Answer:
The correct answer is option a.
Explanation:
A budget line represents the maximum possible combination of two goods that can be purchased by an individual by spending all of his income.
George has a weekly income of $50.
He spends this income on donuts and coffee.
The price of a donut is $1 and the price of coffee is $2.50.
As George's income increase to $100, George will be able to afford more coffee and donuts as the price of coffee does not change.
So, the budget line will shift to the right, indicating the increase in the quantity of goods George can afford.
Answer:
D. Efficiency in arranging transactions.
Explanation:
in a barter system, it is difficult to determine how much something would cost. If I am raising corn and you are raising cabbage, how much corn equals one head of cabbage? It is difficult to come to fair trade terms. With a monetary system, it is much easier to set a price and make a trade because everyone is using a common trading instrument.
Managers have a tendency to let their programmed activities overshadow their nonprogrammed activities because of Gresham's law of planning. Gresham's law was developed by Thomas Gresham and it focuses mainly on economics, not the planning side. The main focus of the law is that bad money will drive out good.
