Answer:
If GDP and consumption both rise by $6 billion in the second round of the process, what is the MPC in this economy?
What is the size of the multiplier?
If, instead, GDP and consumption both rose by $8 billion in the second round, what would have been the size of the multiplier?
Explanation:
Since the change in consumption is $6 billion, and the initial expansion in investment was $10 billion, the marginal propensity to consume (MPC) = expansion in consumption / initial expansion = $6 / $10 = 0.6
the economy's multiplier = 1 / (1 - MPC) = 1 / (1 - 0.6) = 1 / 0.4 = 2.5
If both the economy and the GPD had expanded by $8 billion, the MPC = $8 / $10 = 0.8, so the economy's multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5
Another way to determine the multiplier = 1 / MPS (marginal propensity to save), since MPS = 1 - MPC
Answer:
True.
Explanation:
A functional organisation focuses on grouping staff according to their areas of specialisation, and the project manager is an expert in that field. This is to ensure the project manager can effectively supervise the staff to deliver quality work.
There is less emphasis on the manager's powers of resource control.
However in projectized organisation the project manager has a lot of authority for budgeting, personnel, and decision-making.
Answer:
C. $5,560.
Explanation:
Ace Co. has sold King Co. at 8% rate, we will use this rate annuity which is 3.992 to find Present value of payments by King Co on this note.
Present value of payment = $20,000 / 3.992
PV = $5,010.
Total payments = $5,010 * 5 years = $25,050
Present value of note = $5010 * 3.890 = $19488.9
Total revenue earned by King Co. = $25,050 - $19,489
Total revenue earned by King Co. = $5,560.
Answer:
(B) Is the change in total cost from producing one additional unit of output
Explanation:
Marginal cost is the change in the total cost of production as a result of increasing the quantity produced by one unit.
Diminishing returns causes marginal cost to increase.
Marginal product of labor (MPL) is the change in output as a result of hiring one more unit of labour.
