Answer and Explanation:
Economic Growth can be defined as an increment in production capacity of an economy using all its available resources. The PPF illustrates the largest possible quantity of goods and services a nation can produce base on its available resources. An outward shift in the economy’s production possibility frontier (PPF) depicts a raise in productive capacity of an economy. An outward shift implies that an economy has capacity to increase its production outputs. This can be as a result of the economy employing new technology, allowing specialization, increasing its labour force, using new production approaches etc. Likewise, an inward shifting PPF implies an economy has witness a loss or exhaustion of some of its scarce resources and it will culminate into reduction in an economy’s productive potential.
Effects of saving and investment upon national GDP
level of savings direct related to the level of investment, investment feeds on available finance from saving. If more people save, the banks will be able to lend more to firms to support their investments.
low savings and investment implies a PPF inward shift. low savings in economy implies that the economy is opting for short-term consumption over long-term investment, and this will lead to future undue pressure on available infrastructures ad resources.
spending on consumer goods vs capital goods effect on the economy
In the short run, the economy must prefer using available resources to produce capital rather than consumer goods. Standards of living will be affected, as private consumption will have access to fewer resources. However, in the longer run, the raised production of capital goods will boost the production of more consumer goods ad therefore standards of living will experience more increase than they would have witness if the economy had spent most of its income on consumer goods.
Answer:
Correct answer is TRUE
Explanation:
Cost-based pricing is a method used to determine the selling price of the product based on the cost of production and selling expenses incurred based on the previous production or on the same industry then add the desire margin that the firm wants to attain. It is important that the firm will account properly the total cost of the product before they will add the profit element that they wished to attain.
It is false that many state governments claim a shortage of funds because there are unmet needs. It is false because of scarcity. Scarcity is a result from unlimited wants coupled with limited resources.
Answer:
The cash flow from operating activities was $7,000.
Explanation:
Ending Cash Balance
= Opening Cash Balance + Cash Flow from Operating Activities + Cash Flow from Investing Activities + Cash Flow from Financing Activities
$24,000 = $47,000 + Cash Flow from Operating Activities - $250,000 + $220,000
Cash Flow from Operating Activities = $24,000 - $47,000 + $250,000 - $220,000
= $7,000
Therefore, The cash flow from operating activities was $7,000.
Answer:
The section of a professional business letter that contains the purpose of the correspondence is the body.
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