Answer:
The correct option here is C) the number of workers can be varied but not size of factory.
Explanation:
In the short run it would not be possible to shift or vary the size of factory and even if they try doing that it will talk lot of time and cost , which is in no way beneficial for the firm. But what firm can do is vary the number of workers they employ, like if they want to take advantage of economies of scale , they can do that by assigning less tasks to employees and for that they can make changes in the number of employees as per the requirement.
Answer:
d. positively to the nominal gross domestic product
Explanation:
The quantity theory of money :
M = (P x Y ) / V
Where m = quantity of money
P × Y = nominal GDP
V = velocity
Velocity is assumed to be constant in the short run. It is also believed that Y is constant in the short run. Therefore, movement in price level is determined by the quantity of money.
I hope my answer helps you.
Answer:
A. less than 5 times as much as your grandfather in terms of real income.
Explanation:
Nominal income is earning that does not take account of changes in price levels. Nominal income is the stated income. Real income considers the changes in inflation. Therefore, real income is nominal income after considering inflation effects.
If grandfather earned $7000 per year in 1961, and myself $35,000 in 2018, mathematically i earned five times more than him. The five times ($35,000/$7,000) is the stated amount without factoring in inflation. The difference between $35,000 and $7000 is the nominal difference because it is not adjusted for inflation. In we consider inflation, the real income is less than five times.
Answer:
B) Resources
Explanation:
Since Lavender Furniture sold high quality products and had an efficient management, it was able to acquire and manage several assets including a larger plot of land for its facilities, better machinery, more employees and a highly recognized brand name. All of these are valuable resources, most of them are tangible (land, machinery and labor), but they were also able to develop an intangible resource such as a highly recognized brand name which can really be valuable.
Answer:
The revenue that the investment in the company would increase by $100,000.
Explanation:
Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:
- Cost
- Net Realizable Value (Fair Value less Cost to Sell)
This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.
The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.
