Answer:
Correct option is c.
That is heavy cost and high regulations <u>raise cost of production so that the aggregate supply curve shifts to the left .
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Explanation:
Supply curse shifting towards left means there is decrease production efficiency .
- TAXES MEANS it is the compulsory monetary payment which later get contributed in the state revenue .
- REGULATIONS MEANS a set of rule which is maintained by a superior authority .
Answer:
CHECK THE EXPLANATION.
Explanation:
A planned economy is a type of economic system where investment, production and the allocation of capital goods takes place according to economy-wide economic plans and production plans. A planned economy may use centralized, decentralized, participatory or Soviet-type forms of economic planning whereas a mixed economy is an economy organized with some free market elements and some socialistic elements, which lies on a continuum somewhere between pure capitalism and pure socialism. ... Mixed economies socialize select industries that are deemed essential or that produce public goods.
Answer:
a) the cost of production of Greengene's falls by $300 or more
b) there is no change in the cost of production
Explanation:
a) The leftover principle states that land rent equals the excess of total revenue over nonland costs. Mr. Greengene initial rent is already fixed at $500. The new method of growing cost of corn is now $300 per hectare. Lauren will continue to apply the leftover principle when collecting rent as long as the cost of production of Greengene's falls by $300 or more.
b) If Lauren decides to increase the rent to $800 when there is no change in the cost of production, she stands to lose Mr. Greengene as he will simply look for another land to rent from someone else. Therefore, Greengene's rent will be unchanged if there is no change in the cost of production.
Answer:
C+$64
Explanation:
The GDP measures the market value of all good and services produced in an economy (country or region) in a specific period of time. It is calculated by this formula:
GDP= Consumption (C)+ Investment (I)+ Government expenditure ()+ Net exports (exports-imports)
A lump-sum tax at all levels of GDP means that no matter what GDP value is, the tax will be the same amount. If the tax is collected by the government then the GDP will increase because the government expenditure is income ( most of them are taxes) minus expenses ( public investment in education, health, etc)
GDP= C+$34+$30+0
After tax, the equilibrium level of GDP will be C+$64
Answer:
Correct option is d)
Explanation:
Assuming all other things same as that of last year, with purchase of new asset, depreciation expense will increase, with that net income from operations will decrease, in cash flow statement when such depreciation will be added back then the net income from operations will decrease accordingly, therefore, there will be no impact of increase in depreciation on cash flow from operations.
Further such purchase of new asset will increase the balance of fixed assets in balance sheet and therefore, will only impact on balance sheet.
Thus correct option is d)