Private owners' primary aim in capitalism is money creation.
A system of economics referred to as "capitalism" is one that promotes private ownership of the tools of creation, distribution, and exchange in order to generate profit. In this system, the market decides the production and pricing of the goods and services, hence supply and demand dynamics are very important.
An economic system known as capitalism is one in which private individuals own and manage the trade and industries of the economy in order to profit.
What is Capitalism:
Capitalism, which includes both the working class and the capitalist class, supports class differentiation, there is a significant gap between the rich and the poor. On the other hand, communism is opposed to class inequalities in society since it supports a society in which there is no distinction among the rich and the poor.
In a capitalist society, everyone is responsible for generating their own wealth. Contrarily, in communism, wealth is dispersed in accordance with needs and capacity. While there is intense competition between businesses in capitalism, this is not the case in communism, because the government controls the market. While capitalism exists in western nations, socialism is more prevalent in eastern nations.
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Answer:
The journal entry is shown below:
Explanation:
The journal entry is as follows for recording the depreciation:
Depreciation expense A/c.........................Dr $ 14,400
Accumulated depreciation...............Cr $ 14,400
Working Note:
Depreciation rate = 100 % / Number of years of life
= 100 % / 10 years
= 10%
This will be multiplied by 2
= 10% × 2
Depreciation rate = 20%
Using the double declining method:
In year 2019
Depreciation expense = Cost of purchasing × Depreciation rate
= $180,000 × 20%
= $36,000
In year 2020
Depreciation expense = ( Cost of purchasing - Depreciation expense of last year) × Depreciation rate
= ($180,000 - $36,000) × 20%
= $144,000 × 20%
= $28,800
Using the Straight Line method:
In the year 2021
Depreciation expense = (Cost of purchasing - Depreciation expense of 2 years) / Number of years of useful life
= ($180,000 - $64,800) / 8
= $115,200 / 8
= $14,400
Gestión publica es con gente normal pero gestión institucional es con gente de negocios
Answer: b. it's profitable in the short run for another member to increase production.
Explanation:
This refers to an oligopolistic market where there are few producers of a good. These producers can come together to create a cartel that fixes prices for the goods and services they produce.
If they agree to cut back production, this will have the effect of increasing prices due to a reduction in supply. If a member decides to increase production, they would enjoy profits in the short term from the increased prices.
The other members would however respond by increasing production as well so those profits would stop towards the long run.
