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3 years ago

What are examples of withdrawals from the circular flow of income? Cheak all that apply.

Business

1 answer:

zalisa [80]3 years ago

6 0

Answer:

1. Sharp increase in taxes affects middle-class families

2. A sports-apparel company cuts jobs as a result of slow sales

3. A fast food chain goes out of business and shuts down all of its restaurants.

Explanation:

The circular flow of income shows the flow of money from economic activities between households and firms. Households receive payments for their services in the form of wages and salaries and use this money to purchase goods and services for consumption from the firms. The firms can use their sales revenue and profits to pay for wages and salaries. This continues in a cycle.

There are injections into and withdrawals out of the circular flow of income. Withdrawals (leakages) can occur in the form of savings, taxes and imports.

1. When there is a sharp increase in taxes, people spend more of their income on paying their taxes. Hence, they have little remaining of disposable income to spend on consumption.

2. When a sports-apparel company cuts down on jobs, many people will lose their salaries or wages. Hence, they would be unable to spend on goods and services produced by the firm. This in turn means lower sales revenue for the firm.

3. As a fast food chain shuts down its operation, a lot of suppliers will lose their sales. At the same time, employees would lose their income. Hence, it is a form of leakage from the circular flow of income.

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Last year Electric Autos had sales of $165 million and assets at the start of the year of $280 million. If its return on start-o

ohaa [14]

Answer: 16.9697%

Explanation:

Sales = $165 million

Assets in beginning of year = $280 million

Assets return on start of the year = 10%

$Return\ on\ Net\ Assets =\frac{Operating\ Profit}{Net\ Assets}\times 100$

$\frac{Return\ on\ Net\ Assets\times Net\ Assets}{100} =Operating\ Profit$

$\frac{10\times 280}{100} =Operating\ Profit$

Operating Profit = 28

$Operating\ Profit\ Margin = \frac{Operating\ Profit}{Sales\ revenue}$

$Operating\ Profit\ Margin = \frac{28}{165}\times 100$

= 16.9697%

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3 years ago

In may, the price of a pair of jeans was 250% of its wholesale cost. in june, the price was reduced by 25%. after an additional

Lorico [155]

We have to go backwards:
After the discount in July ( 50 % ), the cost of jeans is $25.50
So the price before this discount was 2 * $22.50 = $45
In June, the price was reduced by 25%.
45 ------------------75%
x --------------------100 %
45 : x = 75 : 100
45 * 100 = 75 x
4,500 = 75 x
x = 4,500 : 75
x = $60
Finally, in May the price was 250% of its wholesale cost.
60 ----------------- 250%
x -------------------100 %
60 : x = 250 : 100
6,000 = 250x
x = 6,000 : 250
x = $24
Answer: The cost of the jeans in the wholesale was $24.

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3 years ago

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A major characteristic of a compressed workweek is that:

sineoko [7]

A major characteristic of a compressed workweek is that employees work within fewer number of days while still maintaining the same number of working hours. For example, a 5-day workweek with 8 hours of work can be compressed into 4 days with each day having 10 working hours. In this way, there will be an additional non-working day for the employees.

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3 years ago

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Selected financial data regarding current assets and current liabilities for two competing companies, Simon and Garfunkel, are p

Akimi4 [234]

Answer:

Please find the detailed answer in the explanation section

Explanation:

1. Current ratio = Curren assets / Curren liabilities.

For Simon:

Current assets are:

Cash and cash equivalents $ 620

Short-term investments $3,690

Net receivables $992

Inventory $510

Other current assets $335

Total current assets $6,147

Current liabilities are:

Accounts payable $7,220

Short-term debt $1,270

Other current liabilities. $0

Total current liabilities $8,490

So current asset is $6,147/$8,490

0.72:1

For Garfunkel:

Current assets are:

Cash and cash equivalents $2,920

Short-term investments $0

Net receivables $1,330

Inventory $203

Other current assets $477

Total current assets $4,930

Current liabilities are:

Accounts payable $4,285

Short-term debt $1,028

Other current liabilities. $1,306

Total current liabilities $6,619

So current asset is $4,930/$6,619

0.74:1

1b Simon current asset is 0.72 while Garfunkel's own is 0.74

Therefore Garfunkel with 0.74 has a better current ratio

2a. Acid-test ratio = total current assets minus Inventory / total current liabilities

For Simon:

($6,147 - $510) / $8,490

=0.66:1

For Garfunkel:

($4,930 - $203) / $6,619

=0.71:1

2b. Garfunkel with 0.71 has a better acid-test ratio

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3 years ago

A group of French tourists were touring the Smithsonian museums in Washington, DC. Which workers in the Smithsonian would the Fr

RideAnS [48]

A group of French tourists were touring the Smithsonian museums in Washington, DC. Which workers in the Smithsonian would the French tourists most likely need?
A) an interpreter and a tour guide
B) a chef and a travel agent
C) a hotel manager and a ticket taker
D) an event planner and an airport worker

The best answer is:
A) an interpreter and a tour guide

A tour guide (U.S.) or a tourist guide (European) is a person who provides assistance, information on cultural, historical and contemporary heritage to people on organized tours and individual clients at educational establishments, religious and historical sites, museums, and at venues of other significant interest. While an interpreter is a person who provides an oral translation between speakers who speak different languages.

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3 years ago

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