Answer: Keynesian Economic Theory
Explanation: The policy adopted by the President was to cut back taxes and increase government spending on road, bridges and schools. This policy of the government is called the expansionary fiscal policy which is used to combat an economy suffering from recession. The Keynesian theory also supports the argument that when an economy is suffering from recession, economic output is influenced by aggregate demand. Thus, the government and use its fiscal policy tools to bring the economy out of recession. It also supports that the Fed can also use its monetary policy to bring the economy out of recession. But since here taxes and government spending are uses, we can say that Obama was a proponent of <em>Keynesian Economic theory</em>.
Answer:
True
Explanation:
Some countries are known to have people with special skills and competences that may not be available to others.
Hence where a company sees that the skills and competence required may not be adequately available in the local market, the company has the option of hiring employees from outside the country.
This may however be at a cost higher than the cost that would have been incurred if the company had hired the employee from the host country.
Answer:
Upward sloping because increases in output raise input prices.
Explanation:
If an increase in the demand for movies also increases the salaries of actors and actresses, then the long-run supply curve for movies is likely to be upward sloping because increases in output raise input prices.
Answer:
B. Wealth Effect
Explanation:
First, let's remind that downward-sloping aggregate demand means that as the price level falls, the demanded output quantity rises. There are mainly three reasons that explain this: the interest rate effect, the exchange rate and our answer to this question, Wealth Effect.
Wealth Effect means that if prices are lower, that makes people wealthier, as with the same money they can buy more goods or services than they could buy before, therefore demanding more output. So you see, the Wealth Effects is one of the explanations of this inverse relationship between the price level and the aggregate demand.
Answer:
See below
Explanation:
We will first determine the overhead rate
= cost of manufacturing overhead / cost driver
We will distribute the cost driver which is machine hours
$159,000/32,000 = $4.97
$4.97 fixed + $3 = $8 predetermined overhead rate
We will now apply this to job machine hours
Job machine hours 30
Overhead: machine hours x
Predetermined rate = 30 × 8 = $240
Total cost $1,320 + $660 direct material + $240 overhead = $2,220
Then,
Unit cost = Total cost/ unit
= $2,220/10
= $222
Selling price
= cost + 40% cost
= $222 + $88.8
= $283.50
