Answer:
Capitalism is an economic system based on investing money in the expectation of making a profit. The means of production are usually privately owned by private entrepreneurs who often use wage labor to create added value. In doing so, they enjoy a great deal of legal freedom to dispose of these means, free enterprise production. This freedom also means that there is competition, which means that entrepreneurs have an interest in increasing the efficiency of their company. Hence, the capital owner will not fully consume the profit but reinvest in the business and capital accumulation takes place. The distribution of products is regulated by the market, in which the role of the government is, in principle, limited to that of market master.
Answer:
c. There are more unemployed resources.
Explanation:
Equilibrium level of income is the level of income where aggregate supply in the economy is consistent with aggregate demand. that is the level of income planned savings is equal to planned expenditure. the equation can be written as S = I. where S = savings and I = investments
At equilibrium income level, aggregate expenditure is equal to aggregate output. The equilibrium equation can be written as Y = C+I+G+X-M where
Y = national income, I = investment expenditure of the firm, G = government expenditure on goods and services, X = export, M = import.
Answer:
The impact of spending $50,000 on the research and development for a new drug to to cure liver damage will increase the expenses of the Morgan Pharmaceutical in the years financial statements.
Explanation:
Morgan pharmaceutical is pending $50,000 on he research and development of new drug which can cure the liver damage, from this spending company is expecting that after they have successfully created new drug it will lead to the increase in sales , which will ultimately lead to increase in profits , which then would totally recover the initial cost incurred on research and development but until then these expenses would be shown in the current years financial statement as expenses, and thus would increase the total expenses of the company.
The adjusted balance in the Accumulated Depreciation account at the end of 2019 is <u>$14,000</u>.
<u>
Explanation</u>:
<em><u>Given</u></em>:
Cost of van= $32,000
Estimated residual value= $3,200
Straight-line Depreciation Rate= 1/8
= 0.125
Straight-line Depreciation Rate= 12.5%
Declining Balance Rate = 2 ×12.5%
= 25%
Double declining balance can be calculated with the following formula:
2 x basic depreciation rate x book value
By applying the values,
The adjusted balance in the Accumulated Depreciation account= $14,000.
Answer: Points of indifference
Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.
In the given case, the company must have build point of indifference before launching of new product, and must have expected higher profits than normal beer.
