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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.

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$52,000 is the correct answer.

Explanation:

8 0
3 years ago
Economic growth is __________.
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<span>Economic growth is an increase amount of services or/ and goods produced by head of population over a period of time</span>

4 0
3 years ago
Normal profit is the return to the entrepreneur when economic profits are zero. determined by subtracting implicit costs from to
diamong [38]

Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.

<h3>When the business earns normal profits?</h3>

A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.

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5 0
2 years ago
___________ started the profession of advertising in the u.s. by using newspaper advertisements.
jenyasd209 [6]
I think it was Francis Ayer
3 0
4 years ago
Tri Fecta, a partnership, had revenues of $367,000 in its first year of operations. The partnership has not collected on $45,800
inessss [21]

Answer:<em> </em><em>$ 155,440</em>

Explanation:

Receipt:  

Cash received from customer(367,000 - 45,800)           321,200

Investment                                                                           47,000

Borrowed money                                                                26,000

Total Receipts                                                                   394,200

Disbursement:  

Payment to vendor(240,000 - 39,600)                           200,400

Salary                                                                                   26,200

Interest                                                                                   2,860

Insurance policy                                                                     9,300

Total Disbursement (B)                                                       238,760

Cash balance (A - B)                                                            155,440

7 0
3 years ago
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