The four core principles of economics that is most relevant for each aspects of that decision are:
- scarcity
- supply and demand
- costs and benefits
- incentives
<h3>What are the
core principles of economics?</h3>
Scarcity can be regarded as the economic concept which serves as the basic fact of life that there exists only a finite amount of human and nonhuman resources .
Supply and demand serves as the economic model of price determination that is bee used in the market and it seen in a competitive market, the unit price for a particular good, .
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Answer:
there is a rise in the quantity of capital.
Explanation:
Aggregate supply describes the total supply of products and services produced in an economy at all prices per period. The aggregate supply curve, shortened to AS, shows the relationship between total supply from producers and different price levels.
A shift in the supply curve communicates a change in the quantity of supply. The Aggregate supply curve shift to the right when there is an increase in output. In other words, when output from producers increases, the aggregate supply curve shifts to the right. Output or productivity increases when the price of key inputs falls, lower labor costs, or increased efficiency.
Answer:
Option A) The firm's net income increases.
Explanation:
The residual dividend model always tries to pay its debts with retained earnings, therefore, it can increase its net income through time because in the upcoming years it does not have to use its operational earnings on debts.
In this way, you can maximize the dividend per share over time by improving your net income.
Answer:
b. $7,000
Explanation:
Statement of Cash-flow from Financing activities
Particulars Amount
Issue common Stock $110,000
Dividend paid -$3,000
Retirement of bonds payable -<u>$100,000</u>
Net cash flow from financing activities <u>$7,000 </u>
