Answer:
The total economic cost is $40,500 per year
Explanation:
The total economic cost per year is equal to the sum of:
* The opportunity cost relating to sacrificing the current work Greg is working on which is equal to his yearly salary of : $40,00.
* The opportunity cost relating to sacrificing the interest income earned on $10,000 saving, which he is now used for purchasing equipment, which is calculated as: 10,000 * current rate of savings = 10,000* 5% = $500 ( total cost of equipment is not included because e could sell the equipment for what he paid later on).
=> So, total economic cost per year is $40,000 + $500 = $40,500.
Answer:
Answer is explained in the attachment.
Explanation:
Answer:
A. Interest rates rise.
C. There is an economic boom overseas that raises the incomes of foreign households.
Explanation:
Option A - It is correct because if the interest rate increases, consumer spending will decline. Therefore, the aggregate demand curve will shift to the left.
Option B - If the government reduces the personal income tax, the consumers will spend more, it will lead the aggregate demand to the right. So, it is wrong.
Option C - Foreign households' income will lead to more savings. Therefore, spending will decline. So, it is the correct statement.
Option D - It is incorrect because corporate profit tax will not consider in the aggregate demand.
Answer:
This entry would be recorded by Young with a credit to <u>cash account</u> in the amount of <u>$1,020</u>.
Explanation:
The complete journal entry for June 29 should be
- Dr Notes Payable account 1000
- Dr Interest Expense account 20
- Cr Cash account 1020
The total interest due = $1,000 x 6% x 4/12 =$20
Notes payable is a liability account and it decreases, so it should be debited.
All expenses are debited.
Cash is an asset account and it decreases, so it should be credited.
Answer:
c
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. It is also known as implicit cost
When Yvette decided to wait in line, she missed the opportunity to tutor. This is her opportunity cost.
By giving up tutoring, she is losing $30. Thus her implicit cost is $30
