Answer:
A progressive tax is one which charges more tax for those with higher income.
The amount of tax paid depends on the general income of the person.
Answer:
The firm should continue operation
Explanation:
Under the production cost theory, the comparison of price (P) and average variable cost (AVC) is used to decide whether a firm should continue operation or shut down under the following two scenarios:
Scenario 1: If P > AVC, continue operation
Scenario 2: If P < AVC, shut down.
Under scenario 1, it is better for a firm to continue operation since P is greater than AVC. This implies that the firm can fully pay for its variable cost of production and partially pay for a part of the fixed cost but not fully. As result, loss will be minimized by the firm if it continues operation.
Under scenario 2, the better decision for the firm is to shut down operation. The reason is that the firm is unable to even fully pay for its variable cost. In order to minimize cost, the firm is advised to shut down operation.
From the question, the $3 price of Prince Puckler's Ice Cream is greater than its $2.50 average variable cost. This implies that Prince Puckler falls under Scenario 1 above. Therefore, Prince Puckler should continue operation despite that the $3 prie is lower than $3.10 average total cost. This is because the variable cost will be fully covered while a part of the fixed cost will also be covered but not fully. Doing this will minimize total cost for Prince Puckler.
Therefore, one knows from the information in the question that the firm <u>the firm should continue operation</u>.
<u></u>
The blouse is a final good. A final good is a good that has reached its final stage in the production process and is ready to be purchased by a consumer and it fulfills their wants and needs. The consumer good that was full consumed by Amy was the blouse that she purchased for the party.
Answer:
contractionary fiscal policy.
Explanation:
In Economics, fiscal policy can be defined as the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. A fiscal policy is in relation to the "Keynesian macroeconomic theory" by John Maynard Keynes.
Basically, a fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
A contractionary fiscal policy is a policy that is typically used by the government to reduce aggregate demand (AD) by decreasing government purchases and increasing income taxes.
An income tax is a tax on the money made by the employees working in a state. This type of tax is paid by workers with respect to the amount of money they receive as their wages or salary.
Generally, the government of a country may use a contractionary policy to slow down the economy when there's a a inflation and gross domestic product (GDP) is growing too.
Answer:
The correct word for the blank space is: states.
Explanation:
Italian economist Vilfredo Pareto (<em>1848-1923</em>) proposed the 80/20 rule in which he explains 80% of the effects of anything are the result of 20% of the causes of something. When applied to the sales world, it implies 80% of an individual sales come from only 20% of the individual's customers.