No, A "Normative economic statements are those statements that cannot be either proved or disproved with reference to facts."
However, "Positive economic statements are those statements which can be either proved or disproved with reference to facts."
Answer:
Parke Company
The amount of interest expense should be included in Parke's 20X4 income statement is:
= $30,600.
Explanation:
a) Data and Calculations:
3-year Non-interest bearing note payable = $360,000
Imputed interest rate for this type of loan = 12%
Present value of the loan = $255,000
Interest expense as of December 31, 20X4 = $30,600 ($255,000 * 12%)
b) The interest expense is based on the present value of the loan and not on the future value of the note payable. Therefore, the interest expense for each of the three years will not be the same amount but will continue to increase as the present value changes from one year to the next.
Answer:
Total revenue would rise in the short run
Explanation:
A price elascitiy of 0.4 indicates that demand is inelastic.
Inelastic demand means that a small change in price has little or no effect on quantity demanded. The absolute value of inelastic demand is less than 1.
If the cost of the crude oil increases, the price of gasoline would increase too. Because demand is price inelastic , there would be little or no change in the quantity demanded of gasoline as a result total revenue would increase as a result of the rise in price.
I hope my answer helps you
Answer:
We need to know if the price level is changing or not.
Explanation:
If the economy is at the potential output and the quantity of aggregate output supplied increases, we need to know if this increase is because of an increase in the price level.
If the aggregate price level is increasing then there will be a movement on the SRAS curve. If the increase in quantity supplied is because of a rightward shift in the LRAS curve, the price level will remain the same.
Also, if the quantity supplied goes back to its original level, in the long run, it implies that the increase in output was because of a short run movement.
Answer:
Encourage novice and expert interaction.
Explanation:
The apparent approach for service firms trying to accelerate the creation of their expert performers is to "Encourage novice and expert interaction."
This is because as both the novice and expert interact often or on daily basis, the novice quickly learns from the experts, both in terms of thinking, solving situational problems, applying a methodical approach, and following the conduct of the experts seamlessly.
Hence, the novice rapidly develops into an expert performer within a very short possible amount of time.
