Answer:
B. shifts the individual's budget line rightward because she can now purchase more of both products
Explanation:
When there is an increase in the budget line of a consumer, it means that there is an expansion in this consumers consumption possibilities.
The consumers budget line will then shift rightward or upwards. With this increase the consumer can purchase more of both goods. The outward shift indicates increase.
Therefore the answer to the question is option B.
Answer:
False
Explanation:
history has documented that the Great Recession occurs between December 2007 to June of 2009. The recession lead to losses in countries such as the output went down and unemployment went up. The causes of the Great Recession are Rising Inequality, Loosening of bank lending rules and rise of mortgage securitization.
Technological advance is hand in hand with capital formation. Productivity growth rates is of utmost importance due to the fact that productivity growth rates have a big impact on future economic growth and development of the new economy was due to advances in information technology.
Lack of financial resources and corruption
Answer:
The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt. The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.
Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.Explanation:
Answer:
The option that maximizes Maggie's taste index is 1 snack bar and 2 ice creams
Explanation:
<u>snack bar</u> <u>ice cream</u>
37 grams 65 grams
120 calories 160 calories
5 grams of fat 10 grams of fat
Maggie wants to consume up to 450 calories and 25 grams of fat, but she needs at least 120 grams of dessert per day. Ice cream taste 95, snack bars 85.
- maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- 5X + 10Y ≤ 25 ⇒ CONSTRAINT 1
- 120X + 160Y ≤ 450 ⇒ CONSTRAINT 2
- 37X + 65Y ≥ 120 ⇒ CONSTRAINT 3
- X ≥ 0 ⇒ CONSTRAINT 4
- Y ≥ 0 ⇒ CONSTRAINT 5
maximum possible combinations following constraint 1, 4 AND 5:
- option 1: 1 snack bar - 2 ice creams (5 + 20 = 25)
- option 2: 2 snack bars - 1 ice cream (10 + 10 = 20)
- option 3: 3 snack bars - 1 ice cream (15 + 10 = 25)
possible combinations following constraint 2:
- option 1: 1 snack bar - 2 ice creams (120 + 320 = 440)
- option 2: 2 snack bars - 1 ice cream (240 + 160 = 400)
possible combination following constraint 3:
- option 1: 1 snack bar - 2 ice creams (37 + 130 = 167)
- option 2: 2 snack bars - 1 ice cream (74 + 65 = 139)
since we only have two possibilities, we can calculate which one generates the highest taste index
maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
- option 1: 1 snack bar - 2 ice creams = [85(37) + 95(130)] / (37 + 130) = (3,145 + 12,350) / 167 = 92.78
- option 2: 2 snack bars - 1 ice cream = [85(74) + 95(65)] / (74 + 65) = (6,290 + 6,175) / 139 = 89.68
