Answer:
This statement is describing demand pull inflation.
Explanation:
If the aggregate demand increases the demand curve will shift rightwards. But if the increase in demand is higher than increase in supply this will lead to an increase in the price level. The output level will increase but constant increase in price will cause inflationary pressures. This is referred toa as demand-side inflation.
Answer and Explanation:
The adjusting entries are shown below:
1. Accounts Receivable $13,680
To Fees Earned $13,680
(Being Accrued fees earned is recorded)
2. Supplies Expense $3,210 ($4500 - $1290)
To Supplies $3,210
(Being Supplies used is recorded)
3. Wages Expense $1,720
To Wages Payable ($1,720
(Being Accrued wages is recorded)
4. Unearned Rent $4,470 ($13,410 ÷ 3 month)
To Rent Revenue $4,470
(Being rent earned is recorded)
5. Depreciation Expense $2,280
To Accumulated Depreciation- Equipment $2,280
(Being Depreciation expense is recorded)
Answer: Decreasing returns to scale
Explanation: In simple words, decreasing returns to scale can be defined as the situation in which for every increase in 1 unit of output one has to invest more than 1 one unit of input.
In decreasing returns to scale the cost of production increases with level of production made.
Hence the right answer is option A.
Answer:
The answer is B.
Explanation:
Government spending is one of the components of Gross Domestic Product(GDP) and it includes all the government expenditures(its consumption, transfer spending and investment).
Government spends to influence the economy. For example, government increases its spending when the economy activity in the economy is low or to stimulate the economy.
Option B is correct because it encompasses all the government's area of spending while the remaining options mention one or two functions of the government spending and not all.
Answer:
C) 3
Explanation:
The current ratio is the firms Current assets relative to its current liabilities.
It can be calculates as follows,
Current Ratio = Current assets / Current liabilities
Current Ratio = 240,000 / 80,000
Current ratio = 3
This signifies a healthy ratio as the company has 3 times as much current assets as compared to its current liabilities.
Hope that helps.
