Producer surplus is the difference between a. the market price and the minimum price a buyer is willing to pay b. the market price and the minimum price a seller is willing to accept. c. the maximum price a seller is willing to accept and the market price. d. the maximum price a buyer is willing to pay and the market price

Answer:

The correct answer is letter "D": voluntary.

Explanation:

Voluntary organizations are non-profit associations with a mission and vision. On colleges, it is very common to find these groups of students who usually get together to share their experiences with activities of interest such as sports, dance, community service or cultural exchange.

Answer:

$161.50

Explanation:

Amount Invested = $1,000

Number of years = 4

Return for each year = Amount Invested × Interest rate

                                  = $1,000 × Interest rate

For 2012:

Interest rate = 16.35% = 0.1635

Therefore,

Return for 2012 = $1,000 × 0.1635

                          = $163.50  

For 2013:

Interest rate = 31.50% = 0.3150

Therefore,

Return for 2013 = $1,000 × 0.3150

                          = $315.00  

For 2014:

Interest rate = 13.85% = 0.1385

Therefore,

Return for 2014 = $1,000 × 0.1385

                          = $138.50  

For 2015:

Interest rate = 2.90% = 0.029

Therefore,

Return for 2015 = $1,000 × 0.029

                          = $29.00  

Average for 2012-2015

To get this, we add the returns for the 4 years, i.e. 2012-2015, and then divide it by the number of years which 4 as follows:

Average for 2012-2015 = ($163.50  + $315.00 + $138.50 + $29.00) ÷ 4

                                       = $646.00  ÷ 4

                                       = $161.50

Therefore, George's average return for the period is $161.50.

I wish you all the best.

Rent control, though intended to keep housing affordable, can result in incentives for the development of upscale housing over low-income units, high turnover of rent-controlled units and decreased property upkeep due to lower profits.

Rent control is a form of government regulation that restricts the amount landlords can increase rent for housing. Unintended effects of rent control include:

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Answer and Explanation:

Date        Account Title and Explanation                            Debit          Credit

Feb 1     Treasury Stock (2000*$19)                                     $38,000

             Cash (2000*$19)                                                                       $38,000

              (Repurchased 2,000 treasury stock @ $19 per)

Mar 1     Cash (870*$17)                                                          $14,790

             Retained Earning {870*($19-$17)}                              $1,740

             Treasury Stock(870*$19)                                                           $16,530

             (Reissued 870 out of 2000 treasury stock @ $17 per)

Mar 18   Cash (530*$13)                                                           $6,890

              Retained Earning {530*($19-$13)}                             $3,180

              Treasury Stock(530*$19)                                                         $10,070

              (Reissued 530 out of 2000 treasury stock @ $13 per)

Apr 22  Cash (510*$21)                                                              $10,710

             Treasury Stock(510*$19)                                                            $9,690

             Paid in Capital from Treasury Stock{510*($21-$19)}                 $1,020

             (Reissued 510 out of 2000 treasury stock @ $17 per)  

NOTE : loss of sale should be charges from Retained Earning.

Final answer:

To calculate the total fixed marketing cost, sum up the marketing costs for each month which equals $488,051.

Explanation:

To calculate the total fixed marketing cost, you need to sum up the marketing costs for each month. In this case, the marketing costs for the past six months are:

Add the above values together to get the total fixed marketing cost:

Total fixed marketing cost = $82,736 + $74,527 + $83,060 + $82,320 + $82,520 + $82,888 = $488,051.

Answer:

Option C is correct P(q) = -0.005q^{2}  + 2.25q - 100  

Explanation:

Profit P(q) = R(q) – C(q)

Profit = Revenue – Cost

So,  

P(q) = -0.005q^{2}  + 2.5q - 100 – 0.25q

P(q) = -0.005q^{2}  + 2.25q - 100  

In order to find break even, you should plug 50 and 400 into the formula P(q) = -0.005q^{2}  + 2.25q - 100  

Answer:

The FROM AGI deductions for year 2019 are $24,400.

Explanation:

FROM AGI deduction for a year are the maximum of the following two items

Here itemized deduction is given as $22,550 where as value of standardized deduction is $24,400 (for 2019)

Thus as the maximum of two is valid thus the FROM AGI deductions for year 2019 are $24,400.

Answer:

b. 6 pairs of jeans per crate of olives; and

c. 4 pairs of jeans per crate of olives

Explanation:

                 Olives       Jeans      Trade off Ratio (Olives:Jeans)

Spain            1               3            1:3 or 0.33:1       (1/3 = 0.33)

Denmark      1              11            1:11 or 0.09:1     (1/11= 0.09)

Spain & Denmark have less opportunity cost & hence comparative advantage than each other,  in Olive & Jeans respectively.

