Which action would a government most likely take to reduce its

Cooper's native country of Evensplitia was much different from the United States. In addition to its higher tax rates, the gover

ra1l [238]

Answer:Evensplitia operated SOCIALISM

Explanation:

Socialism is a political and economic system where every individual in the society controls the factors of production, it's means and distribution eg machinery, tools, factories used to produce goods to directly satisfy human wants and needs.

Here, ownership is acquired either through a democratically elected government or through a cooperative or a public corporation and everyone has shares.

Distribution decisions are made by the government or public corporation and individuals depend on the state for every basic thing. The government determines the output and pricing levels of these goods and services for the benefit of the community.

8 0

3 years ago

Government Purchases $15 Personal Consumption 120 Gross Investment 25 Consumption of Fixed Capital (depreciation) 5 Exports 8 Im

beks73 [17]

Answer: $156

Explanation:

The gross domestic product is referred to as the value of the final goods which a particular country produces for that economy.

Based on the information given, the GDP will be calculated as:

GDP = C + I + G + X - M

where C = consumption = $120

I = Investment = $25

G = government purchases = $15

X = exports = $8

M = imports = $12

GDP = C + I + G + X - IM

GDP = $120 + $25 + $15 + $8 - $12

GDP = $156

4 0

3 years ago

Linda's Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investm

sammy [17]

Answer:

1) Accounting rate of return is 8.2%

2) Payback period is 5.95 years

3) Net present value (NPV) is ($88,643.26)

4) Option B

Explanation:

Initial Investment = $720,000 , Useful life = 10 years , Salvage Value = $100,000

Annual Net Income generated = $59,040 , Cost of capital = 14%

Depreciation = ($720,000 - $100,000) ÷ 10 = $62,000

Annual Cash flows = $59,040 + $62,000 = $121,040

1) Accounting rate of return = (Annual Net Income ÷ Average Investment) × 100

= (59,040 ÷ 720,000) × 100

= 8.2%

2. Payback Period = Initial Investment ÷ Annual Cashflows

= 720,000 ÷ 121,040

= 5.95 years.

3. PV of cash flows = 121,040 × PVAF(14% for 10 years)

= 121,040 × 5.2161

= $631,356.74

Less: PV of cash outflow = $720,000

Net present value (NPV) = (88,643.26)

4. If IRR = Discount rate, then NPV = 0

If IRR < Discount Rate, Then NPV is negative

If IRR > Discount Rate, Then NPV is positive

Here NPV is negative, so IRR is less than discount rate i.e.14%

5 0

4 years ago

Splish Brothers Inc. issues $268,000, 10-year, 7% bonds at 97. Prepare the journal entry to record the sale of these bonds on Ma

chubhunter [2.5K]

The journal entry to record the transaction is: Debit Cash $259,960; Debit Discount on bonds payable $8,040;Credit Bonds payable $268,000.

<h3>Sales of bonds</h3>

Splish Brothers Inc journal entry

March 1,2022

Debit Cash $259,960

($268,000 × 97%)

Debit Discount on bonds payable $8,040

($268,000 × 3%)

Credit Bonds payable $268,000

(To record sales of bonds)

Inconclusion the entry is: Debit Cash $259,960; Debit Discount on bonds payable $8,040;Credit Bonds payable $268,000.

Learn more about sales of bonds here:brainly.com/question/13958571

5 0

2 years ago

Assume a factory that currently employs 25 workers is considering adding another 5 workers to its payroll. Economists would clas

ahrayia [7]

D: It is both a short run and long run decision.

Explanation:

Whether its a short run or long run decision, it is determined by when the benefit will accrue to the entity.

Thus employing 5 more workers in the short run is going to help the entity whiles in the long run also they are going to be a developed staff which will benefit the entity in the long run.

#learnwithbrainly

4 0

3 years ago