Answer:
The correct answer is B. $14,500
Explanation:
According to the accounting concept, the machines cost includes all those cost which is related to the machine like - purchase cost of machine, installation cost of machine, insurance cost,etc.
So,
Total cost of machine = Purchase cost of machine + installation cost of machine + insurance cost
= $10,000 + $4,000 + $500
= $14,500
Hence, the total machine cost is $14,500 which is to be recorded in the financial statements.
Thus, the correct answer is B. $14,500
<span>The marginal propensity to consume is a metric
that quantifies the concept of increase in consumption with an increase in
income. Mathematically MPC is defined as:</span>
MPC = Change in consumption / Change in income
Purchase of goods and services is considered as
consumption, therefore:
Change in consumption = $16 billion
In the government’s perspective, taxes are
considered as income, therefore the problem ask us to find for the necessary change
in tax collection to maintain equilibrium GDP. Substituting the values in the
formula:
0.80 = $16 billion / Change in income
Change in income = $20 billion
<span>Therefore the government should increase the tax collection by $20
billion.</span>
An externality in business or economics is where an industrial activity has an unexpected side effect which does not figure in the cost of the goods and services involved. For example, I worked many years at a large mine. Just the existence of the mine there meant it was a no-hunting area so a side effect was that the moose used it as a refuge during hunting season which as a side effect was beneficial to the moose (and deer). Another example is that we used to crush mine rock for the haulroads for winter traction. As a result, it was found that the fines from this were concentrated with copper values so were put in the mill for processing-an unexpected outcome.
