Answer:
Likely to occur during economic growth and increase the trade deficit.
1. Domestic private investment increases
2. Imports increase
When there is a period of economic growth, people generally have more income in the economy. Their consumption will increase and they will demand more foreign goods as well as domestic. This will lead to imports rising.
Likely to occur during economic growth and decrease the trade deficit.
1. Private saving increase.
2. Government borrowing decrease
With people earning more income, they will be able to save more of that income and because they are not buying with those savings, trade deficit drops.
The government would also not have to borrow as much to prop up the economy as the economy is also doing well. This means less need for foreign funds so a lower trade deficit ensues.
Not likely to occur during economic growth.
1. Imports decrease.
2. Government borrowing increases.
When there is economic growth, it is unusual to see that imports are decreasing.
Government would also not have to borrow as much as the economy is doing well on its own and does not need the government to pump money into it.
ANSWER
C. DIMINISHING Returns to property/ scale
EXPLANATION
Returns to Scale is a production concept used in Long Run (when all factors are variable i.e changeable)
It denotes relative change in output when all inputs change in same proportion .
Increasing Returns to Scale : Proportionate Increase in Output > Proportionate Increase in all inputs .
Constant Returns to Scale : Proportionate Increase in Output = Proportionate Increase in all Inputs .
Negative Returns to Scale : Proportionate Increase in Output < Proportionate Increase in all Inputs .
So : If all inputs are doubled (X2) - If output increases equal i.e double (X2) , Constant Returns to Scale . If output increases more i.e triple (X3) , Increasing Returns to scale . If output increases less i.e (1.5X) , Decreasing Returns to Scale.
Answer:
devotes more resources to research and development.
Explanation:
Economic growth is the rise in the GDP of a country.
A country can increase economic growth by :
- increasing labour productivity
- increasing capital
- increasing technological progress
- By devoting more resources to research and development
Answer:
Journal Entry to record the transaction
Dr. Work in Process Department I $280,000
Dr. Work in Process Department II $300,000
Dr. Manufacturing Overhead $8,000
Cr. Material Inventory $588,000
Explanation:
The direct material is charged to the work in process account, because it is an direct expense and all the direct expenses are charged to the work in process account like indirect material, indirect labor etc.
The indirect material is charged to manufacturing overhead account because all the indirect expenses are charged to the manufacturing overhead account like indirect material, indirect labor etc.
These inventories are issued from the material inventory, so to deduct the issued value from the material inventory account, the total value of direct and indirect issuance is credited to record the effect.
