Answer: c) economies of scale; increase
Explanation:
When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to economies of scale and increase real GDP per capita in the domestic country.
When this industry choose to break out of this limitation placed on them due to the small size of market in their country, the idea of opening trade to the world market would lead to reduction in production costs since they now have a larger market (and thus produce more). Also, the real GDP per capita in the domestic country should increase since the company in this domestic nation has expanded its production to the world market.
NOTE:
Economies of scale occur when the cost of production is now reduced because there is an increase in a company's production.
Answer:
Sam and Sandy have an agreement whereby Sam will build a house on Sandy's beachfront lot. Before construction begins, Sandy changes her mind and decides she would rather build an addition onto her home in Baltimore. She discusses this with Sam, and they agree that he would build the addition to her home and not build the beach house. In this case, Sandy and Sam have an adjusted agreement.
Let x =Alice’s original amount of money,
y = Bob’s original amount of money
And n = the dollars they are referring to
So, the equation are:
If Alice receives dollars from Bob, then she will have 3
times as much money as Bob,
x + n = 3(y - n)
x +n = 3y – 3n
x = 3y-3n-n
x = 3y – 4n
And if Alice give dollars to Bob, the she will have 2 times
as much money as Bob,
x – n = 2 (y +n)
x – n = 2y + 2n
x = 2y + 2n + n
x = 2y + 3n
As, x = x
So, 3y – 4n = 2y + 3n
3y = 2y + 3n + 4n
3y – 2y = 3n + 4n
Y = 7n
Find x in terms of n also,
x = 2y + 3n, replace y with 7n
x = 2(7n) + 3n = 14n + 3n
x = 17n
If neither gives the other any money, the ratio of the amount
of money Alice has to the amount Bob has = x/y
Replace x and y with their values, x = 17n and y = 7n
= 17n / 7n
The ratio is 17:7
Answer: The correct answer is A) Net Income would be overstated (Expenses understated) and Balance Sheet liabilities would be understated.
Explanation: An omission of a posting of an expense incurred during a financial year and payable in thesubsequent year will lead to an understatement of expenses and understatement of liabilities.
In general, when an expense is omitted it leads to increased net income as less expense will be knocked off against income.
The balance sheet on the other hand will be understated in terms of a reduced liability balance.
Answer:
20
Explanation:
The computation of the increase in the government spending is shown below:
= (Economy is at equilibrium point - potential output) ÷ (Multiplier)
= ($1,000 billion - $1,200 billion) ÷ (10)
= $200 billion ÷ 10
= $20 billion
The multiplier is computed below:
= (1) ÷ (1 - MPC)
= (1) ÷ (1 - 0.9)
= 1 ÷ 0.1
= 10
We simply first apply the multiplier formula, than calculate the government spending increment
