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Anni [7]
2 years ago
10

Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital s

tock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation?
a) a relatively low growth rate for some time
b) positive growth, followed by negative growth, and then zero growth
c) a relative high growth rate for some time
d) zero growth for some time, followed by a gradually increasing growth rate
e) none of the above
Business
1 answer:
zysi [14]2 years ago
5 0

Answer:

The correct answer is the option A: a relatively low growth rate for some time.

Explanation:

To begin with, in the situation where a country is facing a large reduction in its capital stock then the most common that could tend to happen is that there will be a relatively low growth rate for some time due to the fact that in economics terms the <em>capital stocks</em> are refered to the shares that represent the ownership of the companies and if in an economy there are few of them that means that the companies are not working well and therefore there is low productivity in general in the country that would impact badly in the future and the growth rate will relatively low until the capital stock starts increasing and the companies start to produce more for the economy.

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Broker Bill Butter is working with Buyer Brian Bread and has found a property on which the Buyer wants to place an offer. The pr
earnstyle [38]

Answer:

The answer for this question is B.

5 0
3 years ago
ranfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,0
Snowcat [4.5K]

Answer:

If discontinued, then their operating income will decrease by 168,800

It is a better deal to continue the backpack division active.

Explanation:

sales                  960,000

variable cost    (475,000)

contribution      485,000

fixed cost          (527,000)

loss                     (42,000)

if Dropped

40% of fixed cost are unavoidable

527,000 x 40% = (210,800)

Difference: 42,000-210,800 = (168,800)

5 0
3 years ago
Read 2 more answers
It has been said that incentive plans work only for a relatively short time. Do you agree or disagree with this statement? Why o
VashaNatasha [74]
<span>The correct answer is that it depends on the specifics of the incentive plan. A general incentive plan that is not linked directly to productivity will typically become old news to staff within a few years. What was once an incentive will become familiar and may be viewed as an entitlement as staff start looking for the eternal "what's next?". An incentive directly linked to some kind of productivity (e.g. hours worked) will have a far longer shelf life (though this will, of course, vary by employee). In this scenario the ongoing incentive remains year over year (e.g. the hours of overtime worked in the previous year will have no bearing on the current year so if you want a similar result you will need to maintain your effort whereas if you want a better result you will have to increase your effort). All incentive plans, however, are subject to the rules of diminishing marginal utility to the employees and will diminish over time as the employee either becomes comfortable at a certain productivity level or becomes disenchanted by other factors. In summation: an incentive plan, if designed properly, can work for a relatively long period of years though results may vary by employee as everyone is motivated by different things (though providing an alternative incentive to money may somewhat mitigate this additional potential problem).</span>
8 0
3 years ago
Average fixed cost
MrRa [10]

Answer:

d. declines continually as output increases.

Explanation:

Fixed costs remain constant throughout a period regardless of output level.  Average fixed costs are obtained by dividing fixed costs by the total output.  Because fixed costs do not change,  average fixed costs will be influenced mostly by the production level.

A large output means that fixed costs will be spread in many units. The result is a reduction in average fixed costs. When the output is large, a firm enjoys economies of scale.  A small output will result in high fixed average costs. A Fixed amount will be shared among a fewer number of units.

3 0
3 years ago
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A monopolist faces a demand curve given by: P = 220 – 3Q, where P is the price of the good and Q is the quantity demanded. The m
Montano1993 [528]

Answer:

$1350

Explanation:

To find dead weight loss we will take into consideration the price and output level of both monopoly and perfect competition.

Dead weight loss = {(P2 - P1) * (Q1-Q2)} / 2

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Dead weight loss = {(130-40) * (60-30)}/2

= (90*30)/2

= $1350

8 0
2 years ago
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