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sladkih [1.3K]
3 years ago
6

The catch-up effect refers to the idea thata. saving will always catch-up with investment spending.b. it is easier for a country

to grow fast and so catch-up if it starts out relatively poor.c. population eventually catches-up with increased output.d. if investment spending is low, increased saving will help investment to "catch-up."
Business
1 answer:
FinnZ [79.3K]3 years ago
4 0

b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor.

This is because a poor economy has more <u>room to grow</u>. Say the poor country's GDP is 1 million and the rich country's GDP is 100 million If they each made investments that grew their economies by $5 million dollars, that would be a huge increase for the poorer country and barely 5% of the richer country. Developing economies can catch up faster because each little investment makes such a big impact.

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Determine the missing amounts. Unit Selling Price Unit Variable Costs Unit Contribution Margin Contribution Margin Ratio 1. $900
Pie

Answer:

(a) = $468

(b) = 52%

(c) = $144

(d) = 28%

(e) = $1150

(f) = $920

Explanation:

    selling price   variable cost    contribution   margin contribution ratio

1.     $900             $432                  (a) $                          (b)%

2.    $200            $ (c)                     $56                            (d)%

3.  $ (e)               $(f)                       $230                          20%

contribution = selling price - variable costs

Margin contribution ratio = contribution / sales

Variable cost = selling price - contribution

Selling price = contribution / margin contribution ratio

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3 years ago
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Answer:

a. $2,020 Favorable

Explanation:

The computation of spending variance for direct materials in April is shown below:-

For computing the spending variance for direct materials in April first we need to find out the actual price per unit which is here below:-

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