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4 years ago

Explain the principle of scarcity and how it applies to people as well as countries

1 answer:

5 0

The Principle of Scarcity is clearly manifested when a product, good or service of low or less supply has an undeniably high demand. A mismatch between the high demand and low supply happens. Naturally, the price of a scarce good/product/ services rises until there is already enough supply to balance the demand. In this case, people will have to conduct their own cost-benefit analysis in order to determine which among the scarce/goods/services are to be prioritized. On the other hand, the countries must also prepare measures to answer the rising economic problems if ever scarcity occurs. It is about time to think and create of alternatives.

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The macroeconomic theory holding that business cycles are caused by changes in aggregate demand and that such cycles can and sho

ch4aika [34]

Answer:

Keynesian Theory

Explanation:

The Keynesian economic theory focuses on aggregate demand. Economic growth is achieved by fostering aggregate demand through fiscal (increasing government spending) and monetary (expansionary) policies.

The economy has two sides, aggregate demand and aggregate supply. If suppliers believe that consumers will demand larger quantities, they will produce more. But if suppliers do not believe that they will be able to sell the goods and services they produce, they will reduce supply and halt investment.

Therefore, if aggregate demand is strong, producers will increase output because they know they can sell more, and that promotes economic growth without necessarily increasing inflation. Keynesian economics considers both suppliers and consumers expectations and how they affect economic growth.

3 0

3 years ago

Madsen Motors's bonds have 14 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon i

gregori [183]

Answer:

Bond price= = $869.84

Explanation:

Given data:

Face value (F)=$1000

Interest rate (i)=10%

Coupon rate (c)= 7% annually

No of year n = 14

we know that bond price is given as

$Bond price= C\times \frac{1-(1+r)^{-n}}{r}+\frac{F}{(1+r)^n}$

putting all value to get the desired value

$= 0.07 \frac{1-(1+0.10)^{-14}}{0.10}+\frac{1000}{(1+0.10)^14}$

= $869.84

5 0

3 years ago

Connie is analyzing the financial statements of MegaMart and Bullseye Company. She wants to invest in one of the companies and i

Annette [7]

Answer:

D. financial accounting information.

Explanation:

Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). These accounting informations are prepared and made available for investors and other external agencies. Examples of financial statements includes Balance sheet, cash-flow and income statement.

In this scenario, Connie is analyzing the financial statements of MegaMart and Bullseye Company. She wants to invest in one of the companies and is trying to decide which company has the better past performance.

Hence, Connie is examining the financial accounting information.

4 0

3 years ago

When one considers the largest manufacturing organizations in the united states, it is clear that they all have one thing in com

REY [17]

They are all picking the largest manufacturing organizations because they are well known. This manufacturer takes the time to advertise and promote themself where different businesses are aware of who they are and want to use them. By investing in your business and advertising, you have a greater chance of reaching more clients.

4 0

3 years ago

If a rise in incomes is the same proportion for both low-income and high-income workers, then poverty will rise and inequality w

Nonamiya [84]

Then poverty will fall and inequality will rise.

<h3>What is poverty?</h3>

Being in a state of poverty means having few material possessions or little money.
Numerous social, economic, and political factors can contribute to or be a result of poverty.
There are two primary metrics of poverty used in statistics and economics: Relative poverty is the inability of a person to maintain a minimal standard of living in comparison to others in the same period and place.
Absolute poverty is the comparison of income to the amount required to meet fundamental personal necessities, such as food, clothing, and shelter.
Depending on the community or the country, many terms are used to define relative poverty.

<h3>What is income inequality?</h3>

The disparity in how income is allocated among people or populations is known as income inequality.
It is also known as the wealth gap, wealth disparity, wealth and income discrepancies, or the gap between the rich and the poor.
Therefore, the poverty will fall and inequality will rise.

Know more about absolute poverty here:

brainly.com/question/2264730

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3 0

2 years ago