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4 years ago

What is the difference between a command economy and a traditional economy?

1 answer:

8 0

A traditional economy is an economy wherein the people primarily subsists on growing their own food and produce. Usually, just about the right amount is produced and if there is any excess, it is given to the local lords. Also, bartering is the main practice of trading in a traditional economy. In a command economy, it is a dictator who will dictate who should make what and how much of a certain product should be made. The government will also decide at what price the people will price the products.

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The Alto Horns Corp. is planning on introducing a new line of clarinets. They expected EBIT is $900,000. The unlevered cost of e

Vitek1552 [10]

Answer:

The correct option is B,correct annual cash flows to be used under WACC method is $640,000

Explanation:

Expected earnings before interest and tax is $900,000

interest expense on the 10% interest perpetual debt=10%*$1000,000=$100,000

earnings before tax=EBIT- interest expense=$900,000-$100,000=$800,000

earnings after tax=earnings before tax-tax expense

tax expense=earnings before tax*20%=$800,000*20%=$160,000

earnings after tax=$800,000-$160,000=$640,000

The correct amount of annual cash flow to be used under weighted average cost of capital method is $640,000 which after interest on debt and taxes have been deducted.

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4 years ago

Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de

KatRina [158]

Answer: Option (c) is correct.

Explanation:

Correct Option: Decrease the money supply, which will move output back towards its long-run level.

If the economy is in long run equilibrium and there is a rightward shift in the aggregate demand curve then as a result output and price level rises in an economy.

Here, the central must follow the contractionary monetary policy to stabilize the economy.

So, the central bank must decrease the money supply to move the output and price level back to its initial position.

6 0

4 years ago

A decision tree is _____.

Evgesh-ka [11]

Answer:

c. a graph of decision and their possible consequences

Explanation:

Decision tree -

It is a model in the form of a tree , which act as a supporting tool to get all the possible outcomes i.e. , utility , resource cost , outcomes , is referred to as decision tree.

Hence , from the given options of the question, the correct statement regarding decision tree is c. a graph of decision and their possible consequences .

4 0

3 years ago

A fee collected by a real estate agent upon the sale of a property is

vladimir2022 [97]

Real estate commission fee

3 0

3 years ago

Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identifica

Dahasolnce [82]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

For specific identification, ending inventory consists of 390 units, where 370 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

We weren't provided with enough information to answer the requirement. But, I can give you the answer using simulated numbers.

<u>Under specific identification, the company calculates the ending inventory and cost of goods sold with the exact units that were sold or remain in inventory.</u>

For example:

Beginning inventoy= $15 per unit

Jan. 30: $17 per unit

Jan. 20: $16 per unit

Ending inventory= 370*17 + 5*16 + 15*15= $6,595

4 0

3 years ago