BUSINESS HIGH SCHOOL

Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by $5 billion. $100 billion. $50 billion. $500 billion.

Answers

Answer 1
Answer:

Answer:

$50 billion

Explanation:

To find the change in aggregate expenditures, we need to find the change in consumption. For this, we will use the marginal propensity to consume formula:

MPC = ΔC/ΔY

Where:

MPC = Marginal propensity to consume

ΔC = Change in consumption

ΔY = Change in output (GDP)

We know that out MPC is 0.5, and our ΔY is $billion. We plug these amounts into the formula:

0.5 = ΔC / 100 billion

And we rearrange the equation to solve for ΔC

ΔC = $ 100 billion x 0.5

ΔC = $50 billion

So the change in consumption is $50 billion, which is also the change in aggregate expenditure.


Related Questions

HIGH SCHOOL

Pietro estimated that a pair of Style King jeans would be worth 50 for its brand and durability. However, at the Style King store, the pair of jeans he wanted was available for 40. The difference of 10 in this scenario is referred to as the:__________

Answers

Answer:

Consumer Surplus

Explanation:

Consumer Surplus occurs when a expensive item is available at a discounted price in the market. The difference in price charged by the market and the discounted price of the similar product is customer surplus. In this question, the consumer surplus is:

Customer Surplus = $50 average price in the market - $40 Discounted Price

Customer Surplus =  $10

HIGH SCHOOL

Perceptual map is a tool for visualizing: A. Competitive landscape
B. Spotting positioning opportunities
C. Both of them
D. None of them

Answers

Answer:

C. Both of them is the correct answer.

Explanation:

A perceptual map is a diagrammatic way of visualizing a description of the perceptions of clients regarding particular attributes of a company, brand, goods, service, and product.

A perceptual map aim is to recognize the images that the customers have and feedback they have to services, goods, brands.

Business researchers utilize perceptual mapping to distinguish the products and the potential products based on the opinions of clients, and this data helps the company to develop a powerful competitive plan, communication plan, and brand design.

COLLEGE

Loring Company had the following data for the month: Variable costs per unit:

Direct Materials $4

Direct Labor 3.20

Variable Overhead 1

Variable selling expense 0.40



Fixed Overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units. During the month, 2,000 units were produced. Loring started the month with 300 units in beginning inventory, with unit product cost equal to this months unit product cost. A total of 2100 units were sold during the moth at price of $14. Selling & Administrative expense for the month, all fixed totaled $3,600.



1. What is operating income under variable costing?

2. What is the unit product cost under absorption costing?

3.What is operating income under absorption costing?

Answers

Answer:

1) Loring Company

Income Statement ---- Direct Costing

Sales  ( 2100 @ $1 4)                                                         $  29,400

Direct Materials (2000 @ $4)             $ 8000

Direct Labor ( 2000 @ 3.2)                 $ 6400

Variable FOH  ([email protected] 2000)                     $2000

Variable Cost of Goods Manufactured $ 16 400

Beginning Inventory (300 units @ 8.2)    $ 2460

Variable Cost of Goods Available for Sale   $  18860

Ending Inventory (200 units @8.2)             $ 1640

Variable Cost Of Goods Sold                                                  $ 17220

Gross Contribution Margin                                                        $ 12180

Variable Selling Expense  (2100 @ 1)        $ 2100

Contribution Margin                                                           $ 10080

Less Fixed Expenses

Fixed OH                                                    $ 4000

Fixed Selling & Administrative Expenses  $ 3600

 

Gross Profit                                                                            $ 2480

Marketing & Administrative Expenses                       $ 3600

Operating Income for the month                              $ 4380

2.  Unit Product Under Absorption Costing

Direct Materials (2000 @ $4)             $ 8000

Direct Labor ( 2000 @ 3.2)                 $ 6400

Variable FOH  ([email protected] 2000)                     $2000

Fixed OH                                              $ 4000

Cost Of Goods Manufactured         $ 20,400

Unit Cost = $ 20,400/ 2000=   $ 10.2

Unit Cost = $ 20,400/ 2000=   $ 10.2

Add Beginning Inventory (300 units @ 10.2) $ 3060

Less Ending Inventory (200 units @10.2)=  $2040

Cost of Goods Sold                           $ 21, 420

Unit Cost = $ 21420/2100=  $ 10.2

3. Loring Company

Income Statement ------ Absorption Costing

Sales  ( 2100 @ $1 4)                                                         $  29,400

Direct Materials (2000 @ $4)             $ 8000

Direct Labor ( 2000 @ 3.2)                 $ 6400

Variable FOH  ([email protected] 2000)                     $2000

Fixed OH                                              $ 4000

Cost Of Goods Manufactured         $ 20,400

Unit Cost = $ 20,400/ 2000=   $ 10.2

Add Beginning Inventory (300 units @ 10.2) $ 3060

Less Ending Inventory (200 units @10.2)=  $2040

Cost of Goods Sold                           $ 21, 420

 

Gross Profit                                                                  $ 7980

Marketing & Administrative Expenses                       $ 3600

Operating Income for the month                              $ 4380

HIGH SCHOOL

Which education level has the highest return on investment (roh)?

