Suppose that the economy is characterized by the following equations: C=160+0.6Y D

Y D

=(Y−T) the disposable income. I=150
G=150
T=100

A. Write down the equation of the aggregate demand for this economy. B. In a graph represent the aggregate demand and the equilibrium of the market. What is the value of the aggregate production (Y) at this equilibrium? C. Assume that G is now equal to 110 . Find the value for the aggregate production at the new equilibrium. Show the changes in your previous graph. D. Imagine that the neighboring country, has a smaller marginal propensity to consume. In which country will the effect of the same fiscal policy be bigger? Explain your answer.

Answers

Answer 1

A. The equation of the aggregate demand (AD) for this economy can be derived by summing up the components of aggregate demand: consumption (C), investment (I), government spending (G), and net exports (NX).

Since the question does not provide information about net exports, we will assume NX to be zero for simplicity. Therefore, the equation of aggregate demand is:

AD = C + I + G

= (160 + 0.6YD) + 150 + 150

= 460 + 0.6YD

B. To represent the aggregate demand and equilibrium in a graph, we need to plot the aggregate demand curve and the 45-degree line representing equilibrium. The equation for equilibrium is given by Y = AD, where Y represents aggregate production. In this case, the equation becomes:

Y = 460 + 0.6(Y - T)

Substituting the given values for T:

Y = 460 + 0.6(Y - 100)

Simplifying:

Y = 460 + 0.6Y - 60

0.4Y = 400

Y = 1,000

So, the value of aggregate production (Y) at equilibrium is 1,000.

C. If G is now equal to 110, we need to update the equation for aggregate demand:

AD = C + I + G

= (160 + 0.6YD) + 150 + 110

= 420 + 0.6YD

To find the new equilibrium, we substitute the updated AD equation into the equilibrium equation Y = AD:

Y = 420 + 0.6(Y - 100)

Simplifying:

Y = 420 + 0.6Y - 60

0.4Y = 360

Y = 900

Therefore, the value of aggregate production at the new equilibrium, with G equal to 110, is 900.

D. In the neighboring country with a smaller marginal propensity to consume (MPC), the effect of the same fiscal policy will be smaller. The marginal propensity to consume represents the fraction of additional income that is spent on consumption. A smaller MPC implies that individuals in that country are likely to save more and spend less out of any additional income received.

When implementing fiscal policy, such as an increase in government spending (G), the impact on aggregate demand will depend on how much of the increased income is spent on consumption. A smaller MPC means a smaller portion of the additional income will be used for consumption, resulting in a smaller increase in aggregate demand compared to a country with a higher MPC.

Therefore, the effect of the same fiscal policy will be bigger in the country with a higher MPC, as a larger proportion of the increased income will be spent, leading to a greater boost in aggregate demand.

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Related Questions

Why does no one like me? i need answers.​

Why does no one like me? i need answers.

Answers

um I don’t know u very pretty tho

Answer:

nobody likes me either lol

make a list of your resources

Answers

Answer:

water, air, wood, fire. is that what ur looking for

Explanation:

Water, air, wood those are natural resources

mr. and mrs. johnson and their two children, alice and ben, are the four equal partners in jab partnership. this year, jab generated $40,000 of ordinary income. compute the tax cost associated with this income if mr. and mrs. johnson's marginal tax rate is 35%, alice's marginal tax rate is 24%, and ben's marginal tax rate is 32%.

Answers

To compute the tax cost associated with the income generated by JAB Partnership, we need to calculate the tax liability for each partner based on their marginal tax rates. So, the tax cost associated with the income of Jab partnership is: $3,500 for Mr. and Mrs. Johnson$2,400 for Alice$3,200 for Ben

Mr. and Mrs. Johnson and their two children, Alice and Ben, are four equal partners in Jab Partnership. This year, Jab generated $40,000 of ordinary income.

Mr. and Mrs. Johnson's marginal tax rate is 35%. Alice's marginal tax rate is 24%. Ben's marginal tax rate is 32%.

