All categories

2 years ago

In the market for magazines, the "income effect" means that

1 answer:

5 0

The income effect shows a change in someone or the economy's income and how it changes the quantity of a good or service. If one is making more, they are usually buying more of something. If someone is making less, they are often buying less of something.

In the market for magazines, the "income effect" means that if the price of a magian rises magazine readers will purchase less magazines.

You might be interested in

What are 3 advantages of going to trade/vocational schools after high school?

svetlana [45]

Answer:

1 It is a form of entertainment

2 you can dedicate time to your passions

3 they're helpful for your mental health

6 0

3 years ago

Bill Blackburn is the new mayor of Oceanside, Washington. He discovered that the city-run utility requires a deposit of $50 from

Serjik [45]

Answer:

Theory of justice 

Explanation:

A Justice Theory is a 1971 work of John Rawls ' political philosophy and ethics, whereby the writer addresses the problem of distributive justice.

The principle uses a revised sort of Kantian philosophy and a variant form of conventional theory of social contracts.

7 0

3 years ago

3. The Johnson Company will pay an annual dividend of $2.05 next year. The company has increased its dividend by 3.5% a year for

vlada-n [284]

Answer:

A share of this stock be worth$ 21.88 four years from now

Explanation:

Amount of annual dividend that will be paid the next year = $ 2.05

increase in dividend by 3.5% = $\frac{100+3.5}{100}$ = increase by a factor of 1.035

Since there is a 14% return, overall increase in dividend = $\frac{1.035}{0.14 - 0.035}$ = 9.857

Note:

0.035 was obtained from $\frac{3.5}{100}$ = 0.035 (dividend increase)

0.14 was obtained from $\frac{1.4}{100}$ = 0.14 (percentage return required)

over the next 20 years his new value of dividend will be

New value of dividend = $2.05 + 9.857 = 11.907

Converting to a percentage,

$\frac{100+11.907}{100}$ = 1.1907

Net dividend increase =

Dividend returns minus increase in dividend for 20 years is given as

14% - 3.5% = 10.5%

From the above, the

Worth of a share of his stock 4 years from now can be computed by

(dividend X Percentage increase in 20 years)/ net percent dividend increase + (increase in 4 years/ net dividend increase) X 100

$\frac{(2.05 (1.1907)) }{10.5}$ + $\frac{(2.2729)}{10.5}$ × 100 =$21.88

∴ A share of this stock be worth$ 21.88 four years from now

4 0

3 years ago

Last year, a small nation with abundant forests cut down $200 worth of trees. $100 worth of trees was then turned into $150 wort

borishaifa [10]

Answer:

$400

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Inventory grew by (200 - 100) $100

$50 of value was created

total gdp = $100 + $250 + 50 = $400

4 0

3 years ago

Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent

RideAnS [48]

Answer:

correct option is A. True

Explanation:

given data

economy grows = 3 percent

total factor productivity grows = 2 percent

labor force grows = 2 percent

labor contributes = 40 percent

stock of capital rise = 0.33 percent

solution

we apply here Economy growth % formula that is

Economy growth % = total factor productivity + labor contributes × labor force grows + ( 1- labor contributes ) stock of capital .............1

put here value

3% = 2% + 40% (2%) + 60% C

3% = 2.8 + 0.6 × C

C = $\frac{0.2}{0.6}$

C = 33.33 %

so given statement is true

3 0

3 years ago