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alexandr1967 [171]
3 years ago
6

Robert Necco and Nelson Packard are economists at Economic Research Associates. ERA asks Necco and Packard for their opinions ab

out the effects of fiscal policy on real GDP for an economy currently experiencing a recession. Necco states that real GDP is likely to increase if both government spending and taxes are increased by the same amount. Packard states that if both government spending and taxes are increased by the same amount, there is no expected net effect on real GDP.
Regarding the statements made by Necco and Packard:
Necco Packard
A) Correct Correct
B) Correct Incorrect
C) Incorrect Incorrect
D) Incorrect Correct
Business
1 answer:
Lorico [155]3 years ago
8 0

Answer: B) Correct Incorrect

Explanation:

Whilst it was generally believed at some point that raising taxes and Government Spending by the same amount would have no effect, research has disproven this thought.

This is because it was shown that an increase in Government Spending leads to a larger increase in GDP than an increase in taxes reduces it.

This is because when the Government spends money, the Multiplier effect of Government Spending is always 1 more than that of the Taxes therefore raising taxes and spending by the same amounts still increases the Real GDP because Government Spending will create more income than taxes will take.

Necco is right, Packard is wrong.

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Answer:

A. emergency plumber services and  C.insulin.

Explanation:

From the list provided the best candidates for this would be emergency plumber services and insulin. That is because these are items or services that have a high supply but low demand due to the population of customers being a minority. This, therefore, causes market inefficiency which leads to deadweight loss. Other items like Coca-Cola and food mostly stay in equilibrium because products are made depending on the current demand and the customer population is the vast majority.

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2 years ago
PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the United States, PEZ
aleksandrvk [35]

Answer:

PEZ Candy Inc.

1. PEZ Candy Inc. would be more likely to use process costing for the manufacture of its PEZ candies.

The reason is that the manufacturing of candies involves continuous processing of materials that results into candies.  The processes are not customizable for separate orders.

2. PEZ Candy Inc. would incur these types of costs in the manufacture of its PEZ candies:

a. Direct material = sugar

b. Direct labor = wages of factory workers

c. Manufacturing overhead = utilities expenses

i. indirect materials = cleaning supplies

ii. indirect labor = factory supervisor's salary

iii. other manufacturing overhead = depreciation expense of factory equipment

3. PEZ Candy Inc. would be more likely to use job costing to calculate the cost of one particular birthday party hosted at the PEZ Visitor Center.  The reason is that it is a specific event.  It does not involve a continuous process.

Explanation:

a) Data and Calculations:

Materials for PEZ candy include:

Direct materials:

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Coloring

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Product = PEZ candies

Services: customized birthday parties

6 0
3 years ago
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Answer:

B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

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It should disclose all the terms and conditions, otherwise the purchase agreement wouldn't be binding.
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Explanation:

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