A 38-year-old, independently wealthy individual who lives off of her savings is part of an1. underemployed.
What is underemployment ?Underemployment describes people who can only find work for shorter periods of time than usual, such as part-timers, seasonal workers, or day or casual workers. For instance, someone with an engineering degree whose primary source of income is only as a pizza delivery man is regarded as underemployed. In addition, someone who has a part-time office job but would prefer to work full-time is also termed as underemployed.
Hence correct option is Underemployment .
The proper question is "a 38-year-old, independently wealthy individual who lives off her savings is part of which group. 1. underemployed 2. discouraged workers 3. employed 4. working."
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if you deposit $10,000 at 1.85% simple interest, compounded continuously, what would your ending balance be after 3 years? brainly
After depositing $10,000 at 1.85% simple interest, compounded continuously, the ending balance after 3 years would be $10,555.
One way to figure out the interest on an amount is to use the simple interest formula. First, it's crucial to keep in mind what interest is and how to calculate it. When you borrow money from a bank, there is also an additional sum that must be paid. Interest is the term for the additional cost that you incur.
Given:
The principal amount (P) is $10,000.
Interest rate (R) equals 1.85%
Time (T) equals three years.
Simple interest is calculated as (PXRXT)/100.
Therefore,
Simple interest is equal to 100 x (10000 * 3 * 1.85) =$555
When the principal amount is increased by simple interest,
Simple interest is 10,000 plus 555.
Interest is equal to 10,555.
Therefore, after three years, the remaining balance will be $10,555.
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what would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean pickers fell and the price of tea, a substitute for coffee, rose?
If the wages of coffee-bean pickers fell the price of coffee will be lower thus the supply of coffee will increase and effect on quantity will be vague.
Tea and coffee are substitute products, meaning they can be used in place of one another. The demand for tea will rise or fall depending on whether coffee price go up or down, accordingly. If coffee bean pickers' pay dropped, coffee bean businesses would be able to employ more of them because they could. Supply rises as a result of increased labor productivity. This dilemma implies that tea is a suitable replacement for coffee. People would shift to tea if the cost of tea dropped while the cost of coffee remained the same in order to save a few dollars. As coffee sales decline, tea sales increase. A market-clearing price, often referred to as an equilibrium price, is the consumers cost associated with a good or service at which demand and supply are equal or nearly equal.
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farm income dwindled, and agricultural prices plummeted even further.which cause best completes the table?
Overproduction and decrease in the demand for agricultural products is the cause that best completes table.
What is overproduction?A surplus of products being offered on the market in comparison to customer demand is referred to as overproduction, overstock, excess of supply, or glut in the context of economics. Due to this, there could be lower prices and/or unsold goods, as well as a possibility of job loss. According to some, supply and demand are two sides of the same coin since excess supply is only relative to a given demand and insufficient demand is only relative to a given supply. Underconsumption is the supply side's equivalent of overproduction. Since excessive investment creates surplus productive capacity that must either be idled (or underutilized), which is unprofitable, or produce an excess of supply, excess investment is frequently held responsible for overproduction in the past.
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the tax that the united states imposes on imported carbon steel products is called a tariff. true false
It is true that tax that the United States imposes on the imported carbon steel products is called tariff.
What is tariff?A tariff is a tax imposed by a government on imported or exported goods. Tariffs are typically imposed to protect domestic industries from foreign competition and to increase government revenue. The tax is levied on specific products or groups of products and can vary depending on the type of product, the country of origin, and the size of the shipment. Tariffs can also be used as a means of political leverage in trade negotiations between countries. Tariffs can have both positive and negative effects on the economy. They can increase the price of imported goods, making them less competitive with domestic products and increase government revenue. However, they can also lead to inflation and decreased demand for imported goods, which can harm consumers and lead to decreased economic growth. In general, tariffs are a controversial topic, with opinions on their usefulness varying widely.
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what technological and economic factors combined to lead to the explosive growth of american cities during the urbanization period?
The explosive growth of American cities during the urbanization period was driven by a combination of technological and economic factors. The development of industrialization and the growth of railroads led to the emergence of large manufacturing industries in cities, such as steel production, textiles, and food processing.
These industries provided employment opportunities to a large number of people and created a demand for more goods and services, leading to increased urban population growth. Finally, the availability of credit, the emergence of large financial institutions and the development of efficient transport networks all played a key role in the economic development of cities.