Spain will export Olives to Denmark (importer). Denmark will export Jeans to Spain (Importer). Trade will be gainful if they get exchange ratio better than domestic exchange ratio.

'4 jeans pairs per olive crate'  is gaining trade ratio for:

'6 jeans pairs per olive crate' is gaining trade ratio for:

Both of them are gainful trade ratios, but:

The trade rates that would allow both countries to gain from trade are 6 pairs of jeans per crate of olives and 4 pairs of jeans per crate of olives. This is because these rates fall between the opportunity costs of both countries.

In the given scenario, for both Spain and Denmark to gain from trade, the trade rate should fall between both countries' opportunity costs. Hence, Spain's opportunity costs for producing olives, which is 3 pairs of jeans, and Denmark's opportunity cost of producing olives which is 11 pairs of jeans, would determine the trade rate. Therefore, the trade rates that would benefit both countries are:

This is because for Spain to gain, it should receive more than 3 pairs of jeans for each crate of olives it exports, and for Denmark to gain, it should receive more than 1/11 crate of olives for each pair of jeans it exports.

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Answer:

the change in quantity divided by the quantity.

Explanation:

Percentage Change in any variable is calculated by :

(Change in Variable / Variable old value ) x 100 ; where

Change in Variable = Variable New Value - Variable Old Value  

Example :  If Price change from 10 to 15

Percentage change in price = (Change in Price / Old Price) x 100

                                               = [(15-10) / 10] x 100

                                               =  [ 5/10 ] x 100

                                                = 50%  

The income elasticity of demand describes how demand for a good changes with income, using positive values for normal goods (demand rises as income rises). As Blake consumes more name-brand chips after a salary bump, those can be classified as normal goods. The midpoint method used for calculations require two sets of quantities and incomes, rendering a specific numerical answer impossible in this case.

The student's question is about calculating the income elasticity of demand using the midpoint method. Elasticity of demand is a measure of how much the quantity demanded of a good changes when the income changes. In the case of Blake, he stops eating generic chips and starts eating name-brand chips when his wage increases. This is an example of a normal good, as consumption increases with an increase in income.

However, when calculating the income elasticity of demand using the midpoint method, we need two sets of quantities and two sets of incomes. As only one set is provided in the question (Blake's switch to name-brand chips), it's impossible to provide a numerical answer.

However, what we can say is that if the income elasticity of demand is positive, then the good is a normal good: demand for it increases as income increases. Therefore, we could describe name-brand chips as a normal good for Blake.

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Blake's income elasticity of demand for generic potato chips is calculated as -4, indicating that these chips are an inferior good for him.

Income Elasticity of Demand for Generic Potato Chips

To determine Blake's income elasticity of demand for generic potato chips, we need to use the midpoint method. The formula for income elasticity of demand (E) is:

[tex]E = \frac{Delta Q }{Q_{avg} } * \frac{Delta I}{I_{avg}}[/tex]

Here, Delta Q is the change in quantity demanded, Q_avg is the average quantity demanded, ΔI is the change in income, and I_avg is the average income.

Calculate the changes and averages:

Change in Q = Q₂ - Q₁ = 0 - 2 = -2

Q_avg = (Q₁ + Q₂) / 2

Q_avg = (2 + 0) / 2 = 1

Change in I = I₂ - I₁ = 15 - 9 = 6

I_avg = (I₁ + I₂) / 2

I_avg = (9 + 15) / 2 = 12

Plug these values into the formula:

[tex]E = \frac{-2}{1} * \frac{6}{12}[/tex]

E = -2 / 0.5 = -4

Since the elasticity is negative, generic potato chips are an inferior good for Blake, meaning that as his income increases, his demand for generic potato chips decreases.

Answer:

= 12.91 trillion rupees.

Explanation:

The question is to Calculate Pakistan's GDP based on the provided information

First, the formula to calculate the Gross Domestic Product is as follows:

GDP= C + I +G+ (X - M)

Where C= Individual Consumption= 9.30 trillion rupees

I = The investment = Business Investment = 1.80 trillion rupees

G= Government Purchases = 2.60 trillion rupees

X= Exports= 1.29 trillion rupees

M= Imports = 2.08 trillion rupees

Using the formula therefore,

Pakistan's GDP

= 9.30 trillion rupees + 1.8 trillion rupees + 2.6 trillion rupees + (1.29 trillion rupees - 2.08 trillion rupees)

= 12.91 trillion rupees.

