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3 years ago

The goods market of an open economy is in equilibrium when domestic output or production is:

Business

1 answer:

lianna [129]3 years ago

6 0

Answer: The correct answer is "A. equal to the demand for domestic goods.".

Explanation: In the market for goods and services, the equilibrium will take place when production or income is equal to aggregate demand.

We know that aggregate demand is equal to Consumption + Investment + Government spending + Net exports.

Therefore the goods market will be in balance when domestic production is equal to the <u>TOTAL</u> demand for domestic goods.

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The production decisions of perfectly competitive firms follow one of the Ten Principles of Economics, which states that rationa

GaryK [48]

Answer: d) think at the margin.

Explanation:

A rational person is defined as some who makes decision with the intelligent thinking rather being emotional .This result usually results in sensible outcomes.

According to the Ten principles of Economics,it is supposed that a rational person tends to think intelligently and would prefer to make minute changes in the resources while taking decision so that optimal rate can be maintained and additional action can be further thought.

Other option are incorrect because purchasing items from smaller organization, sunk rate and average cost product equalizing with the price is not the decision ability of a rational person

7 0

3 years ago

Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams

KATRIN_1 [288]

Answer:

Explanation:

The journal entries are shown below:

1. Loss on Investment A/c Dr $1,800 (1,200 shares × $31 - $39,600)

To GE shares investment A/c $1,800

(Being the adjustment is recorded)

2. Retained earnings A/c Dr $37,200 (1,200 shares × $31)

To Property Dividends Payable $37,200

(Being the entry is made on declaration date)

3. Property Dividends Payable A/c $37,200

To GE shares investment A/c $37,200

(Being the entry is made on payment date)

4 0

3 years ago

The majority of private sector employment in the u.s. economy is in the

sasho [114]

The majority of private sector employment in the u.s. economy is in the services.
The private sector is the part of the economy, generally pertain to as the citizen sector. Which is ruled by private individuals or groups, usually as a means of firm for profit and it is not regulated by the State.

6 0

3 years ago

Which of the following statements is TRUE?

Dahasolnce [82]

Answer:

Third one....The interest rate on your savings account will vary over time and be set by the government

Earn interest at a norminal rate.

7 0

3 years ago

Trey has $25,000 in savings, two new laptops, two laser printers, and a variety of quality office furniture that he's using to s

stealth61 [152]

Answer: Equity financing

Explanation:

When using Equity financing, the owners of the business are investing either their personal assets into the company or selling shares in the company and raising money from that.

Equity financing gives the person who invested an ownership portion in the company. The main difference between equity financing and leveraged financing is that with equity financing, you are not forced to make payments to the investors every period.

4 0

3 years ago

The goods market of an open economy is in equilibrium when domestic output or production​ is:

The goods market of an open economy is in equilibrium when domestic output or production is: