Answer:
'Retained income'.
Explanation:
We have been given that Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand their production line.
We know that the net income that remains after paying dividends is known as 'Retained income'.
We also know that retained income can be used to pay off debts or it can be invested into business activities.
Therefore, the profit that Crawford Fishing keep to reinvest in the business is recorded as retained income.
Answer: The change will be $400 billion.
Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.
To calculate how much the equilibrium real GDP will change:
STEP1: CALCULATE THE MULTIPLIERS
multipliers = 1 ÷ (1 - MPC)
Where MPC = 0.
Therefore;
Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5
Multipliers = 2
STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;
Multipliers × change in consumption spending
2 × $200 billion = $400 billion
Equilibrium real GDP will change with $400 billion
Answer:
A) taking the cost into account because money spent on pollution reduction is not available for other worthy activities.
Explanation:
The economic approach tries to find solutions for problems optimizing the use of economic resources, therefore reducing costs and increasing benefits for every dollar spent.
Resources are scarce and that includes everyone, from a normal individual, to the richest person in the world, or the richest country in the world. The economic approach states that we should all try to maximize the benefits we obtain while exchanging resources. For example, if we need to study for a text and we know that solving problems helps us to learn more than just reading, then we should spend more time solving problems than reading because that way we can increase our benefits.
The US government and every other government in the world works on a budget and the money it spends doing A, will not be spent doing B. So the government must decide which actions to take in order for maximizing the benefits of the population (i.e. choose between A or B depending on which causes the greatest common good).
