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3 years ago

An economic system:

Business

1 answer:

seropon [69]3 years ago

5 0

Answer:

B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.

Explanation:

Economic system -

It is the system that is responsible for the resource allocation , production and the distribution of the services and goods , is known as an Economic system .

Economic system includes - the institutions of decision-making , agencies .

It works to deal with the problem related to the economy of a country or society .

Hence , the correct option is ( b ) .

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Suppose the demand for corn increases while at the same time the supply of corn also increases. As a result, the equilibrium pri

kvv77 [185]

Answer:

Rise, fall, or remain unchanged and equilibrium quantity of corn will increase.

Explanation:

In this case, the equilibrium price of corn might RISE, FALL, or NOT CHANGE while the equilibrium quantity of corn increases.

4 0

4 years ago

On January 1, 2009, a U.S. firm made an investment in Germany that will generate $5 million annually in depreciation, converted

Afina-wow [57]

Answer:

The expected real value (in terms of January 1, 2009, dollars) of the depreciation charge in year 2013 will be $1,958,815.416.

Explanation:

It is expected that the value of the dollar in the German market will fall at the same rate as that of the real market value of the dollar when we envisage the exchange rate will remain the same. Thus the depreciation of the tax write-off in terms of its real value in dollars will fall at 5% every year from 2009 to 2013.

Therefore, at a tax rate of 50% in Germany, a $2.5 million charge on depreciation on the investment of $5 million will result in 2013.

To calculate the real value of the dollar at an inflation of 5% yearly in 2013

When the tax rate in German is 50%, then charges of depreciation of $5 million will equal4$2.5 million in 2013 dollars. When the dollar's real value of this write-off is declining due to the inflation at 5% annually, the real value in 2013 will be calculated as:

Given: $2,500,000 (P/F , 5%, 5years) ; 0.78356 (factor for calculating the amount to be recieved after 5years)

= $2,500,000 * 0.78356

= $1,958,815.416

8 0

3 years ago

During January, Luxury Cruise Lines incurs employee salaries of $2.1 million. Withholdings in January are $160,650 for the emplo

almond37 [142]

Answer:

a. The journal entries for the employee salary expense, withholdings, and salaries payable are the following:

Debit Credit

Salaries expenses account $2,100,000

Federal Income tax payable $315,000

State income tax payable $131,250

FICA social security tax payable $160,650

Blue shield payable $21,000

Cash account $1.472.1000

b. The journal entries for the employer-provided fringe benefits is the following:

Debit Credit

Salaries expenses (Fringe benefit account) $63,000

Blue shield payable $63,000

c. The journal entries for the employer payroll taxes is the following:

Debit Credit

Payroll Tax expense account $290,850

FICA Social security tax payable $160,650

Unemployment tax payable $130,200

Explanation:

a. The journal entries for the employee salary expense, withholdings, and salaries payable are the following:

Debit Credit

Salaries expenses account $2,100,000

Federal Income tax payable $315,000

State income tax payable $131,250

FICA social security tax payable $160,650

Blue shield payable $21,000

Cash account $1.472.1000

b. The journal entries for the employer-provided fringe benefits is the following:

Debit Credit

Salaries expenses (Fringe benefit account) $63,000

Blue shield payable $63,000

c. The journal entries for the employer payroll taxes is the following:

Debit Credit

Payroll Tax expense account $290,850

FICA Social security tax payable $160,650

Unemployment tax payable $130,200

3 0

3 years ago

Which of the following statements is/are FALSE, all else the same?

xz_007 [3.2K]

Answer:

I. Present values increase as the discount rate increases.

and

III. Present values are smaller than future values when both r and t are positive.

5 0

3 years ago

Consider a hypothetical closed economy in which households spend $0.75 of each additional dollar they earn and save the remainin

Nata [24]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) Marginal propensity to consume (MPC) for this economy is 0.75 as it denotes the spending of the household and saving of 0.25 and the spending multiplier for this economy is

= Spending Multiplier(M)

= 1 ÷ 1 - MPC

= 1 ÷ 1-0.75

= 1 ÷ 0.25

= 4

2). Decrease in government purchases will lead to a decrease in income, generating an initial change in consumption

= -Amount of Government Decrease Purchases by × MPC

= -$250 billion × 0.75

= -$187.5 billion

3). Decrease income again, causing a second change in consumption

= Amount Decrease in Government Purchases × MPC

= -$187.5 billion × 0.75

= $140.6 billion

4).Total change in demand resulting from the initial change in government spending

= Amount of Government Decrease Purchases by × Spending Multiplier(M)

= $250 × 4

= $1,000 billion

= $1 trillion

As we can see that the income falls by $1000 billion in the end, so AD shifts to the left by the size of $1 trillion

In the question the graph is missing. Kindly find the attachment for both of question and answer

5 0

3 years ago