To compute the tax cost associated with this income, you need to determine each partner's share of the income. Since there are four equal partners, each partner's share of the income is $40,000 / 4 = $10,000.

Mr. and Mrs. Johnson's share is $10,000, which means their taxable income will increase by $10,000. Since their marginal tax rate is 35%, their tax cost will be $10,000 x 35% = $3,500.

Alice's share is also $10,000, which means her taxable income will increase by $10,000. Since her marginal tax rate is 24%, her tax cost will be $10,000 x 24% = $2,400.

Ben's share is also $10,000, which means his taxable income will increase by $10,000. Since his marginal tax rate is 32%, his tax cost will be $10,000 x 32% = $3,200.

Therefore, the tax cost associated with the income of Jab partnership is: $3,500 for Mr. and Mrs. Johnson$2,400 for Alice$3,200 for Ben

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gertrude quit her $40,000- per- year job to start her own own consulting firm. she withdrew her savings of $50,000 which was earning her an interest of $2000 in the bank and invested in her own consulting firm. at the end of her first year of operation, her total revenues were $208,000. her total explicit costs were $108,000. how much are her accounting profits from her own consulting firm? group of answer choices $30,000 $100,000 $50,000 $48,000

Answers

Gertrude's accounting profits from her consulting firm are $100,000, calculated by subtracting explicit costs ($108,000) from total revenues ($208,000).

To calculate Gertrude's accounting profits, we need to subtract her explicit costs from her total revenues.

Total revenues = $208,000

Explicit costs = $108,000

Accounting profits = Total revenues - Explicit costs

= $208,000 - $108,000

= $100,000

Hence, Gertrude's accounting profits from her own consulting firm are $100,000.

Therefore, Gertrude's decision to start her own consulting firm has resulted in a positive accounting profit of $100,000. This indicates that her firm's revenues from consulting services exceed the explicit costs incurred in running the business.

It is important to note that accounting profits do not take into account implicit costs, such as the opportunity cost of Gertrude quitting her job and the foregone interest income from her savings. However, based on the given information, her accounting profits alone amount to $100,000. Hence, Gertrude's accounting profits from her own consulting firm are $100,000.

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what will I need to start a clothing shop​

Answers

You could start a website and go on from there

Answer:

Explanation:

But meanwhile his you are going to start a new clothing business you will not have much finance ( money ) but first u have to advertise to the customers .  get the customers attraction and there satisfaction , because then one customer will spread the whole news about your clothing shop to almost all the customers. which will be beneficial for you .

You will have to advertise on the tv , radio , bill boards ,  newspapers , many other marketing equipments plus u must advertise your business in a way that the customers will be willing to purchase your clothes from your clothing shop.

Then eventually you will gain more profits and will lead to profits so after sometime you can create a a online shopping like a website , because some and many customers will be willing to purchase your clothes through the online platform. which saves the customers time and transportation costs and etc.

By the way the main element is customers because without customers there will be no lead / success to your clothing shop.

Hope this answer helps you :)

Have a great day.

Mark brainliest :)

governments of ____ countries can encourage trade by minimizing interference with the free exchange of goods and services.

Answers

Answer:

Developing

Explanation:

although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?

Answers

There are several important functions when starting-up and managing a business but the two primary functions are planning and financing.

What are the most important functions in business?

When starting up a business, and then subsequently managing it, the most important, or the primary functions that one should be concerned with are planning and financing.

Planning ensures that one knows what the goals of the business are and so manages it to achieve those goals. Financing deals with ensuring that the funds needed to start the business and run it, are available.

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Lenovo's assumption that consumers want a higher-quality camera on their phone most likely came to light during the _______________ stage of the new product development process.

Answers

Lenovo's assumption that consumers want a higher-quality camera on their phone most likely came to light during the idea generation stage of the new product development process.

