Answer:
A
Automatic stabilizers
Explanation:
These are necessary adjustments that are dependent on the state of the economy at particular times. An expanding economy is an economy in growth, there is a general feeling of stability and there is the mobility of funds around. Due to the presence and indication of growth, there is an increase in the amount of profits or gains made by the economy in general. Hence, government can decide to task more through tax.
However, in periods when there are indicators of an ailing economy, there should be a downward review of tax and the economy is weak at this state. Using the old taxing scheme during the good economy for now would result in an outcome that might further hurt business owners and push the economy more downwards.
Automatic stabilizers are just the mechanism through which the taxation at different times is adjusted
Answer:
D.
Explanation:
It’s subjective.
I think it’s subjective because it’s about the benefit of the calculations of a cost.
Answer:
Option (c) is correct.
Explanation:
Law of demand states that the price of the commodity and the quantity demanded of that commodity are negatively related to each other. This means that as the price of the commodity falls then as a result the quantity demanded for that commodity increases.
Therefore, the consumer will buy more sticks when the price of sticks falls from $2 to $1.
Answer:
Eurenasia is a country that has frequently been assigned low macro-assessment ratings of country risk in the recent past due to its tendency to war with neighboring nations. MNC A is considering the establishment of a subsidiary to manufacture personal computers, while MNC B is considering the establishment of a subsidiary to manufacture tanks. Which of the two MNCs is likely to be less affected by the low macro-assessment?
Option B is correct - MNC B will be less affected by low macro-assessment.
Explanation:
Due to the tendency of Eurenasi to war with neighboring countries, the manufacture of tanks by MNC B will be less affected by low macro-assessment because, during war periods, tank sales will increase. Whereas, Low macro assessment will affect MNC A because it selling computers will be affected by war.
Therefore, Option B is correct - MNC B will be less affected by low macro-assessment.
