Answer:
Uhm what? is this the full question?
Explanation:
Uhm what? is this the full question?
Answer:
The recession accelerates
Explanation:
Recession is an economic phase where economy is generally slow with low GDP and high inflation. In order to avoid recession it is important that market forces run and move on their own without government influence. If an economy is in recession, a decrease in demand and production will lead to more panic and shortage that will accelerate recession.
The correct answer is: b) private ownership of property.
Just took the test myself, b was correct.
Answer:
Prices would decline and interest rates would rise
Explanation:
This is because the market will be flooded with additional 50 billion dollars of bond increasing the supply causing the price to fall. Interest rate are inversely proportional to prices thus interest rate will rise.
Answer: The answers are given below
Explanation:
a. What is its percentage rate of return?
From the question, we are told that the firm is earning $5.50 on every $50 invested by its founders. The percentage of return will now be:
= $5.50/$50 × 100%
= 0.11 × 100%
= 11%
b. Is the firm earning an economic profit? If so, how large?
The economic profit will be the difference that exists between the percentage of return which is 11% and the normal rate of profit which is 5%. This will be:
= 11% - 5%
= 6%
The firm is earning economic profit of 6%.
c. Will this industry see entry or exit?
There will be entry into the industry. This is because the percentage of return which is 11% is greater than the normal rate of profit which is 5%.
d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
The rate of return earned by firms in this industry once the industry reaches long-run equilibrium will be 5% which is the normal rate of profit in the economy.
