All categories

3 years ago

What is the difference between a traditional economy and a market economy?

Business

1 answer:

Triss [41]3 years ago

8 0

Answer:

Explanation:

A traditional economy is one which doesn't operate under a profit motive.

Instead, it emphasizes the trading and bartering of products and services that enable participants to subsist in a specific region, community and/or culture. Largely, traditional economies are a way of life in underdeveloped countries that rely more on old-fashioned economic models like farming or hunting than on newer-age modes like industry and technology.

Capitalist

Historically, these societies leverage market forces, such as supply and demand, with a strong motivation to earn a profit, to shape their economic models.

You might be interested in

JPL Company has two segments - Retail and Commercial. The Retail segment has a contribution margin ratio of 40% and traceable fi

kakasveta [241]

Answer:

The break-even point in dollar sales for the Retail segment equals to $175,000

Explanation:

Break-even point is the point of sales where the business incur no profit and no loss. Business fulfills all the variable and fixed cost requirements at this point.

Retail segment

Contribution margin ratio = 40%

Fixed Expense = $70,000

Break even sales revenue = Fixed cost / Contribution margin ratio

Break even sales revenue = $70,000 / 40%

Break even sales revenue = $175,000

7 0

3 years ago

There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generat

sattari [20]

Answer:

8.00%

Explanation:

The return of the 298 diaries can be computed as the profit generated divided by the amount invested initially.

percentage rate of return=profit generated/amount invested

profit generated is $24

amount invested is $300

percentage rate of return=$24/$300

percentage rate of return=8.00%

6 0

3 years ago

On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and

Lelechka [254]

Answer:

Journal entries are given below

Explanation:

Entry for the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021, are prepared as follows

January 01, 2021 (Splash City issues $320,000 of 8% bonds)

Debit Credit

Cash 320,000

Bonds payable 320,000

June 30, 2021 (Interest paid)

Debit Credit

Interest expense $12,800

Cash $12,800

Working

Interest expense = $320,000 x 8% x 6/12

Interest expense = $12,800

December 31, 2021 (Interest paid)

Debit Credit

Interest expense $12,800

Cash $12,800

Working

Interest expense = $320,000 x 8% x 6/12

Interest expense = $12,800

4 0

3 years ago

The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the

irina1246 [14]

Answer:

The total sales of a product, by all competitors in the industry, is:____

e. lowest in the market introduction stage.

Explanation:

The product life cycle refers to the time period when a product is first introduced to a market until it exits the market. There are four main stages in a product life cycle. They include introduction, growth, maturity, and decline. It is during the introduction phase that the total sales are lowest. The low sales are witnessed again during the latter stage of decline. The highest sales are achieved during the maturity stage.

3 0

3 years ago

A 4PL, commonly referred to as a lead logistics provider, is a trucking company that also provides tracking servicesa) true b) f

gregori [183]

Answer:

False

Explanation:

4PL is the term used for fourth party logistics. It has nothing to do with a truck company. Rather it refers to the party of logistics services provider who provides the services in which it further takes the charge of goods from 3rd party of logistics service provider.

It not only delivers the goods but rather provides the entire facility of storage and care in the entire process.

This basically is not a function of trucking company, but a company which manages the goods transportation in complete sense. It even includes insurance during transportation many times.

3 0

3 years ago