To what degree can governments control prices or quantities of goods and services exchanged?

1 answer:

5 0

<span>Governments have two main mechanisms for controlling the prices or quantities of goods and services exchanged, subsidies and taxes. Subsidies can be used to manipulate supply by rewarding supplies for producing, or not producing a target good. For internal trade, taxes can be used to manipulate demand by raising the cost of goods sufficiently that the potential pool of willing buyers is reduced. For external trade, tariffs offer similar effects.</span>

You might be interested in

____ tests are tests of the ad or commercial under natural viewing situations, complete with the realism of noise, distractions,

ratelena [41]

Field tests are tests of the ad or commercial under natural viewing situations, complete with the realism of noise, distractions, and the comforts of home.

3 0

2 years ago

Please Help Asap! Jaelyn is working late at night on a project that is due the next day. She is not sure how to add a picture to

lutik1710 [3]

Answer:

Decide not to use a border.

3 0

2 years ago

The Freed Company produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the splitoff poin

Paladinen [302]

Product Y: would increase the company's overall net operating income by $2,000 if processed further and then sold.

Option 4 is correct

<u>Solution:</u>

Particulars Amount

Incremental income ( $68,000-$50,000) $18,000

Less: Incremental cost $16,000

______________________________________________

Incremental Income $2,000

6 0

2 years ago

Brizan has just lost his job. he is proactive in trying to resolve this source of stress: he immediately uses the internet to lo

cestrela7 [59]

Brizan is using the problem focused technique. It is a way of managing stress where in the individual tries to eliminate stress by choosing or focusing on the reason why the problem has occur and not the stress or problem itself. It is a way of handling the situation in order to cope up not only with stress but to resolve the problem that has been done or occured.

8 0

2 years ago

On December 31, 2015, Howells, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost

il63 [147K]

Answer:

$1,400,000

Explanation:

According to the scenario, computation of the given data are as follows,

Increase in beginning inventory = $2,000,000

Income tax rate = 30%

So, we can calculate the effect on beginning retained earning by using following formula,

Cumulative effect = Increase beginning inventory × (1 - tax rate)

= $2,000,000 × ( 1 - 30%)

= $2,000,000 × 70%

= $1,400,000

5 0

2 years ago