Answer:
A market economy functions under the laws of supply and demand. It is characterized by private ownership, freedom of choice, self-interest, optimized buying and selling platforms, competition, and limited government intervention.
Omg, I'm doing platoweb right now too. For real :(
Answer:
Increase in income
Increase in price of substitutes
Change in taste
Explanation:
If income increases, the demand for a good rises as the amount of disposable income increases,
A substitute good is a good that can be used in place of another good. e.g. pen and pencils. If the price of a substitute (e.g. pens) increases, it becomes more expensive. Consumers would shift to the demanding pencils. As a result the demand for pencils would increase
A change in taste. For example, if an individual prefers pencils to pens. he would demand more of pencils and less of pend. As a result, the demand for pencils would increase
Answer:
b. If a firm's assets are growing at a positive rate, but its retained earnings are not increasing, then it would be impossible for the firm's AFN to be negative.
Explanation:
AFN represents Additional Funds Needed and that whenever a company plans for expansion it should have resources, generally these are borrowed from outside.
So when the firm is growing positively it have profits with it and simultaneously if there is no increase in retained earnings then it means the company is distributing such profits as dividends, and in that case there will be a positive balance of AFN as, the funds are still needed even in case of profits.
Thus, in no manner the balance of AFN will be negative in this instance.
Answer:
The correct answer is letter "A": give favorable ratings.
Explanation:
Credit-rating agencies are in charge of providing information to investors about firms' bonds and debt payments. Credit-rating agencies provide a score to recently-issued securities in exchange for a fee. Even if it is convenient for the agencies to <em>rate the new assets high</em> so firms are encouraged to select those firm services, they are well-regulated by the <em>Credit Rating Agency Reform Act of 2006</em>.
Three are the main credit-rating agencies in the U.S.: <em>Moody's, Standard & Poor's and Fitch.</em>