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ichiro enjoys eating grapefruit every day. suppose he achieves total satisfaction of 10 from eating one grapefruit, 18 from eating two grapefruit, and 24 from eating 3 grapefruit, and 28 from eating 4 grapefruit. what is his marginal benefit from the 3rd grapefruit?
The concept of marginal benefit is a fundamental idea in economics that helps us understand how consumers make choices about what goods to purchase and how much of each good to purchase.
In general, the marginal benefit from a good is the change in total satisfaction as a result of consuming one additional unit of that good. In the case of Ichiro and his daily grapefruit consumption, we can see that as he consumes more grapefruit, the total satisfaction he receives from eating them increases, but at a decreasing rate. In other words, the marginal benefit from each additional grapefruit decreases as he eats more grapefruit. To calculate the marginal benefit from the third grapefruit, we need to find the difference in total satisfaction from eating 2 grapefruit and 3 grapefruit.
Total satisfaction from eating 2 grapefruit: 18
Total satisfaction from eating 3 grapefruit: 24
Marginal benefit from the third grapefruit: 24 - 18 = 6
Therefore, Ichiro's marginal benefit from the third grapefruit is 6 units of satisfaction.
It's important to note that as Ichiro continues to consume more grapefruit, the marginal benefit will continue to decrease, and eventually reach zero. At that point, the total satisfaction from consuming additional grapefruit will be equal to the cost of consuming them, such as the money spent on buying the grapefruit, or any other opportunity cost associated with consuming them. At this point, Ichiro will have reached his optimal level of consumption, where the marginal benefit of consuming an additional grapefruit is exactly equal to the marginal cost.
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under the periodic inventory system, village fabrics purchases navy plaid fabric used in its fabric-selling business in the following lots: june 5 - 4 yards at $2.50 per yard, june 12 - 7 yards at $3.00 per yard, june 17 - 8 yards at $3.50 per yard. what is the periodic average cost of the fabric per yard?
The periodic average cost of the fabric per yard under the periodic inventory system is $3.11 per yard.
What is a system of periodic inventories?
The physical inventory count of goods is routinely scheduled under the periodic inventory system. Maintenance on physical inventories can be costly because it takes a lot of time and effort. As a result, many companies only occasionally conduct physical inventory counts. Periodic inventory systems are frequently used in place of perpetual inventory systems.
Every transaction in a periodic system is noted in the company's buy account, which keeps track of inventory by deducting the cost of goods sold (COGS). However, it does not account for returned items, damaged, lost, or destroyed items.
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a production possibilities curve that is bowed out represents the case of group of answer choices external costs. constant costs. decreasing costs. increasing costs.
A production possibilities curve that is bowed out represents the case of increasing costs.
The curve bends outward due to the law of increasing opportunity cost, which states that the quantity of a commodity that must be sacrificed for each additional unit .
Option d is correct .
Law of Increasing Opportunity Cost, If you increase production of one good, the opportunity cost of producing an additional good increases. First, remember that opportunity cost is the value of the next best option when making a decision .
The line PPF represents the constant cost between two goods. For example, for every unit of X produced, one unit of Y is lost. Out-bent PPF represents increasing opportunity costs.
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calculate four periods moving average forecast from the last six periods period/demand 1-38 2-40 3-42 4-40 5-44 6-38
The formula for the moving average of four periods is as follows:
[tex]\frac{D_{1}+D_{2} +D_{3} +D_{4} }{4}[/tex]
Assigning values
[tex]\frac{42+40+44+38}{4}[/tex]
The 4-period moving average = 41.
Therefore, option b.) 41 is correct.
A moving average can be used as a technical indicator by market analysts and investors to determine the direction of a trend. The financial security data points are totaled over a specified time period and divided by the total to determine an average.
Because it is regularly updated using the most recent pricing information, it is known as a moving average. Analysts can determine support and resistance by examining price changes for an item and using the moving average. The historical price movement or action of the security is represented by a moving average.
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The complete question is:
Calculate four periods moving average forecast from the last six periods
Period/Demand
1-38
2-40
3-42
4-40
5-44
6-38
a.) 40
b.) 41
c.) 42
d.) 43
amy, an hr professional, intends to ensure creation of the right fit between the job and the employee. which task should amy perform in this case?
One of the key tasks that Amy should perform is to create a detailed job description for the position. This involves outlining the roles, responsibilities, and qualifications required for the job, including any specific skills or experience that may be necessary. The job description should be clear and concise, and should accurately reflect the expectations of the position.
