All categories

3 years ago

If consumers increase their purchase of goods and services then a likely outcome for our economy is

2 answers:

3 0

The correct answer is inflation. The more consumers spend on products and services, the higher the prices for these products and services will rise, leading to inflation. This will especially occur if the customer demand becomes greater than the supply, because then the goods and services will be even more difficult to attain, thus making them more valuable.

Yuri [45]3 years ago

3 0

Explanation:

There could be two possible outcomes if consumers increase their purchase of goods and in the economy. One is the economic growth due to the increased economic activities. Second one is the inflation. When the flow of the currency in a country increases in the economy, inflation occurs. Inflation is the increase in the prices of goods and services. Extra flow of cash in the economy also causes inflation. Due to inflation, the prices of goods and services increase.

You might be interested in

Which of the following is an internal source of risk? Select one: a. Power outage b. Office politics c. Declining market value o

Sergeeva-Olga [200]

Answer:

The correct answer is letter "B": Office politics.

Explanation:

Internal source risks are those threats that appear unexpectedly from within the organization as a result of the company's regular operations. These risks represent human and technological factors such as policy changes in regards to minimal production hours to obtain certain company's benefits or failure in one of the main manufacturing machines because of lack of maintenance.

7 0

3 years ago

Which of the following are reported on the income statement as part of cost of goods? a.administrative expenses b.operating expe

kenny6666 [7]

Answer:

Cost of goods manufactured

Explanation:

Cost of goods manufactured are reported on the face of income statement because it's a critical factor in arriving at the profit or loss position at the end of a period. Cost of goods manufactured takes cognizance of the material costs, labour and overhead costs involved in production. This determines the overall financial status of a company, and allow a decision maker to know if the business is doing good or not.

4 0

3 years ago

Pixel Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance

velikii [3]

Answer:

Overstatement of Assets and liabilities.

Explanation:

Collection of cash results in journal entry of debiting cash with corresponding credit to accounts receivable thus reducing the accounts receivable.

Erroneous credit to accounts payable instead of accounts receivable results in overstatement of assets and liabilities.

4 0

3 years ago

The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 93,000 Expenses Cost of go

Bess [88]

Answer:

Peak Heights Company

Cashflow Statement (Extract)

Cashflow from Operating Activities

Cash Receipts from Customers $94500

Cash paid to Suppliers and Employees ($25450)

Cash Generated from Operations $0

Net Cashflow from Operating Activities $69050

Explanation:

Cash Receipts from Customers

Open a Trade and Other Receivables - T Account and the balancing figure is the cash receipts from customers

Opening Accounts Receivables $ 12000(debit)

Sales for the Year $ 93000

Closing Accounts Receivables$10500(credit)

Bank (Balancing Figure) $ 94500 (credit)

Therefore Cash Receipts from Customers is $94500

Cash paid to Suppliers and Employees

Sales $ 93,000

Less Cost of goods sold $ 51,875

Gross Profit $ 41,125

Less Net income $ 23,125

Expenses $18,000

<em />

<em>Calculation for Cash Expenses (</em>Suppliers and Employees)

Expenses $18,000

Add Depreciation expense $6,000

Add Increase in Accounts payable(2250-800) $1,450

Cash paid to Suppliers and Employees $25450

4 0

3 years ago

If the demand curve reflects consumers' full willingness to pay, and the supply curve reflects all costs of production, then whi

Tom [10]

Answer:

The answer is: The benefit surpluses shared between consumers and producers will be maximized.

Explanation:

The demand curve shows the relationship between the price of a good and the quantity demanded for that good. As the price of a good decreases, more customers will be willing and able to purchase it.

The supply curve on the other hand, shows the relationship between the price of a good and the quantity supplied of that good. As the price of a good increases, more suppliers will be willing and able to sell it. Suppliers will sell a good as long as its marginal costs are less than its marginal revenue. In other words, they will continue to supply the good as long as their costs are covered.

At any given point where the demand curve and the supply curve intersect, equilibrium point, the benefits for consumers and suppliers all together will be maximized.

7 0

3 years ago