New product development can be defined as the use of a business firm's product development efforts and ideas to achieve the following:

I. The development original products.

II. Improvement of its product.

III. Modifications of a product.

IV. The creation of new brands.

Basically, the new product development process comprises four (4) main stages and these include:

Idea generation and screening.Content development and testing.Product development.Test marketing.

Idea generation simply involves the systematic search by a business firm for new product ideas.

In this context, Lenovo's assumption most likely came to light during the idea generation stage of the new product development process.

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Corporations are not viewed as citizens and are not able to sue
or be sued.
(a) True
(b) False

Answers

The statement that corporations are not viewed as citizens and are not able to sue or be sued is false. Corporations are legal entities with rights and liabilities, and they can sue or be sued. Therefore the correct option is (b) False.

A corporation is a separate legal entity that is distinct from its owners or shareholders. As a legal entity, a corporation has the capacity to enter into contracts, own property, and engage in legal actions. This includes the ability to sue other parties or be sued by others.

Corporations are granted legal personhood, which means they have certain rights and responsibilities similar to natural persons. These rights and responsibilities allow corporations to engage in legal proceedings, both as plaintiffs and defendants.

Corporations can initiate lawsuits against individuals, other corporations, or even the government if they believe their rights have been violated. Likewise, corporations can be the target of lawsuits filed by various parties, such as employees, customers, or competitors.

The ability of corporations to sue or be sued is an important aspect of their legal existence. It allows for the resolution of disputes, enforcement of contractual obligations, and protection of the rights and interests of all parties involved.

In conclusion, the statement that corporations are not viewed as citizens and are not able to sue or be sued is false. Corporations are considered legal entities with rights and liabilities, similar to natural persons. They can sue other parties and can also be sued in legal proceedings. Understanding the legal status of corporations is essential in recognizing their capacity to engage in legal actions and participate in the legal system.

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A country with imports of $6 million and other cash of $3 million coming into the country and exports of $5 million and other cash of $3 million going out of the country has a
trade surplus.
trade deficit.
positive or favorable balance of payments.
negative or unfavorable balance of payments.

Answers

Answer:

trade deficit.

Explanation:

Given that

The imports is of $6 million

And, the other cash is $3 million coming in the country

There is $5 milllon exports

And, the other cash of $3 million going out

As we know that

If the imports is more than the exports so there would be trade deficit else trade surplus

Since the imports is $6 million and the exports is $5 million

So, it is a trade deficit

Supply-side policies have proven that smaller government makes the economy more efficient. ​ Select one: True False

Answers

Answer:

The given statement is "False".

Explanation:

Supply-side policies include those strategies that increase the economic ability of an enterprise as well as the ability to manufacture. To increase supply-side efficiency, there are also many specific steps that somehow an authority may undertake. Any strategy that increases the economic capacity of a nation's infrastructure and therefore its ability to transfer should be under the supply-side legal framework.

Please help Sunflowerssk i need you please Answer as fast as you can
What are examples of plagiarism? Choose Plagiarism or Not Plagiarism.

Please help Sunflowerssk i need you please Answer as fast as you canWhat are examples of plagiarism?

Answers

Answer:

option 1- plagiarism

option 2- not plagiarism

option 3- plagiarism

option 4- plagiarism

option 5- not plagiarism

option 6- not plagiarism

Explanation:

Plagiarism is using someone else's work without giving credit to the original or claiming it as your own.

Answer: There are the 6 answers for the answer key to each of the following "Plagiarism" or "Not Plagiarism" sentence statements based on the "True" or "False" statement:

For sentence statement #1: "Copying the text from a book or website word for word without using the quotation marks.", the option to this sentence statement is "Plagiarism". For sentence statement #2: "Taking the notes from the website.", the option to this statement sentence is "Not Plagiarism". For sentence statement #3: "Presenting the other's idea as your own without citing your sources.", the option to this sentence statement is "Plagiarism". For sentence statement #4: "Using a picture that you found on a website and presenting it as your own.", the option to this sentence statement is "Plagiarism". For sentence statement #5: "Using a famous picture in a presentation with the picture title, the artist name, and the date in the corner of the slide.", the option to this sentence statement is "Not Plagiarism". And last but not least is for sentence statement #6: "Using the facts from a website in a presentation and citing the source of this information.", the option to this sentence statement is "Not Plagiarism".  

