Answer: A person who owns and runs a business, which is normally a small business (eg. Shop Owner).
The sole trader has unlimited liability, meaning that his assets will be used in case of default to pay.
Explanation:
a) A free market would allow the laws of demand and supply to flourish; prices of commodities will be set by manufacturers based on demand. However, Government regulations which interfere with the free market is going to result in feeling the pain of monopoly.
b) Indeed, the price mechanism when controlled by the government can result in efficient provision of public goods.
One such example of a public good ls PMS (premium motor spirit) used as petrol in most vehicles. Controlling the price of petrol by the government in most cases helps avoid excessive charges from petrol stations per pump price.
C. Liz wants to live in a country where the government makes almost all the economic decisions.
Answer:
P = $1790.01
Explanation:
Given data:
Borrowed money = $11,000
Number of installment = 10
Annual rate of interest = 10%
P = $627.45
PV of annuity is given as:
![PV of annuity = P*[\frac{(1-(1+r)^{-n})}{ r}]](https://tex.z-dn.net/?f=PV%20of%20annuity%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2Br%29%5E%7B-n%7D%29%7D%7B%20r%7D%5D)
P - Periodic payment
r - rate per period
n - number of periods
![11,000 = P*[\frac{(1-(1+0.1)^{-10})}{0.1}]](https://tex.z-dn.net/?f=11%2C000%20%3D%20P%2A%5B%5Cfrac%7B%281-%281%2B0.1%29%5E%7B-10%7D%29%7D%7B0.1%7D%5D)
P = $1790.01
