Suppose in 2010, the producer price index increases by 1.5 percent. As a result, the economists are most likely to predict that the consumer price index will increase in the future.
The producer price index is used in order to measure inflation from the perspective of costs to industry. Thus, the producer price index measures the cost of a group of goods and services which are purchased by firms.
Whereas the consumer price index refers to an average of the prices received by producers of goods and services at all the stages of the production process. Thus, when the producer price index increases by 1.5 percent, this is the indication that consumer price index will increase in the future.
Hence, higher producer prices means that consumers will pay more when they buy.
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Answer: Moral hazard
Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.
There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.
Thus, from the above we can conclude that the correct option is A .
Incomplete question. However, it would be inferred you want to know the requirements to calculate net income.
<u><em>Explanation</em></u>:
Remember, net income is total revenue minus total cost. Since Apple anticipates selling 100,000 units, if we assume the fixed cost to be $2,400 and the variable cost $34, and selling price unit is $150.
- Total cost= 2400+ (34*100,000)= 3,400,000
- Total Revenue= 150*100,000= $15,000,000
- Net income= 15,000,000-3,400,000= $11,600,000
The Net income is therefore $11,600,000.
Answer:
$1.60 per direct labor hour
Explanation:
Overhead application rate = Budgeted Overheads ÷ Budgeted Activity
hence,
Overhead application rate = $364,800 ÷ $228,000
= $1.60 per direct labor hour
Answer:
c. wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high.
Explanation:
Sticky wage theory -
According to this theory , the payment of the employees have a slow response for the change in the performance of the company or the economy .
From this theory , as the unemployment increases , the wages of the employed candidates tends to remain same or increases very slowly due to to decrease in the demand of the labor .
In this case , the wages are sticky - down , as they move up easily but get down with difficulty .
