Which best describes what happens to a corporation after its owners retire quizlet?
Which best describes what happens to a corporation after its owners retire? not It transfers to new owners. It continues in business.
Which are indicators that economics use to measure how an economy grows?
National income, output, and spending are three key variables that indicate whether an economy is growing, or in recession. Like many other indicators, income, output, and spending can also be measured in per capita (per head) terms. Growth in real national income.
Which economic indicators are used to measure the global economy choose four answers?
Gross domestic product and purchasing power parity are two of the indicators that are used to measure the worth of an economy, a nation’s or global. Gross domestic product is the aggregate of the values of all goods and services produced in an economy within its borders in a period, usually a year.
Which best describes how advertising influences consumer choice?
The correct answer is D) Advertising informs brand knowledge. The option that best describes how advertising influences consumer choice in an oligopoly is “Advertising informs brand knowledge.” That is why companies design complex marketing campaigns that include public relations and advertising.
What is the role of the three questions of economics?
The role of three question of economics is to act as the basic principle of production decision making. “What to produce”, “How to produce”, and “For whom it should be produced” are the three basic questions of economics.
Which factors influence changes in consumer demand?
The economic factors that most affect the demand for consumer goods are employment, wages, prices/inflation, interest rates, and consumer confidence.
What can cause an increase in supply?
An increase in supply can be caused by:
- an increase in the number of producers.
- a decrease in the costs of production (such as higher prices for oil, labor, or other factors of production).
- weather (e.g., ideal weather may increase agricultural production)
What can cause a change in supply?
A change in supply can occur as a result of new technologies, such as more efficient or less expensive production processes, or a change in the number of competitors in the market. Essentially, there is an increase or decrease in the quantity supplied that is paired with a higher or lower supply price.
How will an increase in demand and a simultaneous decrease in supply?
If an increase in demand increases equilibrium price and a decrease in supply increases equilibrium price, then both together MUST increase equilibrium price. The demand shift results in a larger quantity, and the supply shift leads to a smaller quantity.
Why does a change in the supply of money have no effect on output?
Money is neutral because nominal money supply has no effect on output and the interest rate in the medium run. Because the IS curve doesn’t move, there is no effect on the interest rate (and level of investment) so that the level of output also does not change.
What do points below the IS curve signify?
By contrast points below and to the left of the IS curve are points of excess demand for goods (EDG). At a point like G, for instance, the interest rate is too low and aggregate demand is too high relative to output.
What are factors that shift is curve to the left?
If the money supply increases (decreases), ceteris paribus, the interest rate is lower (higher) at each level of Y, or in other words, the LM curve shifts right (left). That is because at any given level of output Y, more money (less money) means a lower (higher) interest rate.
What happens when there is a supply shock?
A supply shock is an unexpected event that changes the supply of a product or commodity, resulting in a sudden change in price. A positive supply shock increases output causing prices to decrease, while a negative supply shock decreases output causing prices to increase.