Answer
2
Explanation:
Cost index in dollar - value LIFO method is used to determine the change in prices since the beginning of he base year by comparing the year end inventory to the base layer cost.
The extended cost of the ending inventory at the most recent price is divided by the cost of the ending inventory at the base year price.
Workings
Cost in term of base layer = $50,000
Cost in term of the layer layer $100,000
Cost index = 100000/50000 = 2
Answer:
Consumption Function : Relationship between Consumption Spending & Income
Consumption Function Slope = Marginal Propensity Curve (MPC)
Change in Consumption = Change in Income X MPC
Explanation:
Consumption Function is the curve representing relationship between Consumption spending and Income.
C = a + bY ; where :- C = Consumption , Y = Income , a = Autonomous Consumption i.e consumption at 0 level of income , b = MPC i.e additional consumption consumed from additional income = ΔC / ΔY
b = MPC i.e change in C due to additional change in Y = ΔC / ΔY is the slope of Consumption Function
MPC = ΔC / ΔY .
So, change in consumption i.e ΔC = MPC X ΔY
Answer: Informative Advertising
Explanation:
Informative Advertising is a form of advertising where a company gives some details about the benefits of using a product and somethings they do differently from their competitors in the market.
Minute Yoghurt needs to inform their market of the special steps of blending and cleaning they applying when producing their product.
Answer:
The answer is C.
Explanation:
Macroeconomics is the study of the economy as a whole, unlike microeconomics which is the study of the individual firms/markets.
Macroeconomics focuses on the standard of living, unemployment rate, inflation rate etc. and how this affects the whole economy.
Option A is wrong because it is the microeconomics and not macroeconomics that studies the market and the firm.
Option B and D are wrong because these are for microeconomics
The answer to the question is (B) decreases food expenses.
Since the individual wants to reduce budget for a short period of time (within the next month) she should reduce his variable expenses – in which from the option is only decreasing food expenses. It is impossible for her to reduce her fixed expenses (rent, for example) and she should most definitely refrain from adding more. It is near impossible to add total income within such a short period of time as well.
