Answer:
The answer is The Multiplier.
Explanation:
In economics, a multiplier is used to refer to an economic parameter that, when increased or changed, will cause an increase or change in many other related economic variables. The multiplier effect in terms of Gross Domestic Product therefore causes the gains in total output to be greater than the change in spending that caused it.
For instance, a multiplier value of 2x would have the effect of doubling; while 3x would have a tripling effect.
Therefore, because of The Multiplier, an increase in government spending will result in a larger increase in real GDP.
Answer:
Explanation:
The journal entry is shown below:
Amortization expense - Patent A/c Dr $32,380
To Patent A/c $32,380
(Being amortization expense for the first year is recorded)
The computation is shown below"
= Purchase cost of patent ÷ estimated useful life
= $161,900 ÷ 5 years
= $32,380
For the intangible assets, the amortization expense is considered, not the depreciation expense and the same is to be taken.
Answer:
The correct answer is (b)
Explanation:
Sale promotion is an effective way to improve short-term sales and at the same time attract new potential buyers. Ice scrapers sale promotion strategy will help them to increase their sales revenue. As they are offering buy two get one free sale on black Friday the overall prices will decrease that will increase the demand.
Answer: C beyond a certain point, total utility decreases as income rises
- Diminishing marginal utility means that beyond certain point, the total utility from consuming a good decreases, and increasing its consumption monotonically, makes that every additional unit of consumption delivers less utility each time.
- This is because most behavioral consumers models try to emulate the principle of scarcity: the less available units of a good, the more it values.
- Then, an increasing income would allow us to buy more and more goods, and because of the existance of diminishing marginal utility, we would get less utility from consuming additional units of every goods each time.
- As an <u>example</u>,one could think about eating chocolate. The first bar would give us much happiness (utility), but increasing the number of bars consumed would eventually vanish this "happiness".
A profit and loss statement<span> will determine how well a business has done over the past year.The profit and loss statement is a financial statement which shows revenue, costs and all expenses that happened during a said period of time. Most companies do this quarterly or yearly. </span>
