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uranmaximum [27]
3 years ago
6

What actions might be taken by businesses and government in each phases of the business cycle

Business
1 answer:
NNADVOKAT [17]3 years ago
7 0
<span>The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (GDP) and other macroeconomic variables. A business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. Economists note, however, that complete business cycles vary in length. The duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. Some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. But the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.</span>
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What divergences arise between equilibrium and output and efficient output when(10) a) negative externalities and b) positive ex
Ket [755]

Answer:

Production or consumption activities lead to an external cost for the third party, which causes the social marginal cost to exceed the private marginal cost. Consumers and producers base their decisions on private marginal cost and there would be an overproduction or excessive consumption of the good. The balance output is more than the efficient output.

Taxes must be imposed to correct the divergence between social and private marginal costs.

On the other hand, production or consumption leads to an external benefit for the third party, which means that the marginal social benefit exceeds the private marginal benefit. Consumers and producers base their decision on private marginal benefit and there would be underproduction or low consumption of the good. The balance output is less than the efficient output. The government would have to provide subsidies to producers or consumers to correct these inefficiencies.

8 0
3 years ago
Williamson Industries has $7 billion in sales and $2 billion in fixed assets. Currently, the company's fixed assets are operatin
In-s [12.5K]

Answer: Williamson industries would have obtained $7.78 billion in sales

Explanation: According to the question, the company is having a total of $2 billion in fixed assets. The fixed assets are currently operating at 90% (0.9) of its total capacity. At his level, the company is able to achieve a sales figure of $7 billion. The implication is as follows;

Fixed assets (at 100%) = 2 billion

Fixed assets (at 90%) = 2 * 0.9

Fixed assets (at 90%) = 1.8

If the company utilizes $1.8 billion to achieve a $7 billion sales figure, then operating at full capacity (100%) would yield the following;

7/x = 90/100

(Where x equals sales level at 100% capacity)

7/x = 0.9

Cross multiply

x = 7/0.9

x = 7.7777...

x ≈ 7.78

Therefore, if Williamson Industries had been operating at full capacity, it would have obtained a sales level of $7.78 billion

3 0
3 years ago
Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of p
MariettaO [177]

Answer:

$66.9725

Explanation:

Data provided in the question:

Dividend:

D1 = $1.20

D2 = $1.40

D3 = $1.55

Expected future price, P3 = $82

Required return = 8.9 percent = 0.089

Now,

Stock price today = Present value of dividends and the future value

Stock price today = \frac{1.20}{(1+0.089)}+\frac{1.40}{(1+0.089)^2}+\frac{1.55}{(1+0.089)^3}+\frac{82}{(1+0.089)^3}

or

Stock price today = 1.1019 + 1.1805 + 1.2001 + 63.49

or

Stock price today = $66.9725

8 0
3 years ago
A car and a computer are examples of what?
Naya [18.7K]
Answer: Secondary needs


Explanation; Secondary needs are generally psychological, such as the need for nurturing, independence, and achievement. While these needs might not be fundamental for basic survival, they are essential for psychological well-being.
6 0
3 years ago
Read 2 more answers
A trade union representing workers in particular job categories acts as a(n) ____________ when it attempts to influence policy.
Sveta_85 [38]
The trade union acts as AN INTEREST GROUP. An interest group refers to a group of people that seeks to influence public policy on the basis of a specific common concern or interest. An interest group can fall under one of two categories which are economic and non-economic interest groups.
7 0
3 years ago
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