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3 years ago

The primary purpose of measuring the overall level of prices in the economy is to

1 answer:

6 0

The primary purpose of measuring the overall level of prices in the economy is to allow for the comparison of dollar figures from different points in time.

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During the fall of 2007, the United States economy began a descent into deep recession. As a result, the federal government and

lara [203]

Answer:

A. the federal government spending more money to build more infrastructure and D. the federal government providing tax refunds to many taxpayers

Explanation:

Please see attachment.

8 0

3 years ago

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corpo

Fudgin [204]

Question:

The following information relates to next year's projected operating results of the Children's Division of Grunge Clothing Corporation:

Contribution margin.... 200,000

Fixed Expense.... 500,000

net operating loss..... (300,000)

If Children's Division is dropped, half of the fixed costs above can be eliminated. What will be the effect on Grunge's profit next year if Children's Division is dropped instead of being kept?

A) 50,000 increase

B) 250,000 increase

C)250,000 decrease

D) 550,000 increase

Answer:

Option A is correct

Increase in profit = $50,000

Explanation:

To determine whether or not it will be profitable to drop a loss making division, we compare the savings in fixed cost to the lost contribution from the division.

It is noteworthy that only the fixed cost attributed to division can only be saved should the division be shut down.

The analysis is done as follows:

Lost contribution (200,000 )

Savings in fixed cost (1/2× 500,000) 250,000

Net savings 50,000

Increase in profit = $50,000

3 0

3 years ago

Kat is willing to pay $900 for 25 bottles of grape wine. The market price of 15 boties of grape wine is $390. Because of an incr

Doss [256]

Answer:

Answer explained below

Explanation:

decrease in consumer surplus = 0.5(initial number of bottles - final number)*(final price-initial price) + (final price-initial price)*(final number)

where initial number of bottles = 25

final number of bottles = 15

initial price = $390

final price = $390

substituting these values, we have

- decrease in consumer surplus = 0.5(25-15)(450-390) + (450-390)15 = 1200

Consumer surplus decreases by 1200

- Consumers will buy the good as long as marginal benefit is greater than or equal price.

Thus quantity demanded will be 2 from the table

Consumer surplus = 240- market price = 240 -220= 20

Consumers total benefit = 220*quantity demanded = 220*2= 440

5 0

3 years ago

Gulph Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fix

Nezavi [6.7K]

Answer:

Number of units= 4,000 units

Explanation:

Giving the following information:

Sales $200,000

variable costs $120,000

fixed costs $60,000

net income $20,000.

We have to maintain a net income of $20,000.

First, we will calculate the selling price per unit and the unitary variable cost:

Selling price= 200,000/5,000= $40 per unit

Variable cost per unit= 120,000/5,000= $24 per unit

New selling price:

Selling price= $44

Contribution margin per unit= 44 - 24= $20

Now, we have to find the total contribution margin required:

Contribution margin required= net operating income + fixed costs

Contribution margin required= 20,000 + 60,000= 80,000

Number of units= total contribution margin/ unitary contribution margin

Number of units= 80,000/20= 4,000 units

4 0

3 years ago

What would economic conditions potentially be like in the u.s if the federal reserve did not regulate monetary policy, monitor b

kenny6666 [7]

If the Federal Reserve did not regulate monetary policy, monitor banks, and provide services for banks, then the transactions would be more costly and interest rates will be more.

The Federal Reserve (Fed) in the US manages the economic and financial system in US. It regulate the monetary policy, monitor banks and provide services for banks. They monitor banks so that there will be no more increases in the costs of transactions than the cost agreed by the Fed. Also it will also reduce the possibility of increase in interest rates as the monetary policy is also implemented by the Fed. As a head of the banks, the Federal Reserve also provide services to other banks. In short, the Fed keeps the US economy stable. If they did not regulate monetary policy, monitor banks, and provide services for banks, then it would have been hard to keep this economic stability in US.

Learn more about Federal Reserve at brainly.com/question/382312

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4 0

1 year ago