Answer:
Fixed costs do not depend on the level of output. They are therefore paid regardless of production.
Variable costs are only incurred as production goes on.
Fixed cost
a. Interest rate on current debt
b. Regulatory compliance costs
c. Annual salaries of top management
g. Lease on building
h. Industrial equipment costs
Variable Costs
d. Cost of metal used in manufacturing
e. Cost of wood used in manufacturing
f. Postage and packaging costs
Answer:
C. Survival.
Explanation:
Given that Survival in terms of the business firm means that a firm in business survival level often results to reducing the cost of operation as much as possible, including reducing workers, keeping more cash, rather than working towards the growth of the business firm, and many more so as not to enter into insolvency.
Hence, SURVIVAL anxiety is the feeling that unless an organization makes a change, it is going to be out of business or fail to achieve some important goals.
Answer: C. Reduce interest rates by increasing the money supply
Explanation:
If the Fed hopes to prevent unemployment and recession it needs to stimulate the economy to produce more goods and services as this will stave off recession while reducing unemployment as people will be needed to produce those goods and services.
The Fed can increase money supply which will lead to interest rates decreasing. When this happens more companies and individuals will be able to borrow funds as the cost of borrowing is low. These funds can then be invested in projects to increase production in the economy.
Answer:
C. every additional missile will reduce consumer goods production more and more.
Explanation:
Due to the fact there are limited resources in the economy, as more of one product is being produced, there would be less resources available to produce the second good and as a result, the number of the other good that can be produced would reduce.
As more of one good is produced, the opportunity cost of producing the other good increases.
As more missiles are produced, less consumer goods would be produced and the opportunity cost of consumer goods would increase.
This can be understood by looking at the production possibility curve.
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced
It is for this reason that the production possibility frontier is bowed outwards
Answer: One thing that could be done to devalue a currency is to issue more currency into their markets.
Explanation:
Any asset or goods can be based on how scarce the product or assets it. The authorities in the foreign markets could make more currency and this will devalue the currency because the market will be saturated. The money/currency will still be at the same value as before but the purchasing power will be reduced since there is an added supply of money in the economy.
