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andre [41]
3 years ago
8

2. Consumption and saving definitions Suppose Ana gets a sales bonus at her place of work that gives her an extra $600 of dispos

able income. She chooses to spend $480 and save the remaining $120. From this, you can tell that Ana's marginal propensity to consume (MPC) is , and her marginal propensity to save (MPS) is . Mathematically, it must always be true that: Consumption = Therefore, it must also be true that: MPC =
Business
1 answer:
miskamm [114]3 years ago
5 0

Answer:

From this, you can tell that Ana's marginal propensity to consume (MPC) is <u>0.80</u>, and her marginal propensity to save (MPS) is <u>0.20</u>. Mathematically, it must always be true that: Consumption = Therefore, it must also be true that: MPC = <u>1 - MPS.</u>

Explanation:

Marginal propensity to consume refers to amount that a household decides to spend of every extra dollar that they earn. Since you either spend or save money, the marginal propensity to save is the portion that you decided not to spend, and therefore, save.

You might be interested in
Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather
Vladimir [108]

Answer:

<u>Opportunity cost </u>

Explanation:

Suppose that a university decides to spend $ 1 milion to upgrade personal computers and scientific equipment for faculty rather than spend $  million to expand parking for students . This example illustrates<em><u> opportunity costs.</u></em>

<em>Opportunity cost refers to the cost shifting one opportunity to another opportunity or availing one opportunity in terms of another.</em>  

Formula of Opportunity cost is :

<u>Opportunity cost</u>    =  Total Revenue - Economic Profit

                                    Or

<u>Opportunity cost </u>  = What one sacrifice / What one gain

In Opportunity cost we chose one thing or option over the cost of another thing or option. Opportunity cost places a important role in economic theory .

As it tell us that people can choose only one thing not the both things at the sane time.

3 0
3 years ago
10 points...........​
dedylja [7]

Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation:

Assets
=
Liabilities
+
Equity

​
Assets=Liabilities+Equity
​


With a double entry system, credits are offset by debits in a general ledger or T-account.

So debit is the answer
7 0
2 years ago
Read 2 more answers
Singh has found that he needs increasing amounts of alcohol to have the desired effect.  In other words, Singh has developed a(n
Nimfa-mama [501]
Addiction xD Singh has an addiction for drinking.<span />
3 0
3 years ago
When comparing absorption costing and variable costing, if units produced are units sold, what is the effect on net operating in
11111nata11111 [884]

Answer:

The Net Operating income will be the same for both methods.

Explanation:

Net Operating income under absorption costing and variable costing methods usually differ because of existence of inventory.

Fixed overheads are deferred in Inventory when using absorption costing. Meaning that a higher income is obtained under absorption costing than variable costing when there is inventory and a lower income under absorption costing than variable costing.

When units produced are units sold, there is no inventory. Therefore, the Net Operating income will be the same for both methods.

8 0
2 years ago
I need to figure out the owners equity ! HELP
motikmotik

Owners equity is $82365 - $70500 which gives $11365. Therefore when you add $70500 + $11365, this would give $82365.

4 0
3 years ago
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