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Oksi-84 [34.3K]
3 years ago
15

Ricardian equivalence means that:

Business
1 answer:
kati45 [8]3 years ago
6 0

Answer:

changes in private savings offset any changes in the government deficit

Explanation:

Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.

In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.

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Steve has been given the charge of managing unskilled labor in the production units of his company. These workers are primarily
AURORKA [14]

Answer:

c. Reward power

Explanation:

  • Reward power is the power to influence employees or to impress employees by giving them some reward for doing certain things. The reward is clear and vague .                                                  
  • so correct option is c. Reward power

4 0
3 years ago
Are perfectly competitive markets allocatively allocatively efficient in the long​ run?
antiseptic1488 [7]
Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.
7 0
3 years ago
Reliance Corporation sold 4,500 units of its product at a price of $20 per unit. Total variable cost per unit is $11.00, consist
BaLLatris [955]

Answer:

$40,500

Explanation:

A Companies Contribution Margin is a product's price minus all associated variable costs, this final value gives the products incremental profit earned for each unit sold. Therefore in this scenario, the Contribution Margin for the company is as follows

(4,500 * $20) - (4,500 * $11)

$90,000 - $49,500

$40,500

Therefore the final Contribution Margin for the company is $40,500 dollars.

8 0
3 years ago
Assume J. K. Lumber increases its operating efficiency such that costs decrease while sales remain constant. As a result, given
Mars2501 [29]

Answer:

D) return on equity will increase.

Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.

(1) Reduction in the cost of operations or production of goods and services

(2) increase in the price of the product etc.

If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.

7 0
2 years ago
Read 2 more answers
Sea Company reports the following information regarding its production costs: Units produced 54,000 units Direct labor $ 47 per
Elodia [21]

Answer:

Total unitary cost= $118.5

Explanation:

Giving the following information:

Units produced 54,000 units

Direct labor $47 per unit

Direct materials $40 per unit

Variable overhead $29 per unit

Fixed overhead $ 135,000

Under absorption costing, the unitary production cost is calculated using the direct material, direct labor, and total unitary overhead (including fixed overhead).

Unitary cost= direct material + direct labor + unitary variable overhead + unitary fixed overhead

Unitary fixed overhead= 135,000/54,000= $2.5 per unit

Total unitary cost= 47 + 40 + 29 + 2.5= $118.5

4 0
3 years ago
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