To calculate Pakistan's GDP, we add up the government purchases, individuals' consumption, individuals' savings, businesses' investments, foreigners' spending on Pakistani firms, and Pakistan's exports, and subtract the imports. The GDP of Pakistan is 18.70 trillion rupees.

To calculate Pakistan's GDP, we need to sum up the government purchases, individuals' consumption, individuals' savings, businesses' investments, foreigners' spending on Pakistani firms, and Pakistan's exports. We then subtract Pakistan's imports. The GDP can be calculated as follows:

GDP = Government purchases + Individuals' consumption + Individuals' savings + Businesses' investments + Foreigners' spending on Pakistani firms + Pakistan's exports - Pakistan's imports

Using the given values, we can calculate the GDP as:

GDP = 2.60 + 9.30 + 5.18 + 1.80 + 0.61 + 1.29 - 2.08 = 18.70 trillion rupees

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Answer:

$740.8

Explanation:

To answer this question the following steps are undertaken

1) We consider the Marginal tax bracket Art falls within. And it becomes obvious that his bracket in 2020 is higher than that of 2019. The implication of this discovery is that claiming expenses in 2020 will save more taxes for Art than in 2019.

2) What is his tax savings in 2020 = $10,000 x (0.32-0.24) = $800

Finally, since the present value of tax savings is 0.926

Then the tax savings to realize for 2020 is

$800 x 0.926 = $740.8

Answer:

a.Company A has a lower return on assets (ROA).

c.Company A has a lower times interest earned (TIE) ratio.

That is options a and c

Explanation:

For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.

ROA= Net income/Total assets

Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.

TIE = Earnings before Interest and Tax/Interest

Due to higher debt of company A it's interest will be higher resulting in low TIE.

Final answer:

The correct statement is that Company A, with a higher debt ratio than Company B, has a lower times interest earned (TIE) ratio since they have the same EBIT and total assets, but Company A has higher interest obligations.

Explanation:

When considering companies with the same level of total assets, tax rates, and earnings before interest and taxes (EBIT), the company with a higher debt ratio is Company A. The debt ratio is a measure of financial leverage. The effect of a higher debt ratio on Company A might result in a lower times interest earned (TIE) ratio compared to Company B, due to the higher interest obligations inherent in a higher level of debt. Since the return on assets (ROA) formula does not include interest expenses and both have the same EBIT and total assets, ROA would not be different between Company A and B. Similarly, basic earning power (BEP) would not be impacted since it factors in EBIT relative to total assets, and these are the same for both companies. Therefore, the most correct statement is that Company A has a lower TIE ratio.

The TIE ratio is crucial for assessing a company's ability to meet its interest obligations and indicates how many times a company can cover its interest charges with its pre-tax earnings. A lower TIE ratio implies decreased financial stability and increased risk of default.

Answer:

The correct answer is letter "D": his technical skills are of the utmost priority.

Explanation:

Shift managers require technical and conceptual skills. However, most of their job implies being in permanent interaction with subordinates in helping them perform their day-to-day duties efficiently. Then, the technical skills are likely to be more necessary for this type of job.

Answer:

A. The first scenario where all three workers spend all their time mowing lawns,

In 10 hours  = Larry mows 10 lawns, Moe mows 10 lawns, and Curly mows 20 lawns = (Total is 40 lawns mowed, and 0 cars washed)

B. The second scenario where all three workers spend all their time washing cars

In 10 hours = Larry washes 10 cars, Moe washes 20 cars, and Curly washes 10 cars = (Total is 40 cars washed, and 0 lawn mowed)

C. The third scenario where all three workers spend half their time on each activity then;

In 5 hours for mowing lawns and 5 hours for washing cars we get:

Larry mows 5 lawns and washes 5 cars

Moe mows 5 lawns and washes 10 cars

Curly mows 10 lawns and washes 5 cars

In total they mowed 20 lawns and washed 20 cars

D. The fourth scenario, Larry spends half his time on each activity, while Moe only washes  cars and Curly only mows lawns.

Larry mows 5 lawns and washes 5 cars

Mow washes 20 cars

Curly mow 20 lawns

In total, 25 lawns will be mowed and 25 cars will be washed

When this is plotted, the production frontier would produce a bow out shape, which is as a result of opportunity cost.

From the diagram, it can be clearly seen that Scenario C is inefficient because it is possible to mow more lawns and also wash more cars without actually reducing the production of others to 25 each.

