Answer:
Relevant Revenue = $576,000
Relevant Cost = $522,000
Explanation:
As per the data given in the question,
Variable cost = $29 per unit
Company received order of = 18,000 units
Cost of each product = $32
So
Only Relevant Revenue is the revenue from special order = Cost × units
= $32 × 18,000
= $576,000
Only Relevant Cost is the cost from special order = Variable cost × units
= $29 × 18,000
= $522,000
So,
Reject order Accept order Differential
Revenues 0 $576,000 $576,000
Cost :
Variable
manufacturing 0 $522,000 -$522,000
Income(loss) 0 $54000 $54000
The equilibrium price and quantity increases
Answer:
Discretionary fiscal policy indicates deliberate action by policy makers.
Explanation:
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . examples include progressive tax and transfer payments
In an expansion, progressive tax increases the tax paid and this reduces disposable income
In a contraction, tax paid is reduced and this increases disposable income
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Answer:
c. capital goods and durable consumer goods.
Explanation:
Usually when we say business cycle fluctuations, we mean situations such as economic booms and then economic recession periods.
During Economic Booms capital goods and durable consumer goods which are usually expensive to purchase gets increase in demand as the consumers are buoyant economically to get such. For instance, buying houses, vehicles and expensive jewelry increases in demand during economic booms
During Economic Recessions the purchasing power of citizens reduce in the economy, hence, the ability to splurge on capital goods and durable consumer goods reduce.
For others such as clothing and education, military goods and capital goods and services and non-durable consumer goods, they are usually in demand goods and some what necessities that are fairly unaffected by economic booms and recessions.
Choices that is part of this question:
A. a shortage of housekeepers
B. no change in the market for housekeepers
C. a surplus of housekeepers
D. an increase in the qty. of housekeepers supplied
E. unemployment of housekeepers
Equilibrium wage rate is the wage rate wherein the demand meets the supply. However, it does not automatically imply that it is the actual rate given to the housekeeper.
For me, an increase in the minimum wage rate will lead to a <span>D. an increase in the qty. of housekeepers supplied</span>
