Answer:
The correct answer is d. Different economic models employ different sets of assumptions.
Explanation:
To approach the study of economic reality it is necessary, in some way, to simplify it; keep certain variables under control. Precisely for this, it is that economic models are built.
Economic models are built on principles of departure, called "assumptions." Such assumptions fulfill the same role as the postulates in geometry. That is:
- They are not subject to deduction from other more basic principles.
- They are "reasonably" true but not necessarily verifiable.
- They function as premises in the logical structure to deduce the conclusions and correlations found in the lowest levels of generality.
We can say then, that the theoretical explanations refer to invisible "relationships", whose existence is proposed by the theory, and whose implications are logically deduced, and then corroborated by observations. They consist of:
- Assumptions (eg subjects want to maximize their earnings).
- Relevant variables (eg price and quantity).
- Binding hypothesis (eg quantity demanded based on price).
- Conclusions or predictions of observable facts (eg prices will rise).
Answer:
The demand curve can shift either to the right or left. A rightward shift increase the quantity demanded at every price level, while a leftward shift decreases the quantity demanded at every price level.
consumer income increases ⇒ rightward shift
number of potential consumers increase ⇒ rightward shift
price of substitutes goods increases ⇒ rightward shift
price of complementary goods decrease ⇒ rightward shift
consumers expect a price increase in the future ⇒ rightward shift
Trust and the effectiveness of work teams are examples of Intangible resources which are typically embedded in unique routines and practices that have evolved and accumulated over time.
Answer:
Dr Cash $5,684
Dr Sales discount $116
Cr Accounts receivable $5,800
Explanation:
The fact that the invoice was settled on September 18, confirms that the payment on the sale of merchandise was received by Vander company during the period,hence Jepson company is entitled to the applicable discount of 2%.
The amount cash received is $5,800*(1-2%)=$5,684.00
The appropriate journal entries include a debit to cash of $ 5,684, a debit sales discount of $116($5800-$5,684) as well as a credit to account receivables of $5,800
