Answer:
a) Seizing the farms from his political rivals, and giving them to his friends, even when they do not know about farming, will result in less economic growth, because the human capital employed in farming is now of less quality. If things turn sour, a famine could even result (there have been many examples of this kind of situation throughout history).
b) This kind of red-tape will result in less economic growth, because investments that could have been made during the current year, will be postponed at least one year due to the bureaucracy.
c) The government of Tempestia is improving the judiciary, granting it independence and credibility. This will result in more economic growth because now both citizens, and international investors have more confidence in the country, since they feel that their property rights will be enforced, giving them an incentive to invest and take risks.
d) This kind of protectionist policies will likely result in less economic growth because the lack of international trade makes things more expensive for consumers, keeping their incomes from growing, and also because protectionism leads to the misallocation of resources by keeping afloat inefficient economic sectors that under a free trade system would otherwise collapse to give way to more efficient sectors.
Answer:
The annuity is worth $4100.20 today and if we increase the rate of return, from 7% to 8% the value of the annuity falls to $3992.71.
Explanation:
The step by step solution for the given problem is attached with the image.
The value of annuity will decrease if we increase the rate of return, from 7% to 8%. Future cash flows are discounted using the rate of return, and the higher the discount rate, the lower the present value of the future cash flows.
Answer:
$238.18
Explanation:
For calculation of target cost first we need to follow some steps which is shown below:-
Step 1
Operating income before = Sold television - Cost
= $380 - $290
= $90
Step 2
Total operating income = $90 × 120,000
= 10,800,000
Step 3
New sales in units = Target operating income ÷ Increase percentage
= 10,800,000 ÷ (120,000 × 110%)
= 10,800,000 ÷ 132,000
= $81.82
Finally
So, the Target cost = Lower price - New sales in units
= $320 - $81.82
= $238.18
Answer:internet businesses are often called Ecommerce businesses
Explanation:
