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
GarryVolchara [31]
3 years ago
7

The old Soviet Union devoted enormous resources exclusively to increasing its physical capital​ stock, and yet eventually the in

crease in the​ country's real GDP came to an end. Based on the discussion in the​ chapter, explain why this was inevitable.
Business
1 answer:
GrogVix [38]3 years ago
5 0

Answer:

In the absence of technological​ innovation, massive capital investments yielded diminishing marginal returns.

Explanation:

The economy of the Soviet Union was a command economy where the government decided how resources would be allocated. The four factors of production are land, labor, capital and entrepreneurship. In a command economy, entrepreneurship is virtually nonexistent, so that leaves three factors: land, labor and capital.

The government allocated a lot of resources into increasing the capital factor, but capital factor will always yield diminishing marginal returns unless new technological innovations are developed. During many years, the Soviet Union was the technological leader of the world, but as time passed and with a complete absence of entrepreneurship, technological advances halted.

You might be interested in
Which one of the following is a good way to deal with frustration?
Korolek [52]
Hey there!

The correct answer to this is D. Try to remove the obstacle that's blocking the goal. By doing so, we can create a positive change in our life :)

Thanks! :D
3 0
3 years ago
Read 2 more answers
Sonny's BBQ Company recently issued $85 par value preferred stock that pays an annual dividend of $9. Analysts estimate that the
Bond [772]

Answer:

Intrinsic value=$73.77

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.</em>

<em> According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.</em>

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

<em>The capital asset pricing model (CAPM)</em>: relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)%  = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

5 0
3 years ago
An investor purchases a 15-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in
ra1l [238]

Answer:

Bond Price​= $846.3

Explanation:

Giving the following information:

YTM= 0.05

Maturity= 15*2= 30 semesters

Par value= $1,000

Coupon= $40

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 40*{[1 - (1.05^-30)] / 0.05} + [1,000 / (1.05^30)]

Bond Price​= 614.90 + 231.38

Bond Price​= $846.3

6 0
3 years ago
What is the difference between a nominal value and a real value?a. A nominal value is measured in monetary units adjusted for in
Allushta [10]

Answer:

In economics, nominal value refers to the current monetary value and does not adjust for the effects of inflation

Explanation:

6 0
3 years ago
On November 1, 2018, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, wi
goldfiish [28.3K]

Answer:

$780

Explanation:

Since King agreed to pay Taylor $4,680 for the one-year period which is divisible into 12 months

On the other hand Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2019, Therefore the amount to be recognized in 2018 will 2 months comprising November and December.

Therefore 2018 revenue = 2 / 12 x $4,680 = $780

3 0
3 years ago
Other questions:
  • Marissa, a college student, and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a
    14·1 answer
  • A debit balance in Allowance for Doubtful Accounts a. is the normal balance for that account b. cannot occur if the percentage o
    14·1 answer
  • For questions 1-10 fill in the blank with the letter of the term or description that best matches the term.
    5·1 answer
  • Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $10,000 cash and business inventory ($20
    10·1 answer
  • Occasionally, companies disappoint their customers. Whenever possible, these problems should be addressed immediately. Choose th
    15·1 answer
  • PLZ HELP I AM TIMED!!!!!!
    6·2 answers
  • Tidwell Corporation was organized on January 1, 2014. It is authorized to issue 20,000 shares of 6%, $50 par value preferred sto
    14·1 answer
  • Product differentiation that makes the product better for some consumers and worse for others is A) always welfare decreasing. B
    15·1 answer
  • The advantage to savers and investors of receiving compound interest rather than simple interest is that future values are large
    8·1 answer
  • Trey Morgan is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,538. The F
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!