Specialization increases the productivity of a nation's resources and allows for larger total output.
Answer:
Round 2 adds =$800
Round 3 adds =$640
Explanation:
Marginal propensity to consume is the aggregate increase in spending by a consumer for each additional $ they earn. So a Marginal Propensity to consume of 0.8 means that each consumer in the economy consumes 80% of any additional dollars they earn, while they save 20% which is also the marginal propensity to save that is 0.2
So First round adds $1000
Second round adds $1000 * 0.8 = $800 as people use 80% of $1000
Third round adds $800 * 0.8 =$640 as people use 80% of $800
while the remaining is saved.
Hope that helps.
<span>Those who believe that regulations on business and industry are too numerous and too complex are most likely to favor the policy of deregulation.
Deregulation is the process of lowering or removing regulations. Most of the these are related to economics to stop the government from heavy regulation on goods and services. This can be taxes on local goods or import/export rules on international trade.
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Answer:
b. In the short-run profits will be lower than normal.
Explanation:
a. An increase in demand means that customer desire for that good has increase. Thus, it is fair to infer that consumers have shown that they now consider the good to be more valuable.
b. It is actually quite the opposite, in the short-run, companies will be able to raise their prices and profits will be higher than normal.
c. The opportunity related to the increase in demand could be enough to attract resources from other industries into the market.
d. Since this is a perfectly competitive market, it tends to reach equilibrium and the market supply curve will shift right.
The false statement is alternative b.
Answer: elastic
Explanation:
The price elasticity of supply will be:
The percentage change in price will be:
= (1.50 - 0.50)/0.50 x 100
= 1.00/0.50 × 100
= 200
The percentage change in quantity will be:
= (4 -2)/2 x 100
= 2/2 × 100
= 100
Elasticity = % change in quantity/% Change in Price = 200/100 = 2
Since elasticity = 2, this indicates supply is elastic as it's greater than 1.