Another important task that Amy should undertake is to carefully review and screen potential candidates for the job. This involves assessing the candidate's education, work experience, and any relevant skills or certifications they may possess. She should also conduct an interview with the candidate to evaluate their fit for the job, as well as to assess their communication skills and overall suitability for the organization.
Once Amy has identified a suitable candidate, she should work with the hiring manager to ensure that the new employee is properly onboarded and trained for the position. This involves providing the necessary training and resources to help the employee become familiar with the job and the organization and to ensure that they are able to perform their duties effectively.
In summary, creating the right fit between the job and the employee involves a range of tasks that aim to match the skills, knowledge, and experience of a potential employee with the requirements of the job position.
These tasks may include creating a detailed job description, carefully reviewing and screening potential candidates, and ensuring that the new employee is properly onboarded and trained for the position.
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explain how the competitive inhibitor stops trypsin working
Enzymes are essential proteins that facilitate chemical reactions in living organisms. Trypsin is one of the important enzymes in the digestive system that helps in breaking down proteins. However, sometimes, other molecules can interfere with the function of trypsin, preventing it from doing its job. Such molecules are called competitive inhibitors.
A competitive inhibitor is a molecule that is similar in shape to the substrate that the enzyme binds to. In the case of trypsin, the substrate is a protein that needs to be broken down into smaller pieces.
When a competitive inhibitor molecule enters the scene, it competes with the substrate for the active site on the trypsin enzyme. The active site is the specific region on the enzyme where the substrate binds to and where the chemical reaction takes place.
Since the competitive inhibitor and the substrate have similar shapes, they both fit into the active site, but only one can be processed at a time. If the inhibitor molecule successfully binds to the active site, trypsin will not be able to bind to the substrate, and the chemical reaction cannot take place. Therefore, the presence of the competitive inhibitor stops trypsin from working efficiently.
It's important to note that the competitive inhibitor does not permanently damage trypsin. Once the inhibitor molecule leaves the active site, trypsin can resume its normal function. However, if there is a high concentration of competitive inhibitor molecules, trypsin may not be able to bind to enough substrate molecules to carry out its function, leading to a decrease in overall enzyme activity.
In summary, a competitive inhibitor is a molecule that competes with the substrate for the active site on an enzyme. When a competitive inhibitor binds to the active site of trypsin, it prevents the substrate from binding to trypsin, leading to a decrease in enzyme activity. This phenomenon demonstrates the importance of a balance between enzymes, substrates, and inhibitors in biological systems.
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the temporary account used only for the closing process that contains a credit for total revenues and a debit for total expenses is the:
revenues and a debit for total expenses is the income summary account.
The account for the total income: Only utilized at closing, the income summary account functions as a transitional account. It includes every expense and revenue incurred by the business during the current accounting period.
An income statement, also known as a profit and loss account, is one of a company's financial statements and displays the company's receipts and outlays for a specific time period. It details the conversion of revenues into net income or net profit.
At the conclusion of each accounting period, all temporary accounts for a business are closed and transferred to the income summary account.
To put it another way, the value of each account on the income statement is debited from the temporary accounts and then credited as a single number.
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Full question:
The temporary account used only for the closing process that contains a credit for total revenues and a debit for total expenses is the:
A) Closing account
B) Contra account
C) Real account
D) Balance column account
E) Income summary account
bell's law states that a new computer class forms roughly each decade establishing a new industry. group of answer choices true false
The statement is True. Bell's law states that a new computer class forms roughly each decade establishing a new industry
Bell's law of computer classes figured out by Gordon Bell in 1972 depicts how kinds of processing frameworks (alluded to as PC classes) structure, advance and may ultimately cease to exist. New classes of PCs make new applications bringing about new business sectors and new enterprises.
Chime believes the law to be somewhat a conclusion to Moore's regulation which expresses "the quantity of semiconductors per chip twofold like clockwork". Dissimilar to Moore's regulation, another PC class is normally founded on cheaper parts that have less semiconductors or less pieces on an attractive surface, and so on. Another class structures about each 10 years. It likewise requires as long as 10 years to comprehend how the class framed, developed, and is probably going to proceed. When framed, a lower evaluated class might develop in execution to dominate and upset a current class. This development has made bunches of versatile PCs with 1 a huge number of computers to traverse a cost and execution scope of purpose from a PC, through centralized computers, to turn into the biggest supercomputers of the day. Versatile bunches turned into a widespread class starting during the 1990s; by 2010, groups of no less than 1,000,000 free PCs will comprise the world's biggest group.
