All categories

1 year ago

What is the difference between a closed economy and an open economy?

1 answer:

4 0

An economy that has no interaction with other economies around the world is said to be closed and an open economy is one that freely interacts with other economies across the world.

<h3>What do you mean by open market?</h3>

A market that is open to competition has little to no restrictions on how businesses can operate. Tariffs, taxes, licensing requirements, subsidies, unionization, and any other laws or practices that obstruct free-market activity are not present in an open market.

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

A nation with a closed economy is one that conducts no commerce or other financial transactions with any other nations. That indicates that neither imports nor exports enter the nation.

To know more about financial transactions, visit:

brainly.com/question/27501867

#SPJ4

You might be interested in

Cullumber Company purchased a new machine on October 1, 2022, at a cost of $90,880. The company estimated that the machine has a

marin [14]

Answer:

The workings are made below;

Explanation:

Depreciation Expense for 2022 =($90,880-$,8,640)/8=$10,280*3/12=$2,570

Depreciation Expense for 2023=$10,280 ($90,880-$8,640)/8

The depreciation for 2022 is calculated on pro rata basis from the date of purchase till December 31,2022.

Where as depreciation for 2023 is charged on full year basis as the asset was used for the whole year.

8 0

3 years ago

Read 2 more answers

Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10

max2010maxim [7]

Answer:

At the rate of return of 18%, the purchase of the new machine is not convenient.

Explanation:

Giving the following information:

Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10 years, has an estimated useful life of 10 years, and no salvage value. Management will not make any investment unless at least an 18% rate of return can be earned.

We need to find the net present value using the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

NPV= -50,000 + 9,000/1.18 + 9,000/1.18^2 + 9,000/1.18^3 + ... + 9,000/1.18^10

NPV= -9,553

At the rate of return of 18%, the purchase of the new machine is not convenient. It will produce a loss in value.

4 0

3 years ago

Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used

den301095 [7]

Answer:

the answer is a

Explanation:

Answer a) Particulars Bryan Cody Particulars Bryan Cody 1st Year To, Loss In 1st year 40,000.00 40,000.00 By , Partners Capital 120,000.00 120,000.00 To, Depreciation (80:20) 28,800.00 7,200.00 To , balance c/d 51,200.00 72,800.00 120,000.00 120,000.00 120,000.00 120,000.00 To, Depreciation (80:20) 46,080.00 11,520.00 By , balance c/d 51,200.00 72,800.00 By, Profit in 2 nd year 20,000.00 20,000.00 To , balance c/d 25,120.00 81,280.00 71,200.00 92,800.00 71,200.00 92,800.00 Note : No losses have been suspended as in both the years both...

7 0

3 years ago

On July 1, a company paid the $600 premium on a one-year insurance policy with benefits beginning on that date. What will be the

Schach [20]

Answer:

$300

Explanation:

When insurance is paid in advance, the entries required are

Debit Prepaid Insurance

Credit Cash account

As time elapses and the insurance expires,

Debit Insurance expense

Credit Prepaid Insurance

Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)

= 6/12 * $600

= $300

The insurance expense on the annual income statement for the first year ended December 31 is $300.

8 0

3 years ago

Analysts say visitors stay an average of how many seconds on any webpage?

Brilliant_brown [7]

The answer is D.10-20 seconds

3 0

3 years ago