True: if society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with lower costs reduce greater amounts of pollution than those with higher costs
Answer:
the money supply in Macroland will increase from <u>5,000</u> econs to <u>7,000</u> econs
Explanation:
Currently, Macroland's money supply = 2,000 econs held by the public and 3,000 econs held by the banks (= 300 econs x 1/0.1).
In order to determine the increase in the money supply we must multiply the inflow of econs by the money multiplier. The money multiplier = 1 / reserve ratio = 1/0.1 = 10.
Since the government is injecting 200 econs to the economy, the increase in the money supply = 200 econs x 10 = 2,000 econs.
So now, Macroland's money supply will increase from 5,000 to 7,000 econs.
The money multiplier measures the banking system's ability to "create" money. The banking system creates money by first receiving deposits, e.g. you deposit 10 econs in your savings account, and then lending money to another client. The bank will lend 9 econs (-10% required reserve) to John that will purchase a bike. The seller of the bike receives the money form John and deposits the 9 econs in his own bank. Then this second bank will lend 8.10 econs to Sarah. Sarah will use the money to purchase a new computer and a printer from Tom. Tom then deposits the money in his bank, and then his bank lends 7.29 econs to Sally, and the wheel goes on and on.
This money creating process is possible because Macroland uses a fractional banking system, which means that the banks are only required to keep a fraction of total deposits as reserves.
An example of this would be completing your assignment while you ride the train, or bringing your assignment with you while you wait at the doctors office for your appointment
Answer:
Cost of Mining Stone pit = $10,500,000
Salvage value at the end of third year = $500,000
Total expected mining during the life = 50,000 tonnes
Depletion per tonne = (cost - salvage) ÷ total expected mining
= (10,500,000 - 500,000) ÷ 50,000
= $200 per tonne
Stone extracted during the year = 10,000 tonnes
Depletion expense of Year 1 = 10,000 tonnes @ 200 per tonne
= $2,000,000
JOURNAL ENTRY:
Depletion expense A/c Dr. $2,000,000
To Accumulated Depletion- Mining rights $ 2,000,000
(To record depletion expense for Year 1)
Answer:
c.$14,060
Explanation:
I hope my answer is correct