Explanation: Here are the 5 important explanation reasons why you can't recommend yourself to use plagiarism:

Plagiarism means you steal and pass off someone else's creative ideas and claim your own work assignment as your own without giving the proper credit to the original. Plagiarism is serious consequences and is also a violation of the principles of academic integrity. Plagiarism could have more serious consequences: you could get a failing grade, the teacher will send you to the principal's office for dismissal, in-school or out-of-school suspensions, hour after-school detention or possibly an expulsion for receiving "F" for your own entirely class. Plagiarism also means stealing intellectual property. And last but not least is cheating is the same as plagiarism.

I hope my explanation answer about the "Plagiarism" or "Not Plagiarism" Sentence Statement that is based on the "True" or False" Sentence Statement is very helpful to your own question and have a great day! :D

Sincerely,

Jason Ta,

The Ambitious of The Brainly And The Role of The TDSB And The WHCI Student of The High School.

A(n) _____ does not give an exclusive right of possession, but a right of permanent, intermittent use

A. remainder
B. license
C. easement
D. reversion

Answers

What does not give an exclusive right of possession but gives the right of permanent and intermittent use is License.

Basically, a license does authorize the use or performance of a task, activity etc.

License are issued to a qualified person to perform certain task, work or activities which are deemed legal.

For instance, when a medical license is issued to a medical practitioner, it does not give exclusive right but its allows the him/her to perform medical duties legally for some period of time.

In conclusion, the Option B is correct because License does not give an exclusive right of possession but gives the right of permanent and intermittent use is License.

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3. The owner of a specialty delicatessen buys baskets, decorates and fills them with food items, and
sells them as one of the products in the shop. The entrepreneur sells an average of 130 baskets a
month The basket supplier charges $0.50 per basket. The entrepreneur would like to reduce his
variable costs and has found a basket supplier who will charge only $0.40 per basket. How much
will the delicatessen owner save in a year by changing suppliers?

Answers

Answer:

$156

Explanation:

he old price per basket is $0.50 per basket

the new supplier has a price of $0.40 per basket

Savings per basket is $0.10 ($.50- $0.40)

The average sales per month are 130 baskets.

The average savings per months will be

=$0.10 x 130

=$13

yearly savings will be

=$13 x 12 months

=$156

What is this form used for?
SAVINGS WITHDRAWAL
FIFTH BANK
TOWNVILLE, ST
101 S. 1ST STREET
ACCOUNT NUMBER
DATE
$
NAME
SIGNATURE
1:50117135:
02
2010 Going
to withdraw money from a savings account
to deposit money in a savings account
to order checks
open a savings account

Answers

Answer:

to withdraw money from a savings account

Explanation:

The document appears to be a  savings withdrawal form. The words Withdrawal are clearly visible, implying it is used when making withdrawals.

To withdraw is the removal or get money from a savings or checking account. Customers use the withdrawal form when they need to get money from their accounts. They need to fill in the amount required in words and figures and signs in the appropriate place. The customer then hands over the form to a teller.

For the last several months, an employee stays late to finish up work. When he does this, everyone else has gone home, so he is mostly on his own. This is a possible sian that he is _____.
A. auditing
B. shoplifting
C. embezzling -
D. considering a new job offer

Just posting a question because it's something to do ‍♂️

Answers

For the last several months, an employee stays late to finish up work. When he does this, everyone else has gone home, so he is mostly on his own. This is a possible sian that he is: D. considering a new job offer.

Who is a lone person?

Being the lone person in the office and staying late at work on a regular basis for several months can be a sign that an employee is looking for a new position.

They might be using the time after work to look for job openings or go to job interviews without making their job hunt obvious.

Therefore the correct option is D.

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Name the choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing.

