Answer:
Categorization of Statements
Promotion of Economic Growth:
- clear laws regarding the transfer of property from one person to another
- the enforcement of trademarks
- A nation's central bank declares it will print money to pay for government expenditure.
- the use of competitive markets to allocate goods and services
Inhibition of Economic Growth:
- the creation of a price floor on sugar
- the development of regulations that make creating small businesses difficult
- a corrupt government
Explanation:
Economic growth can be increased by the reduction of the borrowing costs and interest rates and encouraging consumer spending and business investments.
The factors that inhibit economic growth also create market inefficiencies. They include lack of basic infrastructure, healthcare, and education, capital flight and economic uncertainties, ageing population, political instability, and rampant corruption.
the tradeoff for the average worker when it comes to international trade policies in specialization and comparative advantage because there is the possibility that workers could be laid off from their job.
Barriers to international trade are policies implemented by governments to prevent international trade and protect domestic markets. These include subsidies, tariffs, quotas, import and export licenses and standardization.
All agreements establishing free trade areas have the same goal of liberalizing trade, promoting economic growth, and giving member countries equal access to markets.
The WTO oversees four international trade agreements: the GATT, the General Agreement on Trade in Services (GATS), and the Agreement on Trade-Related Intellectual Property Rights and Trade-Related Investments (TRIPS or TRIMS).
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Answer:
1.8
Explanation:
Sales= $60
Variable cost= $21
Quantity= 3,500 pairs of shoes
Fixed operating cost= $58,500
The first step is to calculate the total contribution margin
= sales-variable cost × Quantity
= $60-$21 × 3500
= $39 × 3500
= $136,500
The operating income can be calculated as follows
= Sales - variable cost × Quantity - fixed operating costs
= $60-$21×3500-58,500
= $136,500-58,500
= $78,000
Therefore the degree of operating leverage can be calculated as follows
= Total contribution margin/Operating income
= 136,500/78,000
= 1.8
Hence the degree of operating leverage is 1.8
Answer:
Correct answer is Option A = $67
<u>Explanation:</u>
In order to find out the predetermined overhead rate, forecasted overhead for the current year will be taken into account alongwith total machine hours of that has been forecasted for the current year.
Formula for calculation
Predetermined overhead rate = Forecasted Overhead for the year / Total Machine hours
Forecasted Overhead for the year = $11938000
Total Machine hours = 177000
Predetermined overhead rate = 11938000/177000 = $67 ( Rounded off )
Answer:
C. They buy the stuff they want in the goods and services market and sell their labor in the resource market.
Explanation:
The circular flow model describe how money moved around/distributed within society.
Every households can play the role as consumers and producers within the circular flow model.
As a consumers, households use their money to purchase goods and services from other producers. As a producers, households sell their labors to another business in exchange of salary/wage. The salary that the households receive will be circulated back when they purchase another goods/services and the cycle will keep going on.