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3 years ago

What is the meaning of market in economics

Business

1 answer:

Aloiza [94]3 years ago

4 0

<span>The market refers to the buying and selling abilities within a ocal, state, or national economy.</span>

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Define and explain each concept and give specific examples: a. Marginal Propensity to Consume and Marginal Propensity to Save (

siniylev [52]

Answer:

The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.

Multiplier Effect

for every dollar the government spends, it will create a greater than one dollar change in GDP

Spending Multiplier

1 / 1-MPC or 1 / MPS; increase in spending .: + multiplier; decrease in spending .: - multiplier

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit.

Crowding out in businesses an economic concept that describes a situation where personal consumption of goods and services and investments by business are reduced because of increases in government spending and deficit financing sucking up available financial resources and raising interest rates.

Explanation: Marginal Propensity to Consume

the fraction of any change in disposable income that is consumed; MPC = change in C / change in DI

Marginal Propensity to Save

the fraction of any change in disposable income that is saved; MPS = change is S / change in DI

3 0

3 years ago

A primary reason cited by wysocki why doubling the number of people to a task does not reduce the overall duration of the projec

Ahat [919]

Because the all or some could me working different way then others<span />

5 0

3 years ago

Mars Corp. is choosing between two different capital investment proposals. Machine A has a useful life of four years, and machin

Zigmanuir [339]

Answer:

c. Mars should invest in Machine B becuase the net present value of Machine A after 4 years is lower than the net present value of Machine B after 4 years.

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Considering that machine b can be sold on 4 years, The NPV of machine b should be calculated based on the cash flow in for 4 years

NPV can be calculated using a financial calculator.

Machine A :

Cash flow in year 0 = $-200,000

Cash flow each year from year 1 to 4 = $70,000

I = 10%

NPV = 21,890.58

Machine B :

Cash flow in year 0 = $-200,000

Cash flow each year from year 1 = $80,000

Cash flow each year from year 2 = $70,000

Cash flow each year from year 3 = $60,000

Cash flow each year from year 4 = $40000 + $35,000 = $75,000

I = 10%

NPV = $26,883.41

Machine b should be accepted because its NPV is greater than that of machine A

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago

Question 8 of 10

Nesterboy [21]

Answer:

Explanation:

If you're going to solve it ur going to need to know how it's going to effectively help don't just do it first think.

5 0

3 years ago

Alicia believes that an employee's perception of a situation determines his or her relationship with other members. she also bel

Lunna [17]

Alicia’s views are similar to symbolic interactionists. Symbolic interactionism is a sociological theory that states that how an individual engages with symbols explain the behavior that they are exhibiting.

This perspective believes that how an individual interacts with other individual in a group explains best the structure that underlies the group itself. We can see that Alicia subscribes to this point-of-view from how she believes that an employee’s understanding of a situation reflects how she or her engages with other members’ of the company.

3 0

3 years ago