Answer:
1. move the level of actual output on to the economy's production possibilities curve
Explanation:
Production Possibility Curve is the graphical representation of goods that an economy can produce, given resources & technology.
Points on PPC depict efficient utilisation of resources & technology. Points under PPC reflect underutilisation of resources & technology. Points above PPC are unattainable, being beyond economy's full efficient potential.
Unemployment means under utilisation of human resource & this leads to production below PPC. So, the unemployment issue would be resolved by generating better employment opportunities. This better utilisation of resources will tend to move the production output on to the PPC, towards the best potential efficient production - with given resources & technology.
Answer: True
Explanation:
The following given statement is true. Porter's Five Forces model is referred to as or known as the framework for evaluating or analyzing an organization's competitive environment. The power and number of an organization's competitive rivals, suppliers, new market entrants, customers, and the substitute products, commodity influence an organization's profitability.
Answer:
a. Accounting profit for the business = $3,500
b. Economic loss = $1,000
c. The two friends can open the business and incur economic loss of $1,000 in the first year of operation. In subsequent years, the revenue may increase to generate better economic profit. This is the labor, risk, and reward of entrepreneurship.
d. If the two friends do not go ahead with the business because of the economic loss they suffer in the first year of operation, then they cannot be regarded as entrepreneurs. They are merely laborers who cannot assume any risk for greater rewards tomorrow.
Explanation:
Cost of business per month:
Operating expenses = $4,000
Lease of building = 2,000
Total expenses = $6,000
Revenue = $10,000
Accounting profit $4,000
Economic profit:
Revenue = $10,000
Total expenses = $6,000
Opportunity costs:
Lost salaries 4,500
Lost Interest 500
Total costs $11,000
Economic loss = $1,000
Answer:
At the end of the three years period, the amount to recieve will be for $7,146.1
Explanation:
18,000 savings at 6% during three years.
we will calcualte the future value of a lump sum:
Principal 6,000.00
time 3.00
rate 0.06000
Amount 7,146.10
Answer:
$4,412
Explanation:
If the company estimates that $4,412 of accounts receivables will be uncollectible, then it must record that number under the Allowance for Bad debts Account.
That account started the year with a $3,284 balance, it decreased by $1,826 (debt written off), and then must be adjusted by crediting $2,954 so its balance = $4,412 on December 31.
