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Maurinko [17]
2 years ago
11

You have responsibility for economic policy in the country of Freedonia. Recently, the neighboring country of Sylvania has cut o

ff all exports of oranges to Freedonia. Harpo, who is one of your advisors, suggests that you should impose a binding price ceiling in order to avoid a shortage of oranges. Chico, another one of your advisors, argues that without a binding price floor, a shortage will certainly develop. Zeppo, a third advisor, says that the best way to avoid a shortage of oranges is to take no action at all. Which of your three advisors is most likely to have studied economics?
A. Harpo
B. Chico
C. Zeppo
D. Apparently, all three advisors have studied economics, but their views on positive economics are different
Business
1 answer:
Yakvenalex [24]2 years ago
3 0

Answer:

C. zeppo

Explanation:

You might be interested in
Define the term fiscal policy.
12345 [234]

Answer:

a). Fiscal policy: fiscal policy ca be defined as the act by the government to use it's expenditure and taxation to control the economy. Government spending usually includes the purchase of goods while taxation is usually a compulsory charge by a government to finance their spending. As we can see, how much the government spends depends on the level of taxation. Fiscal policy are therefor rules and guidelines that utilize spending and taxation to manage the economy.

b). Two ways in which fiscal policy can be used by Caribbean government to increase the level of employment and output in their economies are:

1. Reduction of taxes

2. Increasing government spending

c).  The reasons why some fiscal measures may not work in the small open economies in the Caribbean are:

1. Fiscal expansion by increasing government spending leads to the crowding out effect by the private sector.

2. Fiscal expansion can lead to increased levels of disposable income, increasing the demand for goods and services. This causes an increase in price leading to inflation.

3. Fiscal contractionary policies, which are rarely used include reducing government spending and increasing taxes. This reduces the supply of money in the economy, thus causing a budget surplus. This if not controlled, causes deflation that reduces the levels of output and employment.

d). The crowding out effect is caused by increased government spending in the public sector to the point that the private sector is driven down or in some instances are totally done away with.Crowding out effect can be avoided by offering investment subsidies. Thus the private sector can grow since the cost of investment is manageable.

Explanation:

a). Fiscal policy: fiscal policy ca be defined as the act by the government to use it's expenditure and taxation to control the economy. Government spending usually includes the purchase of goods while taxation is usually a compulsory charge by a government to finance their spending. As we can see, how much the government spends depends on the level of taxation. Fiscal policy are therefor rules and guidelines that utilize spending and taxation to manage the economy.

b). Most Caribbean countries on average are middle-income economies. Their economy largely relies on tourism, agriculture, oil and natural gas produce. With the upper middle-income Caribbean countries relying heavily on oil and natural gas export.  Most of the Caribbean countries are developing countries with economic characteristics like; high levels of unemployment and low levels of output. There are two ways in which fiscal policy can be used by Caribbean government to increase the level of employment and output in their economies. They are;

1. Reduction of business taxes. A reduction in business tax encourages investment in the economy. More investment in the company means more employment opportunities in the economy. Since tax cuts, increases disposable income by a considerable amount, this means that more income is available for production of goods and services. This causes an increase in output.

2. Increasing government spending: this can be done by offering grants to local and state governments to encourage spending on finished goods and services. By doing this, more businesses produce more since the demand is high. An increased demand requires high levels of output to satisfy the demand. Simultaneously, a larger work force is needed to meet the high levels of output required thus raises the level of employment.

c). A small open economy is an economy that takes part in international trade but due to the fact that it is small, their influence causes little or no considerable effect the international prices, rates of interest or even world income. Some of the reasons why fiscal measures cannot work in a small open economy in the Caribbean are;

1. Fiscal expansion by increasing government spending leads to the crowding out effect by the private sector.

2. Fiscal expansion can lead to increased levels of disposable income, increasing the demand for goods and services. This causes an increase in price leading to inflation.

3. Fiscal contractionary policies, which are rarely used include reducing government spending and increasing taxes. This reduces the supply of money in the economy, thus causing a budget surplus. This if not controlled, causes deflation that reduces the levels of output and employment.

d). The crowding out effect is caused by increased government spending in the public sector to the point that the private sector is driven down or in some instances are totally done away with.Crowding out effect can be avoided by offering investment subsidies. Thus the private sector can grow since the cost of investment is manageable.

3 0
2 years ago
Budgeting for Needs
DanielleElmas [232]

Answer:

From the bank statement of $23000 the needs are:

  • cell phone plan = $45
  • rent = $400
  • car insurance = $60
  • Electric bill = $60
  • car payment = $250

Explanation:

A need is something needed for an individual to live a fulfilling life without adverse effect. if a need is not fulfilled it can cause an adverse effect like sickness,death or it might cause a fine or penalty.

cell phone plan is an need because without a cell phone plan a cell phone user might be unable to communicate properly with his business associates and family who might not always be with him and he might be unable to pass along proper and timely information as well

Rent is necessary because housing is one of the most important needs of a man without rent plan there would be no proper housing

car insurance: insurance helps to reduce the burden of accidents on the car owner. if he fails to pay his insurance when due. if the car is caught up with eventualities of accident, the insurance company might not respond to him

Electric bill : this is a very important need as well in America. failure to pay the electric bill results to shortage of electricity and electricity is vital to everyday living.

car payment: the regular payment of car loans helps to escape the penalty of late payment hence this is a need.

7 0
3 years ago
Based on your results, how much does the captive offshoring model allow for risk? the answer is the difference between the tcos
blsea [12.9K]

The captive offshoring model allows for risk solely based on the Ricardian model.

<h3>What is the Ricardian model?</h3>
  • While the Heckscher-Ohlin model exclusively examines trade in finished goods, the Ricardian model can be used to assess offshoring.
  • There is no distinction because offshore may be studied using the offshoring, Ricardian, and Heckscher-Ohlin trade models.
  • The Ricardian model is an economic theory that proposes that countries export what they can produce most efficiently and plentifully.
  • Ricardian model is used to evaluate trade as well as, the equilibrium of trade between two countries that have varying specialties and natural resources
  • The Ricardian model shows that if anyone wants to maximize total output in the world, then one should fully employ all resources worldwide, allocate those resources within countries to each country's comparative advantage industries, and allow the countries to trade freely thereafter.

To learn more about Ricardian model with the given link

brainly.com/question/24261385

#SPJ4

5 0
1 year ago
Allison is concerned that she is not getting full disclosure of information from a mortgage broker who is hoping to refinance th
blsea [12.9K]
<span>Consumer Financial Protection Bureau (CFPB)</span>
5 0
3 years ago
Horton Industries’ shareholders’ equity included 140 million shares of $1 par common stock and a balance in paid-in capital - ex
kiruha [24]

Answer:

The total paid-in capital declines by $17 million

Explanation:

The necessary entries to record the repurchase of shares  are as follows:

Dr Common stock      $1*2,000,000    $2,000,000

Dr Paid-in capital in excess of par

1120*140*2000,0000                             $ 16,000,000

Cr Cash  $7*2000,000                                                        $14,000,000

Cr Share repurchase(balancing figure)                                $4,000,000

Invariably, the paid-in capital declines by the difference the total of common stock and paid-in capital in excess of par ($2m+$16m) and the share repurchase,hence the it declines by $17 million

4 0
3 years ago
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