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Jlenok [28]
3 years ago
11

Suppose that consumption is $500 and that the marginal propensity to consume is 0.6. If disposable income increases by $1,000, c

onsumption spending will increase by A. $600 B. $ 3,000 C. $1,360 D. $ 3,750 E. $1,666.67
Business
1 answer:
Lynna [10]3 years ago
8 0

Answer:

A. $600

Explanation:

The formula and the computation of the Marginal propensity to consume are shown below:

Marginal propensity to consume =  Change in consumer spending ÷ Change in disposal income

0.6 = Change in consumer spending ÷ $1,000

So, the change in consumer spending is

= $1,000 × 0.6

= $600

Hence, the consumption that is given in the question is not considered. Therefore, ignored it

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Use the following information to answer this question.
Oksanka [162]

Answer:

15.01%

Explanation:

The computation of the return on equity is shown below:

Return on equity = Net income ÷ Equity at the end of 2010 × 100

where,

Net income is $539

And, the equity at the end of 2010 is

= Common Stock + Retained Earnings

= $2,890 + $700

= $3,590

So, the return on equity is

= $539 ÷ $3,590  ×  100

= 15.01%

We simply applied the above formula to determine the return on equity

3 0
3 years ago
Neither Subpart C (Prisoners) nor Subpart D (Children) applies to juveniles in the correctional systems because wardens of juven
Alenkasestr [34]

The correct answer is D) Both subparts apply, as these individuals are under the legal age of consent and are incarcerated.

Neither Subpart C (Prisoners) nor Subpart D (Children) applies to juveniles in the correctional systems because wardens of juvenile prisoners (unlike those for adult prisoners) act in loco parentis for juvenile offenders. This statement is false because "Both subparts apply, as these individuals are under the legal age of consent and are incarcerated."

If there is any confusion, the term "loco parentis" means that a person or institution takes the legal responsability of parents. But in the correctional systems, people brought there have committed some kind of infraction, aggression, disobey the law or any kind of misbehavior. So wardens of juvenile prisoners do not act or have legal responsability as parents have.

The other options of the question were A) The need for the signatures of both parents outweighs the two subparts. B) Subpart C still applies, as the potential subjects are juveniles. C) Only subpart C applies because of the need for assent forms, as a result of in loco parentis status for juveniles.

5 0
3 years ago
_____ data technology involves using a database to store and access data according to the locations
lianna [129]
Spatial data technology
4 0
3 years ago
What percentage of cranberries fhat are consumed every year in the U.S. are eaten on Thanksgiving?
xenn [34]
It's estimated that the United States produce about 768 million pounds of cranberries each year and the Americans consume about 400 million pounds annually. They eat about 20% of those 400 million pounds on Thanksgiving, which is about 80 million pounds.
5 0
3 years ago
Match the cost variance component to its definition.
Komok [63]

Answer:

1. D

2. A

3. C

4. B

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

The various types of cost variance components and their definition includes the following;

1. Standard price: the expected price

2. Actual quantity: the input used to manufacture the quantity of output

3. Actual price: the amount paid to acquire input

4. Standard quantity: the expected input for the quantity of output

3 0
3 years ago
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