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2 years ago

If the government and Central Bank don't use economic policy, what could happen?

Business

1 answer:

Liula [17]2 years ago

6 0

This would leave the economy in the laizzes fairie position and it will cause malpractices.

Explanation:

Laizzes fairie is the concept that the market should be left on its own without any government influence or meddling with he rules and let the market rules define themselves.

This is not a good strategy as the malpractices of the market will take over and this makes the poor disadvantaged as they are wont to be taken advantage of by those who own the means of production in the state.

This is why the government's policies are needed as well as the Central bank.

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Explain two barriers to entry for a new business

Marianna [84]

Answer: Government regulation, Economies of scale

Explanation:

Barriers to entry refers to the restrictions that are imposed on the entry of a new firm or business into the market. These can be,

a). Government regulation- Sometimes the government puts many restrictions on the entry of a new firm. These can be license requirement or by limiting the availability of a resource.

b). Economies of scale- These refer to the efficiency in production that occurs when one firm grows larger in size and is able to cover the entire market at a lower cost than many small firms producing the same good in smaller quantities. The cost of production is lower for a single firm than for many firms.

6 0

3 years ago

Read 2 more answers

Hong invested his savings in two investment funds. The 5000 that he invested in Fund A returned a 3% profit. The amount that he

Snowcat [4.5K]

Answer:

amount invest in B is 2000

Explanation:

given data

invested in Fund A = 5000

return profit A = 3%

return profit B = 10%

both together returned profit = 5%

solution

we consider here amount invest in B = x

so profit from fund B is

profit from fund B = 10% × x = 0.1 x

and

profit from fund A = 5000 × 3% = 150

so total profit = 0.1x + 150

and total profit = 5%

so we can say

5% = $\frac{0.1x+150}{5000+x}$

solve it we get

x = 2000

so amount invest in B is 2000

3 0

2 years ago

The CPI is a measure of the overall cost of goods and services produced in the economy the overall cost of inputs purchased by a

lakkis [162]

Answer:

The overall cost of buying a market basket of goods and services by a typical customer.

Explanation:

The question is incomplete, but I figured that the question is trying to find out the correct meaning of CPI with different options provided. The correct question should be:

The CPI is a measure of

the overall cost of goods and services produced in the economy
the overall cost of inputs purchased by a typical producer
the overall cost of buying a market basket of goods and services by a typical consumer
the overall cost of stocks on the New York Stock Exchange

Which option is correct?

CPI or Consumer Price Index evaluates the average prices of a basket of consumer goods and services, for instance, medical care, food, and transportation. It is evaluated by analyzing the changes in and averaging the price of each item in the basket of consumer goods and services.

The CPI is usually used especially to discover situations of inflation of deflation.

5 0

2 years ago

Bennett Co. has a potential new project that is expected to generate annual revenues of $253,100, with variable costs of $140,00

Vlad [161]

Answer:

Hence, the annual operating cash flow is: $44860

Explanation:

Year 0 Year 1

Initital investment

Inflows $253,100

variable costs ($140,000)

fixed cost (53800)

Depreciton ($23,200)

Interest expense ($19,500)

Net cash inflows $16600

Tax at 40% ($6640)

Net Cashinflows after tax $9960

Add Depreciation $23,200

Interest net of tax $11.700

Operating cashflows $44860

Hence, the annual operating cash flow is: $44860

5 0

3 years ago

A rightward shift in the demand curve for tennis balls could be caused by Group of answer choices a fall in income, assuming ten

trasher [3.6K]

Answer:

The correct answer is letter "C": a fall in the price of tennis balls.

Explanation:

The demand law explains the relationship between the price of a product and its quantity demanded. As the price increases, the quantity demanded decreases moving the demand curve to the left. As price decreases, the quantity demanded decreases, moving the demand curve to the right.

Therefore, if the demand curve for tennis balls moves to the right, the price has fallen increasing the quantity demanded.

7 0

3 years ago