Answer:
flexible and increases in AD will increase unemployment.
Explanation:
Keynesian economics can be regarded as macroeconomic theory that base on effects of total spending in the economy as well as its effects on inflation, output and employment. With regards to this theory, Keynes serve as advocate that speak that about increased government expenditures as well as lower taxes in order to stimulate demand as well as saving the global economy from depression.
It should be noted that Economists who advocate the Keynesian theory of economics would say that flexible and increases in AD will increase unemployment.
Answer:
(a) What is the net present value of this potential investment?
Net present value of Investment is $(3,903)
(b) Should you invest in this machine?
We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.
Explanation:
Present Values:
Revenue $144,146
O&M Cost ($48,049)
Initial Investment <u>$(100,000)</u>
Net Present value $(3,903)
Working :
Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r
Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146
O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049
Answer:
The correct answer is: <u>Mixed economy</u>.
Explanation:
To begin with, the term of mixed economy is used to describe an economic system whose characteristics are elements from both market economies and planned economies. Moreover, this system includes a combination of the elements of the other two, such as free market with state interventionism or private enterprise with public enterprise as well too. In addition, this type of economy focuses in the predominance of private ownership of the means of production with profit-seeking enterprise and the accumulation of capital as its fundamental driving force.
Answer: Know the prices of all goods they might buy.
Explanation: Assets not acquired become property precisely because their use by one person means that others cannot use them. When a good has no owner (for example, in a state of nature), the question of acquiring it and making it the property of one is a matter, as with all actions, of choosing a course of action over another. However, given a system of property rights that determines how goods can be acquired fairly, interactions with others do not necessarily arise.
Answer:
When the price of a necessity increases, demand is likely to be <u>constant </u>because consumers <u>need </u>that product to survive. However, when the price of a luxury good increases, consumers may <u>not buy it</u> because the good is not crucial to survival. Thus, the demand would be <u>decreasing.</u>
Explanation:
Changes in prices do not affect the demand for necessary goods in price. Consumers need products to survive. Luxury goods are not a necessity for life. When the price goes up, the demand goes down.