Answer:
B)a deficit of $1.5 trillion
Explanation:
The computation of the government budget balance is shown below:
= Taxes - government spending
= $0.5 trillion - $2 trillion
= $1.5 trillion deficit
For computing the government budget balance, we deduct the government spending from the taxes so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Answer:
Adjusted cost of goods sold 234,900
Explanation:
<em>To calculate the the adjusted cost of goods sold , we need to first determine the over or under applied overhead.</em>
<em>Over applied overhead = absorbed overhead - actual over heads</em>
=$59,200- $55,900
= $3,300
<em>This will be deducted from the the cost of goods produced because it is the amount by the which actual production has been over stated.</em>
The adjusted cost of goods sold is determined as follows:
$
Opening inventory 55,000
Cost of goods manufactured 213,000
Over applied overheads (3,300)
Less closing inventory <u> (30,300)</u>
Adjusted cost of goods sold <u> </u><u>234,900</u>
Answer:
Equilibrium quantity will increase; the effect on price is ambiguous.
Explanation:
An add in the newspaper claims that the price of milk will increase next week . At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, we can say about the current equilibrium price and quantity of milk that Equilibrium quantity will increase; the effect on price is ambiguous.
The conclusion that equilibrium quantity will increase is dependent on the fact that expectation on future prices is a major factor that leads to changes in demand
People’s expectations about the future can have a significant impact on demand. Or, more specifically, their expectations of future prices can change demand.
If consumers expect prices to increase shortly, current demand often increases, i.e., the demand curve shifts to the right.
<span>With the boom of social media, the customer’s path to purchase has
significantly changed. Traditional, “above-the-line” advertising, specifically
done on TV, print or radio is not as effective as it was before when it comes
to convincing consumers to purchase products. More and more people would resort
to seeking advise and referrals from friends in their respective social
networks. Consumers are wiser now given that they know they have the power to get
real-time information and data simply by the act of crowdsourcing. Engaging
with friends from social media networks would give them access to more genuine
feedback or POV on certain products and services. What traditional advertising
lacks is a venue for consumers to get immediate answers to possible questions
they have on products being advertised. Consumers don’t appreciate information
shoved down their throats as they know that marketers have full control of the
messages being communicated in their ads. It’s too one-sided. There should be a
platform for dialogue which is provided by social media. This is where the
fundamental shift of power takes place as described by Mr. Safco. It’s all about engagement and two-way
communication as he puts it. </span>
