The production possibility curve shows the different combination for output that can be produced from the resources and technology.
<h3>What is a PPC?</h3>
It should be noted that a PPC is simply a graph that's used to show the different combination for output that can be produced from the resources and technology.
In this case, the points show how much of the goods van be produced. Point E means underutilization.
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Answer:
Their net operating income for the year was $39,628
Explanation:
Flip or Flop's net operating income for the year = Gross revenue - Cost of Goods Sold - Operating expenses
Their Cost of Goods Sold (COGS) was 21% of gross revenue, therefore:
Cost of Goods Sold = 21% x $93,200 = $19,572
The company has operating expenses for this same period of $34,000.
Net operating income for the year = $93,200 - $19,572 - $34,000 = $39,628
Answer:
C+$64
Explanation:
The GDP measures the market value of all good and services produced in an economy (country or region) in a specific period of time. It is calculated by this formula:
GDP= Consumption (C)+ Investment (I)+ Government expenditure ()+ Net exports (exports-imports)
A lump-sum tax at all levels of GDP means that no matter what GDP value is, the tax will be the same amount. If the tax is collected by the government then the GDP will increase because the government expenditure is income ( most of them are taxes) minus expenses ( public investment in education, health, etc)
GDP= C+$34+$30+0
After tax, the equilibrium level of GDP will be C+$64
Here, public savings = $1.05 billion and private savings = $3.15 billion
It is calculated as follows:
Total savings, S = $4.20 billion
We know: S = V+U
It means National Savings = Private savings + Public savings
Here:
V = private savings , U = public savings and
Private saving, V = 0.75 × S
= 0.75 × $4.20 billion
= $3.15 billion
And, the public savings will be = National savings - private savings
= $4.20 billion - $3.15 billion
= $1.05 billion
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Answer:
- Single asset = Coefficient of Variation
- Portfolio = Beta
Explanation:
When dealing with standalone risk, coefficient of variation is best because it shows the amount by which the asset's returns might deviate from the average returns of the market.
As for portfolio assets that are well diversified, the best measure would be beta because diversified portfolios deal with systematic risk and beta shows the movement of the portfolio in relation to the market and so will show that systematic risk.