Answers

The choreographic element that encourages dancers to rely on musical cues, visual connections, and emotional phrasing includes the time, energy, and space

What is the meaning of Choreography?

In art, a choreography means the way in which an idea is expressed physically through dance. When developing this concept, the users usually relies on important principles of organization to ensure that the idea takes a clear, appropriate, and aesthetically pleasing form.

These are principles that comprises the basic ingredients for the dancers' movements and patterns and help the choreographer utilize space, express intention and the music, and organize the dancers.

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Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the value of this perpetuity?

Answers

The value of a perpetuity, which is a constant and perpetual cash flow is $12,500.

The value of a perpetuity can be determined using the formula:

Value of Perpetuity = Cash Flow / Discount Rate

In this case, the cash flow is $1,000 and the discount rate is 8%. Substituting these values into the formula, we have:

Value of Perpetuity = $1,000 / 0.08

Calculating this expression, we find that the value of this perpetuity is $12,500.

The value of a perpetuity represents the present value of the cash flow stream that continues indefinitely at a constant rate. By discounting the cash flow using the appropriate discount rate, we can determine the present value of the perpetuity. In this case, the perpetuity with a cash flow of $1,000 and a discount rate of 8% has a value of $12,500.

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An amendment to the Foreign Corrupt Practices Act allowed for the use of ______ which allow a business to receive the standard treatment it ought to receive from a foreign government.

Answers

An amendment to the Foreign Corrupt Practices Act allowed for the use of facilitation payments which allow a business to receive the standard treatment it ought to receive from a foreign government.

Facilitation payments are commonly used in the business world to refer to small payments that a company makes to officials of a foreign government to ensure the performance of routine administrative tasks that are part of their job and should be performed anyway. Facilitation payments are exempt from the Foreign Corrupt Practices Act's anti-bribery provisions, but they must be properly recorded and reported as a separate item in a company's books and records.

Facilitation payments are small payments made by a company or individual to a foreign government official or employee to expedite or ensure the performance of non-discretionary duties or acts that the foreign government official or employee is already required to perform.

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accounts receivable changes ​ tara's textiles currently has credit sales of ​$ million per​ month, an average collection period of ​days, and bad debts equal to ​% of sales. assume that the price of​ tara's products is ​$ per unit and that the variable costs are ​$ per unit. the firm is considering tightening up their credit​ policy, allowing customers days rather than to pay their bills. with a stricter credit policy in​ place, sales will fall by​ 10%, but the average collection period will drop to days and the bad debts percentage will fall to ​%. determine whether the company should make this change if their cost of capital is per month. ​(note​: use a​ 365-day year.)

Answers

Calculate the current accounts receivable and the accounts receivable under the proposed credit policy to determine whether the company should make the change. If the total costs decrease under the proposed credit policy, it would be beneficial for the company to make the change. Conversely, if the total costs increase, it may not be advisable.

1. Calculate the current accounts receivable:
- Credit sales per month: $ million
- Average collection period: days

To find the accounts receivable, we need to convert the average collection period to a monthly basis. Since there are 365 days in a year, we can divide the average collection period by 365 and then multiply it by the credit sales per month:

Accounts receivable = (Average collection period / 365) * Credit sales per month

2. Calculate the bad debts:
- Bad debts percentage: %

To find the bad debts, we can multiply the credit sales per month by the bad debts percentage:

Bad debts = Bad debts percentage * Credit sales per month

3. Calculate the total costs under the current credit policy:
- Price per unit: $
- Variable costs per unit: $

Total costs under the current credit policy = (Credit sales per month - Bad debts) * (Price per unit - Variable costs per unit)

Now, let's calculate the accounts receivable and total costs under the proposed credit policy:

4. Calculate the accounts receivable under the proposed credit policy:
- Proposed average collection period: days

Using the same formula as before, we can calculate the accounts receivable under the proposed credit policy:

Accounts receivable under proposed credit policy = (Proposed average collection period / 365) * Credit sales per month

