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2 years ago

In a properly functioning economic market, where does the economic value created by firms go? in other words, who gets it? why?

1 answer:

7 0

The value created by firms in the form of goods and services are distributed among various economic entities that consume them such as private consumers, government etc. But a closed circular flow diagram does not depict the other external values created. For example, a private college is a firm that produces education or provides education as a service to individuals who pay for it. This has a positive externality on society since these students can later teach others in society. Also firms produce under certain conditions and surveillance.

Firms can gain a certain control over society by studying the elasticities of demand. Also, firms generate certain expectations regarding wages and other social benefits. On the other hand, firms are controlled by governmental policies such as minimum wage laws, pricing laws etc. Such policies bind the full potential output if the potential output is not in confluence with social goals or maximization of social welfare.

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John Maynard Keynes believed that wages may be inflexible in the downward direction. Consequently, an economy Question 3 options

Nuetrik [128]

Answer:

An economy could get stuck in a recessionary gap

Explanation:

Keynes believed that wages may be inflexible in the downward direction and which would consequently cause an economy to get stuck in the recessionary gap. The recessionary gap happens when a country's real GDP is lower than it's gross domestic product at a state of full employment. It shows the difference between the actual and potential production in an economy. But with the actual being smaller or lower than the potential production.

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3 years ago

If $5000 is invested at an interest rate of 4% each year, what is the value of the investment in 5 years? write an exponential f

Alex Ar [27]

The compound interest amount after 5 years be $6,083.26.

<h3>What is compound interest?</h3>

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.

Compound interest is when you receive interest on both your interest income and your savings.

If this value was compounded in 5 years, then we are going to utilize the compound interest formula to solve it.

$A = p(1+r)^n$

Where A be the amount accumulated for the entire period.

p be the Money invested

r be the Interest rate per year

n be the period the money was invested.

$A = 5000(1+4/100)^5$

The exponential function is

$A=5000*1.04^5$

= 5000 $*$ 1.216652902

= 6,083.264512

The amount after 5 years be $6,083.26

The compound interest amount after 5 years be $6,083.26.

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4 0

2 years ago

What is a debit adjustment on a credit card?

Mnenie [13.5K]

It is a modification is started by the acquirer to redress a preparing mistake. The mistake could be a duplication of an exchange or the consequence of a cardholder question. The acquirer charges or credits the dealer DDA represent the dollar measure of the modification.

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3 years ago

What process is designed to help new employees become familiar with their jobs and organizations?.

emmasim [6.3K]

The employee orientation process is intended to aid new hires in becoming acquainted with their positions and organizations.

An entity, such as a business, institution, or association, that is made up of one or more people and has a specific function is known as an organization or organization (Commonwealth English; see spelling variations). The word is derived from the Greek word organon, which also refers to an instrument, an organ, and many tools. Comparatively speaking, consider the idea of social groups, which can encompass non-organizations.

The terms "organizations" and "institutions" can be used interchangeably, but according to Jack Knight, organizations are either a more condensed version of institutions or a group of institutions; the two are different in that organizations comprise internal institutions (that govern interactions between the members of the organizations).

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1 year ago

Star Bank provided cash to a customer, J. Brown, to pay for a building. Star required that Brown also sign a(n)_____________ (mo

Liula [17]

Answer: Mortgage

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Mortgage is a secured loan which the security is the property being bought.

On the event of non payment of the loan, the property is sold and money realised is used in paying the lender the principal amount as well as accrued interest on the loan.

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4 years ago