Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.
<h3>When the business earns normal profits?</h3>
A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.
Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.
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Answer:
Cash Inflow of $191,400
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
In the given case, the sale proceed of equipment is consider in the investing activity i.e $191,400
Answer:
The correct answer is letter "B": associated with an ability to find a job with relative ease.
Explanation:
Unemployment is the state in which an individual who is able and willing to join the workforce cannot find a job even if that individual is constantly looking for opportunities.
<em>High unemployment rates are typically seen during recessions while the unemployment of a country tends to be low during economic growth. In the last scenario, mainly private investment helps to find a job to be relatively easy.</em>
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A lottery ticket states that you will receive $250 every year for the next ten years.
A) i=0.06 ordinary annuity
PV= FV/(1+i)^n
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {250*[(1.06^10)-1]}/0.06= $3,295.20
PV= 3,295.20/1.06^10=1,840.02
B) i=0.06 annuity due (beginning of the year)
FV= 3,295.20 + [(250*1.06^10)-1]= $3492.91
PV= 3492.91/1.06^10= $1,950.42
C) The interest gets compounded for one more period in an annuity due.
Answer: Option (b) is correct.
Explanation:
Given that,
short-run equilibrium output = 10,000
income-expenditure multiplier = 10
potential output (Y*) = 9,000
Expenditure multiplier = 
10 =
Slope of AE function = 0.9
slope of AE = MPC (1-t) t =0,
MPC = 0.9
Delta Y (DY) = 1000
government expenditure multiplier ⇒ 
= 10
Delta G = 
= 
= 100
Government purchases must be Decrease by 100.