Answers

Any level of education is very important in all aspect however the first degree is the most important and with the highest return on investment. The first degree is undergraduate degree.
COLLEGE

Which memo provided advanced general principles to consider in cases involving corporate wrongdoing in that it makes clear that ethics and compliance programs are important to detecting the types of misconduct most likely to occur in a particular corporations’ line of business? a. Holder memo
b. Johnson memo
c. Obama memo
d. Trump memo
e. Thompson memo

Answers

Answer:

E. Thompson memo

Explanation:

The name 'Thompson Memo' was used to honor the Deputy attorney General that first issued the memo in 2003. His name is Larry Thompson.

The memo was created to distinguished the line between the 'honest mistake' that the company might do and an actual wrongdoings that must be punished by law.

The memo consist of several criteria that future prosecutors can use to determine whether a company should be punished or not. Those criterias are:

- The nature/seriousness of the offense

- Whether they did a similar 'mistake in the past

- Whether the company admit the mistake by their own or whether it's exposed by other people

- Whether the company proposed a remedial action.

HIGH SCHOOL

West County Bank agrees to lend Drake Builders Company $400,000 on January 1. Drake Builders Company signs a $400,000, 6%, 6-month note. The entry made by Drake Builders Company on January 1 to record the proceeds and issuance of the note is a. Interest Expense... 6,000 Cash ,000 Notes Payable ,000
b. Cash ,000 Notes Payable ,000
c. Cash ,000 Interest Expense... 12,000 Notes Payable ,000
d. Cash ,000 Interest Expense... 12,000 Notes Payable ,000

Answers

Answer:

The answer is b.Cash ,000 Notes Payable ,000

Explanation:

The exact entry Drake Builders Company has to record in its accounting book for the proceeds received from the issuance of the note is:

1st January

Dr Cash                         400,000

Cr Note Payable          400,000

As at the time the note is issued, no interest expenses has been incurred, all the answer with Interest expenses can be eliminated.

In fact, interest expenses is only incurred and accrued during the lifetime of the note, based on the number of days the note is hold; that is, from the day the fund is lend out to Drake Builders Company; not on the day of issuance.

COLLEGE

Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $99 Units in beginning inventory 0 Units produced 6,300 Units sold 6,000 Units in ending inventory 300 Variable costs per unit: Direct materials $12 Direct labor $42 Variable manufacturing overhead $6 Variable selling and administrative $6 Fixed costs: Fixed manufacturing overhead $170,100 Fixed selling and administrative $24,000 What is the net operating income for the month under absorption costing? $3,900 ($14,100) $12,000 $8,100

Answers

Answer:

Net Income = $12,000

Explanation:

Under absorption costing cost allocated to cost of goods sold = Prime cost + Manufacturing overheads. That is selling and administrative cost is not allocated.

Computing Net Income

No of units = 6,000

Sales 6,000 X $99 = $594,000

Less: Cost of Goods Sold

Direct Material = $12 X 6,000 = $72,000

Add: Direct Labor = $42 X 6,000 = $252,000

Add: Variable Manufacturing Overhead = $6 X 6,000 = $36,000

Add: Fixed manufacturing overhead = ($170,100/6,300) X 6,000 = $162,000

Total cost of goods sold = $522,000

Gross Margin = $72,000

Less: Operating Cost

Selling And Distribution

Variable $6 X 6000 = $36,000

Fixed = $24,000

Total Operating cost = $60,000

Net Income = $12,000

HIGH SCHOOL

Drew is in charge of writing a report for his company that talks about the quality and safety of his company's products, business practices, involvement in the community, human resources, and efforts to reduce pollution. This is called a(n)a)ethics report.b)social audit.c)compliance review.d)responsibility policy.d)citizenship report.

Answers

Answer: Compliance review

Explanation: A compliance review can be defined as an audit done with the objective to assess whether the company is following the regulatory guidelines. In such a review the auditor tries to determine if the items that being examined complies with the set standards.

In the given case, Drew is  writing the report to spread the information that they are following all the guidelines related to safety and quality.

Thus, from the above we can conclude that the correct option is C.

COLLEGE

What are long-term decisions that set the direction for the entire organization called?a. Tactical b. Operational c. Directional d. Distant e. Strategic

Answers

Answer:

The correct answer is letter "E": Strategic.

Explanation:

Strategic decisions imply analyzing what direction is the overall company going to take in the long run. It represents the groups of decisions high-rank executives must take to conduct the operations of the firm, the resources that will be used and how they will combine those factors to reach the organization's objectives.

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