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satela [25.4K]
4 years ago
7

Give an example in the marketplace that describes the principles of the free market and competition.

Business
1 answer:
iren2701 [21]4 years ago
4 0

Answer:

Global market

Explanation:

In the global market the countries has a free setting of their prices to compete with the world. There, no organization is big enough to regulate the global market and therefore countries are free to negotiate the prices without the intervention of a regulatory institution. Some organizations, as OPEC e.g tried to monopolize and regulate the petroleum production, but a free-market can operate against the high prices generally originated from a cartel, offering a low price alternative. No cartel is big enough to cover all production in a global scale.

Decisions about what is produced, in what quantities, by what methods and in which locations are made with the aim of satisfying consumer demands. In the global market case, the countries demands. When companies operate in an environment of free competition, they must strive to discover as quickly as possible what their consumers want, as they can only make profits when they meet the consumer's wishes. Otherwise, your business will fail; because the consumer can buy from another company or simply not buy your product or hire your service.

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Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expa
Blizzard [7]

Answer:

In the long run as aggregate demand increases and unemployment is reduced workers will demand higher wages the aggregate supply curve will shift left, and the economy will return to the natural rate of unemployment.

Explanation:

In the case when the government misjudge the natural unemployment rate and it is less than the actual one so in the long run, the aggregat demand rises also the unemployment decreased due to which the workers demand for higher wages is also decreased. This lead to the shifting of the aggregate supply to the left and the economy would return to the natural unemployment rate

3 0
3 years ago
Robin Corporation retires its $800000 face value bonds at 104 on January 1, following the payment of annual interest. The carryi
LekaFEV [45]

Answer:

The correct option is debit of $2040 to Loss on Bond Redemption

Explanation:

The unamortized premium on the bonds at redemption date=carrying value-face value

carrying value is $829,960

face value is $800,000

unamortized premium=$829,960-$800,000=$29,960

cash paid on redemption=$800,000*104%=$832,000.00  

The appropriate entries would a credit to cash of $ 832,000 while face value is debit to bonds payable and also the unamortized premium is debited to premium on bonds payable

loss on retirement=$832,000-$829,960=$2040

The loss is debited to loss on bond redemption

4 0
4 years ago
Juice Drinks has beginning inventory of $10,000, purchases in the amount of $150,000, and ending inventory of $8,000. Juice Drin
astra-53 [7]

Answer:

$152,000

Explanation:

Given the data as shown below;

Opening inventory = $10,000

Purchases = $150,000

Ending inventory = $8,000

Therefore,

Juice drinks cost of goods sold = Opening inventory + Purchases - Ending inventory

= $10,000 + $150,000 - $8,000

= $152,000

8 0
4 years ago
Some of the local licensed stockbrokers offer investors the opportunity to invest in
borishaifa [10]

Currently, $17.39 is the price that investors are willing to pay for a share of this stock. Currently, $18.75 is the price that investors are prepared to pay for a share of this stock.

What is  preference shares?

Shares with the ability to receive dividends announced by the firm before equity shareholders are referred to as preference shares, or preferred shares. A security with a fixed income is preferred shares.

Annual rate after year 4(g) =2%

required rate (r) = 9%

Terminal value = Dividend year 4 × (1 + g) / (r—g)

1.25000 ×  1 + 0.02/0.09 – 0.02

= 18.21429

(i) D1/(1+r)  + D1/(1+r)^{2} + D1/(1+r)^{3}D1/(1+r)^{4} + terminal value/(1+r)^{4}

1.50/(1+9%) + 1.50/(1 + 0.09)^{2} + 1.25/(1+0.09)^{3} + 1.25/(1+0.09)^{4} + 18.21429/ (1+0.09)^{4}

= 17.39289

(ii) Annual dividend/r

1.50/8%

=18.75

Hence, the significance of the preference shares is aforementioned.

Learn more about on preference shares, here:

brainly.com/question/16940314

#SPJ1

6 0
2 years ago
The objectives of U.S. monetary policy are to achieve​ ______.
SSSSS [86.1K]

Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth.  If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0
3 years ago
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