Explain the four major theories of the causes of the business cycle.
What will be an ideal response?
| 1. | Monetarist theory: Erratic growth of money supply is the main cause of business cycles. |
| 2. | Keynesian theory: Swings of optimism and pessimism that cause business investment in capital goods to fluctuate cause business cycles. |
| 3. | Real business cycle theory: Sudden shocks to productivity cause business cycles. |
| 4. | Changes in the prices of key factors of production, such as oil can also cause business cycles. |
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Writing for audiences of another culture usually requires
A) a more formal style. B) a humorous anecdote. C) colorful adjectives or adverbs. D) the use of contractions such as we've to retain a conversational tone. E) the use of as much jargon as possible.
Markup is the dollar amount of money added to the product cost to determine its selling price.
Answer the following statement true (T) or false (F)
In applying the first-in, first-out method of costing inventories, if 8,000 units which are 30% completed are in process at June 1, 28,000 units are completed during June, and 4,000 units were 75% completed at June 30, the number of equivalent units of production for June was 33,400
Indicate whether the statement is true or false
Nicolas is the director of Bit Industries, a drill manufacturer. He is also a major shareholder of Deep Green Corp, a leading landscaping tools manufacturer. Bit undergoes a financial crunch and finds it difficult to raise money
Nicolas signs up Bit as a supplier of drills to Deep Green Corp Having obtained a new client, Bit manages to avoid financial distress. However, Nicolas has not informed anyone of what he has done. Can this transaction be voided? If yes, on what grounds can it be voided?