Answer:
Capitalism is an economic system based on investing money in the expectation of making a profit. The means of production are usually privately owned by private entrepreneurs who often use wage labor to create added value. In doing so, they enjoy a great deal of legal freedom to dispose of these means, free enterprise production. This freedom also means that there is competition, which means that entrepreneurs have an interest in increasing the efficiency of their company. Hence, the capital owner will not fully consume the profit but reinvest in the business and capital accumulation takes place. The distribution of products is regulated by the market, in which the role of the government is, in principle, limited to that of market master.
Answer:
producer surplus
consumer surplus
neither
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
The highest amount i was willing to buy the watch is $71 but the price was $65. this illustrates a consumer surplus
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The least amount the textbook seller was willing to sell was $48 while the price the textbook was sold was $54. thus, a illustrates a producer surplus.
for statement c, a transaction did not take place, so, it is neither a producer or consumer surplus
Answer: All of the above are problem with the plan.
Explanation:
If a Government rapidly increases the money supplied into an economy, it leads to inflation.
This is because as the citizens of a country get more money at a very short interval, they would tend to demand for more items in the market, the increase in demand would directly lead to an increase in price which is an inflation.
Therefore minting extra money may pay the soldiers but negatively affect the economy as price of commodities would increase.
Answer:
The trader exercises the option and loses money on the trade if the stock price is between $30 and $33 at option maturity.
Explanation:
A call option is the right to buy an asset at an agreed price on the maturity date. This agreed price is known as the strike price.
In the given scenario, the strike price is $30. The trader pays an additional $3 for the right to exercise the option, thus paying a total of $33 for the option.
Now, if the asset price on maturity date is greater than $30, the trader shall exercise the option and buy the asset. This is because the market price of the asset is greater than the price the trader pays for it, resulting in a favorable situation for the trader.
However, the trader paid a total of $33 for the stock. Hence, the trader shall lose money on the trade as long as the asset price is below $33.
Therefore, if the asset price upon maturity is between $30 and $33, the trader shall exercise the option but lose money on the trade.
Answer: a) call his manager
Explanation: he should call his manager and take a day off to go see his doctor.
