Answer: $16.60
Explanation:
The following information can be gotten from the question:
Total common equity = $4,050,000 Shares of stock outstanding = 265,000
Net Income = $450,000
Dividends = $100,000
Based on the information given, the book value per share will be calculated as:
(Total common equity + Net income - Dividends) / Outstanding shares
= ($4,050,000 + $450,000 - $100,000) / 265,000
= $4,400,000 / 265,000
= $16.60
Given:
ΔY = $5,000, the change in income
ΔS = 50,000 - 54,000 = - 4,000, the change in savings.
By definition,
MPS (Marginal Propensity to Spend) is
MPS = ΔS/ΔY = -4000/5000 = -0.8
The relation between MPS and MPC (Marginal Propensity to Consume) is
MPS + MPC = 1.
Therefore
MPC - 0.8 = 1
MPC = 1.8
Answer:
MPS = 0.8
MPC = 1.8
Answer:
James Madison is known as the Father of the Constitution, and he worked very hard to limit the powers of the government branches, so that no government branch would be more powerful than the other two. He was a great supporter of the Bill of Rights, which also limited the power of the government towards the citizens of the nation.
This specific quote refers to the checks and balances system that prevents any of the three branches of the US government; executive, legislative and judicial, from becoming too powerful.
Complete Question:
The "invisible hand" using Adam Smith's terminology refers to
a. government control of the market.
b. market forces working through the price mechanism.
c. the money supply that serves to keep the economy working smoothly.
d. the role of innovation in maintaining a steady rate of growth.
e. "behind-the-scenes" policy making to influence how markets allocate scarce resources.
Answer:
The "invisible hand" using Adam Smith's terminology refers to Market forces working through the price mechanism.
Explanation:
The invisible hand is the in observable market force, which helps demand and delivers goods automatically to balance in a free market.
Description: In his book ' The Wealth of Nations ' Adam Smith implemented the phrase of the invisible hand.
An invisible hand that defines the processes through which favorable social and economic effects that emerge out of the self-interested behaviors obtained by individuals, who have no intention of producing such results. The term developed by the eighteenth-century British philosopher and economist Adam Smith.
Answer: (a) Fall
(b) Increase
(c) Increase
(d) Unchanged
Explanation:
Suppose there is a competitive market with a downward sloping demand curve and horizontal supply curve. In a competitive market there are large number of buyers and sellers. So, if there is a downward shift in the supply curve, as a result equilibrium price will fall, equilibrium quantity will increase, consumer surplus now become larger and producer surplus remains the same because of the horizontal supply curve.
