Answer:
Prices ensure an equal distribution of goods and services among consumers.
Explanation:
The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.
Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.
For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.
Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.
Answer:
GDP for an open economy from the spending approach follows this equation:
GDP = Consumption + Investment + Government Spending + Net Exports (Exports - Imports)
It can also be written as:
GDP = C + I + G + NX (X - N)
The balance of private consumption is simply equal to C, the balance of public spending is G, and the balance of the external sector is net exports or NX.
Answer:
1. Compensation for employment services that they offer.
2. Disbursement in sufficient proportions of the available funds.
3. How the government have used their tax money.
4. The ability and capacity of the government to honor debts.
Explanation:
Each stakeholder to the governmental annual report hold a different need compared to the other. Therefore it is important to pay attention to whom the financial statements speaks to. The above shows the different needs of the stakeholders to governmental annual report.
A.
Low credit scores usually indicate irresponsible spending behaviors.
Answer:
(a) service revenue = $117,920
(b) operating expenses = $98,110
Explanation:
The computations are shown below:
a. For service revenue
= Cash receipts from customers + ending balance account receivable - beginning balance of accounts receivable
= $117,140 + $15,400 - $14,620
= $117,920
b. For operating expenses
= Cash payments for operating expenses + beginning balance of prepaid expense - ending balance of prepaid expense
= $104,320 + $20,400 - $26,610
= $98,110
