Answer: Having lower opportunity costs.
Explanation: Opportunity cost can be defined as the cost of next best alternative foregone. In this case, James is saving his money by taking work of a professional from a new recruit also he gets the opportunity to procure high quality materials which he was earlier not able to. Thus, he is saving a major portion of income because of a less costly alternative available.
Answer:
hello please stop posting stuff that are unnecessary.thank you have a Wonderful day.
Explanation:
Answer:
it does not measure quality-of-life factors ; it does not account for distribution of wealth ; it fails to measure non monetary (home production) activities
Explanation:
Real GDP is the total value of goods & services produced in an economy, during a period of time. But it is not correct measure of welfare level.
- It does not measure non monetary production, like hobby production eg kitchen gardening, self made paintings, music. But, they increase welfare
- It does not take into consideration the qualitative factors affecting welfare like pollution, crime & literacy. Externalities cause extra benefit or harm to welfare level, but are excluded from GDP.
- Inequitable distribution of per capita (average) GDP increases rich poor standard of living divide. So, the distribution effect ignored make GDP an inapt measure of average welfare level.
Real GDP adjusts the value of goods & services for price change (Inflation), it is a correct measure of increase in real flow of goods & services. GDP & health positive correlation is a favouring point for GDP as a measure of welfare. So, these options are incorrect.
Answer:
a. $24,000
b. $9,000
Explanation:
a. The amount of income or loss from the partnership is limited to the share of the loss rather than its partnership interest
In the given case, the partnership interest is $45,000 and the share of his loss is $24,000
So, $24,000 is reported in his individual income tax return
b. The computation of the Wilson's basis in his partnership interest is shown below:
= Basis in his partnership interest - share of the loss - cash distribution received from the partnership
= $45,000 - $24,000 - $12,000
= $9,000
Generally, prices are inflated when there are fewer choices.
