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mote1985 [20]
3 years ago
8

According to classical economic theory, a market economy: Select one: a. is self-regulating b. will automatically adjust to the

natural unemployment rate c. will automatically adjust to Natural Real GDP d. All of the above
Business
1 answer:
abruzzese [7]3 years ago
3 0

Answer:

A. Is self regulating

Explanation:

The fundamental theory of the classical economy is that the market economy is self regulating. The classical economists believe that an economy is always capable of achieving real GDP, that is GDP when resources are fully employed. And that, time to time, when GDP falls below or exceed the real GDP, the market economy has self-adjustment mechanisms to bring it back to the real GDP level. Classical economists believes in self regulating democracies and capitalistic market developments.

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During the 1990s, one of the dominant firms in the U.S. cigarette industry would raise prices once or twice a year by about 50 c
ahrayia [7]

Answer: price leadership

         

Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.

This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.

Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.

Hence from the above we can conclude that the given case depicts price leadership strategy.

3 0
3 years ago
Explain how rewards/penalties help people make decisions
olganol [36]
Okay so rewards and penalties make people make better decisions. So like if I don't get questions wrong on a test I receive $5 from my parents, but if I fail a test I'm grounded for a week. So I study more to get money. (this is not actually me just making an example). Rewards make people want to do better, and so do penalties. I don't want to do bad and get punished for it.
8 0
4 years ago
Read 2 more answers
A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li
Stolb23 [73]

Answer: A portfolio containing 30 randomly selected stocks will have the smallest standard deviation.

Explanation:

A portfolio containing 30 randomly selected stocks tend to have a lesser covariance between the security returns. Also, there will be increased diversification. This increased diversification lowers the risk of portfolio thereby resulting in a lower standard deviation.

Other options are not correct. A portfolio consisting of 30 energy stocks will have a higher level of covariance between the security returns. Therefore, the standard deviation is lower.

A coefficient of variance greater than one will have a high level of variance while a coefficient variance less than 1 has a lower level of variance. A lesser covariance will result to a lower standard deviation and vice-versa.

6 0
4 years ago
Catering Corp. reported free cash flows for 2008 of $8.17 million and investment in operating capital of $2.17 million. Catering
gtnhenbr [62]

Answer:

$11.59 million

Explanation:

The computation of earning before interest and tax is shown below:-

Free cash flow = Operating cash flow - Investment in operating cash flow

$8.17 million = Operating cash flow - $2.17 million

Operating cash flow = $10.34 million

For calculating the earning before interest

Operating cash flow = Earning before interest - Taxes + Depreciation

$10.34 million = Earning before interest - $2.17 million + $0.92 million

= $10.34 million = Earning before interest - $1.25 million

Earning before interest = $11.59 million

5 0
3 years ago
Is the law and order in the United States really so bad that there is no one in the city center after 9 p.m?
svet-max [94.6K]

The law and order at the city center after 9 p.m is to ensure a safe and secure city for the occupants.

<h3>What is a law and order?</h3>

This refers to a situation where the laws of a country are being obeyed and been enforced on the citizens by the police or army.

In the city centers, the law and order are intended to ensures orderliness and a crime free society, hence, the police could order a curfew at 9pm in order to have a secure control of the city.

Read more about law

<em>brainly.com/question/12486518</em>

#SPJ1

5 0
2 years ago
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