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1 year ago

in which economy below are private owners most concerned with developing wealth? capitalism mixed market socialism communism

Business

1 answer:

vaieri [72.5K]1 year ago

4 0

Private owners' primary aim in capitalism is money creation.

A system of economics referred to as "capitalism" is one that promotes private ownership of the tools of creation, distribution, and exchange in order to generate profit. In this system, the market decides the production and pricing of the goods and services, hence supply and demand dynamics are very important.

An economic system known as capitalism is one in which private individuals own and manage the trade and industries of the economy in order to profit.

What is Capitalism:

Capitalism, which includes both the working class and the capitalist class, supports class differentiation, there is a significant gap between the rich and the poor. On the other hand, communism is opposed to class inequalities in society since it supports a society in which there is no distinction among the rich and the poor.

In a capitalist society, everyone is responsible for generating their own wealth. Contrarily, in communism, wealth is dispersed in accordance with needs and capacity. While there is intense competition between businesses in capitalism, this is not the case in communism, because the government controls the market. While capitalism exists in western nations, socialism is more prevalent in eastern nations.

Learn more about Capitalism:

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Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar they earn and save the remainin

Nata [24]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) Marginal propensity to consume (MPC) for this economy is 0.75 as it denotes the spending of the household and saving of 0.25 and the spending multiplier for this economy is

= Spending Multiplier(M)

= 1 ÷ 1 - MPC

= 1 ÷ 1-0.75

= 1 ÷ 0.25

= 4

2). Decrease in government purchases will lead to a decrease in income, generating an initial change in consumption

= -Amount of Government Decrease Purchases by × MPC

= -$250 billion × 0.75

= -$187.5 billion

3). Decrease income again, causing a second change in consumption

= Amount Decrease in Government Purchases × MPC

= -$187.5 billion × 0.75

= $140.6 billion

4).Total change in demand resulting from the initial change in government spending

= Amount of Government Decrease Purchases by × Spending Multiplier(M)

= $250 × 4

= $1,000 billion

= $1 trillion

As we can see that the income falls by $1000 billion in the end, so AD shifts to the left by the size of $1 trillion

In the question the graph is missing. Kindly find the attachment for both of question and answer

5 0

3 years ago

Interest rates rise faster in Scotland (GBP) than they do in the United States (USD). Which nation’s currency appreciates? Which

patriot [66]

There is very simple logic between demand and supply. When demand is high, price rises and currency appreciates in its value. On the other hand, price should decline if import rate is mare compared with export rates. As prices of U.S goods increases which ultimately goes to international market where producers have to pay domestic currencies. Americans will demands comparatively less expensive goods. So it will result in supplying more dollars to foreign exchange market.

Finally, increasing demand of pounds. Finally, U.S dollars appreciates and pound depreciates. Trade value is amount by which total import value deviates from export value. Due to changes in interest rates results in trade imbalance in U.S. There is not greater effect on Scotland as it is key player in transporting of energy products to rest of U.K.

6 0

3 years ago

You are the chief financial officer (CFO) of Gaga Enterprises, an edgy fashion design firm. Your firm needs $ 19 million to ex

QveST [7]

Answer:

- Financial institutions, such as investment banks, provide expertise in the acquisition of funds.

- The investment banking institution will allow the Gaga Enterprises CFO to raise more money at a lower cost per dollar raised

Explanation:

In the given scenario we want to compare help in raising capital using a financial institution versus raising it directly in the financial markets.

When raising capital using financial markets it is more expensive because the company will need to give out ownership rights in the company when they sell shares.

However when financial institutions provide the capital, there is a lower cost per dollar raised compared to sale of shares.

Also financial institutions act as financial advisors to their clients. So they will provide expertise in the acquisition of funds.

3 0

2 years ago

Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5

aksik [14]

Answer:

The bond is worth $651.59 today

Explanation:

FV = $1000

N = 8

I/Y = 5.5%

Present Value = ?

PV = FV*(1+r)^(-n)

PV = $1000 * (1 + 0.055)^-8

PV = $1000 * (1.055)^-8

PV = $1000 * 0.651599

PV = $651.59

5 0

3 years ago

A chain of video stores sells three different brands of DVD players. Of its DVD player sales, 50% are brand 1 (the least expensi

slava [35]

Answer: 60.98%

Explanation:

Probability that it is a brand 1 DVD player that needs repair work = Probability of brand 1 DVD needing repairs / Probability that a DVD player will need fixing while under warranty

Probability of brand 1 DVD needing repairs = Brand 1 sales percentage * Percentage of brand 1 needed repair

= 50% * 25%

= 12.5%

Probability that a DVD player will need fixing while under warranty = (50%* 25%) + (30% * 20%) + (20% * 10%)

= 20.5%

Probability that it is a brand 1 DVD player that needs repair work = 12.5% / 20.5%

= 60.98%

6 0

3 years ago