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kupik [55]
3 years ago
15

High and unexpected inflation has a greater cost. True or False

Business
1 answer:
Alik [6]3 years ago
8 0

true...................

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Explain the roles of taxation and government expenditure in the circular flow of income
STatiana [176]
The role of taxation in the circular flow of income, is basically to have a medium of revenue for the government, if the government is able to earn money, they are able to spend it on the economy.
So then the role of Government expenditure is to make sure the money goes back into the economy, if the government were to save the money, the economy will have restriction to grow, if all the money the government creates from tax was put back into the economy by spending in say, Heath, Education, Investment, the economy can grow because then household will spend money from their income to utilise these industries.
Hopefully this helps!
6 0
3 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

7 0
3 years ago
Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufactur
otez555 [7]

Answer:

D. outsourcing

Explanation:

Outsourcing -

It is the method in a business to hire people from any other company in order to perform a particular task , is known as outsourcing .

The practice of outsourcing have the objective , in order to increase the efficiency of the company or to accomplish any goal with in a very short period of time .

Hence , from the question ,

The Aluminium company Alumplus , outsource people from out side its company to produce the products .

8 0
3 years ago
You are the only seller of eggs in town, and the price-elasticity coefficient for eggs is known to be 2. If you want to increase
lukranit [14]

Answer:

the seller must lower the price by 12.5%

5 0
3 years ago
Read 2 more answers
The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be
ahrayia [7]

Answer:

C. debit cash, credit premium on bonds payable and bonds payable

Explanation:

Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:

Cash A/c Dr XXXXX

      To Premium on bonds payable A/c XXXXX

      To Bonds payable A/c XXXXX

(Being bond is issued at a premium is recorded)

When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account

4 0
3 years ago
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