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maw [93]
3 years ago
12

Suppose that an economy consists of only two individuals. Jeremy has $1830 available to spend on goods. He decides to purchase $

930 worth of produce from Michele in the current quarter. No other economic activity takes place during the current quarter.
A) For the current year, what is the economy's income?

B) For the current year, what is the economy's expenditure?

C) In an economy, how are income and expenditure related?
Business
1 answer:
Effectus [21]3 years ago
7 0

Answer:

A) $930

B) $930

C) See explanation

Explanation:

A) Since Jeremy spends by purchasing products from Michele, Michele earns an income. As there are no further activity, the economy's income is $930.

B) Since Jeremy spends by purchasing products from Michele, Jeremy pays money. As there are no further activity, the economy's expense is $930.

C) There is a relationship between income and expenses in an economy. That relationship is called the consumption factor. If people earn money, they tend to spend that money. In an economy, someone's income may include another person's expenditure. An example can show the relationship in a better way -

If Mary earns money by providing services, it will be her income and also the economy's income. As another person pays fees for the services, it will be the customer's expense and also the economy's expenditure.

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A company looking to expand internationally with little risk would choose?
leva [86]

Answer:

  • Licensing
  • Franchising

Explanation:

There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.

With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.

Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.

Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.

3 0
3 years ago
A. Explain the role labor’s productivity plays in wage determination in the competitive labor market. If productivity increases,
Dima020 [189]

Answer:

(A)Wages decrease in the long term

Explanation:

(A) The principles of supply and demand applies here.

Higher worker productivity in a particular industry implies increased demand for workers in the industry (short term effect).

Increased supply of workers implies:

1. output per worker increases, resulting in increase in supply of products in the industry. But, the laws of supply and demand comes in, because when supply increases, prices decrease.

That is, the increase in worker productivity may cause a decrease in prices resulting in a decrease in wages since the firm's revenue declined (long term effect).

2. Increase in the supply of workers in the industry with increased in productivity over workers from other industry because of initial increase in wages. This would lead to a decrease in wages because the supply of workers would exceed demand.

(B) The compensation differential is the additional amount of money that a given worker must be offered in order to motivate him to accept a given undesirable job, relative to other jobs that the worker could perform.

(C) This is called a derived demand because it is often based on the demand for products.

For example, when consumers want more of a particular good or service eg clothing, more firms in the industry will want workers that make this product.

6 0
2 years ago
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m_a_m_a [10]

D and E are be the correct answers

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zhannawk [14.2K]
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3 years ago
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What is a major plan that organizes several other plans?
Eva8 [605]
I think it’s D I’m not sure
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