Answer:
d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.
Place more oil on the market this year, shifting the curve rightward.
Explanation:
1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.
This will result in more willingness on the part of the construction companies to build more houses.
More houses built means more income coming in from the government.
Therefore the supply curve of home building will shift to the right.
2. When oil producers expect prices of oil to increase in the next year, there is a need to control oil prices by increasing availability of oil in the market.
Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.
This action will shift the curve rightward.
Answer:
Wholistic Health Services Co.
Income Statement for the year end February 28, 2019
Service Revenue $270,900
Less: Supplies Expense <u>$3,000 </u>
Gross Income $267,900
Less operating Expenses:
Insurance Expense $4,000
Depreciation Expense $9,000
Miscellaneous Expense $6,000
Utilities Expense $1,760
Rent Expense $4,200
Wages Expense <u>$213,000</u>
<u>$237,960</u>
Net Income <u>$29,940 </u>
Explanation:
Income statement shows the performance of the company in a year. It provides the details of revenue, expenses and profits for the year. All the expenses are deducted from the revenue to determine the net earning of the business.
Answer:
Mr. Smith’s rental expense for this insurance policy is
A. $30
Explanation:
Premiun 360
N 3
year 120
From July to December 60
Duplex insurance e/one 30
Answer:
The correct answer is option C.
Explanation:
The opportunity cost of any economic decision is the cost of giving up its alternative. We are aware that we have limited resources with alternative uses and we have to use these resources to satisfy alternative needs and wants. In order to increase spending resources on one thing, we need to decrease spending on its alternative.
Here, the parking spot on the driveway can be used for personal use or can be used for renting. The opportunity cost of using the spot for personal parking is the money that could have been earned by renting it to others.
Answer:
Option (a) and (c) are correct.
Explanation:
We know that rent control is an example of price ceiling. If the price of apartments set below the equilibrium price level then there is increase in the demand for apartments. So, the demand for apartments exceeds quantity supplied at the prevailing market price.
(a) Therefore, the quality of rental housing falls because of the lower price of the apartment. As this will become less profitable for the landlords, so they are least interested in the maintenance of the apartments.
(b) This will also lead to develop black market. The landlords are trying to fool the higher authorities and rent their apartments at a higher cost because this will be done without any type of legal documentation of the apartments or results from the manipulation of the rules.
