The act that created a “pay-as-you-go” system that requires Congress to raise enough revenue to cover increases in direct spending
B. the 1990 Budget Enforcement Act
Question2 Every hour, the federal government spends about
B. $250 thousand
Explanation:
The act came as a response to the impending recession the western markets in the 1990 fiscal year which was to hit USA particularly hard. This came as a result of and in contrast with many conservative measures taken by the President George W Bush Sr up until that point.
The president had been saying till then that the opposition and the population could read his lips that there will not be new taxes.
It did happen though as this law allowed the government to increase taxation rates to cover governmental spending.
Answer:
remains unchanged as price increases when demand is unit elastic.
Explanation:
Total revenue = price × quantity
Demand is elastic when a small change in price has a greater effect on the quantity demanded.
If price is increased and demand is elastic, quantity demanded would fall more than the increase in price and total revenue falls.
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
If price is increased and demand is inelastic, change in quantity demanded would be less than changes in price. As a result, total revenue would increase.
Demand is unit elastic if a change in price has an equal proportional effect on quantity demanded. The elasticity of demand always sums up to one.
If price is increased and demand is unit elastic, there would be no change in total revenue.
I hope my answer helps you
Answer:
Time value of money
Explanation:
The reason is that the money invested today worth more tomorrow. If we have option to pay our supplier $5m after a year is more suitable option than paying him today. The reason is that the amount paid today will be worth $5m but if we pay our supplier after a year then in real terms we have paid the supplier less because money lost its worth by certain percentage during the year. So paying late makes the liability cheaper required their are no interest or other costs.
Answer:
The action of opportunity cost is that is the subjective measurement which could be determined only through the individual, who selects the action.
Explanation:
Opportunity cost is the cost or an expense or the value of the next best possible thing which the person or an individual gave up whenever make or take a decision.
In short, it is the loss of the gain that is potential from the other alternatives which are available when an individual or person selects the alternative.
Therefore, the action of the opportunity cost is the cost which is the subjective measure, that could be determined only through individual, who selects the action.
Answer:
Price Skimming
Explanation:
Prairie Herb Vinegar is new to the market and using a price skimming strategy. This is where the product is sold at the highest price a certain customer base will be willing to purchase the product at. This also creates a scenario where a perception of quality is created. As the company attempts to attract more customers they will lower the price of the product hopefully expanding their existing customer base.
