Answer:
Fiscal policy is the strategy to use government's expenditure and taxation to affect economic variables. It is designed by the government to affect consumption and spending.
Explanation:
Fiscal policy is government's attempt to affect economy through the instruments of spending and taxes. Fiscal policy can be expansionary, contractionary and neutral.
Fiscal policy is formulated by the government.
It is designed to affect consumption and spending in the economy.
In case of recession, the government can adopt expansionary fiscal policy.
On the other hand, in case of inflation, contractionary fiscal policy is adopted.
Answer: C) check the person’s credit history to make sure he or she pays debts on time.
Explanation: I doubt a bank is going to be interested in finding out if your parents are financially responsible. Their actions don’t necessarily reflect on how responsible you’ll be financially. I also doubt the bank is going to care if you graduated from Harvard or UCLA. And a bank is not someone’s petty mother, they won’t make you cancel all accounts in a competing bank just to give you a fat old “yes, approved.”
I guess the correct answer is they would do better charging $15 than $10.
Tom and Sadie charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, eight people park on their lawn. If they raise the price to $15, they know that only six people will want to park on their lawn. Whether they have eight or six cars parked on their lawn does not affect their costs. From this information it follows that they would do better charging $15 than $10.
Answer:
B. Firm B: "Get fresh, hot pizza, delivered under 20 minutes-or it's free.
Explanation:
To attain a competitive advantage over the market, the company should make marketing strategies so that it could maximize its sales through which it can achieve its profit targets.
The customers could be attractive with the quality of products and services the company offers
In the given scenario, the customer wants the fresh plus hot pizza at the minimum time so that the customer can be fully satisfied with the amount he/she spent
So, the appropriate option is B.
Answer:
Explanation:
If income increases by 10% that is from $ 50000 to $55000, the demand curve shifts vertically upward by 10% . the horizontal and vertical intercepts for the new demand were are 550 and 550 . the quantity demanded of rooms at triple seven rises from 200 to 250 rooms per night.
Income elasticity of demand = % change in quantity demanded/% change in income= [(250-200)/200]*100/1 0=2.5
The income elasticity of demand is positive which means that the hotel rooms at triple seven is normal good.
If airline fare increases by 20% that is from $ 250 to $300, the demand curve shifts vertically downward by 20% . the horizontal and vertical intercepts for the new demand were are 400 and 400 . the quantity demanded of rooms at triple seven rises from 200 to 1O0 rooms per night.
Cross price elasticity of demand = % change in quantity demanded of hotel rooms/% change in airfare = [200-100)/200]*100/1 0=5
The cross price elasticity of demand is positive which means that the hotel rooms at triple seven and airfare to roundtrip are complements.
If price is decreased from $300 to $275, Total revenue will increase.
Total revenue before price decrease= 300 *150=45000
Total revenue after price increase= 275*175 =48125
Thus total revenue increases. This will always be the case if triple sevens is operating at the elastic portion i.e upper half of demand curve.
