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4 years ago

Q: What determines the balance of production and consumption?

1 answer:

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Resources is referred to as the available asset that can be used for further purposes may it be for business or consumption. This is what determines the balance between the production and consumption for without these, production would not be possible and if nothing is produced, nothing would also be consumed. Resources come in different forms and each has its own availability. Answer for this would be C.

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Riley says that the present value of $700 one year from today if the interest rate is 6 percent isless than the present value of

devlian [24]

Answer:

A) Both Riley and Anh are correct.

Explanation:

to see who is right we can calculate:

PV = FV / (1 + r)ⁿ

FV = PV x (1 + r)ⁿ

Riley's statement:

PV = $700 / (1 + 6%) = $660.38

PV = $700 / (1 + 3%)² = $659.82

Riley is right

Anh's statement:

FV = $700 x (1 + 6%) = $742

FV = $700 x (1 + 3%)² = $742.63

Anh is right

They are both right due to compound interest, since compound interest means that the interest earned will also earn more interest.

6 0

3 years ago

In the markets for factors of production, ____

Lelu [443]

Answer: In the markets for factors of production, "(B) households provide firms with labor, land, and capital.".

Explanation: Companies and households interact between 2 markets.

The market of goods and services: is one in which companies sell products and services to homes.

The market of productive factors: it is one in which households sell productive factors to companies so that they can produce goods and services.

8 0

3 years ago

Blue Spruce Corp. provides security services. Selected transactions for Blue Spruce Corp. are presented below.

WITCHER [35]

Answer:

Oct. 1 Issued common stock in exchange for $80,500 cash from investors.

Dr Cash 80,500

Cr Common Stock 80,500

2 Hired part-time security consultant. Salary will be $2,400 per month. First day of work will be October 15.

No entry required

4 Paid 1 month of rent for building for $2,400.

Dr Prepaid rent 2,400

Cr Cash 2,400

7 Purchased equipment for $22,000, paying $4,900 cash and the balance on account.

Dr Equipment 22,000

Cr Cash 4,900

Cr Accounts payable 17,100

8 Paid $600 for advertising.

Dr Advertising expense 600

Cr Cash 600

10 Received bill for equipment repair cost of $480.

Dr Repairs expense 480

Cr Accounts payable 480

12 Provided security services for event for $3,900 on account.

Dr Accounts receivable 3,900

Cr Service revenue 3,900

16 Purchased supplies for $500 on account.

Dr Supplies inventory 500

Cr Accounts payable 500

21 Paid balance due from October 7 purchase of equipment.

Dr Accounts payable 17,100

Cr Cash 17,100

24 Received and paid utility bill for $181.

Dr Utilities expense 181

Cr Cash 181

27 Received payment from customer for October 12 services performed.

Dr Cash 3,900

Cr Accounts receivable 3,900

31 Paid employee salaries and wages of $6,200.

Dr Wages expense 6,200

Cr Cash 6,200

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3 years ago

At one time, the US government collected taxes only through___ taxes and imports. The ____ Amendment to the Constitution allowed

maks197457 [2]

The answers are C and B

5 0

3 years ago

Read 2 more answers

Suppose the United States decides to reduce export subsidies on U.S. agricultural products, but it does not decrease taxes or in

Ann [662]

Answer:

1. Decrease, increase

2. Supply curve shifts to the right

3. NCO will rise

4. Real exchange rate falls and net exports rises

Explanation:

Fiscal deficit occurs when government spending's exceed government revenue. When the government lowers its export subsidies while keeping other spending's and taxes unchanged, it leads to a fall in the fiscal deficit.

1. However, the reduction in expenditure on export subsidies decreases the fiscal deficit, thereby increases public savings.

2. As public savings increase it leads to an increase in funds available to be loaned out. So the supply curve for loanable funds will shift to the right from S1 to S2. This will lead to a fall in the interest rate.

3. As we know that net capital outflow is inversely related to the interest rate. A fall in the interest rate above will lead to a rise in net capital outflow.

4. When net capital outflow increases, people move funds out of the country. Thus, supply of dollars will increase. While demand for dollars has remained unchanged, it leads to a fall in the real exchange rate. As exchange rate falls, the equilibrium level of net exports will rise.

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3 years ago