When every economic unit achieves its own particular goal, perhaps by delivering something of value to others, it is referred to as ___self-interest___.
<h3>What is self-interest?</h3>
Self-interest is an action motivated to achieve personal goals or advantages. According to Adam Smith, when individuals pursue their self-interests, they satisfy the general public by providing some goods or services in exchange.
Thus, when individuals or every economic unit achieves its self-directed goals, they usually satisfy their self-interest while delivering something of value to others.
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Answer: $5,681
Explanation:
As this is a residential property the Modified Accelerated Cost Recovery System (MACRS) depreciation rate is applicable.
Also as it was sold during the month, the mid month convention is also in effect which states that when an asset is sold during the month, only 15 days of that month are considered for depreciation assuming a 30 day month.
The straight line rate for MACRS after the first year for this residential property is 3.636% per annum.
The asset didn't last the entire year so this needs to be accounted for.
Out of 12 months it lasted 7 months till July and 15 days in August which means it lasted 7.5/12 of the year.
Depreciation for the year is therefore,
= 250,000 * 3.636% * 7.5/12
= $5,681
Answer:
$9,950
Explanation:
The computation of the ending balance of the retained earning is shown below:
Beginning retained earning balance $9,000
Add: net income $2,050 ($5,100 - $3,050)
Less: Dividend paid -$1,100
Ending retained earning balance $9,950
These items are considered and the rest items that are mentioned are not relevant. hence, ignored it
Answer:
$11,875; $1,575
Explanation:
Total cost of starting an own business is as follows:
= purchase office supplies + monthly electricity bill has increased
= $75 + $50
= $125 per month
Total revenue = $12,000 per month
Opportunity cost refers to the cost of forgone something in order to choose some other alternative.
Opportunity cost or Implicit costs:
= Earning from Job + Income from garage apartment
= $10,000 + $300
= $10,300
(a) Barney's average monthly accounting profits:
= Total revenue - Total cost
= $12,000 - $125
= $11,875
(b) Barney's average monthly economic profits:
= Accounting profits - Implicit cost or Opportunity cost
= $11,875 - $10,300
= $1,575
Answer:
- Consumer spending increases
Explanation:
If there is a decrease in personal income taxes, this will mean that consumers have more disposable income. This coupled with an increase in government spending will lead to more money being available for spending in an economy.
Consumer spending will therefore increase and in response, companies will have to produce more goods and services. They will need more labor to do so which will lead to a rise in employment rates.