Answer:
d. both the income and substitution effects encourage the consumer to purchase less of the good.
Explanation:
The income effect is the effect on the income when there are price changes. When the price increases, people can buy less products with the same income which means that the consumer will be encouraged to purchase less goods.
The substitution effect says that an increase in the price of a product will make customers to buy other similar products which will make them to purchase less of the good with the higher price.
Answer: $55,600
Explanation:
Total Manufacturing Cost
= Direct Material + Direct Labor + Factory Overhead
Cost of Goods manufactured = Direct materials used + Work-in-Process Inventory, Beginning + Factory Overhead Applied + Direct Labor - Work-in-Process Inventory, Ending
Direct Materials = Cost of Goods manufactured - Work-in-Process Inventory, Beginning - Factory Overhead Applied - Direct Labor + Work-in-Process Inventory, Ending
= 57,100 - 10,500 - 11,500 - (1.4 * 11,500) + 9,000
= $28,000
Total manufacturing cost = 28,000 + ( 1.4 * 11,500) + 11,500
= $55,600
Answer:
Macroeconomics is a very relevant subfield of economics because it studies economic matters at the aggregate level, that means things such as inflation, unemployment, economic growth, investment, saving, and many other economic phenomena that are very relevant for all countries, all governments, and essentially everybody around the world.
Macroeconomics is a contested field, with some points in agreement, but many others in dispute among economists. For this reason, the policy recommendations that are based on macroeconomic criteria are often very different, and frequently clash into political conflict.
Economic policy decisions never produce exactly the expected result, but they often give a satisfactory result (not always). For example, the monetary policy based on the principles of monetarism did manage to bring down inflation substantially ever since it began to be applied in the late 1970s.
Answer:
A. cv = $628998.51
B. cv = $638180.86
Explanation:
Fv = iv * (1 + r)^n
Where fv = final value
Iv = initial value. = 630,000
r = rate = 4.5%
n = time of maturity = 4/12 = 0.3333
So therefore:
Fv = 630000(1 +.045)^0.3333
Fv = $639310.75
a. If rate is reduced to 5%
Current market value = c.f.
Since rise or drop in rate would affect the new value of product if you are to sell
So:
639310.75 = cv( 1 + r )^0.3333
cv = 639310.75 / (1.05)^0.3333
cv = 628998.51
b. If rate reduces to 4.25%
Solving it the same way as (a)
639310.75 = cv* ( 1 + 0.0425 ) ^0.3333
cv = $638180.86