Yes C is inefficient because more lawns can be mowed and more cars can be washed by simply just reallocating time of the 3 workers.

Explanation:

The query concerns economic concepts of specialization and division of labor. Here Larry, Moe, and Curly specialize in tasks where they are most productive. Their productivity dictates their involvement in the labor market, influencing their earnings and the wider economic activity.

The question about Larry, Moe, and Curly's productivity in an economy revolves around the concept of specialization and division of labor. This is a core economic concept where workers focus on performing specific tasks more efficiently than others based on their abilities. In the provided scenario, each worker is able to produce two services but at different rates - this is an example of their specialization.

The division of labor allows Larry, Moe, and Curly to choose the tasks they're most efficient at, thus maximizing their productivity within the economy. Their individual productivity levels would then determine their earning potential and standard of living. By understanding their specialist areas, they can make informed decisions about their work, becoming more involved in the labor market and potentially increasing their wages.

The circular flow diagram provides a great overview of economic activity, showing how households (like our workers) and firms interact in two key markets - labor and goods/services. In this model, our workers would be selling their labor to firms in return for wages, which they can then spend on goods and services in the marketplace.

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Answer:

Ten pounds of chicken to trade for at least 40 pounds of vegetables but not more than 50 pounds of vegetables

Explanation:

                  Vegetables        Chicken        Trade Off Ratio

John             40                     10                4:1 (40/10) or 1:0.25 (10/40)

George          25                      5                 5:1 (25/5) or 1:0.20 (5/25)

John has comparative advantage in Chicken and George has comparative advantage in Veggies because :

So,  John will sell Chicken to George & George will sell veggies to John. Gains from trade are when each get trade ratio better than their their own trade off ratio.

Answer:

A. production

Explanation:

The production or manufacturing process is when the raw materials are converted into a finished good ready for use for the population who compose the economy of hte given region.

The other economic activities are extraction which is take the resource from the land (mining, argiculture and other)

and services which provides services to citizen without the exchange of good

The termed used to describe the process of converting resources into products that can be consumed is 'production'. The terms transformation, derived demand and substitution, while related, do not exactly define this process.

The correct answer to the question, 'What is any activity that results in the conversion of resources into products that can be used in consumption?' is A. production. In the context of business and economics, production refers to the processes and methods used to transform tangible inputs (raw materials, semi-finished goods, or subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. B. transformation, C. derived demand, and D. substitution are related terms, but they don't have the exact meaning mentioned in the question. Thus, the activity of converting resources into usable products is called production, not transformation, derived demand, or substitution.

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Answer: F

Explanation:

Production possibility frontier checks the alternative combination of products that is possible based on available resources and useful technology.

NOTE: Exhibit 2-2 is curved.

Although, in reality most PPF2 are curved, which means that there is an increase in opportunity costs due to the commensurate increase in the number of goods produced. And this is so in most cases.

Therefore, with reference to Exhibit 2-2, if PPF2 is the relevant Production Possibilities Frontier, then point F illustrates inefficiency.

Answer:

correct option is b. $36

Explanation:

given data

bought = $1,000 par convertible

convertible into common = $32 per share

bond market price increases = 12.5%

solution

we know that conversion ratio is fixed when the convertible security are issued and it does not change

we have bond is issued with a conversion price = $32

so as per each bond converting conversion ratio will be

conversion ratio =  [tex]\frac{1000}{32}[/tex] = 31.25 : 1

so by every bond which is converted , then receives  = 31.25 share

so now bond price will be = $1125

parity price of the stock will as = [tex]\frac{1125}{31.25}[/tex]

parity price of the stock  = $36

correct option is b. $36

The parity price of the stock when the market price of a $1,000 par convertible subordinated debenture increases by 12.5%, and is convertible at $32 per share, will be $36.

The subject of the question is related to convertible subordinated debentures and their relationship to the parity price of stocks. A convertible bond can be a complex financial instrument which is a type of bond that can be converted into a set number of shares of the issuer's stock. Specifically, this question addresses the calculation of the parity price of a stock when a convertible bond's market price increases.

If a customer bought a $1,000 par convertible subordinated debenture at par, convertible into common stock at $32 per share, and the bond's market price increases by 12.5%, this would affect the stock's parity price. An increase of 12.5% on the bond's par value ($1,000) results in a new bond price of $1,125. As the conversion ratio is $1,000/$32 = 31.25 shares, the parity price of the stock after the bond price increase will be $1,125/31.25 shares = $36 per share. Therefore, The parity price of the stock will be: b. $36.

