All categories

3 years ago

Match each situation with the method of government intervention used to rectify it.

2 answers:

5 0

1:People have too much money, and there is a danger of inflation. - B contractionary fiscal policy

2:The GDP has fallen to an all-time low, and there is low demand for most goods. - D:expansionary fiscal policy

3:Few farmers produce cotton because profits are at the equilibrium price. - A:price floor

4:Prices of staple foods have shot up because of shortages after an earthquake. - C:price ceiling

Aleks [24]3 years ago

5 0

People have too much money, and there is a danger of inflation. CONTRACTION FISCAL POLICY

The GDP has fallen to an all-time low, and there is low demand for most goods. EXPANSIONARY FISCAL POLICY

Few farmers produce cotton because profits are at the equilibrium price. PRICE FLOOR

Prices of staple foods have shot up because of shortages after an earthquake. PRICE CEILING

You might be interested in

In addition to the three basic financial statements, which of the following is also a required financial statement? O Statement

Vikki [24]

Answer:

Statement of Cash Flows.

Explanation:

The financial statement comprises of income statement, balance sheet, statement of stockholder equity and the statement of cash flows. It is explained below

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:

Total assets = Total liabilities + stockholder equity

The debit and credit side of the balance sheet should always be equal and balanced.

Moreover, it always is prepared on the specified date.

The statement of stockholder's equity comprises common stock and retained earnings.

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

There are three types of activities in the cash flow statement which are described below:

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the loss on sale of assets is added whereas the gain on sale of assets is deducted

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

6 0

4 years ago

Which one of the following statements concerning interest rates is correct?

DIA [1.3K]

Where is the statements or answer choices?

6 0

4 years ago

For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willin

elena-14-01-66 [18.8K]

Answer:

Producer surplus.

Explanation:

Producer surplus is the difference between the price of a product they're willing to sell and the price they're gonna actually received. In this case she is willing to spend $30 + $10 coupon and she buys $35 pair of jeans.

So, she's only paying $30, that means seller is receiving $5 less.

Therefore, producer surplus is $5.

8 0

3 years ago

When making financial decisions, it is important that you critically evaluate the source.

svetoff [14.1K]

Hello,

Here is your answer:

The proper answer is option A "true". It is extremely important to find the source of the information because the source could not be verified (which means its giving false information).

Your answer is A.

If you need anymore help feel free to ask me!

Hope this helps!

7 0

3 years ago

Read 2 more answers

Green Day Corporation has outstanding 411,800 shares of $10 par value common stock. The corporation declares a 10% stock dividen

kramer

Explanation:

The journal entries are shown below:

a. Retained earning A/c Dr $3,047,320

To Paid-in capital in excess of par A/c $2635,520

To Common stock dividend distributable A/c $411,800

(Being the date of declaration is recorded)

It is computed below:

For retained earning

= 411,800 shares × $74 × 10%

= $3,047,320

For common stock, it is

= 411,800 shares × $10 × 10%

= $411,800

b. Common stock dividend distributable A/c Dr $411,800

To Common stock A/c $411,800

(Being the date of distribution is recorded)

7 0

4 years ago