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3 years ago

When does it make sense for government to interfere with a pure market outcome?

1 answer:

5 0

There are several situations when the government has to interfere with a pure market outcome. If the price of a product rises without any significant cause or if there is more supply than demand of a market, then the government can put a price ceiling or floor price of a product. This is purely to keep the economy of a country or state stable.

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Explain how the federal reserve regulates the money supply.

max2010maxim [7]

The Federal Reserve regulates the money supply by raising the requirements of the reserve.

<h3>What is Federal Reserve?</h3>

The Federal Reserve System is the U.S. of America's central banking system.

After just a series of financial turmoil, a need for centralized control of the financial system to mitigate credit crisis led to the enactment of the Federal Reserve Act on December 23, 1913.

The Federal can regulate the money supply by increasing reserve requirements, which reference to the sum of money institutions must maintain against bank deposits.

Banks will be able to loan more money when reserve requirements are lowered, increasing the total supply of money in the economy.

Therefore, by raising the reserve, the Federal Reserve regulated the money supply.

Learn more about the Federal Reserve, refer to:

brainly.com/question/17097530

8 0

3 years ago

Financial security begins with adequate insurance protection and a savings program. true or false

AleksAgata [21]

True becuase saving and insurance are safe

3 0

3 years ago

Every company strives to keep _________ brand positive. her his its their

forsale [732]

<span> Every company strives to keep their brand positive.</span>

3 0

4 years ago

Tom produces baseball gloves and baseball bats. Steve also produces baseball gloves and baseball bats, but Tom is better at prod

taurus [48]

Answer:

D. Benefit both Steve and Tom

Explanation:

As Tom produces baseball gloves and baseball bats. Steve also produces baseball gloves and baseball bats, but Tom is better at producing both goods. In this case, trade could benefit both Steve and Tom. The basic logic behind this answer is that, although Steve is not better at producing baseball gloves and bats but still can compete with Tom, where Tom's better quality products will encourage Steve in order to produce bit better quality in order to remain him in the market and competition. On the other hand, when Steve is not producing much quality products, this will give more competitive advantage to Tom, which definitely help him in earning more profits and loyal customers, therefore, in this cycle, both Steve and Tom will get benefit.

6 0

3 years ago

The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:

hram777 [196]

Answer:

1) December 30, 202x, wages expense

Dr Wages expense 777,000

Cr Federal income taxes withheld payable 135,975

Cr OASDI taxes withheld payable 46,620

Cr Medicare taxes withheld payable 11,655

Cr Retirement savings (401k) payable 17,094

Cr Group insurance payable 11,655

Cr Wages payable 551,670

December 30, 202x, payroll tax expense

Dr OASDI taxes expense 46,620

Dr Medicare taxes expense 11,655

Dr FUTA taxes expense 240

Dr SUTA taxes expense 2,160

Cr OASDI taxes payable 46,620

Cr Medicare taxes payable 11,655

Cr FUTA taxes payable 240

Cr SUTA taxes payable 2,160

2) December 30, 202x, wages expense

Dr Wages expense 777,000

Cr Federal income taxes withheld payable 135,975

Cr OASDI taxes withheld payable 46,620

Cr Medicare taxes withheld payable 11,655

Cr Retirement savings (401k) payable 17,094

Cr Group insurance payable 11,655

Cr Wages payable 551,670

January 5, 202y, payroll tax expense

Dr OASDI taxes expense 46,620

Dr Medicare taxes expense 11,655

Dr FUTA taxes expense 4,662

Dr SUTA taxes expense 41,958

Cr OASDI taxes payable 46,620

Cr Medicare taxes payable 11,655

Cr FUTA taxes payable 4,662

Cr SUTA taxes payable 41,958

5 0

3 years ago