Answer: The correct answer is "a) Income increases.".
Explanation:
a) Income increases - An increase in income would cause more money to spend on food and clothing, so the budget line would be steeper.
b) Price of food increases , and c) Price of clothing increases. -An increase in both the price of food and clothing would cause (as long as Income remains the same) that less quantities of both goods can be acquired, because they would cost more, therefore they would make the budget line Minor.
Answer:
The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.
Explanation:
PPF model the production possibility frontier states that two types of goods can be produced, at any given time of production, and for certain resources provided.
This clearly states the thought and simplifies the understanding of economy, based on two products to be produced from same restricted resources.
Though, the results of this curve are applicable to real world goods, where the nature and number of goods both are complex.
Therefore, the correct statement is:
As stated in answer.
Answer:
Option A Current Ratio
Explanation:
The reason is that current ratio gives information from which source of finance the working capital is funded from. If the answer is below 1 then the short term liabilities are used to finance the short term assets. This also tells whether or not the company possesses enough cash and cash equivalents to fund its future cash needs by comparing its result with past data and the industry average. So the right option is option A.
