Faruq spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshak
1 answer:
Answer:
The correct answer is 5.
Explanation:
Faruq's income is $100. The price of tacos is $10. The price of milkshakes is $2.
If Faruq spends all his income on tacos he will be able to purchase
=
= 10 tacos
If Faruq spends all his income on milkshakes he will be able to purchase
=
= 50 milkshakes
So out of his total income he can either have 50 milkshakes or 10 tacos.
The opportunity cost of a taco will be
=
=
= 5
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Answer:
None of the given options.
Depreciation expense for year 1 would be $37,500.
Explanation:
Cost = $400,000
Residual value = $50,000
Expected hours = 40,000
Working hours (year 1) = 6,000 hours
Now,
Depreciation per hour =
Depreciation per hour =
Depreciation per hour =
Depreciation per hour = $6.25
Depreciation expense (year 1) = Depreciation per hour × Working hours (year 1)
Depreciation expense (year 1) = $6.25 × 6,000
Depreciation expense (year 1) = $37,500
Answer:
<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>
Savings are considered leakages in the economy because the represent money that is not spent but rather saved.
<em>Which of the following will occur as a result of this change?</em>
<em>GDP rises above planned spending.</em>
Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.
Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>
Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.