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the broad term referring to the practical applications of science and knowledge to commercial and organizational activities is called blank . multiple choice question. technology social investment social networking shared value
A broad term referring to the practical applications of science and knowledge to commercial and organizational activities is called Technology. The correct option is A.
Technology is the use of knowledge to accomplish practical objectives in a repeatable manner. The term "technology" can also refer to the outcomes of such endeavours, encompassing both material tools—such as machinery or utensils and immaterial ones such as software. In research, engineering, and daily life, technology is essential.
Society has undergone substantial transformation as a result of technological breakthroughs. The earliest technology that has been identified is the stone tool, which was employed during prehistoric times. This was followed by the ability to regulate fire, which helped the human brain expand and language to emerge during the Ice Age. The development of the wheel during the Bronze Age facilitated greater travel and the development of more sophisticated machinery.
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is a customer list an example of tangilbe personal property or intangible personal property?
Answer: Intangible personal property
Explanation:
typically, when interest rates rise, group of answer choices businesses make bigger capital investments. businesses are willing to borrow more money. businesses are less likely to expand. consumers are willing to borrow more.
When interest rates rise consumers are willing to borrow more. Businesses with existing loans and company credit cards may experience higher interest payments, less disposable income, and higher overheads as a result of an increase in interest rates. The answer is OPTION D.
In some circumstances, borrowers might find themselves repaying the loan principal in addition Businesses to the interest only. Your credit card debt gets more costly when the Fed raises interest rates. This is due to the fact that credit card companies' interest rates frequently follow the federal funds rate exactly. The amount that commercial banks charge one another for short-term loans is influenced by this key interest rate.
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when evaluating a make-or-buy decision, managers should consider blank . multiple select question. all variable production costs opportunity costs all fixed production costs
When evaluating a make-or-buy decision, managers should consider
qualitative factorsopportunity costsall variable production costsWhat is the make-or-buy decision?The make-or-buy decision refers to decision-making that takes place by the manufacturer in which he decides whether he has to manufacture a product or buy it from an outside source by determining all the factors.
Using price analysis to make a strategic decision is known as a make-or-buy decision. This is based on manufacturing costs as well as research and specialized knowledge of the provider that the buyer lacks.
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what is the name of the restaurant near the secure credit union performing arts center?
Restaurants near SAFE Credit Union Performing Arts Center. Sacramento, California. A hippie cafe. Coffee & Tea, Cafe Burger Town. Hamburgers, beer garden.
Restaurants near SAFE Credit Union Performing Arts Center Vines Cafe Dawson's Steakhouse Brasserie du Monde Capitol Garage Ella Dining Room and Bar. //aviewfrommyseat.com › Nearby Restaurants › SAFE...
A hippie cafe. Coffee & Tea, Cafe; Burger Town. Hamburgers, beer garden. Ramen House Ryujin. Ramen; Sawasdee Thai food; Thailand;T Coconut Hippie Restaurants Near Me. CA All "Hippie Restaurants" results are located in Sacramento, CA. ... Old soul 1.5 km. 902 reviews. ...Veg cafe. 1.2 km 604 reviews. ...Shady Lady Saloon. 1.7 kilos 1666 reviews. ...Swabia. 19.8 km... The Red Rabbit Kitchen and Bar. 1.0 km... flamingo house. 1.2 kg ...MIX downtown. 1.7 kilos
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2. explain why cpi is calculated using the same quantities as the base year instead of different quantities each year?
The Consumer Price Index (CPI) is a measure of the average change in prices over time for a basket of goods and services consumed by households.
The basket of goods and services is meant to represent the typical spending patterns of households, and it is used to calculate the cost of living.
Using the same basket of goods and services each year as a base allows for comparability of the price changes from one year to the next. If the basket were to change from one year to the next, it would be difficult to compare the changes in prices, as the basket would no longer be representative of the same set of goods and services.
In addition, using the same basket of goods and services each year helps to account for changes in consumer behavior over time.
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studies show that more than 75% of a business firm's profits can be explained by alignment of it with business. group of answer choices true false
True. Studies have demonstrated that a business's financial performance can significantly increase when its strategy and operations are highly aligned.
In fact, studies have shown that the alignment of a company's strategy, procedures, people, and culture can account for more than 75% of its profitability.
