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3 years ago

Producers will supply an inefficiently low quality of a good if the government imposes:

Business

1 answer:

ruslelena [56]3 years ago

6 0

Answer:

A binding price ceiling

Explanation:

A binding price ceiling is a situation when the government force the producers to put the price of their product below the equilibrium price.

When being forced into a situation, most of the producers will find some other way to maximize their profit beside raising the price. This will most likely make them reduce the quality of materials that used to produce the goods. This will lower the capital needed for the production and increase the profit. But in return, the supply will be inefficiently and have low quality.

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A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities a

IRINA_888 [86]

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections. The operating activities section show the cash flows from the normal business of the enterprise. The investing activities section shows the acquisition and disposal of investments made by the company in cash. While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

4 0

3 years ago

In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. A recent article in

TiliK225 [7]

Answer:

I, II and III.

Explanation:

Price ceiling refers to the price control policy that is used by the government to protect the customers who are not able afford goods at the prevailing price.

If government of a nation sets a price ceiling below the equilibrium price level then this will increase the quantity demanded for the product because now goods become more affordable to the consumers and decreases the quantity supplied because it will become less profitable for the producers.

Hence, the demand for goods exceeds the supply of goods, this will create a shortage of goods in an economy.

6 0

3 years ago

Which of the following loans will typically offer the lowest interest rate? A:Payday loan B:Federal Student Loan C:Private Loan

neonofarm [45]

C. Private loan - a loan between two private parties can be set to whatever they want and is usually lower than the average that banks and other professional industries offer.

FYI - payday loans will have some of the highest interest rates of all loans.

Hope that helps

8 0

3 years ago

The Inferior Goods Co. stock is expected to earn 13% in a recession, 7% in a normal economy, and lose 6% in a booming economy. T

Natalka [10]

Answer:

Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%

Explanation:

Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.

Item Prob Earn

Booming 20% -6%

Normal 55% 7%

Recession 25% 13%

Ok, now let´s calculate the expected rate of return.

$ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)$

$ExpectedReturn=-0.012+0.039+0.033=0.059$

So the expected rate of return of the stock is 5.90%

Best of luck.

8 0

3 years ago

Given the cost formula, y = $7,000 + $1.80x, total cost for an activity level of 4,000 units would be:

zaharov [31]

The total cost for this certain activity level can be calculated by substituting 4000 to the x of the equation given above,
y = 7000 + 1.8(4000)
y = 14200

Thus, the total cost of the activity level is $14,200.

4 0

3 years ago