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3 years ago

In a market economy, competition is a crucial requirement. what is one benefit to fostering competition in an economic system?

1 answer:

6 0

In a market economy, competition is an important responsibility. The benefit to fostering competition in an economic system is that it affords consumers more choices in the quality and price of belongings they want to purchase.

<h3>What is a market economy?</h3>

A market economy is defined as those economic systems where the price communications constituted by supply and demand force judgments about production, investment, savings and distribution to consumers.

In this system, all providers and consumers are open-ended by price regulations or contract freedom. Competition is an essential element of a that economy.

The advantage of increasing competition in an economic system is that it provides consumers with more options in terms of the quality and pricing of the goods they want to purchase.

Therefore, option A is correct.

Learn more about the economy, refer to:

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Which of the following is incorrect regarding the basic accounting equation?

tekilochka [14]

Considering you accidently messed up the question, Could you give me a brainliest?

3 0

3 years ago

g Suppose a central bank wants to increase its international reserves without changing the domestic money supply. It will Select

Nonamiya [84]

Answer:

c. make a sterilized purchase of foreign bonds.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Hence, a central bank can increase its international reserves without changing the domestic money supply by making a sterilized purchase of foreign bonds.

8 0

3 years ago

Colorado economy: the annual business report (1993-1994) indicates that for the past decade the cattle ranching industry in colo

alexdok [17]

Answer:

The colorado ranching is not expanding

Explanation:

The null hypothesis, H₀ : μ = 2.7 billion

Alternative hypothesis, Ha : μ > 2.7 billion

$\bar{X} = 2.85 billion$

$\sigma = 0.55 billion$

n = 30

The observed test statistic,

$t_{o} = \frac{\bar{x}- \mu}{\frac{\sigma}{\sqrt{n} } }$

$t_{o} = \frac{2.85- 2.7}{\frac{0.55}{\sqrt{30} } }\\t_{o} = 1.494$

Degree of freedom = n-1 = 30 -1 = 29

Significance level = 0.05

For the critical value, we check the t - table at 0.05 significance level

$t_{crit} = t_{\alpha, df} = t_{0.05, 29} \\t_{crit} = 1.699$

$t_{0} = 1.494\\t_{crit} = 1.699$

Since $t_{0}$ , we will accept H₀

That is the mean total cash receipt is 2.7 billion and the colorado ranching is not expanding

5 0

3 years ago

Future Clothes Inc., a publicly traded company, designs and manufactures wearable technology. What approach should Future Clothe

olganol [36]

Answer:

The interpretation of the discussion is characterized throughout the explanation segment below.

Explanation:

Concentrate on an investigation as well as implementation or enhancement as something with a category or manner of price-free competitive advantage.
With more than just related diversification, there is much less inflationary pressure as well as the corporation or manufacturer should start concentrating on non-price competitive advantage throughout the opportunity to expand mostly on the supply chain.

So the answer here is just the appropriate one.

5 0

3 years ago

A check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks

Liula [17]

Answer:

a. 41.6 million

b. 42.28 million

Explanation:

A) GIven

forecast in june = Sjune = 42 million

Checks recived in june = Xjune = 40 million

Smoothing constant = a = 0.2

So for july

Sjuly = a*Xjune + (1-a)*Sjune

=0.2*40 + (1-0.2)*42 million

=8+33.6 = 41.6 million

B) forecast in july = Sjuly = 41.6 million

Checks recived in july = Xjuly = 45 million

Smoothing constant = a = 0.2

So for August

Saugust = a*Xjuly + (1-a)*Sjuly

=0.2*45 + (1-0.2)*41.6 million

=9+33.28 = 42.28 million

<em>Note: This uses an exponential smoothing to forecast the results, but from the number of checks recived we see that it increases linearly. So we need a linear forecasting method .</em>

5 0

4 years ago