It's vital to keep in mind that this is simply an average and that actual results will depend on the industry, market, and type of business.
A business's financial performance is influenced by a wide range of other variables, such as the general state of the market, rivalry, and the caliber of the goods or services provided.
Therefore, it's critical for businesses to continually assess and refine their strategies to ensure that they are aligned with their overall goals and delivering the desired results.
The correct option is true.
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On january 1, 2016, bravo industries purchased $900,000 of 8% bonds from rl enterprises. Bravo paid $937,422 for the bonds, which will mature january 1, 2021. Interest on the bonds is payable each july 1 and january 1. Effective interest rate on the bonds is 7%. Using the effective interest method, bravo recorded amortized premium of $3,186 in july 2016 and $3,294 in december 2016. On february 1, 2017, bravo sold the bonds for $927,000
As per the details given in the question, Bravo Industries should report a $3,375 gain on the sale of the bonds.
A gain is a general expansion in the worth of a resource or property. An increase emerges in the event that the ongoing cost of something is higher than the first price tag. For bookkeeping and duty purposes, gains might be ordered in more ways than one, like net versus net gains or acknowledged versus hidden (paper) gains. Capital increases may moreover be named momentary versus long haul in nature.
A gain can be stood out from a misfortune, which happens when property or resources held lose esteem contrasted with their price tag. A misfortune can hence be interpreted as a negative increase.
To determine the gain or loss on the sale of the bonds, we need to compare the carrying value of the bonds at the time of the sale to the sale price.
The carrying value of the bonds at the time of the sale, February 1, 2017, was $930,375. The sale price was $927,000. So, the gain or loss on the sale of the bonds would be:
$930,375 - $927,000 = $3,375 gain
Therefore, Bravo Industries should report a $3,375 gain on the sale of the bonds.
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Complete Question -
On January 1, 2016, Bravo Industries purchased $900,000 of 8% bonds from RL Enterprises. Bravo paid $937,422 for the bonds, which will mature January 1, 2021. Interest on the bonds is payable each July 1 and January 1. Effective interest rate on the bonds is 7%. Using the effective interest method, Bravo recorded amortized premium of $3,186 in July 2016 and $3,294 in December 2016. On February 1, 2017, Bravo sold the bonds for $927,000. If the bonds had a carrying value of $930,375 at this time, how much gain or loss should Alpha report on the bonds?
The business-level strategies that managers choose to adopt have implications for every area of the organization. A manufacturing company has hired you as its new chief strategy officer because you have a deep understanding of how organizations implement business strategy. Answer the following questions. If the company uses Porter's cost leadership strategy, what should marketing and sales emphasize? a. The ability of the company's products to satisfy more than basic needs b. The prestige that the company's brand conveys c. The fact that the company's products are easily mass-produced d. The good value of the company's products
The option that marketing and sales should emphasize if the company uses Porter's cost leadership strategy is d) the good value of the company's products.
What is the business-level strategies?If the company uses Porter's cost leadership strategy, marketing and sales should emphasize the good value of the company's products. Cost leadership strategy is focused on reducing the costs of production and distribution as much as possible, to offer products at a lower price than competitors.
This means that the company should seek to be the low-cost producer in its industry.
Therefore, Marketing and sales efforts should focus on communicating this cost advantage to customers and emphasizing the fact that the company's products offer good value for the price.
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choose the option that will increase the net present value (other things equal)? group of answer choices a decrease in the discount rate a decrease in the number of cash inflows a decrease in the size of the cash inflows an increase in the initial cost of the project
A lower discount rate which will result in a higher net present value. (other things equal).
The NPV of the project is increased by front loaded bidding approach. However, there may be significant drawbacks to using a front-loaded bidding approach. The NPV decreases when the rate increases and vice versa. This is due to the fact that greater rates of discount result in future cash flows having less value. Consequently, a lower rate always is preferred. A given current value should be increased by increasing the discount rate. The rate rises whenever the depreciation is modified to account for risk. Lower present values are the result of higher discount rates. This is due to the fact that a larger discount rate predicts that the value of money will increase more quickly over time.
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as a business grows, managers need to relinquish some of their roles and responsibilities. this is known as
As a business grows, managers need to relinquish some of their roles and responsibilities this is known as delegation.
Delegation is the practise of giving others the power and duty to carry out particular duties or activities. Managers need to hand over more of their duties to other employees as the company expands and gets more complicated. By doing so, the manager may concentrate on duties that are more crucial to the success of the company as a whole.
