply or increase in capital stocks
Answer:
<em>An inferior good</em>
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Explanation:
<em>An inferior good is a good whose demand decreases with consumer's increase in income</em>. John's increase in pay, that came with his promotion, triggered John to switch to driving everywhere he goes instead of riding the bus. This is because John feels that riding the bus is no longer fit for him, now that he could readily afford driving around in the stead of taking the cheaper bus ride.
