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Anastaziya [24]
3 years ago
13

One of the reasons why the AD curve slopes downward is that as theA. Price level rises, purchasing power rises.B. Price level fa

lls, purchasing power rises.C. Nation's income level rises, purchasing power rises.D. Nation's income level rises, purchasing power falls.E. This is a trick question, because the curve is upward sloping.
Business
1 answer:
8090 [49]3 years ago
4 0

Answer: Option (B) is correct.

Explanation:

If the price of a commodity decreases, as a result purchasing power of a consumer increases. This is one of the reasons why the AD curve slopes downward.

Suppose there is a fall in the price of a commodity, this will increase the demand for that commodity as well as the purchasing power of the consumer.

Because with a lower price of the commodity, individuals can buy more quantity of goods with the same level of income.

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What is the expansionary fiscal policy of the government?
iren [92.7K]

Answer:

D. when the government decreases the interest rate

Explanation:

Fiscal policy can be defined as the use of taxes, government spending and transfers to stabilize an economy. Expansionary fiscal policy of the government  is when the government of a country decreases its taxes and increases its expenditure.  the word "fiscal" refers to tax revenue and government spending.

when the government reduces its interest rates, consumers pay less interest, they have more money to spend and there will be drastic effect to that because there will be more spending in the  economy. businesses also benefits from this decreased interest as they will be motivated to buy equipment and obtain loan to boost their businesses and pay less interest.

5 0
3 years ago
Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two comp
slava [35]

Answer:

Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )

Explanation:

Truman sell a large number of common household items ( assuming 100 unit )

while Stapleton sells a small number of expensive items ( assuming 20 units )

lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit

with the above assumptions

Truman gross profit ratio = $5 * 100 units = $500

Stapleton gross profit ratio = $50 * 20 units = $1000

from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units

4 0
3 years ago
Anthony currently earns $25 an hour and works 40 hours a week. When his boss offers to pay him $29 per hour, Anthony decides to
timofeeve [1]

Answer:

substitution and income effects will counteract each other totally

Explanation:

A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.

The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.

A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.

From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.

The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.

Cheers.

8 0
3 years ago
Luis consulting started the year with total assets of $60,000 and total liabilities of $17,000. during the year, the business re
BARSIC [14]
Owner's equity at the beginning of the year is
Assets-liabilities
60,000−17,000=43,000

Owner's equity at the end of the year is
Beginning balance+revenues-expenses+additional investment-withdrawal amount
43,000+48,000−36,000
+8,000−9,000
=54,000

Owner's equity changed by
ending balance-beginning balance
54,000−43,000=11,000. ..answer
6 0
3 years ago
The process of benchmarking against an organization’s established norm, which may be based on best practice, state or national s
Alex

Answer:

The correct answer is A.  a PI project may be appropiate.

Explanation:

Benchmarking is a continuous and systematic process that makes a comparative evaluation of products or services in organizations that show best practices in a given area, with the aim of transferring knowledge of best practices and their application.

Benchmarking should not be confused with espionage or competition, so the concepts of best practices and area of interest should be very clear. In this sense, for the organization it becomes an appropriate process, since it allows you to know to what extent it may be convenient to consider the actions against the established norm.

8 0
3 years ago
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