Answer:

The price of domestic Cuban grapefruit for consumers will ... Increase

Cuban exports of grapefruits will ... Increase

Consumer surplus in Cuba will ... Decrease

Production surplus in Cuba will ... Increase

Explanation:

Answer:

Operating Cash flow = $309,076

Explanation:

Operating Cash flow

Sales                         = $1,349,800

-Costs                        = $903,500

-Depreciation            = $42,700

Operating Income    = $403,600

-Tax                           = $137,224

Net Income               = $266,376

Operating Cash Flow = Net Income + Non-Cash Expenses – Increase in Working Capital

Operating Cash flow = $266,376 + $42,700 - 0

Operating Cash flow = $309,076

Final answer:

The operating cash flow for Crandall Oil is calculated by subtracting total costs and taxes from total sales and adding back depreciation. The operating cash flow is $322,740.

Explanation:

To calculate the operating cash flow for Crandall Oil, we need to begin with the total sales and then subtract the costs. We add back the depreciation since it's a non-cash expense and then subtract taxes paid. The formula for operating cash flow (OCF) is OCF = (Sales - Costs + Depreciation)*(1 - Tax Rate).

Following the formula:

Sales = $1,349,800

Costs (excluding depreciation) = $903,500

Depreciation = $42,700

Tax rate = 34%

The operating income before tax is Sales - Costs + Depreciation = $1,349,800 - $903,500 + $42,700 = $489,000.

Now we need to calculate the tax, which is Operating Income before Tax * Tax Rate = $489,000 * 34% = $166,260.

Finally, we calculate the operating cash flow by subtracting the tax from the operating income before tax:

OCF = $489,000 - $166,260 = $322,740.

Answer:

d) decease in demand

Explanation:

When the produce of sweet corn crop rises by 20%, this would lead to an increase in supply. With increase in supply, the price of sweet corn shall fall, which would lead to an increase in demand as now consumers will consume more of sweet corn.

Since the relationship between price of a good and demand for it's substitute is positive, the demand for the substitute shall fall.

Thus, demand for frozen peas shall decrease as demand for sweet corn has increased.

Enviromax achieves productive and allocative efficiency by operating on the PPF, reflecting the optimal balance between economic output and environmental protection as preferred by society.

In the long run, Enviromax will produce the allocatively and productively efficient level of output if it operates on the production possibility frontier (PPF). Productive efficiency is achieved when Enviromax operates at a point on the PPF curve where it cannot produce more of one good without giving up some other good. Allocative efficiency means Enviromax is producing at a point on the PPF that reflects society’s preferences, with the optimal tradeoff between economic output and environmental protection.

Choices on the PPF like point P, with a high level of economic output and lower environmental protection, or point T, with high environmental protection and lower economic output, represent different allocative efficiencies. These choices involve an opportunity cost, which is the cost of forgoing the next best alternative when making a decision. To be allocatively efficient, Enviromax’s output level should reflect society’s preferred balance between economic goods and environmental quality.

Answer:

200 water

Explanation:

the water must be 200 degrees celecus

Final answer:

To compute the book value of the common stock at December 31, 2020, subtract the net losses from the net income to determine retained earnings. Divide the retained earnings by the number of outstanding common shares to get the book value per share. If the preferred stock has a liquidating value, add it to the retained earnings before dividing.

Explanation:

To compute the book value of the common stock at December 31, 2020, we need to determine the retained earnings of Morgan Sondgeroth Inc. Retained earnings can be calculated by subtracting the net income from the net losses of the previous years. So, for Morgan Sondgeroth Inc., retained earnings at December 31, 2020, would be:

$800,000 (2020 net income) - $260,000 (2018 net loss) - $40,000 (2019 net loss) = $500,000

The book value of the common stock can be calculated by taking the retained earnings and dividing it by the number of outstanding common shares. In this case, the book value would be:

$500,000 (retained earnings) / 750,000 (outstanding common shares) = $0.67 per share

If we assume that the preferred stock has a liquidating value of $106 per share, then the book value of the common stock at December 31, 2020 would be:

$500,000 (retained earnings) + ($106 x 5,000) (preferred stock liquidating value) / 750,000 (outstanding common shares) = $0.93 per share

Answer:

a. $7,000,000

b. $1,800,000  

c. $2,640,000  

d. $4,360,000

Explanation:

Given:

Total investment = $10,000,000

Total Units = 250,000

Unit sold = 45,000

Sale value = $12,000,000

Expenses = $5,000,000

Depletion rate = 22%

The Taxable Income before the deduction for depletion

= $12,000,000 - $5,000,000

= $7,000,000

Amount of the deduction = (Total Investment in Asset/Total Unit )* Actual unit sold.

