Answer:
Reallocate spending from magazines to newspapers.
Explanation:
We are only given the utility provided by the last newspaper and the last magazine, but in order to answer the question I will consider that the utility remains the same from the first to the last unit.
Frank obtains 10 utils from purchasing each magazine and each newspaper:
- magazine = $5 / 10 utils = $0.50 per util
- newspaper = $2.50 / 10 utils = $0.25 per util
Frank obtains twice the utils from each dollar spent on newspapers than on magazines, so he should spend more money on newspapers.
Answer:
b) the amount she paid to buy new parts
Explanation:
Gross domestic product (GDP) is the monetary value of goods and services produced in a country within a period of time usually a year.
The second hand car purchased by Sally has already been recognized in the GDP in the period it was first sold. To include the purchase cost again will amount to double counting. Therefore, the expenses that will be included in GDP is the value that has been added, that is, the amount she paid to buy new parts. We do not recognize the value of self service in GDP, therefore the 120 hours she spent refurbishing the car is not to be included.
<u>Answer:</u>
<em>The factors of production typically include land, labor, capital, entrepreneurship, and the state of technological progress.</em>
<u>Explanation:</u>
In economics, capital typically refers to money. But money is not a factor of production because it is not directly involved in producing a good or service.
Instead, it facilitates the processes used in production by enabling entrepreneurs and company owners to purchase capital goods or land or pay wages. For modern mainstream economists, capital is the primary driver of value.
Answer:
its productivity rises and the relative prices of substitutable resources rise.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. Thus, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.
This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.
A substitute product can be defined as a product that a consumer sees as an alternative to another product and as such would offer similar benefits or satisfaction to the consumer.
For substitute products (resources), the cross-price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
Hence, the demand for a resource rises as its productivity rises and the relative prices of substitutable resources rise.
Answer:
Different variable in relative forms
Explanation:
Index numbers allow to compare the relative values of different values.
To do so, an index is made by equating a value to a base value, usually a value of 100, and other variables that are to be compared with the index value are expressed in terms of how different or far they are from the base value.
For example, suppose that inflation for year 1 is 4%, and this is indexed to be the base value 100. If inflation for year 2 is 8%, then, the inflation value is 200 in terms of the index, or twice as much as the value of the base year.
