Answer:
d) the maximum level of total welfare is not achieved.
Explanation:
When the economic efficiency bears a loss, it is termed to be a deadweight loss. This condition occurs in the situation when the free market equilibrium is not able to be achieved. It occurs in the economy when the supply and the demand for the goods and services start to fall from being in the state of equilibrium. The resources allocated experiences a deficiency, thereby causing a deadweight loss.
Answer:
The correct answer is option d.
Explanation:
When there is an increase in the government expenditures, the income in the economy will increase. As a result, the demand will increase. The increase in demand will increase the price level.
The suppliers will produce more. To increase output more capital investment will be required. This will further cause an increase in the demand of loan-able funds. So, the interest rate will increase as well.
With the increase in interest rates, the cost of borrowing will increase. This will lead to lesser capital investment and as a result the aggregate demand will be smaller, because of lower production and thus lower income.
Answer: Partnership
A partnership is a from of business ownership who come together with mutual consent in order to manage the business and share its profits.
The terms and conditions of this agreement and the quantum of profit for each partner is clearly stated in a document called the partnership agreement.
All the partners who actively manage the business and share the profits are called General Partners. The general partners are jointly and severally liable for the debts incurred by the partnership.
Answer:
a. $11,000
b. $2,200
Explanation:
According to the cash basis accounting, the cash is recorded when actual cash is received
But as per the accrual basis of accounting, the revenue is recorded when it is realized or earned whether cash is received or not
So,
a. Cash basis = $11,000
b. Accrual basis
= $11,000 ÷ 10 months × 2 months
= $2,200
