All categories

3 years ago

How can you differentiate between various economic systems that exist

Business

1 answer:

liubo4ka [24]3 years ago

3 0

Answer:

An economic system is defined by the way scarce resources are distributed in an economy.

There are 4 types of major economic systems which are following;

A mixed economy is an economic system, like its name is a mix of elements of planned economies, free markets with intervention of the state and public enterprises.
A command economy is a system where the government is key decision maker of what goods and services will be produced and introduced by the economy.
A market economy is the one in which the investment, production and distribution are dictated by the forces of demand and supply.
A traditional economic system is a result of customs, history and cultural norms which include the rules and manner of their distribution as well.

You might be interested in

What is the positive impact of Commerce subject on our society?

kkurt [141]

Answer:

E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence. E-commerce has altered the workflow of the business

5 0

2 years ago

If a labor union successfully restricts the supply of labor to firms, and if the union is not able to influence the demand for

Alisiya [41]

Answer:

(B) rises; decreases

Explanation:

As the labors are unable to motivate the other laborers of the firm in the organization then the wage rate will increase the form needs more and more laborers to work in the factory or the production units and hence the employment opportunities will decline as an upward movement along the demand curve.

3 0

3 years ago

Finished goods that have not yet shipped to

zavuch27 [327]

Answer:inventory

Explanation:

4 0

3 years ago

Read 2 more answers

Jennifer owns a pig farm near Salina, Kansas. Last year she earned $39,000 in total revenue while incurring $38,000 in explic

leonid [27]

Answer:

Jennifer earned an accounting profit of $1,000 and economic loss of $26,000

Explanation:

Total revenue for Jennifer is $39,000.

Explicit costs incurred is $38,000.

The implicit cost or opportunity cost involved is $27,000.

Accounting profit takes into account explicit costs only. It does not include implicit costs involved in the production process.

Jennifer has earned an accounting profit of

= Total revenue - Explicit costs

= $39,000 - $38,000

= $1,000

Economic profit takes into account the explicit cost as well as implicit cost.

The economic profit earned

= Total revenue - Total costs

= $39,000 - ($38,000 + $27,000)

= - $26,000

7 0

3 years ago

Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follow

Amanda [17]

Answer:

<u>Budgeted functional income statement for 2015</u>

Gross sales ($2,000,000 × 1.04 × 1.06) $2,204,800

Less: Estimated uncollectible accounts ($2,204,800 × 2 %) ($44,096)

Net sales $2,160,704

Cost of goods sold (1,100,000 × 1.03) ($1,133,000)

Gross profit $1,027,704

Operating expenses (475,000 × 1.10) ($522,500)

Depreciation ($25,000)

Net income $480,204

Explanation:

Make the adjustments stated on the 2014 Income Statement.

For Operating Expenses, it is wise to first remove the depreciation expense and apply the increment of 10% to reflect Operating Costs for 2015.

Treat Depreciation Expense separately and at the same amount as for 2014, since depreciation is calculated on straight line method.

3 0

3 years ago