When the opportunity cost associated with increasing the production of one good or service in terms of another is constant at every level of production, then the production possibility frontier is <u>rightward</u>.
<h3>What is production possibility frontier?</h3>
A model used to illustrate the trade-offs related to splitting resources between the production of two items is called the Production Possibilities Curve (PPC). The PPC is a useful tool for demonstrating the ideas of scarcity, opportunity cost, efficiency, and economic development and contraction.
The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost in microeconomic theory. Simply put, it means that if you choose one activity, you forfeit the chance to do another.
We can produce more as the economy expands and all other factors remain the same, hence this will cause a movement in the production possibilities curve to the right, or outward.
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Answer: decrease
Explanation:
The money multiplier is the amount of money generated by banks with each dollar of reserves. The reserves is the amount of deposits which the Federal Reserve wants banks not to lend but rather hold. The money multiplier is therefore the ratio of deposits to the reserves in the banking system.
The money multiplier shows the ratio of the increase or decrease in money supply in relation to the increase or decrease in deposits. During the Christmas period, people draw lots of money out of their accounts to buy presents and other things. This will lead to a decrease in the money multiplier.
A segregated fund is a type of investment vehicle commonly used by Canadian insurance companies to manage individual, variable annuity insurance products. A segregated fund offers investment capital appreciation and life insurance benefits. ... Therefore, returns from the funds tend to be more modest.
Answer:
The answer is $243,000
Explanation:
The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.
To find this closing inventory, we need to find the gross profit first and then cost of sales.
To find gross profit:
Gross profit margin=gross profit ÷sales.
Gross profit margin is 20% or 0.2
Sales is $690,000
Therefore, gross profit is:
0.2 x $690,000
=$138,000
To find cost of sales:
Gross profit = sales - cost of sales.
Gross profit is $138,000
Sales is $690,000
Therefore, cost of sales is
$690,000 - $138,000
=$552,000.
And finally to get closing inventory:
Cost of sales = opening inventory + purchases - closing inventory.
Cost of sales = $552,000
Opening inventory = $140,000
Purchases = $655,000
Closing inventory = $140,000+$655,000-$552,000
=$243,000.
