Answer and Explanation:
Economic Growth can be defined as an increment in production capacity of an economy using all its available resources. The PPF illustrates the largest possible quantity of goods and services a nation can produce base on its available resources. An outward shift in the economy’s production possibility frontier (PPF) depicts a raise in productive capacity of an economy. An outward shift implies that an economy has capacity to increase its production outputs. This can be as a result of the economy employing new technology, allowing specialization, increasing its labour force, using new production approaches etc. Likewise, an inward shifting PPF implies an economy has witness a loss or exhaustion of some of its scarce resources and it will culminate into reduction in an economy’s productive potential.
Effects of saving and investment upon national GDP
level of savings direct related to the level of investment, investment feeds on available finance from saving. If more people save, the banks will be able to lend more to firms to support their investments.
low savings and investment implies a PPF inward shift. low savings in economy implies that the economy is opting for short-term consumption over long-term investment, and this will lead to future undue pressure on available infrastructures ad resources.
spending on consumer goods vs capital goods effect on the economy
In the short run, the economy must prefer using available resources to produce capital rather than consumer goods. Standards of living will be affected, as private consumption will have access to fewer resources. However, in the longer run, the raised production of capital goods will boost the production of more consumer goods ad therefore standards of living will experience more increase than they would have witness if the economy had spent most of its income on consumer goods.
Liability to Desean for non performance of the contract may be imposed on BERRY AND CUISINE CATERING.
Berry is required by the law to perform the duties in the contract agreement, failure to do this will creates liability for Berry and in that case, both Berry and Cuisine catering will be liable, because Berry had said that she is working on behalf of Cusine catering, thus, Cusine catering is already a part of the contract.
Answer:
B. $183,000
Explanation:
Calculation to determine The amount of cash that will be collected in July is budgeted to be
Budgeted collection in July = July sales (190,000*35%) + June sales (210,000*45%) + May sales (110,000*20%)
Budgeted collection in July =$66,500 +$94,500 + $22,000
Budgeted collection in July=$183,000
Therefore The amount of cash that will be collected in July is budgeted to be $183,000
Answer:
d. All of the above
Explanation:
Government regulations are the rules that players in an industry must abide by. In a free-market economy like the US, the government's main role is to regulate economic activities. The government enforces regulation through its various agencies.
The areas of regulations include but are not limited to
- Protecting consumers from undue exploitation by businesses,
- Encourage fair business competition
- Promote a healthy, safe work environment for employees
- Promote and sustain a clean environment
- Private data protection and security
Answer:
1. B. $8,000
2. C. $7,200
Explanation:
Units or production (UOP) method of depreciation bases the depreciation expense of a machine or equipment on how much it is actually used during the period.
depreciable value = $50,000 - $10,000 = $40,000
depreciation rate per unit = $40,000 / 25,000 = $1.60
Year Projected Production units Actual Production units
1 4,500 5,000
2 5,000 4,000
3 3,500 3,000
4 5,500 5,000
5 6,500 Not known
Total 25,000
depreciation expense year 4 = $1.60 x 5,000 = $8,000
accumulated depreciation year 4 = $1.60 x 17,000 = $27,200
book value = $50,000 - $27,200 = $22,800
if sold at $30,000, gain resulting from sale = $30,000 - $22,800 = $7,200
