What are the three duties of a central bank?

What is the term for when businesses produce goods and services that consumers do not want

tino4ka555 [31]

Answer:

Productive (technical) inefficiency.

Explanation:

A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet consumer demand.

This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market.

In Economics, there are two types of inefficiency associated with the production of goods and services, these includes;

1. Allocative inefficiency: it occurs when businesses do not maximise output from the given inputs. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.

In conclusion, allocative inefficiency typically occurs when the price of a good or service isn't equal to its marginal cost i.e P ≠ MC.

2. Productive (technical) inefficiency: it occurs when businesses produce goods and services that consumers do not want. This is typically as a result of the incorrect and inefficient allocation of scarce resources by a business firm or entity.

4 0

3 years ago

Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent.

Nastasia [14]

Answer:

The correct answer to the following question is option E) 9.06% .

Explanation:

Here the cost of equity given is - 11.8%

Pre tax cost of debt- 6.9%

Tax rate- 35%

So the after tax cost of debt - 6.9% x 65%

= 4.485%

The debt to equity ratio - .6

So the weight of debt - .6 / ( 1 + .06 )

= .375

Weight of equity - 1 / ( 1 + .06 )

= .625

Weighted average cost of capital =

Debts cost x weight of debt + Equity cost x weight of equity

= 4.485 x .375 + 11.8 x .625

= 1.681875 + 7.735

= 9.06%

7 0

3 years ago

Identifying the Appropriate GAAP. (LO15-1, LO15-3) Section A lists a number of reporting requirements for colleges and universit

Serggg [28]

Answer: Please refer to Explanation.

Explanation:

The Government Accounting Standards Board (GASB) is an NGO that oversees the formulation of the Generally Accepted Accounting Principles (GAAP).

The Financial Accounting Standards Board (FASB) does the same as well and is also an NGO.

The difference between the above 2 is that the whilst the GASB caters for Government organisations, the FASB caters for private Organizations.

Classifying the above we have,

1. Patents are classified as capital assets. GASB STANDARD.

2. Sidewalks are classified as land improvements. FASB STANDARD

3. Revenues and expenses must be categorized as operating and nonoperating. GASB STANDARD.

4. Tuition and fees must be shown net of any estimated uncollectible amounts. Both a GASB and an FASB STANDARD.

5. Expenses must be reported by program and support (management and general, and fund-raising) function classifications. FASB STANDARD.

6. Statement of cash flows must be prepared using the direct method. GASB STANDARD.

7. The purchase of a building is reported as an investing activity on the statement of cash flows. FASB STANDARD.

8. The receipt of student deposits for housing is reported as a liability, Deposits Held in Custody for Others. Both GASB and an FASB STANDARD.

9. The cash from a debt issuance is reported in the capital and related financing activities section on the statement of cash flows. GASB STANDARD.

10. The collection of historical first editions can be reported as a note rather than on the face of the financial statement provided certain conditions are met. Both a GASB and an FASB STANDARD.

7 0

2 years ago

Assume oil prices rise in the United States, generating concerns that inflation may increase. If the Fed wishes to ensure that i

miskamm [114]

If the Fed wishes to ensure that inflation does not get out of hand, the Fed could lower the target money supply growth rate.

Inflation is when the general price levels in an economy increases persistently overtime. The policy tools that the Fed can use to control general price levels in the economy is known as monetary policy.

There are two types of monetary policy :

Expansionary monetary policy : these are steps taken by the Fed to increase the supply of money in the economy. These steps include reducing the target Funds rate, decreasing the reserve requirements and carrying out open market purchase.
Contractionary monetary policy : these are steps taken to reduce the money supply in the economy. These steps include reducing the target money supply growth rate and carrying out an open market sales.

To learn more about monetary policy, please check: brainly.com/question/15566475?referrer=searchResults

7 0

2 years ago

Urban Window Company had gross wages of $320,000 during the week ended July 15. The number of wages subject to social security t

marshall27 [118]

Answer:

wages expense 320,000 debit

cash 218,400 credit

FICA tax payable 2,160 credit

SUTA tax payable 240 credit

Social security payable 24,000 credit

wages income tax payable 75,200 credit

--to record July 15th payment to employees wages--

payroll tax expenses 26,400 debit

FICA tax payable 2,160 credit

SUTA tax payable 240 credit

Social security payable 24,000 credit

---to record the payroll tax for the week ended July 15th--

Explanation:

We multiply the wages subjet to taxation by each rate:

social security:

320,000 x 7.5% = 24,000

SUTA

40,000 x 5.4% = 2,160

FICA

40,000 x 0.6% = 240

For this three concepts, the employee will have liability for the same amount for payroll taxes

Income tax 75,200

net wages: 320,000 - 24,000 - 2,160 - 240 - 75,200 = 218,400

4 0

2 years ago