Crowding out occurs when.

Substitution and income effects of a change in price of a good may be used to explain the:

kodGreya [7K]

Answer: Option A

Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.

On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.

Hence from the above we can conclude that the correct option is A.

6 0

3 years ago

Actual Static Budget Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September

Aleks04 [339]

Answer:

D.$54,000

Explanation:

A flexible budget is a one which changes or adjusts with change in actual activity. The flexible amount is more reliable than the static amount. The static budget is one which is not adjusted with level of real activity. The machine hours are used as basis of adjustment for flexible budget. The amount of fixed overhead budgeted allocation cost is adjusted based on machine hours according to actual machine hours of 985 hours.

5 0

3 years ago

What was one of the lessons from this activity?

Sladkaya [172]

Answer:

I should pay off my smallest balance first. Then continue paying my smallest balances until I have paid all of my debt.

Explanation:

This is one of the lesson from the activity. That, loans and debts are important part of life of someone but the most important thing, is to remember to clear off those loans and debts. this could be done through the gradual payment till all the debts are cleared.

4 0

3 years ago

Assume a domestic company in the US, let's say Colgate-Palmolive, is deciding to export to a country where to date Colgate produ

MrMuchimi

Answer:

agent method of entry

Explanation:

Agent method of entry will demonstrate lower fixed costs associated.

8 0

3 years ago

Read 2 more answers

You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc

miskamm [114]

Answer:

$573,963

Explanation:

First, calculate the present value of the loan payments using the following formula

PVA = PMT x [ ( 1 + r )^n - 1 ] / [ r ( 1 + r )^n)

PVA = $950 x [ ( 1 + 7.1%/12 )^360 - 1] / [ 7.1%/12 ( 1 + 7.1%/12 )^360)

PVA = $141,362.32

Now calculate the difference of Value of loan and the present value of loan payment

Difference = Loan value - PV of loan payment = $210,000 - $141,362.32 = $68,637.68

This te Ballon payment in present value term, We need to determine the value at the end of the loan term.

Hence we need to calculate the future value of this payment as follow

Future value = Present vale x ( 1 + Monthly Interest rate )^numbers of months

Future value = $68,637.68 x ( 1 + 7.1%/12 )^360

Future value = $573,963.09

Future value = $573,963

Hence the ballon Payment will be $573,963

7 0

3 years ago