How is value added different from profit

What role does the government play in the economy's circular flow?

mamaluj [8]

Depends are we talking capitalism, or socialism.

In capitalism there is no government intervention in the Economy, no laws, nothing.

In socialism, the government controls all of the economy, Tarriffs, Hours, etc.

So the government is supposed to play the middleman to help the people, but also the businesses, as such the united states had introduced less work hours, to help increase the productivity of the workers, which did indeed work.

4 0

2 years ago

Mark the boxes that are TRUE. 1. One of the largest divestitures in American history occurred when the U.S. Government ruled tha

Umnica [9.8K]

Answer:

1. One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT & T ® Corporation was a monopoly that must be divided so that the telephone market might be more competitive.

TRUE

In 1982, U.S. regulators broke up the AT&T monopoly, requiring AT&T to divest its regional subsidiaries and turning them each into individual companies. From that point AT&T as a result of this breakup, faced competition from new competitors such as MCI and Sprint.

Explanation:

1. One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT & T ® Corporation was a monopoly that must be divided so that the telephone market might be more competitive.

TRUE

In 1982, U.S. regulators broke up the AT&T monopoly, requiring AT&T to divest its regional subsidiaries and turning them each into individual companies. From that point AT&T as a result of this breakup, faced competition from new competitors such as MCI and Sprint.

2. The Federal Aviation Administration regulates the airlines.

TRUE

The Federal Aviation Administration (FAA) is the regulatory arm of the government of the United States which controls all aspects of civil aviation.

3. The Federal Newspaper Association regulates the free speech in newspapers.

FALSE

It is the Federal Communications Commission

4. The Securities and Exchange Commission regulates the stock market.

TRUE

The U.S. Securities and Exchange Commission (SEC) is a government agency responsible for overseeing and regulating investments in shares, and maintain fair and orderly functioning of the securities markets.

5. The Federal Reserve Board regulates the postal system.

FALSE

The Federal Reserve Board governs the Federal Reserve System and the U.S. central bank in charge of making the country's monetary policy.

6. The Interstate Commerce Commission polices monopolistic practices.

FALSE

Interstate Commerce Commission (ICC), was charged with regulating the services of specified carriers engaged in transportation between states.

7. The Federal Reserve Housing regulates the housing prices in America.

False

That would have been the United States Housing Authority

8 0

3 years ago

ABC common stock just paid a dividend of $2.50 per share. The ABC dividend is expected to grow 20% per year for two years, and t

Liula [17]

Answer and Explanation:

Given that the dividend will grow at 20% for two years and then a constant 6% at third year

1st year dividend at 20%= $3

Present value of the dividend for the first year=PV factor at 15%(from table) = $2.61

2nd year dividend at 20% = $3.60

Present value of the dividend for the second year = PV factor at 15%(from table) $2.72

3rd year dividend at 6% growth rate =

$42.40

Present value of the dividend for the third year = PV factor at 15% = $32.06

Current price of the stock =$2.61+$2.72+$32.06

=$37.39

6 0

3 years ago

When a movie theater charges a lower ticket price for senior citizens and/or students, the movie theater is engaging in_________

MariettaO [177]

Answer:

b) third-degree price discrimination.

Explanation:

The price gouging happens on prices when is carried out by the seller, goods, services or goods to a higher level than what is considered acceptable or fair and potentially considered unethically. This usually occurs after a demand or supply shock. Common examples include price increases for basic needs after hurricanes or other natural disasters.

First-degree discrimination (perfect price discrimination) appears when a business charges the maximum possible price for each unit consumed because prices are diverse among some units. In this case, where a company charges a different price for every good or service sold.

Second-degree price discrimination is the concept in which a company charges a different price when there are demands for different quantities consumed, such as quantity discounts on bulk purchases.

Third-degree price discrimination is the case in which a company charges a different price to different consumer groups. This is the type of most common type of price discrimination. If we see in the question there is given distinctive ticket price offers to senior citizens and/or students. That’s why we should choose third-degree price discrimination.

8 0

3 years ago

On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,

sammy [17]

Answer:

Cash account in the amount of $10,100

Explanation:

The journal entry to be recorded for the receipt of payment is as:

Cash A/c.............................................Dr $10,100

Note receivable A/c...................Cr $10,000

Interest Revenue A/c..................Cr $100

Being recoded the receipt of payment

As payment is received so asset is increasing and any increase in asset is debited. Therefore, cash account is debited. And the note receivable got decrease will be credited and the interest revenue is also credited.

Computation of interest revenue is as:

Interest revenue = Amount × % of note × Days / Number of days in a year

= $10,000 × 6% × 60 / 360

= $100

Note: Assume 360 days in a year

3 0

3 years ago