Solution :
When the people of this economy trades three of their goods, the price of the good must list 1 price and then the economy requires 3 prices for the people to carry transactions.
Suppose the number of the goods that people trade increases to 15 number, then the price of the goods must list one price and the number of the price that the economy requires increases to 15.
Money has an intrinsic value and it is the unit of account, while that of the currency is the measure of the value and have a purchasing power that government is bestowed on it being a legal tender.
The store of the value characteristics is negatively impacted. But because the ongoing increase in the cost of the standard implies inflation that means that the value of the assets as accounted by the store has a value function as the money decreases.
Even when the cost of the living increases, the money serves as the best medium of exchange and a unit of the account.
Double coincidence of the wants is the barter system that is required.
Answer:
It is decrease in accounts receivable (D)
Explanation:
An Increase in Inventory : the effect of this transaction will reduce the cash position of the company because more cash is being tied down as inventory at a cost.
A decrease in accounts payable : Here, more cash is being paid to off-set liability owed to suppliers and this will reduce company's cash position.
Preferred dividends declared and paid : This is an outflow of cash paid to equity investors as a return on their investment which will impact negatively on the company cash position.
Decrease in accounts receivable : This is an inflow of cash from the settlement of trade receivable owed by our customers which will impact positively on our cash position.
Answer: higher; lower
Explanation:
From the question, we are informed that three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect that there will be a rise in the equilibrium price while there will be a reduction in the equilibrium quantity.
This is because when one producer leaves, there will be less supply of the good that is sold, this will eventually lead to a rise in price.
Answer:
True
Explanation:
Limited liability - legal liability when the SHAREHOLDERS or founders are liable for the obligations of the company only to the extent of the capital invested in it. We can not say the stakeholders have obligations. The stock holder is the same meaning with shareholder.
The limitation of liability is one of the principles underlying the concept of a legal entity, namely that a legal entity, although an abstraction, actually has a number of features of a real person (i.e. a person), in particular, it is itself capable of having rights and bear obligations, thus limiting the rights and obligations (including liability) of persons who are participants in such a legal entity. Among the various organizational and legal forms of legal entities provided for by the laws of different countries of the world, not everyone provides a limitation of liability to persons standing behind these legal entities. The extent and nature of the limitation of such liability also varies. In some legal systems, limitation of liability is considered as a privilege that is granted to participants in a legal entity in return for fulfilling certain requirements (compliance with corporate procedures, etc.); and in case of non-compliance with these requirements, this privilege may be deemed unreasonable, and the responsibility is transferred to the property of such participants.
The economic meaning of limiting liability is to stimulate the economic activity of citizens and make more active use of investment opportunities. The existence of modern public capital markets (and, above all, exchanges) is not possible without the principle of limited liability.
