-
Flashcards
-
Learn
-
Test
-
Match
-
Flashcards
-
Learn
-
Test
-
Match
Terms in this set (25)
Recommended textbook solutions
ECONOMICS
Tina is the solve owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's equipment depreciates in value by$125,000. TLM pays $600,000 to its workers, who pay$140,000 in taxes on this income. TLM pays $50,000 in corporate income taxes and pays Tina a dividend of$150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains$75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following? a. GDP, b. NNP, c. National income, d. Compensation of employees, f. Corporate profits, g. Personal income, h. Disposable personal income.
Verified answer
Other Quizlet setsRelated questionsWhat happens to supply when price expected to increase?
The upward sloping line demonstrates this direct relationship: as the price rises, the quantity supplied increases; as price decreases, quantity supplied decreases.
Does price cause a movement or shift?
A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve. The graph on the left lists events that could lead to increased demand.
What happens to demand graph when price increases?
Understanding the Demand Curve
The demand curve will move downward from the left to the right, which expresses the law of demand—as the price of a given commodity increases, the quantity demanded decreases, all else being equal.
Is represented by a rightward shift of the demand curve?
An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve.