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Anastasy [175]
3 years ago
7

How does the economy work?

Business
1 answer:
xenn [34]3 years ago
5 0
Your question is too broad. It took me two 48-hour courses to learn the basics of how the economy operates.

While it is interesting and I do not wish to discourage your curiosity, please make the question more specific.

For now, all I can say is that the primary function of an economy is integrating the 4 factors of production - Land, Labor, Enterprise and Capital - to produce goods profitably. This is made possible through the interactions between the consumers (also the labor), private firms, financial sector and the government sector. I would suggest watching a video on the circular flow on income on YouTube for more information on these interactions.

Furthermore, economics is concerned with solving the basic economic problem, which is the existence of unlimited wants in relation to the limited resources available on our planet. This leads us making choices (which wants to satisfy through production and consumption) and making sacrifices (which wants to give up as there only a limited amount of resources available). Economics in general deals with attempting to get the most out of the resources available. It deals with anticipating consumer behavior, trends and using this analyzed information to make decisions.

The last thing you should know is that economics is most broadly categorized into two field - Macroeconomics and Microeconomics.

Microeconomics deals with the interaction between individuals, i.e., individuals firms/industries, consumers. This deals with such things as factors affecting the demand of goods, the concept of elasticity, factor affecting supply of goods, the marginal utility theory and so forth.

Macroeconomics deals with the economy as a whole - this includes concepts such as national income (GDP), aggregate demand and supply, the multiplier effect, the factors affecting consumption, investment,government expenditure and net exports, the exchange rate systems and Balance of Payments.

P.S. In the above answer, I have only briefly mentioned the basics. If you would like further understanding of the basics then please YouTube/Google each economics term listed above.
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An ordinary annuity selling at $4,947.11 today promises to make equal payments at the end of each year for the next eight years
Kryger [21]

Answer:

$812.49

Explanation:

Given that

Sale value of ordinary annuity = $4,947.11

Time period = 8 years

Interest rate = 6.50%

So by considering the above information, the annual annuity payment is

$4,947.11 = Annual annuity payment × Present value annuity factor at 6.5% for 8 years

$4,947.11 = Annual annuity payment × 6.0888

So, the annual annuity payment is $812.49

7 0
4 years ago
Which of the following is true of the assumption of risks during delivery of goods?
kirza4 [7]
One of the true assumption of risks during delivery of goods is : The seller is liable for any damages incurred to the goods during shipment.

That's why most of the companies whose business including goods delivery always put an insurance for on board products, to prevent the company from any potential damage during the shipment<span />
3 0
3 years ago
Andrea is an accountant who lives in the state of Texas. Which tax is she not responsible to pay?.
vladimir1956 [14]

In the states of texas, Andrea is not responsible to pay the inheritance tax as there are no applicability of inheritance tax in texas.

What do you mean by tax?

Tax is an obligatory payment made by the citizens or corporations to the government. These taxes are the major sources of revenue for the government.

As Andrea works as an accountant and lives in Texas, she is exempt from paying the inheritance taxes as this tax is repealed by the state.

Thus, Andrea is not responsible to pay inheritance tax.

Learn more about Tax here:

brainly.com/question/16423331

7 0
3 years ago
Which of the following best describes the main difference between scarcity and a shortage? a. while a shortage is a temporary ma
blsea [12.9K]

Answer:

The answer is <u>A.)</u>while a shortage is a temporary market condition, scarcity is an ongoing condition in the world.

Explanation:

It will not stop in the world no matter what it is a problem ethier way in the world.

6 0
3 years ago
Question 3 of 10
Alex777 [14]

Answer:

D would be the correct answer

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3 years ago
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