5. Calculate the bad debts under the proposed credit policy:
- Proposed bad debts percentage: %

Using the same formula as before, we can calculate the bad debts under the proposed credit policy:

Bad debts under proposed credit policy = Proposed bad debts percentage * Credit sales per month

6. Calculate the total costs under the proposed credit policy:
- Proposed sales (after 10% decrease): 90% * Credit sales per month

Total costs under the proposed credit policy = (Proposed sales - Bad debts under proposed credit policy) * (Price per unit - Variable costs per unit)

Finally, we can compare the total costs under the current credit policy and the proposed credit policy to determine whether the company should make the change.

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Tara's Textiles is considering tightening its credit policy, which would result in a shorter average collection period and lower bad debts percentage. The question is whether the company should make this change, given that sales would decline by 10%, and the cost of capital is given.

whether Tara's Textiles should implement the stricter credit policy, we need to compare the benefits and costs associated with the change. With the new policy, the average collection period would decrease to a specific number of days, and the bad debts percentage would also decrease.

The benefits of the stricter credit policy include a shorter average collection period, which means the company can collect cash from customers more quickly. This leads to improved cash flow and reduces the risk of bad debts. However, the change in policy would also result in a 10% decline in sales.

To evaluate the financial impact, we need to consider the cost of capital. If the cost of capital exceeds the benefits gained from the improved cash flow and reduced bad debts, then implementing the stricter credit policy may not be favorable. Conversely, if the benefits outweigh the cost of capital, the company should make the change.

In summary, to determine whether Tara's Textiles should implement the stricter credit policy, the company needs to assess the benefits of improved cash flow and reduced bad debts against the cost of a 10% decline in sales and the given cost of capital. The decision should be based on whether the benefits outweigh the costs.

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The supply schedule shows the specific quantity of a good that suppliers are willing and able to?

Answers

The supply schedule shows the specific quantity of a good that suppliers are willing and able to supply at each price. It is a table that lists the quantity supplied for a good or service that suppliers throughout the whole economy are willing and able to supply at all possible prices.

The supply schedule is a graphical representation of the law of supply. The law of supply states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.

The supply schedule is important because it helps us to understand how the price of a good or service affects the quantity supplied. It also helps us to understand how the supply of a good or service affects the market price.

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What are the five C's of the marketing mix

Answers

The 5Cs in the marketing mix are Company, Collaborators, Customers, Competitors, and Context.

What is a Marketing mix?

The marketing mix is the collection of activities, or tactics, that a business employs to market its brand or merchandise.

A marketing framework called the 5C Analysis is used to examine the environment in which a company operates.

Along with risk exposure to various environmental factors, it can shed light on the main success factors. The 5Cs are Company, Collaborators, Customers, Competitors, and Context.

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Which two techniques aid in decisions about where an organization wants to go?

Answers

The two techniques that aid in decisions about where an organization wants to go are:

Diversification analysis.Business Portfolio analysis.

In finance, diversification is the procedure of allocating capital in a manner that reduces the publicity of anybody's specific asset or chance. A common path in the direction of diversification is to lessen hazard or volatility by means of making an investment in the diffusion of property. If asset prices do now not trade in ideal synchrony, a diversified portfolio may have much less variance than the weighted common variance of its constituent property, and regularly much less volatility than the least risky of its ingredients.

Diversification has no maximum so long as more properties are to be had. every equally weighted, uncorrelated asset brought to a portfolio can add to that portfolio's measured diversification. whilst assets aren't uniformly uncorrelated, a weighting technique that puts belongings in percentage to their relative correlation can maximize the available diversification.

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An example of a warning sign is:
a) Do Not Enter
Signal Ahead
Road Construction Ahead
Both b and c

Answers

Based on the concept of warming signs and the available options, an example of a warning sign is both B and C.

What is a Warning sign?

Warning signs are a term that is used to alert drivers to situations on or adjacent to the roadway that may be dangerous to the safe movement of a motor vehicle.

