All categories

2 years ago

Examples of productivity in economics.

Business

1 answer:

DiKsa [7]2 years ago

3 0

Answer:

The value of output obtained with one unit of input is referred to as economic productivity. For example, if a worker produces two units at a cost of ten dollars each in an hour, his productivity is twenty dollars. :))))

You might be interested in

Lists two things that both increase the money supply?

DENIUS [597]

Answer:

Decrease is taxes

Increase in government spending

Explanation:

Government policies that increases the money supply in an economy is known as expansionary fiscal policy. They are:

1. Decrease is taxes - when government reduces the tax rate, the amount paid as taxes falls and as a result individuals, companies have higher disposable income whuch can be used for consumption or saving. This increases the money supply in the economy.

2. Increase in government spending - if the government increases it's spending on public goods for example, money supply would increase. If the government constructs a road, labour would be employed and paid wages. This payment increases the income of Labour and money supply increases.

Central bank policies that increases money supply are known as expansionary monetary policies. They include:

1. Open market purchase: The central bank purchase securities from the open market to increase money supply.

2. Reduction in reserve requirement ratio : if the reserve requirement ratio is reduced , commercial banks would have more money to give out as loans and this would increase money supply.

6 0

3 years ago

During January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the

ivanzaharov [21]

Answer:

Inventory $200,000

Cash $50,000

Notes payable $150,000

Explanation:

Data provided in the question:

Cost of the inventory purchased = $200,000

Amount paid in cash = one-fourth

= one-fourth of $200,000

= $50,000

For the remaining balance signed a note i.e = $200,000 - $50,000

= $150,000

Now,

This transaction will be recorded as:

Inventory $200,000

Cash $50,000

Notes payable $150,000

3 0

4 years ago

The Muffin House produces and sells a variety of muffins. The selling price per dozen is $ 18, variable costs are $ 5 per doze

Vlad1618 [11]

Answer:

$7,222

Explanation:

Given that,

Selling price per dozen = $18

Variable costs = $5 per dozen

Total fixed costs = $ 5,200

Contribution margin per dozen:

= Selling price per dozen - Variable costs per dozen

= $18 - $5

= $13

Contribution margin ratio:

= (Contribution margin ÷ Selling price per dozen) × 100

= ($13 ÷ $18) × 100

= 0.72 × 100

= 72%

Break-even sales in dollars:

= Total fixed costs ÷ Contribution margin ratio

= $5,200 ÷ 0.72

= $7,222

6 0

3 years ago

Describe the short run effects of each of the following socks on the aggregate price level and aggregate output. a. The governme

zhannawk [14.2K]

Answer:

The answer is

A: Aggregate price level increases and aggregate output decreases

B. Both aggregate price level aggregate output increases

C. Aggregate price level increases and aggregate output decreases

Explanation:

A. This government action will increase the aggregate price level increases due to inflation. Aggregate output will decrease due to the increase in cost of product (high wage to labor)

B. Because of the increased spending Investment in solar program, both aggregate output and aggregate price level increase.

C. Due to the severe weather destroyed crops, aggregate price level increases and aggregate output decreases. This happened because there will be decrease in supply of crops.

8 0

3 years ago

Use the information from the balance sheet and income statement below to calculate the following ratios:

Marina86 [1]

Answer:

a. Current Ratio = current assets / current liabilities = 190,000 / 153,000 = 1.24

b. Acid-test ratio = (current assets - inventory) / current liabilities = (190,000 - 50,000) / 153,000 = 0.92

c. Times interest earned = EBIT / interest expense = 65,000 / 8,000 = 8.13

d. Inventory turnover = COGS / inventory = 90,000 / 50,000 = 1.8

e. Total asset turnover = net sales / total assets = 210,000 / 525,000 = 0.4

f. Operating profit margin = operating income / total sales = 65,000 / 210,000 = 0.31

g. Days in receivables = (accounts receivables / total sales) x 365 = (30,000 / 210,000) x 365 = 52.14 days

h. Operating return on assets = operating income / total assets = 65,000 / 525,000 = 0.12

i. Debt ratio = total liabilities / total assets = 273,000 / 525,000 = 0.52

j. Fixed asset turnover = total sales / fixed assets = 210,000 / 335,000 = 0.63

k. Return on equity = net income / total equity = 45,030 / 252,000 = 0.18

4 0

3 years ago