Answer:
In the first instance money serves as <u>Unit of account</u>
In the second instance money serves as <u>Medium of Exchange</u>
Explanation:
<em>Money as Unit of Account:</em> Money is a standard unit of account which means that money is common standard for measuring relative worth of goods and services.
In the first instance the super Slurpee is measured against the money and it is decided that amount of $1.39 is equal to the worth of super Slurpee.
<em>Money as Medium of Exchange:</em> Money acts as medium of exchange for the transactions to occur.
In the second instance, after the worth of super Slurpee has been decided in terms of money, $1.39 are exchanged for the super Slurpee.
Answer:
The marginal propensity to consume is 0.6
Explanation:
The computation of the marginal propensity to consume is shown below
Given that
Autonomous consumption = 550 = C
Planned investment = 200 = I
Government spending = 250 = G
Exports = 100 = X
Imports = 300 = M
Equilibrium level of GDP = $8,000 = Y
Now as we know that
The equation for aggregate demand is
Y = C + I + G +( X- M)
$8,000 = [550 + b × $8,000] + 200 + 250 + [100 - 300]
7,200 = 8,000b
b = 0.9
Hence, The marginal propensity to consume is 0.6
Answer:
D. higher profits will induce expanded production.
Explanation:
If the price of a good increases and the cost remains the same ,profits earned would increase.
For example if price of a pen was initially $5 and rose to $7. The cost of making a pen is $3. Total profit would rise from $2 to $4.
According to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the. quantity supplied. Therefore, the higher price would attract more producers and production would increase. Existing producers would also increase output.
I hope my answer helps you.
Answer: a deal website that compares different types of cars, so he can choose the one he likes best
Explanation:
When buying a good or service, it is best to look out for a variety of those goods because it will enable a person to be able to compare the different varieties and be able to pick the one most suitable for them.
Tanner therefore will most likely use a website that compares cars so that he is able to see the features that different cars offer which will enable him make a decision that is most suitable for him.
If 200 people have been working on developing a new community that will feature houses and small business, the thing that will happen to the PPC of the community if 100 people withdraw from developing the community is that D) the PPC will become steeper.