A government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.
<h3>What is a
government spending?</h3>
It refers to the total money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, defense etc.
A government budget deficit arises from an excessive government spending and low levels of taxation that don't cover expenditure.
Hence, the government deficit can affect the circular flow of income because the government spending could drop due to the deficit and the economy could slow down.
Therefore. the Option C is correct.
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Answer:
$144,000
Explanation:
Calculation to determine net amount paid, assuming FAB wishes to minimize its cost
Net amount: ($.71 + $.01) x 200,000
Net amount = $144,000.
Therefore net amount paid, assuming FAB wishes to minimize its cost is $144000
<span>Sale Proceeds of Mutual Funds = 100 Shares * $12.03 = $1203
Add: Dividend Earned on shares = 100 Shares * $0.75= $75
Less: Purchase cost of shares = 100 Shares * $10 = $1000
Less: Exit fees = $1203*5.5% = $66.17
Net Income from Investment = $211.83
Earning in %= $211.83 / $1000 = 21.18%</span>
Answer:
E. Labor, capital and management
Explanation:
Productivity refers to efficiency in production which means how much output is produced for available level of inputs. It is measured by output/input ratio.
The variables which determine productivity are labor, capital and management.
Capital refers to the amount of investment an entrepreneur makes in a project. Capital invested determines the resources available.
Labor refers to men employed to produce output. Labor cost refers to the wages paid.
Management refers to carrying out operations effectively so that all factors of production work in synchronization and to ensure that everything is in order.
