Average income is important because it tells us the income of an average person and gives an idea about the rising standard of living of people.
Average income is basically income earned per person in a given area in a specific year. More income means more money to fulfill your needs and wants. It is believed that the prosperity of a country depends on it. Money is considered an important factor in the development of a country. If the average income of a country increases there are chances of an increase in the development of that country. If the average income is lower there are fewer chances of development.
A country with high average income is considered rich and low average income country is considered poor. The World Bank also uses the average income to measure the development of any country. Therefore average income is considered a very important criteria for development.
You can learn more about average income at
brainly.com/question/15046941
#SPJ4
Answer:
Depression
Explanation:
A business cycle is defined as the period that occurs between a boom and a contraction in an economy. A boom is rapid economic growth while a contraction is a period of slow economic growth.
There are 6 stages of business cycle: expansion, peak, recession, depression, trough, and recovery.
A recession is the early stage of a contraction in which demand for products start to decline and prices fall.
After a recession is depression. In this stage economic growth declines further, unemployment increases, consumer confidence is shaken and consumers reduce spending
Answer:
The best consumption bundle is (b)
Explanation:
The best consumption bundle is always the one which satisfies the most. In the above scenario, Jennifer wants to buy both DVDs and albums. The cost of DVD and album is $15 and $ 7.5 respectively. The best combination is to buy 2 DVDs they will cost her 30$, and with the remaining 15$ she can buy two albums. So, the best combination is 2, 2.
