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3 years ago

Free market economies stimulate greater economic growth, whereas state-directed economies stifle growth. Discuss.

Business

1 answer:

Marizza181 [45]3 years ago

4 0

Answer:

Free market economies stimulate growth because they give people incentives to become more innovative. In a market economy, people get to keep the money that they make from business ventures (less taxes of course) which spurs them on to compete more and produce better so that they can make more than their competitors and get wealthier.

This competition will stimulate growth and lead to more efficiency because less efficiency means higher costs and less profitability.

This is in contrast to state-directed economies where resources are shared and people have to work for the benefit of others. You will find that those who could have been innovative will lose the urge to be so because they will not get as wealthy from it.

Inefficiency will also be rife as the government tries to include as many people in production as they can which will lead to higher costs and less profits culminating in weak economic growth.

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At the beginning of 2016, a corporation had assets of $350,000 and liabilities of $230,000. During 2016, assets increased $20,00

Naddik [55]

Answer:

$135,000

Explanation:

Equity is the difference between the assets and liabilities of an entity.

Using the accounting equation;

Assets - Liabilities = Equity

Given;

Opening assets balance = $350,000

Opening liabilities balance = $230,000

Therefore;

Opening balance of equity = $350,000 - $230,000

= $120,000

Increase in asset = $20,000

Increase in liabilities = $5,000

Increase in equity = $20,000 - $5,000

= $15,000

Balance of stockholders' equity at December 31, 2016 = $120,000 + $15,000

= $135,000

6 0

3 years ago

Suppose a 95% confidence interval was made to estimate the monthly cost of internet service instead of a 90% confidence interval

Alex

The 95% confidence interval will be wider than the 90% confidence interval.

In statistics, the likelihood that a population parameter will fall between a set of values for a certain percentage of the time is referred to as a confidence interval. Analysts frequently employ confidence ranges that include 95% or 99% of anticipated observations. Therefore, it may be concluded that there is a 95% likelihood that the real value falls within that range if a point estimate of 10.00 with a 95% confidence interval of 9.50 - 10.50 is derived using a statistical model.

The level of certainty or uncertainty in a sampling process is measured by confidence intervals.

Additionally, they are employed in regression analysis and hypothesis testing.

To determine statistical significance, statisticians frequently combine confidence intervals with p-values.

95% or 99% confidence levels are most frequently used in their construction.

Learn more about Confidence interval, here

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6 0

1 year ago

If Schrumpf LLC, a semiweekly depositor, is required to deposit $3,090 of 941 taxes, what is the maximum amount of their shortfa

SSSSS [86.1K]

Answer:

this question is so very hard

6 0

3 years ago

The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can

DIA [1.3K]

Answer:

a. Overstates Inflation.

In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.

b. Understated Inflation

Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.

c. Overstates Inflation

In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.

d. Accurate representation of Inflation

In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.

6 0

3 years ago

Cynthia Knott's oyster bar buys fresh Louisiana oysters for $4 per pound and sells them for $8 per pound. Any oysters not sol

Doss [256]

Answer:

128 pounds

Explanation:

Cost of buying of Louisiana oysters = $4 per pound

Cost of selling of Louisiana oysters = $8 per pound

selling cost of oysters not sold = $2

Mean = 120 pounds

Standard deviation, s = 18 pounds

Thus,

Cost of actual Utilization (Co) = $8 - $4 = $4

Cost of Under utilization (Cu) = $4 - $2 = $2

Now,

Probability of sale = $\frac{\textup{Co}}{\textup{(Cu+Co)}}$

= $\frac{\textup{4}}{\textup{(2+4)}}$

= 0.67

also,

z score at above probability (0.67) = 0.44 [from standard z-table]

hence,

Cynthia should order = mean + z × s

= 120 + 0.44 × 18

= 120 + 7.92

= 127.92 ≈ 128 pounds

5 0

3 years ago