1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
8090 [49]
3 years ago
15

If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher t

axes on others, how will this influence the quantity of rent seeking? how will this affect long term growth? explain.
Business
1 answer:
VikaD [51]3 years ago
7 0

Answer:

If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher taxes on others, the quantity of rent seeking will increase and long term growth will be impeded.

Explanation:

The term rent in rent seeking is based on an economic rent which was defined by economist Adam Smith to mean payments made in excess of resource costs.  

An example of rent seeking is when a company lobbies the government for grants, subsidies, or tariff protection.

If the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher taxes on others, the businesses that will benefit will enjoy monopoly and the other businesses will run at a loss and could become bankrupt.

The long term effect of having a business environment that is not competitive is poor growth.

You might be interested in
A static budget shows planned results at the original budgeted activity level. should not be prepared in a company. is useful in
stira [4]

Answer:

The answer about A static budget would be

Explanation:

A static budget is a type of budget that incorporates anticipated values ​​on inputs and products that are conceived before the period in question begins. When compared to the actual results that are received after the fact, the static budget figures are often very different from the actual results.

The static budget is intended to be fixed and unchanged throughout the period, regardless of fluctuations that may affect the results.

For example, under a static budget a company would establish an anticipated expense, say $ 30,000 for a marketing campaign, for the duration of the period. It is then up to the managers to adhere to that budget, regardless of how the cost of generating that campaign really stays during the period.

This type of budgeting is limited by the ability of an organization to accurately forecast what its needs are, how much it will spend to meet them and what its operating income will be during the period. Static budgets can be more effective for organizations that have highly predictable sales and costs, and for shorter periods of time.

For example, if a company sees the same costs in materials, profits, labor, advertising and production month after month to maintain its operations and there is no expectation of change, a static budget may be adequate for its needs.

5 0
3 years ago
If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield
Anvisha [2.4K]

Answer:

The answer is LIFO

Explanation:

LIFO is Last in First out. It means the Inventory that was purchased last goes out first.

In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.

In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.

3 0
3 years ago
The Tapestry™ Segmentation system divides and sorts small geographic areas into categories using 60 or more demographic and life
Damm [24]

Answer: (A) Geo-demographic

Explanation:

The Geo-demographic is basically refers to the market segmentation that is used for classifying the different types of localities or the resident based on the demographic principle and the characteristics.

It is the process of studying regarding the population and also the geographical areas by using the various types of clustering techniques.

According to the given question, the Tapestry is one of the segmentation system that divide the geographical areas into the different types of categories and geographical segmentation is one of the markets research tool that is used in the above given example.  

 Therefore, Option (A) is correct answer.

4 0
3 years ago
McLaughlin and Ferris is an accounting firm that has a stiff, bureaucratic structure. The company has a promotion scheme where p
SCORPION-xisa [38]

Answer:

The correct answer is programmed.

Explanation:

Also called unstructured, they are decisions that are taken in the face of problems or situations that occur infrequently, or those that need a specific model or process of solution, for example: “Launching a new product to the market”, in this type It is necessary to follow a decision-making model to generate a specific solution for this particular problem.

Programmed decisions address rare or exceptional problems. If a problem has not been presented frequently enough to be covered by a policy or if it is so important that it deserves special treatment, it should be handled as an programmed decision. Problems such as allocating the resources of an organization, what to do with a production line that failed, how to improve relations with the community - in fact, the most important problems that the manager will face - will usually require programmed decisions.

3 0
3 years ago
Technician a says that wheel concentricity problems may simulate a tire that is out of balance. technician b says that tire conc
AlekseyPX
<span>In order to assess who is correct the exact nature of the tire needs to be seen in more detail. If the tire has been damaged by driving, a crash or some other method, than Technician B would be correct because the tire would need to repaired. However, if tires is moving funny as a result of a bump or some other impact to it, then it could be that the weights have become mis-aligned and then Technician A would be correct in that re-balancing solves the problem.</span>
7 0
3 years ago
Other questions:
  • You borrow $10,000 to build an extra bedroom onto your house. The loan is secured for 7 years at an annual interest rate of 11.5
    8·1 answer
  • How does supply and demand inform the choices of consumers and business owners?
    10·1 answer
  • Generally it is thought that assignment of property rights leads to efficient use of resources. We noted two cases however (the
    5·1 answer
  • Fern Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $50,000 per ye
    8·1 answer
  • Golden Enterprises started the year with the following: Assets $107,000; Liabilities $37,000; Common Stock $67,000; Retained Ear
    13·1 answer
  • At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $654,000. Chan records it
    14·1 answer
  • 30points
    10·1 answer
  • 1. An engineer in 1950 was earning $6,000 a year. Today she earns $60,000 a year. However, on average goods today cost 6.6 times
    7·1 answer
  • Axcel software began a new development project in 2020. the project reached technological feasibility on june 30, 2021, and was
    6·1 answer
  • What is the main challenge that red frog events faces as the organization grows?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!