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3 years ago

Which type of economy lacks efficiency?

Business

2 answers:

Ludmilka [50]3 years ago

5 0

just give me the word

DENIUS [597]3 years ago

3 0

A command economy is one in which a centralized government controls the means of production. The government determines what is produced, how it is produced and how it is distributed. Private enterprise does not exist in a command economy. The government employs all workers and unilaterally determines their wages and job duties. There are advantages and disadvantages of command economy structures. Command economy advantages include low levels of inequality and unemployment and the common good replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency.

Because the government controls the means of production in a command economy, it determines who works where and for how much pay. This power structure contrasts sharply with a free market economy, in which private companies control the means of production and hire workers based on business needs, paying them wages set by invisible market forces. In a free market economy, the law of supply and demand dictates that workers who have unique skills in high-demand fields receive high wages for their services, while low-skill individuals in fields that are saturated with workers settle for meager wages, if they can find work at all.

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After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As

s2008m [1.1K]

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

<h3>Why is a 0% inflation target risky?</h3>

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

Find out more on deflation at brainly.com/question/13562161.

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6 0

2 years ago

he credit union will have $1.6 million available for investment during the coming year. State laws and credit union policies imp

natulia [17]

Here is the full question.

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue producing investments together with annual rates of return are as follows:

Type of Loan/Investment Annual Rate of Return (%)

Automobile loans 8

Furniture loans 10

Other secured loans 11

Signature loans 12

Risk-free securities 9

The credit union will have $1.6 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments.

Risk-free securities may not exceed 30% of the total funds available for investment.

Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).

Furniture loans plus other secured loans may not exceed the automobile loans.

Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.

How should the $1.6 million be allocated to each of the loan/investment alternatives to maximize total annual return? Round your answers to the nearest dollar.

Automobile Loans $

Furniture Loans $

Other Secured Loans $

Signature Loans $

Risk Free Loans $

What is the projected total annual return? Round your answer to the nearest dollar.

Answer:

Explanation:

Let the amount invested in:

Automobile loans be Xa,

Furniture Loans be Xf,

Other Secured Loans be Xo,

Signature loans be Xs, &;

Risk-free loans be Xr

In reference on the Annual returns rate given;

Total annual returns = 8%×Xa + 10%×Xf + 11%×Xo + 12%×Xs + 9%×Xr

The various constraints given can be written as follows:

Xa + Xf + Xo + Xs + Xr = 1,600,000-----Constraint for amount available for investment

Xr = 30%*1,600,000 ----- Constraint for maximum risk free investment

Xs = 10%*(Xa + Xf + Xo + Xs) ----- Constraint for maximum amount in signature loans

Xf + Xo = Xa ------- Constraint for Furniture and other secured loans

Xo + Xs = Xr ------ Constraint for other secured loans and signature loans

Using the Excel Formula for solving this;

we have the following result.

Automobile Loans $ 504,000

Furniture Loans $ 136,000

Other Secured Loans $ 368,000

Signature Loans $ 112,000

Risk-Free Loans $ 480,000

The projected total annual return = $ 151,040

The computation of the excel formula on how we arrived at those valid figures above is shown in the attached files below.

Thanks!

5 0

3 years ago

Given the following two potential locations to construct an urgent care, use incremental B/C ratio to determine which location,

White raven [17]

Answer:

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

Explanation:

The incremental BCR can be determined using the following formula

$\Delta BC_R = \frac{AW_B-AW_D-AW_M}{AW_i}$

$AW_C=1,000,000(A/P,$ 8% , 10)

⇒ $AW_C= 1,000,000 \times \frac{0.08}{1-1.08^-^1^0}$

⇒ $AW_2=2,000,000(A/P,$ 8%, 20)

⇒ $AW_2= 2,000,000 \times \frac{0.08}{1-1.08^-^2^0}$

⇒ $AW_C_2$ = $203,704.42

Incremental initial investment = 203,704.42 - 149,029.49

= $ 54,674.93

Incremental benefits = 580,000 - 520,000 = 60,000

Incremental O&M = 75,000 - 80,000 = - $ 5000

Incremental Disbenefits = 140,000 - 90,000 =$ 50,000

$\Delta BC_R = \frac{60,000-50,000-(-5000)}{54,674.93} \\\\\Delta BC_R=0.2743$

All solving using the present worth method also incremental benefit cost ratio comes out to be 0.2743.

The incremental benefit cost ratio is less than 1 therefore we must select site 1.

3 0

3 years ago

At the completion of a long project, aileen gives her assistant a day off with pay to acknowledge all of his hard work. This is

SVEN [57.7K]

At the completion of a long project, aileen gives her assistant a day off with pay to acknowledge all of his hard work. This is an example of reward power.

<h3>What is reward?</h3>

The reward system is a collection of brain structures that are responsible for incentive salience, associative learning, and positively-valenced emotions, particularly those that have pleasure as a key component.

When it comes to benefits and incentives, rewarding employees is one of the most effective strategies to increase retention and employee happiness. According to Think Smart research, firms that use incentive programs achieve their goals with a 79 percent success rate when the right reward is presented.

78 percent of employees said recognition stimulates them in their job, while a combined 68 percent of respondents in REBA's The Rewards Report 2016 indicated recognition with a reward helped them feel valued or motivated at work.

To know more about reward follow the link:

brainly.com/question/26050680

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3 0

1 year ago

Argue that use of english is important to chartered accountant

ICE Princess25 [194]

Explanation:

There are several ways that a CA aspirant can become fluent in the English language. The best way is to take short-term English language classes that will give some fluency in English. There are several such English courses available from leading institutes in India. Also, you can take simple online English language courses to improve English language fluency.

English language fluency is important for CA aspirants. It’s not only necessary to pass all exams to become a CA but also in your routine work, after becoming a CA. Hence, learning English and becoming fluent in this language is very important.

4 0

3 years ago