By adjusting spending and tax rates (known as fiscal policy) or managing the money supply and controlling the use of credit (known as monetary policy), it can slow down or speed up the economy's rate of growth and, in the process, affect the level of prices and employment.
Answer:
The correct answer is letter "B": Activity-based costing.
Explanation:
Activity-Based Costing or ABC is a type of managerial accounting that assigns certain indirect costs to the item that generates the bulk of those costs. In the industrial sector, ABC is mainly used to help measure the true cost of output per unit. Compared to other costing methods, ABC provided more clear information because it considers information about the <em>company's activities, the quantity of those activities and their costs</em> in the production process.
Answer:
A firm maximizes its accounting profits when marginal revenue = marginal costs. In this case, the $250 tax, would increase the price of pizzas by less than 1 cent per pizza since total production = 80 pizzas x 360 days = 28,800 pizzas per year. Even if the restaurant only opens 6 days a week, its total production is very close to 25,000 pizzas. So the impact of the tax is really minimum.
If Ronny (I guess that is the owner's name) really wants to keep maximizing his profits, then he should increase the price of each pizza by 1 cent. The price increase will be minimum and very few customers will probably even notice.
Answer:
The correct answer is letter "B": Increasing the money supply could decrease aggregate demand.
Explanation:
The Aggregate Demand is a macroeconomic term describing the total demand in an economy for all goods and services at any given price level in a given period. As such, aggregate demand is the demand for the gross domestic product of a country. The relationship between the price level and the goods and services provided is inversely proportional which implies that the price level rises, the goods and services will have less demand and vice versa.
In that case, if the money supply increases so will the price levels but the goods and services provided will see a dropdown so will the aggregate demand.
Answer:
Lewis is attending training to improve his Ethical skills.
Explanation:
Ethical Skills:
Those qualities or skills that make us ethical like honesty, integrity, responsibility, accountability etc. which are useful for the well being of a society and personal character.
- In this scenario, as Lewis is a sales representative but he is attending a training program to distinguish between personal expenses and business expenses as well as legal deductions for tax purpose. Because he wants to pay taxes to the states fairly and this behavior shows us a ethical skill.
- In your professional life, the personal expenses are those expenses which are not tax deductible like coming to office from home but business expenses are tax deductible like travelling for a business meeting.
