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3 years ago

How might increasing the level of government transfers reduce the size of the economic pie? check all that apply?

1 answer:

8 0

Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that, .Greater transfer activity diverts productive resources into rent-seeking activity

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E25-18 Making outsourcing decisions Cool Systems manufactures an optical switch that it uses in its final product. The switch ha

Vikentia [17]

Answer:

From a cost savings perspective the switch should be made in-house

Explanation:

In deciding whether Cool Systems should make or buy the switch , we calculate the relevant applicable to both situations,then compare t see which option saves costs.

The cost of making the switch is calculated thus:

Direct materials per unit $5

Direct labor $3

Variable overhead $6

Total relevant cost $14

The cost of purchasing the switch from another supplier is $15

From the above analysis, it is preferable to make the switch in-house as that option saves $1($15-$14) per switch.

However, it might be that we need to look beyond cost savings sometimes,purchasing the switch from another supplier might be viable if the quality of the outside switch is better or that the outside supplier can deliver in timely fashion.

7 0

3 years ago

The crowding-out effect implies that restrictive fiscal policy will increase aggregate demand and employment. lead to a signific

vladimir1956 [14]

The crowding-out effect implies that restrictive fiscal policy will reduce real interest rates.

Option: D

Explanation:

The crowding out effect is the circumstances where greater interest rates consequences gives output of a decline in private investment expenditure so as to dampen the initial rise in overall investment expenditure. Authorities often embraces a restrictive fiscal-policy approach and raises spending to stimulate economic activity. This contributes to interest-rate rises. Higher interest rates have a impact on private investment choices. A high magnitude of the crowding-out impact can also result in lower economic revenue.

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3 years ago

The office of management and budget is one of the most powerful agencies in washington because it __________.

matrenka [14]

This office manages the country's money. The budget is important because all of the government programs are given a certain amount of money in it. It must be followed so we have enough money to do what is needed in this country. Welfare, security and other important programs are in the budget.

6 0

3 years ago

n a free-market system, the allocation of benefits and costs is determined primarily by a. Interaction between a private party a

ivann1987 [24]

Answer:

The answer to this question is A. Interaction between a private party and another private party

Explanation:

A free market economy, otherwise known as a capitalist economy is one that is controlled by private individuals with little or no government control.

A free or capitalist system may be defined as one in which all or most means of production are owned and controlled by private individuals and in which the economic activity of the government is at minimum.

In a capitalist economic system, private individuals play greater role than the government in taking decision about on what to produce, how to produce and the distribution of what is produced.

Hence, the allocation of benefits and costs is determined in a free market economy by A. Interaction between a private party and another private party

7 0

3 years ago

Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjus

Usimov [2.4K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Estimated:

Overhead $160,000

Direct labor hours 80,000

Han uses normal costing and applies overhead based on direct labor hours.

For January, direct labor hours were 8,150.

By the end of the year, Han showed the following actual amounts:

Overhead $166,000

Direct labor hours 79,600

Assume that the unadjusted Cost of Goods Sold for Han was $176,000.

1) Predetermined overhead rate= total estimated overhead for the period/ total amount of allocation base

Predetermined overhead rate=160000/80000= $2 per hour

2) Applied overhead (January)= Predetermined overhead rate*actual hours= 2*8150= $16,300

3) Applied overhead for the year= 2*79600= $159,200

Over/under applied= actual overhead - applied overhead= 166000 - 159200= 6800 underapplied

4) COGS= 176000

Underapplied overhead= 6800

COGS adjusted= $182,800

3 0

3 years ago