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tigry1 [53]
3 years ago
12

In a simple, closed economy (no government or foreign sector), disposable income increases from $2,000 to $3,000. If consumption

increases from $1,500 to $2,100, the marginal propensity to save is: 0.40. $400. 0.80. $600.
Business
1 answer:
tamaranim1 [39]3 years ago
8 0

Answer:

The marginal propensity to save is 0.4

Explanation:

The marginal propensity to save is 1 - marginal propensity to consume.

The marginal propensity to consume is the proportion of an increase in income that the consumers will spend from this increased income and the marginal propensity to save is the proportion of the increase in income that will be saved.

The marginal propensity to consume (MPC) = Change in consumption / change in income

The MPC = (2100 - 1500) / (3000 - 2000)  =  0.6

Thus, the marginal propensity to save is 1 - 0.6 = 0.4

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Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the
s2008m [1.1K]

Answer:

Alpha Technology

Outstanding Computer's consumption ratio for setup hours is:

b. 0.48

Explanation:

a) Data and Calculations:

Overhead activities and costs:

Setting up equipment $3,000

Machining $15,000

                                            Excellent      Outstanding

                                             Laptops        Computers

Direct Labor                         $25,000         $10,000

Direct Materials                   $20,000          $5,000

Expected Production in Units 3,000             3,000

Machine Hours                           850             2,000

Setup Hours                                  80                  75

Total setup hours = 155 hours

Outstanding Computer's consumption ratio for setup hours = 75/155 * 100

= 48%

8 0
3 years ago
A car dealership performs a credit check on a potential customer. according to the credit bureau, the customer's credit score is
Nikitich [7]
A 710 credit score is considered good. People with this credit score are likely to be approved for credit cards and loans with average interest rates and terms.
5 0
3 years ago
The price elasticity of demand for a particular cancer drug is zero and the price elasticity of supply is 0.50. If a $1 excise t
Ede4ka [16]

Answer:

$1 or 100% of the tax

Explanation:

When the price elasticity of demand is 0, it means that the good or service will be purchased regardless of its cost. Very few things have such a low price elasticity, and the fact that this is drug for treating cancer is the reason why that happens. Anyone that can purchase a drug that will keep you alive, will do so as long as you have enough money to do so. Another good with a very low price elasticity, but not 0, is gasoline with a 0.02 to 0.04, and gasoline is a basic necessity also.

The curve for a perfectly inelastic good is vertical. So any increase in taxes will be paid by the customers.

7 0
3 years ago
A disadvantage of corporations is that shareholders have to pay on profits.
olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0
3 years ago
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual
andreev551 [17]

Answer: 7.67%

Explanation:

To solve this, the financial calculator will be needed

Present value = -896.87

Future Value = 1,000

N = [(25 - 5years) × 2 = 40

PMT = $45

Given the above information, we will press the financial calculator as we'll press CPT after which we then press I/Y and we'll get 5.11%

Then, the the firm's after-tax cost of debt will be:

= (5.11% x 2 )(1 - 0.25)

= (0.0511 × 2) (0.75)

= 0.07665

= 7.665%

= 7.67%

6 0
2 years ago
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