Answer:
d. 36
Explanation:
The computation of value will be recycled is shown below:-
Out of 100 expenditure changes 60 should return to buy.
Thus, the saving = 100 - 60
= 40%
and consumption is 60%.
The value recycled in the next round = First round purchase × Consumption ratio
= 60 × 60%
= 36
Therefor for computing the value will be recycled in the next round we simply multiply the first round purchase with consumption ratio.
Answer:
A) decreased current production of consumption goods.
Explanation:
Opportunity cost is the economic cost that is not part of books of accounts. It is the cost of sacrificing one alternative for choosing another one. It is always calculated in terms of money, sometimes time, skill, etc are also referred to as opportunity costs. If one wants to produce capital then he has to give up the current production of consumption goods.
Answer:
This is known as Bank panic
Explanation:
Bank panic happens when in a banking system, many banks suffer from a bank run, that is, many of its depositors loss their confidence that the bank may repay their deposit, thus they want to withdraw their deposit put with the bank.
As Banks operating using notably high leverage, many of its assets are not highly liquid ( e.g: loans, bonds that will not be paid until maturity) and the fact that they lend to and borrow from each others frequently and heavily, a bank run happens for one bank may cause liquidity issues to not only that bank but also other banks in the systems.
Having understood that, people tend to speculate that a run on one bank will cause significant problem to the systems, and a likely probability that bank panic occurs.
Answer: Refer to Explanation.
Explanation:
There must be an error in the Multiple Choice options because the answer does not appear there.
Nevertheless here is the working.
The Journal entry that Smart makes on February 8 is as follows:
First, we will notice the presence of the credit term, 1/10, n/30. This means 1% discount if paid within 10days, otherwise, the total amount is due within 30 days.
Truman paid within the discount period and thus got the discount of 1%.
Calculating the adjusted figure to the discount would therefore be,
= 4,200 * ( 1 - 0.01)
= $4,158
The discount would be,
= $4,200 - $4,158
= $42
The Journal Entry will therefore look like,
Cash 4,158
Sales discounts 42
Accounts receivable 4,200
If you need any clarification do react or comment.
Answer:
Price elasticity of demand Relation
Explanation:
The reason is that the price and demand are inversely proportional to each other. If the price of the product increases the demand of the product will decrease and vice versa. So this means that if the organization wants to generate maximum profit then it will have to set a price that generate maximum demand which means which generates maximum profit. The Bugatti is very expensive and the result is that very fewer people own it in the world but the Mercedes with an above average price has customers in millions, Honda has more than million customers because it is priced average. So the thing is that the pricing matters in deciding how much of the total customers you want.
