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marissa [1.9K]
3 years ago
14

If a household's income rises from $46,000 to $48,000 and its consumption spending rises from $38,00 to $39,500 then the MPC is

Business
1 answer:
bulgar [2K]3 years ago
7 0

Answer:

0.5

Explanation:

marginal propensity to consume Can be regarded as the increase in pay that is been consumer experience on the purchasing of products which is just a part at aggregate. Instead of consumer to save

We are told that income rises from $46,000 to $48,000.

The difference= $48,000-$46,000= $2000

✓consumption spending rises from $38,00 to $39,500

The difference= $39,500-$38,00= $1000

Then the marginal propensity to consume can calculated as ratio of the difference in consumption spending to income rise

=1000/2000=0.5

Therefore, the MPC is 0.5

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Assume the Runnng Shoes division of the Shoes Corporation had the following results last year (in thousands). Management's targe
vivado [14]

Answer: 180%

Explanation:

Return on investment = (operating income/sales) x (sales/total assets)

=>  operating income / total assets

given Operating income=1,800,000

Total assets.1,000,000

Current liabilities.=810,000

Return on investment=1,800,000/1,000,00=1.8 X 100= 180%

4 0
3 years ago
Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respec
solmaris [256]

Answer:

$330,000

Explanation:

Change in WC = Opening receivables - Closing receivables

Change in WC = $84,000 - $74,000

Change in WC = $10,000

The decrease in working capital is $10,000

Cash from operating activities = Net income + Decrease in Working Capital

Cash from operating activities = $320,000 + $10,000

Cash from operating activities = $330,000

Thus, the cash from operating activities is $330,000

4 0
3 years ago
What role does customer satisfaction play in public relations? Why is it important? Provide two reasons.
snow_tiger [21]

Answer:

Trust.

Explanation:

See its important so people can know you as a generally trustable person. Also, when a customer is they more than likely feel the need to come back. So if your selling product it will generate more customers and money.

8 0
3 years ago
If in the past Congress had taken additional actions to make saving more rewarding, then today it is likely that the equilibrium
posledela

Answer:

C

Explanation:

In this question, we are looking at what would be the later effect of the Congress taking steps to make sure that there is an increase in the amount of returns on savings for example, say the amount of interest rate on saved money is increased.

What will happen in this case is that the equilibrium interest rate would be lower while the equilibrium quantity of loanable funds will be higher. What he meant by the equilibrium interest rate is that it is the interest rate at which the amount of money demanded is equal to the amount of money supplied.

Due to the legislation by congress, it is expected that more money would be supplied in terms of bank deposits as people would want to make a higher profit off the legislation. The effect of this is that the equilibrium interest rate will be lower as its balance would have been upset my the availability of more deposits and less demand.

We also say that the equilibrium level of loanable funds will be higher. This is because there would be more money present in the vaults of the bank as savings have been encouraged and people are expected to fill the bank with more money. This thus means the bank has more money to throw around via loans as there is an increase in the amount of savings. This surely would drive up the equilibrium quantity of loanable funds

5 0
3 years ago
Market failures : a) are only a concern when they result in prices that are too high. b) apply exclusively to situations where p
ZanzabumX [31]

Answer:

d) result in overproduction or underproduction of a good.

Explanation:

Market failure occurs when market forces fails to allocate goods and services efficiently.

The government usually intervenes to correct market failure.

Externalities usually lead to market failure.

Positive externality is when the benefits of economic activities to third parties exceeds its cost. Research and development usually yield postive externality.

Goods that yield postive externality are usually underproduced. Government can intervene by giving subsidies and grants which encourages production.

A negative externality is when the cost of economic activities to third parties exceeds the benefit. Pollution is an example of negative externality. Goods that yield negative externality are usually overproduced. Government can intervene by taxing companies producing negative externality. This would increase the cost of production and discourage production.

I hope my answer helps you

4 0
3 years ago
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