Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be g
1 answer:
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Answer: A - nominal wages are slow to adjust to changing economic conditions
Explanation:
In the short run, the costs of many of the factors used in the production process are fixed. For example labours wage is fixed for a number of years because of labour contracts. Also the raw materials used in the production process have long term agreements that fix their prices.
As a result of factors of production been fixed in the short run, when general price level rises and the cost of production remains constant, profit also rises.
Firms take advantage of this rise in price and increase production and the quantity of aggregate supply increases. This is why the short run aggregate supply curve is upward sloping.
Answer:
correct option is B. 1.40
Explanation:
given data
total assets = $689,400
long-term debt = $198,375
total equity = $364.182
net fixed assets = $512,100
sales = $1,021,500
profit margin = 6.2 percent
solution
we get here first current assets that is express as
current assets = Total assets - net fixed assets ...................1
put here value
current assets = $689,400 - $512,100
current assets = $177300
and now we get Current liabilities that is express as
Total liabilities = Total assets - Total equity .............2
Current liabilities + Long term debt = Total assets - Total equity
Current liabilities = Total assets - Total equity - Long term debt ...........3
put here value
Current liabilities = $689400 - $364182 - $198,375
Current liabilities = $126843
so here Current ratio will be
Current ratio = current assets ÷ Current liabilities .............4
Current ratio =
Current ratio = 1.40
so correct option is B. 1.40