Answer:
An opportunity cost
Explanation:
The opportunity cost is the cost where the loss occurs from the benefit could have been enjoyed in the case when the best alternative choice was selected Since in the question it is mentioned that the company operating at a capacity and than lose revenue from the regular customers so it is an opportunity cost
If a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
Given that a $1,000 increase in income leads to an $800 increase in consumption expenditures.
We are required to find the marginal propensity to consume.
Marginal propensity to consume is the ratio of increase in consumption and the increase in income. It is also known as MPC.
MPC=ΔC/ΔI
ΔC=Change in consumption
ΔI= Change in income.
MPC=800/1000
=0.8
Hence if a $1,000 increase in income leads to an $800 increase in consumption expenditures, then marginal propensity to consume is 0.8.
Learn more about marginal propensity to consume at brainly.com/question/17930875
#SPJ4
Answer:
1. The federal government s new defense equipment is Discretionary spending
2. What Nick receives from government is because of Mandatory spending
3. Gloria's income from government is Mandatory spending
4. Government plan to build more highways is discretionary spending
5. Inpatient services Jill receives is Mandatory spending
Explanation:
Mandatory spending:
This is spending that has been made Mandatory by the law. It is certain amount of money that has been budgeted for and set aside by the government for certain programs or initiatives. It is also called entitlement spendings.
Discretionary spending:
This is a kind of spending in which the funding level is set aside each fiscal year by the Congress. It is government spending and it is implemented through the appropriation bill.
Answer:
Invesmtent sector.
Explanation:
Is also responsible for the economic act of production.
Answer:
Lewis CPAs:
service revenue: 60,000
Salaries expense: (40,000)
Net Income 20,000
Casual Clothing:
sales revenue 60,000
cost of goods sold: (32,000)
Gross Profit 28,000
operating expense (7,200)
Net Income 20,800
Explanation:
The net income is the difference between the revenues and expenses.
For Casual Clothing we also need to calcualte the gross profit which is, the difference between the sales revenue and the cost of the good sold.
After that, we subtract the other operating expense to arrive the net income
