Answer:
the depreciation that should be charged over the useful life each year is $20,000
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Purchase cost of an equipment - residual value) ÷ (useful life)
= ($135,000 - $15,000) ÷ 6 years
= $120,000 ÷ 6 years
= $20,000
hence, the depreciation that should be charged over the useful life each year is $20,000
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) Marginal propensity to consume (MPC) for this economy is 0.75 as it denotes the spending of the household and saving of 0.25 and the spending multiplier for this economy is
= Spending Multiplier(M)
= 1 ÷ 1 - MPC
= 1 ÷ 1-0.75
= 1 ÷ 0.25
= 4
2). Decrease in government purchases will lead to a decrease in income, generating an initial change in consumption
= -Amount of Government Decrease Purchases by × MPC
= -$250 billion × 0.75
= -$187.5 billion
3). Decrease income again, causing a second change in consumption
= Amount Decrease in Government Purchases × MPC
= -$187.5 billion × 0.75
= $140.6 billion
4).Total change in demand resulting from the initial change in government spending
= Amount of Government Decrease Purchases by × Spending Multiplier(M)
= $250 × 4
= $1,000 billion
= $1 trillion
As we can see that the income falls by $1000 billion in the end, so AD shifts to the left by the size of $1 trillion
In the question the graph is missing. Kindly find the attachment for both of question and answer
Answer:
include the cost of selling, delivering, and after-sales support for customers
Explanation:
The period cost is the cost which includes the major part of the selling and admin expenses plus it is also not capitalized and can be incurred according to the passage of time
So as per the given situation, the third option is correct as it includes the selling, delivering cost and after sales support
Therefore all the other options are wrong
Answer:
$15,000
Explanation:
Joe has sold the house he has been living in for 10 years to the Smiths family
He sold the house at $300,000
Joe receives $50,000 more than the original price bargained 10 years ago
He pays the real estate agent a commission of 5%
= 5/100
= 0.05
Therefore the increase in gross domestic product can be calculated as follows
= $300,000×0.05
= $15,000
Hence, the transaction will increase the gross domestic product by $15,000
Answer:
When the minimum wage rate is increased by the government by intervention, this means that the coffee company now has to pay more salaries to the employees/workers of the coffee shop. Since cost cutting is one of the main areas of focus of every other company, the coffee shop would try to lay off its workers and that would ultimately result in unemployment. For example, if the coffee shop was paying $50 in total to 10 workers($5 per worker), now as per the new regulation it would still pay $50 in total but to only 7 workers($7 per worker), this means that the coffees shop has unemployed 3 workers due to this. Hence the demand would still be the same for the coffee shop as caffeine is a necessity for the software engineers who work long. Other than that, the supply would also be not really affected but the equilibrium point can be affected as the coffee shop can raise the price of coffee due to the minimum wage payment to its workers.
Hope you understand the point here. Good Luck.
