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2 years ago

The _________________ budget constraint shows the tradeoff between present and future consumption.

1 answer:

8 0

Fill in the blanks with "Present Value" since it is the budget constraint that shows the tradeoff between present and future consumption.

Here's the explanation for present value budget constraint:

- The relevant budget restriction when consumers make consumption decisions that cover more than one period.

- It is often referred to as the life-time budget limitation.

- Individuals can borrow and lend any amount at the market interest rate, according to the rules.

The expected utility framework, which illustrates how individuals might optimize their needs, is the budget constraint. Additionally, it shows all possible combinations of products and services that a consumer can spend.

For pictorial simplicity, economists only address two products at a time, despite the fact that there are many different goods and services available.

You might want to know why individuals make choices that are directly on the budget constraint: brainly.com/question/11997164

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What information does a lead contain in a news story?

Talja [164]

Answer:

1st one

Explanation:

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4 years ago

Read 2 more answers

The account balances and income statement of Winniford Towing Service at June 30, 2018, follow: LOADING...(Click the icon to

Anarel [89]

Answer:

A.Retained earnings June 30 $8,200

B.Income statement June 30$7,800

C.The statement of retained earnings will report Changes that occured in the retained earnings for a business entity during a period of time.

Explanation:

A. Preparation of statement of retained earnings

Retained earnings

for the month ending June 30, 2018.

Retained Earning June 1 $3,400

Add Net income for the month $7,800

=$11,200

Less Dividend $3,000

Retained earnings June 30 $8,200

Therefore the Retained earnings for June 30 will be $8,200

2.Preparation of Income statement

Income statement

for the month ending June 30, 2018.

Revenue:

Service Revenue $10,800

Less :Expenses

Salary expenses ($2,200)

Rent expenses ($800)

Net income $7,800

($10,800-$3,000)

Therefore Winniford Towing Service Income statementfor the month ending June 30, 2018 Net income will be $7,800.

C. Based on the above calculation the statement of retained earnings will report

Changes that occured in the retained earnings for a business entity during a period of time.

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4 years ago

Place the steps for finding the EOQ in a quantity discount model with variable H in the correct order.

ira [324]

The steps for finding the EOQ in a quantity discount model with variable H are:

The optimal point is the quantity that yields the lowest cost
Start with the lowest price
If the minimum point is feasible
Otherwise, compare total costs

What is the Economic Order Quantity(EOQ)?

The Economic Order Quantity is the ideal quantity of units a company should purchase to meet demand while minimizing inventory, costs such as holding costs, shortage costs, and order costs.

The economic order quantity formula assumes that demand, ordering and holding costs all remain constant.

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1 year ago

A company sold 20,000 units of its product for $20 each. Variable cost per unit is $11. Fixed expenses total $150,000. The compa

Aleksandr-060686 [28]

$180,000

Contribution margin = 20,000 x ($20-$11) = $180,000

<h3><u>What is marginal cost ?</u></h3>

The difference in total production costs caused by creating or manufacturing one more unit is known as the marginal cost in economics. Divide the variation in production costs by the variation in quantity to determine marginal cost. Finding the point at which an organization may realize economies of scale to improve production and overall operations is the goal of marginal cost analysis. The producer may make money if the marginal cost of manufacturing one more unit is less than the price per unit.

In management accounting, the idea of marginal cost is crucial because it may be used to maximize output through economies of scale within an organization.

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2 years ago

Suppose that a rise in business confidence has led to more investment in the economy and higher levels of output. In the short-r

Flauer [41]

Answer:

the rise in aggregate demand will cause lower unemployment.

Explanation:

the business confidence has risen this will increase investment and thus IS curve will shift out increasing the level of outputs in the economy, this will lead to rise in aggregate demand and thus output and price level in the equilibrium will increase.

so as output increases jobs will be created and unemployment will be reduce.

Therefore, the rise in aggregate demand will cause lower unemployment.

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3 years ago