Answer:
B) The multiplier falls, making spending less powerful.
Explanation:
As we know that the multiplier refers to a factor where the changes with respect to increase or decrease of another things is to be seen.
Also,
MPS + MPC = 1
And,
Multiplier = 1 ÷ (1 - MPC)
or
= 1 ÷ MPS
In addition to this, MPS has the negative relationship with the multiplier
that means if the MPS increased then the multiplier decreased and vice versa
Therefore the option B is correct
Answer: The law of demand States that as price falls, quantity demanded increases and vice versa. (A).
Explanation:
In Economics, the law of demand states that all other things being equal; as the price of a good or commodity or service increases (↑), the quantity of the good/service demanded declines (↓); also, as the price of a good/service declines (↓), the quantity demanded increases (↑).
In other words, the law of demand shows an inverse relationship between the price and quantity demanded of a good/service.
Consequently, other things being constant, the quantity demanded of a good/service is inversely proportional to the price of the good/service.
For example if the price of a luxurious car falls it would motivate the buyers to rush to get a car. This law of demand is also used by marketers to attract buyers by the use of discount on goods.
Answer:
Ending Inventory = $55,000
Explanation:
<u>Particular Cost price Retail price
</u>
Opening Inventory $30,000 $42,000
<u>Add: Additional Purchases $196,000 $368,000
</u>
<u>Cost of Goods Available for Sale $226,000 $410,000
</u>
Cost to Retail Ratio: 55 %
Less: Net Sales $310,000
Ending Inventory $55,000 $100,000
Note:
Cost to Retail Ratio = $226,000 / $410,000
Cost to Retail Ratio = 55% (Approx)
Answer:
A. The best use of scarce resources to achieve the maximum satisfaction of economic wants
Explanation:
Economics is a social science where by scarced resources is Been judiciously utilized in the production of goods and services for human satisfaction, because human wants are so numerous.
Among the different economic system that is used in the world today are capitalism ,socialism and communism,
Samuelson was regarded as the father of modern economics.
Answer: C - Restricted the ability of competitors to engage in cooperative agreements.
Explanation:
The Sherman Antitrust Act was signed in 1890 by President Benjamin Harrison. This was named after a senator, John Sherman, who authored the bill himself.
This act prohibits businesses from;
- Anticompetitive agreements
- "Unilateral conduct that monopolizes or attempts to monopolize the relevant market"
- Innocent monopoly
If any business is caught breaking the Sherman Antitrust law the Department of Justice can file suit against the parties involved. The act is made to protect a competitive marketplace for consumers.
