Answer:
D. The trade barrier would be considered null and void
Explanation:
World trade organization (WTO) was set up to ensure that trade among member countries goes smoothly without any impediment. The aim of WTO is to promote and control free trade among member nations.
The body is responsible for reducing duties and other trade barriers for their exports among member nations. When trade dispute arises among it's members, the body settles such dispute. With regard to te above , the trade barrier will be considered null and void because it negate the forum trade policies.
There is also trade negotiation done by the body on behalf of it's members while also monitoring compliance with trade policies.
Answer:
Any movement which is caused by price will be along the demand curve and any other movement caused by non price factors will shift the demand curve.
1) A decrease in the number of consumers is a non price movement so the demand curve will shift leftwards because of it.
2) A change in taste of consumers making them desire more hot dogs is a non price movement and it will shift the demand curve to the right.
3) An increase in the price of hot dogs is a price movement and this will cause movement along the demand curve.
Explanation:
Answer:
a. the buyer’s consumer surplus for that good is maximized.
Explanation:
The consumer will purchase up to the moment at whose preference price matches the market price.
Because of the diminished return theory, the following unit (k+1) will have a lower benefit to the consumer thus, it will have purchased only if the price is lower. Therefore, it will not purchase as the market price is the same as the previous unit but the consumer benefit is lower.
Answer:
Government spending would have to change by <u>$1.6 billion</u>
Explanation:
The marginal propensity to consume (MPC) refers to the proportion of an increase in aggregate income that is spent on consumption of commodities by a consumer.
Since from the question, we have:
MPC = Marginal propensity to consume = 0.75
The MPC can therefore be used to calculate the fiscal multiplier which measures the effect of government spending on real GDP as follows:
Fiscal multiplier = 1 / (1 - MPC) = 1 / (1 - 0.75) = 1 / 0.25 = 4.0
Therefore, we have:
Change in government spending = Fiscal multiplier * Amount of targeted increase real GDP = 4.0 * $400 million = $1.6 billion
Therefore, government spending would have to change by <u>$1.6 billion</u> to generate $400 million increase in real GDP.
Answer:
$3.20 per unit
Explanation:
In this question, we have to compare the cost between two cases
In the first case, the total cost per unit would be
= Direct materials per unit + direct labor per unit + overhead cost per unit
= $11 + $25 + $17
= $53
In the first case, the total cost per unit would be
= Purchase price + overhead cost
= $48.55 + $17 × 45%
= $48.55 + $7.65
= $56.20
So, the difference would be
= $56.20 - $53
= $3.20 per unit