Since managers must put their faith in others to do the responsibilities they have been given, delegation can be difficult. It is crucial for managers to carefully choose the people to whom they assign jobs and to offer them the tools and support they need to succeed.Overall, managers should use delegation as a key tool.
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the dividend pattern for a stock with supernormal dividend growth can be most correctly described as
The dividend pattern for a stock with supernormal dividend growth can be most correctly described as: a. experiencing a period of non-constant growth followed by constant growth forever
What is the dividend pattern for a stock?Experiencing a period of non-constant growth followed by constant growth forever refers to a situation where a stock's dividends initially grow at a rapid, non-constant rate and then level off and grow at a constant rate thereafter.
This pattern is often seen in companies that go through a period of rapid expansion and high profitability, during which they pay out increasing dividends. As the company matures and reaches a more stable financial position, the rate of growth of its dividends becomes more consistent and predictable.
Therefore the correct option is A.
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The complete question is:
The dividend pattern for a stock with supernormal dividend growth can be most correctly described as:
a. experiencing a period of non-constant growth followed by constant growth forever
b. experiencing a period of non-constant growth forever
c. having no discernible patter to its dividend growth
d. experiencing a period of constant growth followed by non-constant growth forever
analyzing data and presenting the findings are the two parts of which step in the marketing research approach?
Analyzing data and presenting the findings are the two parts of which step of develop findings.
What is the marketing research?Analyzing data and presenting the findings are two parts of the "Data Analysis and Report Generation" step in the marketing research approach.
Therefore, In this step, the collected data is processed and analyzed to uncover insights and draw conclusions. This involves cleaning and organizing the data, running statistical tests and creating visual representations such as charts and graphs. The goal is to identify patterns and relationships within the data that can inform marketing decisions.
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a bond promises to pay $500 in one year and $10,500 in two years. what is the correct way to find the present value of this bond? 'r' represents the interest rate in decimal places, e.g. 0.03.
The Present value of a bond is the value of the future cash flows that the bond promises to pay, discounted back to the present $500 in one year and $10,500 in two years.
The formula to calculate the present value of a single cash flow at time t is: Present value = Future cash flow / (1 + r)^t
where r is the interest rate.
So, for the first cash flow ($500 in one year), the present value can be calculated as:
Present value of $500 = $500 / (1 + r)^1
For the second cash flow ($10,500 in two years), the present value can be calculated as:
Present value of $10,500 = $10,500 / (1 + r)^2
Finally, the present value of the bond is the sum of the present values of the two cash flows:
Present value of bond = Present value of $500 + Present value of $10,500
This calculation gives us the present value of the bond, which represents its value today given the expected future cash flows and the interest rate.
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u.s. treasury bills are considered the safest of all money market instruments because there is a low probability of desertion. defeat. default. demarcation.
The Government of India issues Treasury Bills, which are money market instruments in the form of promissory notes that are guaranteed to be repaid at a later time.
The money raised through such measures is often utilized to fund the government's immediate needs, hence lowering the overall fiscal deficit of the nation.
A short-term treasury bill aids in the government's ability to raise money in order to pay well beyond, which exceed its annual revenue collection.
The goal is to reduce the overall fiscal imbalance in an economy and control the total amount of money in circulation at any given time.
Since they are completely guaranteed by the U.S. government, Treasury bonds are regarded as low-risk investments that are typically risk-free when held to maturity.
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what is the maximum change in output when government spending increases from $200 to $300, given the marginal propensity to save is 0.5? the output increases by $200. the output decreases by $200. the output increases by $600 the output increases by $100. the output increases to $400.
In the given scenario the output increases to $400.
The increase in spending = $200 to $300
The marginal propensity to save = 0.5
MPC monitors the percentage of extra income that is spent on the consumption of goods and services rather than conserving it, or we can say that it measures the proportion of rising consumption with rising income.
Using the formula to calculate propensity -
Y = (change in government expenditure / marginal propensity to consume
Where MPC can be used to get the maximum change in output (Y).
Calculating MPC -
MPC = 1 - 0.5
= 0.5
Therefore,
ΔY = 300 - 200 / 0.5
= 100/0.5
= 400
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Assume that you are the inventory officer at wholesale and Retail Ltd, you noticed that large amounts of some items are ordered while there is a zero balance for other items. List four reasons for controlling stock at the company.