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Virty [35]
3 years ago
10

Which of the following represents a market failure?

Business
1 answer:
Marat540 [252]3 years ago
7 0

Answer:

a. Shopping for used cars when the seller has private information about the car unavailable to the buyer

Explanation:

When the market is not able to produce an efficient quantity, then it is said that market is failed. This might happens due to many reasons and asymmetric information is one of them. When there is an asymmetric information, then the sellers of the used car have information about it, but the buyer do not have the full information about the used car.

Hence this leads to inefficient outcome and therefore market fails.

Hence it can be said that a market failure example is Shopping for used cars when the seller has private information about the car unavailable to the buyer.

Hence option first is the correct answer.

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Which of the following should have the strongest cause and effect relationship with overhead costs? Non-value-added costs. Cost
andriy [413]

Answer:

Cost drivers

Explanation:

Cost drivers have the strongest cause and effect relationship with overhead costs. A cost driver is the factor that is generating the change in the cost of an activity.

Cost Driver can be defined as the direct generator of an overhead cost.

Activity based costing is a costing technique that allocates overhead costs to products or services in a more logical manner than traditional accounting approaches that simply allocates cost. It is the use of cost drivers that makes activity based costing a more logical method

7 0
3 years ago
Sanders Co. is planning to finance an expansion of its operations by borrowing $49,200. City Bank has agreed to loan Sanders the
saw5 [17]

Answer:

Following are the responses to the given question:

Explanation:

For point a:

Interest amounts are paid by sanders in year 1 Under option 1 and 2

In option 1  

Due principal  \$49,200

Rate of Interest 9.50\%

Expanse Interest \$4,674

In Option 2  

Due principal  \$49,200

Rate of Interest 9.50\%

Expanse Interest \$4,674

For point b:

Interest amounts are paid by sanders in year 1 Under option 1 and 2

In option 1  

Due principal  \$49,200

Rate of Interest 9.50\%

Expanse Interest \$4,674  

In Option 2  

Due principal  \$44,280

Rate of Interest 9.50\%

Expanse Interest \$4,207

For point c:

Option 2 is better for Sanders since it reduces investment expenditure

4 0
3 years ago
Accounts payable is​ a: A. current liability. B. current asset. C. longminusterm liability. D. longminusterm asset.
malfutka [58]

Answer:

current liability

Explanation:

i just learned this

7 0
4 years ago
In​ Keynes's analysis of the speculative demand for​ money, what will happen to money demand if people suddenly decide that the
Serggg [28]

Answer:

The correct answer is option C.

Explanation:

When the interest rate falls below the normal level, people expect the interest rates to rise in future and bond prices to fall. This causes investors to sell the bonds at present so that they can buy bonds when they are selling at lower prices in future as of result of an increase in interest rates. Money demand will, as a result, will decrease.

4 0
4 years ago
What was Thomas Malthus’s theory of population growth?
Rufina [12.5K]

Answer:

A population would grow faster than its ability to feed itself.

Explanation:

Thomas Malthus' theory, in my personal beliefs, is remarkably accurate and quite rational. He argued that if one were to have a country/population left unchecked, as in without any form of administration, government, or central authority to balance it, that a population would thus outgrow its resources and thus result in overpopulation and a lack of necessities... something that may, perhaps, lead to eventual extinction.

This is fairly factual when you think of the contemporary age. The earth was previously believed to have a carrying capacity of about 2-40 billion people, an argument that eventually centered on around 7 billion. Today, the earth's maximum carrying capacity is generally percieved to be about 9 billion people. In this age, we currently are nearing 8 billion.

This. Is. An. Issue.

A plethora of earth's resources that life itself depends on is LIMITED. Our freshwater reserves are limited. The amount of animals on this planet, a source of food, is <em>also </em>limited. The amount of plants on this planet, significant sources of energy, food, oxygen, and all sorts of natural processes that keep everything alive, are, unfortunately, limited.

This demands that humans figure a way to require less of these precious resources, fast. By the year of 2150, we'll likely have surpassed our carrying capacity.

For the issue of food, there are options. The primary issue is that humans are omnivores, as in, we love both plants AND animals... in our stomach's, of course. A prime example is myself! Personally, I couldn't live without beef, but I <em>definitely </em>couldn't or wouldn't want to survive without spinach and broccoli, because they are absolutely delicious.

However, despite humans being omnivores, we stubbornly refuse to eat our veggies. . . meaning a mass majority of us prefer to eat meat. We breed our animals to have offspring, giving us more meat. We generically enhance or even create our meat. We love meat.

The issue being that meat is a terrible source of energy. Remember, energy comes from sources of life itself, like the sun! PLANTS take the mass majority of this energy in, not animals. Animals EAT the plants, to where as much as 80% of that initial energy source is lost, disappearing into nothing, and meaning only roughly 20% is absorbed into the animal upon eating the said plant. Then, and only then, HUMANS come to eat the animal, in which 80% of that initial 20% is also lost between these stages.

As you can see, humans end up with barely any amount of this vital energy, simply because we love meat. We feed the plants to the animals to keep them healthy so WE can then eat the said animals, thus resulting in a HUGE loss of energy. We use our land for pastures. We give other resources (like water) to the animals, again, so we can eventually consume them.

The earth is going to run out of resources at one point or another, but our current consumption habits will likely hasten this process as far as freshwater and food.

Ofc, it shouldn't need to be said that if we were ALL to switch to primarily plant-only consumption, we'd probably be set. Getting rid of all our pastures and replacing them with massive farms would give is a surplus of plants, which are remarkably better sources of energy and will thus be able to sustain humans much, much longer. We won't have to worry as much about starving.

Then again, you must ALSO worry about the fragility of plants. They can easily be detroyed by natural disastors and are dependant upon environmental conditions such as weather temperature, climate, and soil. These factors are very limiting, but then you must additionally remember the amount of care they require, as well as they are extremely vunerable to mass destruction (like droughts, burning, flooding, etc., which can wipe out a LOT at once).

Obviously it's a give-or-take thing.

Malthus said it right, three hundred years ago.

I get the length of this post was probably uneccesary but you asked a very good question that gave me an excuse to cover something in-depth.

I am inevitable.

~Troy

3 0
3 years ago
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