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
Define bank run in your own words.​
lina2011 [118]

Answer:

A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency. As more people withdraw their funds, the probability of default increases, prompting more people to withdraw their deposits.

5 0
3 years ago
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January,
wolverine [178]

Answer:

A. $185,000

B. Raw material $70,000

Work in process $50,000

Finished goods $85,000

Explanation:

A. Preparation of the January income statement for Sorensen Manufacturing Company

Sorensen Manufacturing Company

Income statement

Sales $1,200,000

Cost of goods sold $675,000

Gross profit $525,000

Operating expense

Selling expense $215,000

Administrative expense $125,000

Total operating expense $340,000

($215,000+$125,000)

Operating income $185,000

($525,000-$340,000)

B. Calculation to Determine the inventory balances at the end of the first month of operations.

Sorensen Manufacturing Company

Inventory Balances For the Month Ended January 31

Raw material =$250,000-$180,000

Raw material =$70,000

Work in process =$180,000+$450,000+$180,000-$760,000

Work in process =$50,000

Finished goods =$760,000-$675,000

Finished goods=$85,000

7 0
3 years ago
Jerome's Italian Pizza is in a very competitive industry, and its upper management believes that it can achieve higher profits b
Troyanec [42]

Answer:

That statement is true

Explanation:

Strategic goal is the type of goal that is carefully designed to accomplish a business strategy, This type of goals need to express the desired outcome that wanted be achieved and listed a specific set of actions that can make the company achieve that outcome. Strategic goal commonly created when a company want a more concrete way to measure its success compared to other competitors.

This can be seen in Jerome's italian pizza.

"Increase profits by 15% a year for each of the next five years" is  what considered to be the desired outcome.

lowering costs and prices, providing quicker delivery, and providing good customer service are the Sets of action that the company intended to take.

3 0
3 years ago
Joe Jackson operates a sole proprietorship, but he is in poor health and may be unable to continue running the business. If Joe
Marrrta [24]

Answer:

The business cease to exists unless sold or taken over by Joe's heirs.

Explanation:

Sole proprietorship is a term that describes the business enterprise which is owned or run by just one person known as the sole trader. In other words, sole proprietorship is a one man's business.

One of the major drawbacks of this kind of business is the fact that when a sole proprietor is sick or incapacitated, his/her business would suffer or cease to exist unless he/she sells it or allows family members (heirs) to take over its management or ownership.

8 0
3 years ago
Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write
shepuryov [24]

Answer:

Year        Sales                              Written Off  Accounts        

                                                                   Year of Origin  

                                       Uncollectible       1                   2               3                            

1st        $ 900,000             $4,500        $4,500

2nd      1,250,000              9,600           3,000         $6,600

3rd        1,500,000           12,800           1,000            3,700           $8,100

4th          2,200,000        16,550             1,500          4,300           $10,750

Year    <u>        Bad Debt Expense                               </u>

         Expense  Actually     Expense        Increase      Balance of Allowance      

               Reported             Estimated      (Decrease)    Account Year End

1)           $4500                   $ 9000           $4500              $ 4500

2)           $ 9600                   $12500          1900                 $ 6400

3)           $12800                  15000             2200               $ 8600

4)            16550                    22000            5450               14,050

Explanation:

The actual write off accounts originating in the  years were

1)  ( $ 4500+ $ 3000+ $ 1000+ $ 1500)= $ 9500

2)  ( $ 6600+ 3700+ 4300) = $ 14600

3) ($ 8100+ $ 10,750)= $ 18,850.

Only the first year written off accounts are close to expense if it would have been calculated to 1% of sales ( 1% of $ 900,000) = $ 9000

4 0
3 years ago
Other questions:
  • In the demonstration, 360∘ of rotation (one full rotation) represents a sidereal day. You can actually measure the length of the
    10·1 answer
  • Bonnie Austin, age 30, used to work part time in a local restaurant. This year she quit her job to take care of her five-month-o
    7·1 answer
  • The average ticket price for a concert at the opera house was ​$50. The average attendance was 2500. When the ticket price was r
    11·1 answer
  • An initial investment amount​ P, an annual interest rate​ r, and a time t are given. Find the future value of the investment whe
    9·1 answer
  • A comprehensive risk management program that addresses all of an organization's risks, including hazard risks, financial risks,
    11·1 answer
  • Ivanhoe Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets
    11·1 answer
  • Lucy is preparing to invest in a new online franchise, Notable Moments. The franchisor provides the exclusive software and train
    8·1 answer
  • Please answer both questions in complete sentences
    6·1 answer
  • Otto is one of many employees working from home. Because his home is located in a rural area, the only form of connectivity avai
    7·1 answer
  • Unlike sole proprietorship and partnerships, the corporation has a life independent of its owners and officers. true or false
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!