Answer:
- The federal government reserves the power to print money.
- By printing money to pay its debts, the government decreases the value of money and causes the inflation tax.
Explanation:
As per the Constitution, the Federal government reserves the sole right to print currency. This ensures that all the states have a stable medium of exchange thereby allowing goods and services to flow across states undisturbed.
When the government prints money to enable it pay off its debt, the value of the currency decreases because the supply of money has increased relative to its demand. As a result, the currency will only be able to buy less than it was able to buy before thereby creating a sort of inflation tax because people would be paying an extra amount in order to purchase goods and services
Answer:
1. Direct Materials: C) Paper
2. Direct Labor: A) Artist's wages
3. Indirect materials: G) Glue for envelopes <em>(this is asuming there isn't a direct association between glue, envelopes and greeting cards - which is the case that one envelope can be used for 1 card or 2+ cards indistinctly- and/or 1 glue can be used for more than 1 envelope)</em>
4. Indirect labor: B) Wages of materials warehouse workers; E) Manufacturing plant manager's salary
5. Other manufacturing overhead: D) Depreciation on manufacturing equipment; F) Property taxes on manufacturing plant
Answer: In the long run, prices will be the same.
Explanation: Purchasing power parity (PPP) is a theory that means that in the long run, exchange rates between countries would be the same and similar goods will cost the same amount in both countries. Purchasing Power Parity shows that there should be no opportunities where the differences in price between different countries can lead to profit. The gross domestic product between countries is compared by using the purchasing power parity.
Purchasing power parity is based on the law of one price which means that the price of all identical goods should be the same. Hence, it us unlikely that people buy Big Macs in countries where they're cheaper and sell at countries where there price is higher.
Hope this helps.
Answer:
People respond to economic incentives
Explanation:
Economic incentives is what encourages you to act in some way, while expectations are your needs your interests and your preferences. Economic incentives offer you the drive to follow your interests. These can be grouped further as extrinsic and intrinsic incentives.
Extrinsic incentives arise from the outside of the human being. These are the usual economic incentives you're likely to think of all along. Extrinsic rewards include cash, bonuses, sales, and earnings. Intrinsic incentives are inherent inducements, and are inner to the individual. It is an intrinsic motivation to get satisfaction from jobs.
