Answer:
c. increasing; $62.5
Explanation:
The computation is shown below;
As we know that
Multiplier = 1 ÷ 1 - MPC
= 1 ÷ 1 - 0.75
= 1 ÷ 0.25
= 4
Now if the equilibrium GDP is $250 billion less than the expected level of GDP
So, the government spending would be increased by
= $250 billion ÷ 4
= $62.5
Hence, the correct option is c.
Answer:
option (b) $800
Explanation:
Data provided in the question:
Amount to be received = $4,800
Duration = 1 year
Date on which the contract was signed = November 1, 2018
Now,
For the year 2018, the number of months left are 2
therefore,
Revenue to be recognized in 2018
= [Amount to be received ÷ Duration in months ] × Months left in 2018
= [ $4,800 ÷ 12 ] × 2
= $800
Hence,
The correct answer is option (b) $800
Answer:
c. identification of the basic appeal for markets
Explanation:
As John is an inexperienced businessman and wants to sell his Zulu doll product, a toy for children who have less than 8 years in every part of the world and want to keep the cost low
So first thing he should do is feasible study whether his product is feasible or not and then identify the market with respect to the price, quality, competitors, etc so that he get a good idea
Answer:
D. government's role is limited to protecting and enforcing property rights and providing public goods.
Explanation:
Laissez-faire economic system -
It refers to the theory , which does not agrees to the intervention of the government in any of the business affairs , is referred to as Laissez-faire economic system .
The basic principle of this economic system is to " leave alone " .
The government does not have any right to interfere in the business practices .
Hence , from, the given information of the question,
The correct option is d.
Answer:
the price elasticity of demand is -0.77
Explanation:
The computation of the price elasticity of demand is as follows;
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
Here,
Change in quantity demanded is
= Q2 - Q1
= 14 - 12
= 2
And, average of quantity demanded is
= ( 14 + 12) ÷ 2
= 13
Change in price is
= P2 - P1
= $180 - $220
= -$40
And, average of price is
= ($180 + $220 ) ÷ 2
= 200
So, after solving this, the price elasticity of demand is -0.77