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gregori [183]
3 years ago
13

Which statement is false about the circular-flow diagram? A. Money flows in the direction opposite to goods and services and fac

tors of production. B. Money flows from households to firms as households offer factors of production for sale. C. Firms are the primary suppliers of goods and services. D. Households are the primary demanders of goods and services.
Business
1 answer:
Minchanka [31]3 years ago
3 0

Answer:

B. Money flows from households to firms as households offer factors of production for sale

Explanation:

The circular-flow diagram (or circular-flow model) is a graphical representation of the flows of goods and money between two distinct parts of the economy:

i)  market for goods and services, where households purchase goods and services from firms in exchange for money;

ii)  market for factors of production (such as labor or capital), where firms purchase factors of production from households in exchange for money.

Based on this definition, we can see that money doesn't flow from household to firms as households offers factor of production for sale but the other way round meaning firms are the one that offer money in purchase of factors of production from household.

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What are the two views on why asset prices fluctuate so much that they lead to financial crises and bank​ failures?
tester [92]

In one view, the asset prices are objectively based on fluctuating principles, whilst in the certain, psychological factors and prejudices play an important role.

Explanation:

As the rate of interest increases, the price of the investments declines because the yield on risk-free investing can sometimes be greater to buyers. On the other hand, the price of assets is rising as interest rates are falling.

This is usually the interest rate owed by small investors on an approved FDIC portfolio, checking account, term deposit acct or mutual fund of the monetary sector. This is now the so-called US "risk-free" limit for bigger creditors, companies and individuals. Bills for the Treasury.

6 0
3 years ago
Assuming the use of a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal, indicate the jou
Mnenie [13.5K]

To pick the correct journal from the list we should be sure that we will record some transactions in more than one journal.

Explanation:

The combinations are below:

A. Receipt of <em>cash</em> refund from over payment of taxes. (Cash Journal)

B. Adjustment to record <em>accrued salaries</em> at the end of the year (General journal)

C. Providing <em>services</em> on account (Revenue Journal)

D. Investment of additional cash in business by the owner (Cash, General Journal)  (<em>The transaction will be recorded in both cash and capital accounts but instead of the capital, we put it in the General Journal to be transferred later</em>)

E. Receipt of cash on account from customer (Cash Journal)

F. Receipt of cash for rent ( Cash, General Journal)  (<em>The transaction will be recorded in both cash and rent account but for the journal we put the rent part in the General journal</em>)

G. Receipt of cash from sale of office equipment (Cash, General Journal)  (<em>An office equipment is assumed to be a fixed asset, thus its sale will not go into the revenue journal but the General Journal whiles the cash receipt is treated in the Cash Receipts Journal</em>)

H. Sale of used office equipment on account, at cost to a neighbor (General Journal)

I. Closing of drawing account at the end of the year (General Journal)  (<em>The question did not specify whether is was goods withdrawn or cash withdrawn so we assume it to be goods withdrawn</em>)

J. Providing services for cash (Revenue, Cash Receipts Journal)

7 0
3 years ago
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to in
trasher [3.6K]

Answer:

You will receive $201.38 more interest if the investment is made with a compound interest rate rather than a simple interest rate.

Explanation:

<u>Simple interest rate</u>

We can calculate how much interests you'd obtain if you deposited the $2,600 in a simple interest rate account.

We start using the following formula for calculating the simple interests:

I=P * r

Where:

<em>I</em> are the interests per year,

<em>P</em> is the amount being invested,

<em>r</em> is the interest rate.

Replacing in the formula with the given values we have:

I=2600*0.05=130

We then proceed to multiply this result by the <em>given number of years</em>, which is 8. We get 130*8=1040.

Finishing with the <em>simple interest rate</em>, if we wanted to know how much is the investment worth at the end of a 8 year period, we must merely add <em>the principal</em> (the $2,600) to the total interests after the end of the period ($1040). So 2600+1040= 3640.

We'll use these results later.

<u>Compound interest rate</u>

The formula for compound interests is the following:

I=P(1+r)^n

Where:

<em>I</em> is the value of the investment after <em>n</em> years,

<em>P</em> is the principal amount being invested,

<em>r</em> is the interest rate,

<em>n</em> are the number of years the investment is compounded.

Replacing in the formula with the given values we have:

I=2600*(1+0.05)^8=3841.38

After the 8 year period, the investor will have $3841.38 in it's compounded interest account.

<u>Comparing these results</u>

<u></u>

We can simply substract the value of both investments at the end of a 8 year period, to determine how much more interest does the compound interest rate account give in relation to a simple interest rate account.

The values we've gotten were:

$3,640 for the simple interest rate account, and

$3,841.38 for the compounded interest rate account.

3841.38-3640=201.38. Therefore the answer is: the account that pays compounded interests will pay $201.38 more to this invididual, compared to an account that pays simple interest.

8 0
3 years ago
For each example, determine how the market for the good in the bolded text will respond to the described change.
Slav-nsk [51]

Answer:

a. Due to increases in hay prices, an input for raising cattle, the price of a gallon of 2% milk increases from $2.98 to $3.25.  QUANTITY DEMANDED DECREASES, as the price of a good or service increases, the quantity demanded decreases.

b. Groupon has a Groupon for $6 off the price of laser tag.  QUANTITY DEMANDED INCREASES, as the price of a good or service decreases, the quantity demanded increases.

c. Sharp increase in the price of wood causes increases in prices for dressers and desks.  QUANTITY DEMANDED DECREASES, if the price of a key input increases, the production costs will increase, resulting in a higher selling price ⇒ lower quantity demanded.

d. Week long special at the grocery store, where pork shoulder is on sale at $1.99 a pound, down from $3.99 a pound.  QUANTITY DEMANDED INCREASES, as the price of a good or service decreases, the quantity demanded increases.

e. Buy one get one free special for MP3 albums on Amazon. QUANTITY DEMANDED INCREASES, the buy one get one free promotion lowers the price of a good or service, resulting in higher quantity demanded.

7 0
3 years ago
Lin corporation has a single product whose selling price is $134 and whose variable expense is $67 per unit. the company's month
Rashid [163]

Answer:

600 units

Explanation:

The equation to calculate target profit is:  

S × Q = (V × Q) + F + T

  • S = sales price  
  • Q = Quantity of units
  • V = Variable expenses
  • F = Fixed expenses
  • T = Target profit

$134Q = $67Q + $32,300 + $7,900

$134Q - $67Q = $40,200

$67Q = $40,200

Q = $40,200 / $67 = 600

7 0
3 years ago
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