Answer: the options are added below:
A. market forces would quickly direct an economy back to full employment.
B. lower wages would cause the central bank to reduce the money supply and thereby prolong the recession.
C. lower wages would stimulate inflation and thereby prolong the recession.
D. powerful trade unions and large corporations made wages highly inflexible.
The correct option is D.
Explanation: A Trade Union is also known as a labour union and it is an association of workers in a particular trade, industry, or company that is created for the aim of negotiating improvements in wages and salaries, benefits, better working conditions, or social and political status through collective bargaining.
The view of Keynes is that the trade unions that have become powerful have, in conjunction with large corporations, made wages highly inflexible.
What this means is that they always make sure that there will be no supply of labor if the wages are low, therefore Keynes is of the view that lowering wages will not direct a recessionary economy back to full employment, rather, increasing the wages will ensure that the trade unions and large corporations supply labor and therefore increase employment.
Answer:
Capital Funds/Equity Capital
Explanation:
A company can raise their overall capital by selling off parts of the company in the form of stocks in which then people become shareholders, most of the time called investors. This is know as Equity Funding.
Wages
The cost of labour is the sum off all wages paid to employees as well as the cost of employee benefits and payroll taxes paid by an employer.
The cost of labour is broken in direct and indirect cost.
Answer:
The current BEP is 727 units
with the proposed change it will be 875 units
The change increase the break even point by 148 units
Explanation:
The BEP in units will be:
Where:
40 - 18 = 22 contribution margin
then we calcualte BEP
16,000 / 22 = 727,27 units
<u>with the proposed change:</u>
40 - 16 = 24 contribution margin
16,000 + 5,000 = 21,000 fixed cost
21,000 / 24 = 875
875 - 727 = 148
The Speedweek: Know Before You Go guide which covers basic event info like attire, amenities, facilities available, etc
