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2 years ago

In the long run, most economists agree that a permanent increase in government spending leads to_________.

1 answer:

6 0

In the long run, most economists agree that a permanent increase in government spending leads to <u>complete</u>.

Fiscal policy refers to the use of government spending and revenue collection (taxes or tax cuts) to affect a nation's economy. The 1930s Great Depression made the prior laissez-faire approach to economic management impractical, which led to the development of the use of government revenue expenditures to affect macroeconomic variables.

The British economist John Maynard Keynes' Keynesian economics, which postulated that changes in the amount of government spending and taxation have an impact on aggregate demand and the level of economic activity, serve as the foundation for fiscal policy.

A nation's government and central bank primarily employ fiscal and monetary policy to further its economic goals. These authorities can target inflation thanks to the combination of these strategies.

To learn more about Fiscal Policy here

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Capricorn Creative Inc., a U.S. based advertising firm, was the first in the advertising industry to identify the growth potenti

777dan777 [17]

Answer:

Option A-First mover advantage

Explanation:

The first mover advantage is the advantage to the firm who first steps in to take the risks to ensure future benefits in the long term perspective. The particular example includes of TaTa company in India which has more than 90% of the market and was the first company in India that tried to meet requirements of every class of person, small and medium organization to large corporations. This increased production helped the company to gain economies of scale and the country import policies also though do helped the company.

Furthermore, here the advertising firm is not investing but is a means of investment for many investors which means it has no investment in the country and hence there are no forward integration and lateral diversification.

It can also be noted that the company was not transferring its technology in the state option E is also incorrect.

The unrelated differentiation comes when the firm offer its customers a uniqueness of product services which in this case can not be seen prominent. The company advertises similar to other advertises like the other firms and is not pursuing unrelated differentiation so the option C is also incorrect.

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3 years ago

Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes t

hram777 [196]

Answer:

Scarlet Knight Corporation

Posting of transactions:

1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500

Wrong. Correct Posting: Cash 5,500 Common Stock 5,500

2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100

Correct.

3. Purchase office supplies on account, $110. Supplies 110 Cash 110

Wrong. Correct Posting : Supplies 110 Accounts Payable 110

4. Pay $410 for next month's rent. Rent Expense 410 Cash 410

Wrong. Correct Posting: Rent Prepaid 410 Cash 410

5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250

Wrong. Correct Posting: Equipment 1,250 Cash 1,250

Explanation:

1. Owners invest $5,500 in the company and receive common stock. Cash is increased and Common Stock increased by $5,500.

2. 2. Receive cash of $2,100 for services provided in the current period.

Cash is increased and Service Revenue increased by the same amount.

3. Purchase office supplies on account, $110.

No cash payment is involved with this transaction since it was on account. The accounts involved and which increased by $110 are Supplies and Accounts Payable.

4. Pay $410 for next month's rent. The amount is for next month. As such no Rent Expense account is involved. Instead, the accounts involved are Rent Prepaid and cash. While Rent Prepaid increases, Cash is reduced.

5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.

6 0

4 years ago

eggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were pro

vivado [14]

Answer:

Total cost of goods sold per unit is $35,000

Explanation:

Given Data:

cost for decorative pillow =$75.00 per unit

Total sold unit = 1750

Per unit manufacturing cost

we know that Variable Costing includes only manufacturing cost

Therefore, the total cost of goods as per variable costing can be computed as follow

$$20 \times 1750 = $35,000$

The total cost of goods sold per unit is $35,000

4 0

3 years ago

According to the bond-yield-plus-risk-premium approach, a firm's cost of retained earnings, r s , can be estimated by adding a r

Masja [62]

The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.

The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.

The premium approach does help to determine the value of an assetof a company's such as its traded equity.

However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.

Read more about the premium approach:

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2 years ago

You are browsing through job listings for global marketing-related jobs on Monster. One job catches your attention because it li

Andrei [34K]

Answer:

(b) The candidate will be involved in setting up an independent division with responsibility for robotic equipment production and marketing.

Explanation:

As an area of global marketing deals with the setting up of strategies for the development of marketing plans for the company. By adjusting the strategies that are well suited to other countries form a global point of view.

Hence the candidates that come from the different locations will be more interested in setting up divisions that look after the promotion and distribution of products, people and processes to deliver good results.

As it lowers market casts, it has the ability to leverage ideas more easily and quickly and helps the company create an international customer base.

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3 years ago