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Ronch [10]
3 years ago
12

Which of the following best describes how consumers make financial decisions in a market economy? A. The media forces consumers

to buy certain goods. B. They make choices based on their self-interests. C. The government tells consumers what to do. D. They always buy items that are the least expensive.
Business
1 answer:
notka56 [123]3 years ago
4 0

Answer:

B. They make choices based on their self-interests.

Explanation:

A market economy can be defined as the economy of a country where by the government has a minimal influence or intervention on how the market operates.

A market economy is regulated by the individuals that owns the businesses in that economy. These individuals have the ability to direct resources that they need from production to their firms and businesses.

A market economy is largely or greatly influenced and regulated by the rate of supply and demand. Consumers in a market economy have to sometimes paid a high price for the goods and services that they require. Consumers make financial decisions in a market economy by making their choices based on self interests.

A market economy is a very competitive economy because

a. the demand of goods and services by consumers have increased therefore this results in an increase in production of goods and services.

b. The producers tend to high innovative when producing this goods and services required by the consumers.

In a market economy, businesses and firms tend to have an increased of a very high rate of efficiency when producing goods and services such that they minimise or lower the cost of production while ensuring that they make high or huge amounts of profits.

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Who carries the animal from the farm to the market or packer?
Ostrovityanka [42]

Answer:

was it a passage u had to read?

Explanation:

6 0
3 years ago
Read 2 more answers
On March 4, Year 1, Evan Co. purchased 1,000 shares of LVC common stock at $80 per share. OnSeptember 26, Year 1, Evan received
12345 [234]

Answer:

b. $5,000

Explanation:

<u>September 26th</u>

1,000 x 5 = 5,000 stock rights Investment

It receive 1,000 right at $5 dollars each the total is 5,000

This rights were detachable from the stocks, so they have a diferent account, they are independent from the common shares purchased on March 4th

8 0
2 years ago
Julie wants to create a $5,000 portfolio. She also wants to invest as much as possible in a high risk stock with the hope of ear
svetoff [14.1K]

Answer:

C) Invest $2500 in a risk free asset and $2500 in a stock with beta of 2.0

Explanation:

Stock that is beta 2 means that it is twice as volatile as the whole market. Meaning for example if the market is expected to move by 5% this stock will move 10%. New startup firms that are fast-growing usually have stocks in this category. It is more risky thank normal shares but no too much. We can invest $2,500 here.

We invest the remaining $2,500 in risk-free assets

This is a backup on the chance that the investment on beta 2 stocks do not perform, the risk-free assets will make up for losses.

3 0
3 years ago
The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials $ 390,
Novay_Z [31]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the unitary costs:</u>

Direct materials= 390,000/180,000= $2.17

Direct labor= 261,000/180,000= $1.45

Variable overhead= 235,000/180,000= $1.31

<u>Now, we determine the new costs:</u>

Direct materials= 2.17*1.2= $2.604

Direct labor= 1.45*1.04= $1.508

Fixed overhead= 851,000*1.1= $936,100

<u>Total cost for 144,000 units:</u>

Total cost= 144,000*(2,604 + 1,508 + 1.31) + 936,100

Total cost= 144,000*5.422 + 936,100

Total cost= $1,716,868

<u>Finally, the unitary cos for both years:</u>

Last year= 2.17 + 1.45 + 1.31= $4.93

This year= $5.422

7 0
3 years ago
Sarah Gray wants to invest a certain sum of money at the end of each year for five years. The investment will earn 4% compounded
guajiro [1.7K]

Answer:

How should she compute her required annual investment?

$ 36.987  

Explanation:

With the present value formula we can calculate how she has to invest today to get $45,000 at the end of the 5 years, with a compounded rate of 4%.

Principal Present Value  =  F /  (1 + r)^t  

In this case we have the future value and we need to find the present value that we have to invest to get the money expected.

Principal Present Value  =  45,000 /  (1 + 4%)^5 = $36,987  

If we invest today $36,987, with a compounded interest rate of 4% we get at the end of the period, 5 years, the total sum of $45,000.

5 0
3 years ago
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