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Answer:
C. Build up inventories before reducing production.
Explanation:
Demand shocks happen when there is a sudden and considerable shift in the patterns of private spending, either in the form of consumer spending from consumers or investment spending from businesses. An economic downturn in the economy of a major export market can create a negative shock to business investment, particularly in export industries. A crash in stock or home prices can cause a negative demand shock as households react to a loss of wealth by cutting back sharply on consumption spending. Supply shocks to consumer commodities with price inelastic demand, such as food and energy, can also lead to a demand shock by reducing consumers real incomes. Economists sometimes refer to demand side shocks as "non-technological shocks." We need to build up inventories before reducing production.
Answer:
Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
Explanation:
This is the best option with the theory of comparative advantage states countries produce goods for which they have a lower opportunity cost. Having resources and talents lower the opportunities cost. When countries do this, it increases economic welfare for all.
Answer:
Economic profit= $214,000
Explanation:
Giving the following information:
Business:
Units= 28,000 a month
Hours= 224 hours
Total cost= 150,000 a month
Selling price per unit= $15
Other work:
Income= $250 an hour
E<u>conomic profit includes the opportunity cost.</u>
Economic profit= 28,000*15 - 150,000 - 250*224
Economic profit= $214,000
C.I consumer right that protects individuals from extremely high interest rates
