Answer:
B. Increase and the real wage will increase.
Explanation:
In the case when there is a rise in population so the labor supply also rises and the equilibrium labor quantity would also rise
So it would result in rise in capital market due to which the labor would become more productive and there is a rise in the labor demand
This leads to greater real wages rate and rise in full labor quantity employment
Hence, the option b is correct
Answer:
-0.5
Explanation:
Marginal rate of technical substitution (MRTS) refers to the rate at which the inputs are substituted for one another in a production of particular good.
Given that,
The marginal product of labor = 10
The marginal product of capital = 20
Hence,
= - 0.5
Therefore, the marginal rate of technical substitution is - 0.5.
Incomplete question :
Here is the full question below :
Comp Wiz sells computers. During May 2017, it sold 350 computers at a $1,200 average price each. The May 2017 fixed budget included sales of 365 computers at an average price of $1,100 each. AQ- Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price (1) Compute the sales price variance and the sales volume variance for May 2017 Flexibl AQ . Assuming the budgeted cost per unit under absorption costing system is $500
Answer:
Sales Price Variance = $35,000 F
Sales volume variance = $9000 A
Explanation:
Sales Price Variance(SPV)= (Actual selling price-Budgeted selling price)Actual sales volume.
SPV = ($1200-$1100)350
=$35,000 F (Favorable Variance)
Sales Volume Variance(SVV )=(Actual units sold-budgeted sales unit) standard profit
Standard Profit(SP) = $1100-$500
=$600
Hence, SVV= (350-365)$600
=$9000 A (Adverse Variance)
If you are asked to compute Total profit Variance (TPV), here it is below;
TPV = $35,000-$9000
= $26,000
Answer:
flexibility of wages and prices over time
Explanation:
The neoclassical view posits that long-term expansion of potential Gross Domestic Products (GDP) due to economic growth will determine the size of a country's economy but the economy cannot sustain production above its potential Gross Domestic Products (GDP) in the long run.
A distinguishing characteristic of the neoclassical view is flexibility of wages and prices over time.
Answer:
The correct option is 4 years
Explanation:
Payback period is the length of time it takes an investment to repay itself.By repaying itself I meant the time horizon taken for the initial capital outlay from a project to be recovered.
Payback period=initial investment /net annual cash inflow
initial investment is the $24,000 spent in acquiring the new machine
net annual cash flow =net income+depreciation
depreciation is added because it is not a cash flow in real sense
net annual cash flow=$2000+$4000=$6000
payback period=$24,000/$6000= 4 years