The employment of government spending as well as taxation to impact the economy was known as fiscal policy.
Fiscal policy is used by governments to achieve robust and sustained growth and then to decrease poverty.
Inflation, full employment, as well as economic growth even though determined by GDP are the three major aims of fiscal policy as well as indicators of a healthy economy.
Fiscal policy objectives include stimulating demand, increasing output, creating jobs, increasing GDP, avoiding recessions, controlling inflation, and stabilizing economic growth.
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Answer:
b) 100 cars per day.
Explanation:
With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.
So the total labor costs per day is $60 wage per worker X 4 workers = $240
The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.
So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.
If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).
So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.
However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.
Answer: The marginal utility is 2
Explanation:
Utility is the satisfaction derived from the consumption of a particular commodity. Total utility is the total satisfaction derived from the consumption of a particular commodity. Marginal utility is the extra satisfaction that a consumer gets from consuming a product. Utility is measured in utils.
Marginal utility increases with an extra consumption of a good at first but later it begins to reduce as the extra good consumed doesn't really have give the consumer enough satisfaction anymore.
Regarding the question, eating 5 hotdogs gives 40 utils and eating 6 hotdogs gives 42 utils.
The marginal utility is the extra utils which will be 42-40 which gives 2 utils.
Answer:
The correct answer is A. Orlando, Inc. incurred more debt specifically in its revolving line of credit.
Explanation:
The formula for the times interest-earned (TIE) ratio is:
TIE = Earnings Before Interest and Tax / Total Interest Payable
This ratio would decrease when the company's earnings decrease or when its interest payable increases, or when both occur simultaneously.
Considering option A, if Orlando Inc. incurs more debt in its revolving line of credit, it means it has to pay more interest. Therefore, when the company's Earnings Before Interest and Tax remain constant while its Total Interest Payable rises, its TIE ratio would fall.
This is exactly what happens as Orlando Inc.'s TIE ratio falls from 20.56 in 2018 to 7.35 in 2019. Hence, option A is correct. Options B to D would either cause the TIE ratio to rise or remain unaffected.
Answer:
b. useful analytical measures.
Explanation:
All of the financial measures described in the question are all useful analytical measures used in many big companies. The more tools a company can use for their analytics the better and more accurate the results will be. Better and more accurate results then lead to better decisions on what direction to take the company.
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