MCQ

Suppose that the position of a nation's long-run aggregate supply (LRAS) curve has not changed, but its long-run equilibrium

Delvig [45]

Answer: (D) Factors B, C, D & F

Explanation:

Factor B: An increase in the quantity of money in circulation implies inflation. This will definitely cause a rise in the price level of goods and services in the nation.

Factor C: An increase in the labour force participation rate implies an increase in the quantity supply of labour. This implies an increase (general increase, not per labourer) in the price paid for labour (wages and salaries) in the nation.

Factor D: A decrease in production taxes paid by firms will encourage more production. This increase in supply of goods and services produced will result in an increased price level. The LRAS curve still won't shift. It will remain constant but along the curve, price level and quantity level will have increased.

On the other hand - for individuals - a decrease in income tax implies higher purchasing power (higher income-after-tax). This will in turn raise the prices of the goods and services purchased by individuals.

Factor F: Increased long run economic growth means increased productivity (or Gross Domestic Product) in the economy. This usually has the effect of raising inflation rate which directly impacts price level in the economy/nation.

For the wrong answers, here is the reason why they are wrong:

Factor (A)

A rise in the value of domestic currency, relative to other world currencies, does the damage of (or has the effect of) reducing the quantity of goods imported from this country by other countries. This will in turn reduce the quantity of goods exported by this country and hence, quantity produced will reduce in this country. This, instead of increasing price level, will reduce it.

Factor (E)

A rise in real incomes in trade partner countries does not mean that the extra real incomes will be used to purchase products from this country or to engage on foreign trade with this country.

You are welcome.

8 0

3 years ago

Philippe Organic Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $

Margarita [4]

Answer:

correct option is B. 1.40

Explanation:

given data

total assets = $689,400

long-term debt = $198,375

total equity = $364.182

net fixed assets = $512,100

sales = $1,021,500

profit margin = 6.2 percent

solution

we get here first current assets that is express as

current assets = Total assets - net fixed assets ...................1

put here value

current assets = $689,400 - $512,100

current assets = $177300

and now we get Current liabilities that is express as

Total liabilities = Total assets - Total equity .............2

Current liabilities + Long term debt = Total assets - Total equity

Current liabilities = Total assets - Total equity - Long term debt ...........3

put here value

Current liabilities = $689400 - $364182 - $198,375

Current liabilities = $126843

so here Current ratio will be

Current ratio = current assets ÷ Current liabilities .............4

Current ratio = $\frac{177300}{126843}$

Current ratio = 1.40

so correct option is B. 1.40

6 0

3 years ago

Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to

melamori03 [73]

Answer:

The correct answer is A

Explanation:

Central planning is the planning where the centralized, large and the powerful government evaluates or determines the goals, strategy and the resource distribution and the economy or the society development. It is opposite of the capitalism and the free market.

Under the central planning, the problem of coordination, is the incentive problem, within the communist central planning states the idea which the entrepreneurs, workers and the managers could not gain personally through responding the surpluses or shortages or through improved as well as new products.

Therefore, the quotation is identifies as the coordination problem.

6 0

4 years ago

Ferris owns an apartment in an apartment complex. The apartment-complex rules require the owner of each apartment to maintain it

lara31 [8.8K]

Answer:

Correct option is (d)

Explanation:

Creditor beneficiary is a party who is entitled to enjoy the benefits of the contract that has been put in place. They are not actively involved in the contract but are entitled to receive the benefit of contract executed by the promisor.

In this case, Erica is a third party creditor beneficiary for whom Ferris is legally obligated to perform his duties as the rules require owner to maintain the apartment which Ferris failed to oblige. So, Ferris breached contractual obligation to her.

3 0

4 years ago

Company Z has experienced a decrease in sales in the last quarter. Additionally, their customer surveys have shown that customer

Elenna [48]

Answer:

Company Z has experienced a decrease in sales in the last quarter.

Besides, their customer satisfaction has also decreased by 30% that customers often complain about lack of parking, high prices, and slow response times to customer concerns.

Explanation:

8 0

3 years ago