Amount of the deduction = ($10,000,000/250,000) * 45,000

Amount of the deduction = $1,800,000

Amount of the deduction =  lesser of (Gross income's 50%) or (depletion rate% of total sale)

Amount of the deduction = lesser of (7,000,000 50%) or (12,000,000 22%)

= $2,640,000

Wes's lowest taxable income after the depletion deduction =  $7,000,000

-  $2,640,000

=  $4,360,000

Answer: d. provides non-numerical knowledge about communication

Explanation:

Qualitative research Methods mainly provide numerical information about what we are investigating, these are important because they bring us a little closer to knowing about the Target of the target market we want to reach.

An example of the qualitative information method could be the information of preferences about a product, such as a shampoo or soap, asking women in households according to the area that they want to hang and by asking these questions through a survey we can obtain the Information we want to know.

Final answer:

Qualitative research methods provide non-numerical knowledge about communication through techniques like interviews and focus groups, aimed at understanding people's opinions and experiences without the use of statistics.

Explanation:

Qualitative research methods provide non-numerical knowledge about communication(option d). This includes gaining insights into people's opinions, motivations, and experiences through methods such as in-depth interviews, focus groups, and content analysis. Qualitative methods allow researchers to explore concepts and phenomena in detail but do not typically involve statistical analysis.

Instead, they yield results such as words, pictures, and objects, which are then interpreted to understand their meaning within the context of the study. Some common qualitative techniques include conducting intensive interviews, engaging in participant observation, or holding focus groups. These methods are rooted in social sciences like anthropology, sociology, and psychology.

Answer:

The correct answer is letter "A": True.

Explanation:

Social media can be useful for different purposes but is not the best platform through which executives should provide employee appraisal because of its informal character. There are some other dynamic approaches such as 360-degree feedback in which not employers but also coworkers can rate employees' performance in their work frame, being this one of the most effective methods to boost their efficiency.

Answer:

The correct answer is letter "C": normative principles tell us how people should behave, and positive principles tell us how people will behave.

Explanation:

The discrepancy between the normative and positive statements in economics is substantially big. Economists use both types of statements when addressing economic issues with varying degrees of objectivity. Normative economics involves premises related to subjectivity and purpose. Positive economics, on the other hand, states facts and gives no sign of acceptance or disapproval.

"The correct answer is C. normative principles tell us how people should behave, and positive principles tell us how people will behave.

To understand the distinction between normative and positive economic principles, it is important to define each term:

 - Normative economic principles are prescriptive statements that reflect personal or societal judgments about economic outcomes or policies. They are value-laden and often begin with ""should"" or ""ought to."" These principles are concerned with what the economy should be like and involve value judgments.

 - Positive economic principles, on the other hand, are descriptive statements that can be tested and verified through empirical observation and research. They are objective in nature and describe how the economy actually works. Positive statements are factual and can be proven true or false.

 Given these definitions:

 A. normative principles are pessimistic and positive principles are optimistic. - This statement is incorrect because normative and positive principles are not characterized by optimism or pessimism. Instead, they differ in their focus on values versus facts.

 B. normative principles reflect social norms, and positive principles reflect universal truths. - This statement is partially correct in that normative principles can reflect social norms, but positive principles do not necessarily reflect universal truths. Positive principles are based on empirical evidence and can change with new evidence.

 C. normative principles tell us how people should behave, and positive principles tell us how people will behave. - This statement is correct. Normative principles are about what ought to be, prescribing how people should behave or how economies should function. Positive principles describe the actual behavior of individuals and the functioning of economies as observed and analyzed through data and evidence.

 D. normative principles tell us how people will behave, and positive principles tell us how people should behave. - This statement is incorrect because it confuses the nature of normative and positive principles. It reverses their definitions, suggesting that normative principles are predictive when they are actually prescriptive, and that positive principles are prescriptive when they are actually predictive or descriptive.

Answer:

1. MS Excel File is attached for the solution. Please find that.

2.                   Contribution income statement for the year

                                                                   $      

         Sales (45000 x 16 )                   720,000

Less: Variable Cost (45,000 x 6)       270,000

         Contribution Margin                 450,000

Less: Fixed Cost                                  300,000

         Net Income                                150,000