Answer:
1) If they both consume the same amount of goods (rice and beans), and their price increased by 100%, then the inflation rate is 100%.
- old price of beans = $1, new price $2, inflation rate 100%
- old price of rice = $4, new price $8, inflation rate 100%
The inflation rate measures the change in the general price level of an economy during a certain period of time, in this case during a year from 2016 to 2017.
2) Indicate whether Gilberto and Juanita were better off, worse off, or unaffected by the changes in prices.
Since Gilberto produces beans and Juanita produces rice, and the price of both of their products increase equally (100%), then the inflation rate will not affect them. Their consumption levels also remain the same, no one decided to consume more of one product and less of the other.
Answer:
B. $183,000
Explanation:
Calculation to determine The amount of cash that will be collected in July is budgeted to be
Budgeted collection in July = July sales (190,000*35%) + June sales (210,000*45%) + May sales (110,000*20%)
Budgeted collection in July =$66,500 +$94,500 + $22,000
Budgeted collection in July=$183,000
Therefore The amount of cash that will be collected in July is budgeted to be $183,000
Answer:
you can get more of one good only by giving up some of another good
Explanation:
A production possibilities frontier shows the opportunity cost of producing one good instead of another. This way, as you follow the curve, the combination of goods will vary, increasing the production of one good but deceasing the production of the other.
Opportunity costs are the benefits lost or extra costs associated to choosing one activity or investment over another alternative. Since resources are scarce, you must always give something up in order to obtain another thing, e.g. you give up your leisure time in order to study.
It's called a business subscription model.