Answer: a decrease in government expenditure and an increase in taxes by a decision of Congress; a decrease in transfer payments and an increase in taxes with no interference by Congress (D)
Explanation:
Discretionary fiscal policy is a government policy that changes government spending or taxes. The purpose of discretionary fiscal policy is to either expand or shrink the economy. It needs approval from the Congress and President. Its examples are increases in spending on bridges, roads, stadiums etc.
Automatic fiscal policy use spending in the form of taxes and transfer payments to automatically steady the economy. An example is when unemployed become eligible for the unemployment benefits after when losing their jobs during a recession.
Answer:
B. An artist becomes an expert at designing websites for
restaurants,
Explanation:
Specialization means focusing on one or very few lines of business. It is concentrating on the products or services that a firm or an individual feels they are best suited. Specialization leads to mastery in the trade or craft that one focuses on.
An artist concentrating on designing websites for restaurants becomes an expert in that business. He or she acquires operational efficiency, which brings his production costs down. The artist will be specializing in website designs for restaurants.
Answer:
B. the excess of sales over the break-even volume of sales.
Explanation:
The formula to compute the margin of safety is shown below:
The margin of safety = Expected sales - break-even sales
where,
Expected sales = Selling price per unit × Unit sales
And, the break-even sales equal to
= (Fixed cost) ÷ (Contribution margin Ratio)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
Answer:
- 15.75%
Explanation:
The computation of the rate of return on his investment is shown below:
= (Year end investment value - investment value + annual dividend) ÷ (Investment value)
= ($2,000 - $2,400 + $22) ÷ ($2,400)
= -$378 ÷ 2,400
= - 15.75%
Simply we divided the difference of investment and added the annual dividend and then divided it by the investment value