Generally, the warning signs are yellow and black or orange and black if they are in a construction area.

In this case, the Signal Ahead and Road Construction Ahead are considered warning signs. However, Do not Enter is considered a Regulatory sign.

In most cases, the shape of these signs are varied and can include diamond, Pentagon, triangular, and square sign shapes

Hence, in this case, it is concluded that the correct answer is option D. Both b and c

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Question 1 of 10
What is one advantage of a trade school education?
A. You can postpone getting a job longer.

Answers

One advantage of a trade school education is that there is easier access to courses and specialized knowledge.

What is a Trade School Education?

This refers to the type of education where some technical skills are taught to students to be knowledgeable in certain tradecrafts and occupations.

Hence, we can see that based on the fact that this is post-secondary education, it gives the students the added edge of getting access to skills and specialized knowledge.

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Answer: It is less costly than attending a four-year college.

Explanation:


Dakota earns $8.70 an hour for 37
Per month
hour week. How much is earned per week?

Answers

Answer:

$321.90

Explanation:

Energy-efficient jobs are growing! One job includes being a conservation scientist, which is part of the STEM job cluster. What is the best definition for a conservation scientist?

Answers

Answer: manage improve, and protect natural resources to maximize their use without damaging the environment.

Explanation:

hope its right

Teri's Photography has total assets of $50,800, fixed assets of $47,400, long-term debt of $36,300, and total debt of $42,900. What is the current ratio

Answers

The current ratio given the current assets and the current liabilitites for Teri's Photography is 0.52.

What is the current ratio?

Current ratio is a liquidity ratio. Liquidity ratios measure a firm's ability to meet its short terms obligations.

Current ratio = current asset /current liability

Current ratio = (total assets  - fixed assets) / (total liabilities - long term debt)

= (50,800 - 47400) / (42900 - 36300) =

3400 / 6600 = 0.52

In order to determine the current ratio, divide the current assets by the current liabilities.

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In which learning path activity do you analyze cases in a step-by-step manner to understand how the law affects business?.

Answers

A Learning Path activity that involves analyses of cases in a step-by-step manner to understand how the law affects business is  Case Problem Analysis.

What is Case Problem Analysis.?

A case problem analysis can be regarded as a learning path that involves investigation of  a business problem as well as the , examination of the alternative effective solution.

Therefore, Case Problem Analysis involves analyses of cases in a step-by-step manner to understand how the law affects business .

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Consider the market defined by the following demand (Pd) and supply (Ps) functions: Pd = 200 - 2Q and Ps = 20 + 3,5Q, where P and Q are the price and quantity respectively. What are the producer and consumer surplus of the product respectively? (Round off your final answer to the nearest integer) O a. 2 202 and 536 O b. 1874 and 1 071 O c. 1 071 and 1 874

Answers

The producer and consumer surplus of the product are respectively:

b. 1874 and 1 071.

To calculate the producer and consumer surplus, we need to find the equilibrium price and quantity in the market. This occurs where the demand and supply curves intersect.

The demand function is given as Pd = 200 - 2Q, representing the price as a function of quantity demanded.

The supply function is given as Ps = 20 + 3.5Q, representing the price as a function of quantity supplied.

Setting Pd equal to Ps, we can solve for the equilibrium quantity:

200 - 2Q = 20 + 3.5Q

180 = 5.5Q

Q = 180/5.5 ≈ 32.73

Substituting this value back into the demand or supply function, we can find the equilibrium price:

P = 200 - 2(32.73)

P ≈ 134.54

To calculate the producer surplus, we find the area above the supply curve and below the equilibrium price. This can be calculated as:

Producer Surplus = 0.5 * (134.54 - 20) * 32.73 ≈ 1874

To calculate the consumer surplus, we find the area below the demand curve and above the equilibrium price. This can be calculated as:

Consumer Surplus = 0.5 * (200 - 134.54) * 32.73 ≈ 1071

Therefore, the producer and consumer surplus of the product are approximately 1874 and 1071, respectively.

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