Answer: The equilibrium will shift from right to left, and that would be a recessionary gap
Explanation:
Aggregate supply is the quantity of goods and services producers make available for sale and is equal to the money income received by the owner's of the factors of production. Aggregate demand is the total demand for final goods and services in the economy at a given period of time and at a given price level. It is the sum of money consumers planned to spent on the purchase of output in an economy at a given period of time.The equilibrium level of income is the income level at which aggregate supply equals aggregate demand. The Aggregate income on the other hand, is the total amount of income received by all factors of production in an economy at a given period.
If there is a decrease in aggregate income and spending in an economy, the equilibrium level of income shift from right to left and that would be a recessionary gap. The recessionary gap occurs when when the aggregate demand consisting of consumption, investment and government expenditure is not enough to create condition of full employment. It is the difference of the amount by which aggregate expenditure falls short of the level needed to generate equilibrium national income at full employment without inflation.
Answer:
D. Integration of different types of businesses through merger or acquisition
Explanation:
Externalities occur when the production or consumption of a particular good or service affects a third-party who is not related to the transaction. A positive externality is one that is favorable and beneficial to the third party and a negative externality is one that is unfavorable and creates a cost to the third party. In this case, the third party is the owner of the cafe and it is a positive externality because the music creates an increase in the number of customers to his/her business.
When the jazz club owner purchases/acquires the cafe, the cafe becomes his. Hence, the benefit felt to the cafe by the music from the jazz club is a benefit that his own new business incurs. Thus, the integration of these two businesses into one helps internalize the positive externality since now the main party involved in the transaction is also the one feeling the positive externality and not a third-party as used to be.
Answer: Company Pays $1640
Carol Bryd pays $410
Explanation:
The total bill is $2300 and the deductible needs to be taken out.
$2300-$250
=$2050
Company Payment.
Company Pays 80% which translates to 0.8
0.8*2050
= $1640 is the company Payment.
Carol then pays the difference which is
$2050 - $1640
= $410
Carol pays $410
Answer:
Utility
Explanation:
Utility is an economic term used to represent satisfaction or happiness. Marginal utility is the incremental increase in utility that results from consumption of one additional unit.
Answer:
The correct answer is C.
Explanation:
Giving the following information:
$15,000 for factory managers
$18,000 for financial managers
$42,000 for company executives.
$98,000 for factory workers
$64,000 for office workers.
To calculate the labor cost we need to separate between indirect and direct labor:
Indirect labor:
Factory managers (manufactury overhead)= 15,000
Direct labor:
Factory workers= 98,000
Total labor cost= $113,000
