Answer: Option A
Explanation: Scarcity refers to the situation when there is limited availability of a commodity. This term is usually used for the natural resources like coal, drinking water etc.
In economics it refers to the situation when there is not limited quantity of resources available for fulfilling the market demand. Scarcity deals with the problem of limited resources in nature and unlimited wants of the population.
Hence, from the above we can conclude that the correct option is A.
Answer:
Explanation:
1. The formula to compute the profitability index is shown below:
Profitability index = Net present value ÷ investment required
For Proposal A, it would be
= $331,300 ÷ $790,000
= 0.42
For Proposal B, it would be
= $48,300 ÷ $120,000
= 0.40
For Proposal C, it would be
= $62,000 ÷ $120,000
= 0.52
For Proposal D, it would be
= $607,200 ÷ $1,820,000
= 0.33
2. The proposal rank preference is shown below:
Proposal Profitability index Rank
A 0.42 Second
B 0.40 Third
C 0.52 First
D 0.33 fourth
So, it would be C, A, B and D
The answer i would choose is A
Answer:
The value of GDP is 75
Explanation:
GDP is equal to Consumption + Investment + Government Spending + Net Exports (Exports minus Imports), where total Investment is equal to Fixed Investment plus the Change in Inventories.
The change in GDP will therefore equal the change in Consumption + the change in Investment + the change in Government Spending + the change in Net Exports, where the change in Investment will equal the change in Fixed Investment plus the change in the Change in Inventories.
= Government purchases of goods and services (10) + Consumption Expenditures (70
)+ Exports (5
) - Imports (12) + Change in Inventories (-7
) + Construction of new homes and apartments (15
) - Sales of existing homes and apartments (22
) + Government payments to retirees (17
) + Business Fixed Investment (9)
= 75
