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Virty [35]
3 years ago
14

Which of the following best describes the "invisible hand" concept? Group of answer choices Ample regulation of business by the

government will maximize the public's best interests. The market system works best when resources are free to move from one use to another. The problem of scarcity can best be overcome in a system of mixed capitalism. Self-interest in a market system will automatically promote the public interest as well
Business
1 answer:
Nostrana [21]3 years ago
4 0

Answer:

Self-interest in a market system will automatically promote the public interest as well.

Explanation:

An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.

Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.

A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.

The "invisible hand" concept asserts that the self-interest by producers and suppliers of resources in a market system will automatically promote the public interest as well.

This ultimately implies that, public and private interest will always coincide assuming there exist competition in a free market system.

In conclusion, the invincible hand concept is a metaphorical description of the unforeseen forces that typically moves a free market system or economy.

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Van and her brother Trung both own homes valued at $175,000. Both pay property taxes at 1.25% and pay annual taxes of $2,187.50.
Alecsey [184]

Answer: Van's property tax will increase.

Trung's property tax will be less than Van's.

Trung's property tax will increase.

Explanation: Van’s property tax will increase because the value of his home is expected to increase more than Trung’s property value. Since Van’s property value is increasing and increasing more than Trung’s, Trung’s will be less than Van’s. Trung’s property tax is increasing due to the value increasing.

3 0
3 years ago
Read 2 more answers
Martinez, Inc. reported net income of $2.5 million in 2007. Depreciation for the year was $160,000, accounts receivable decrease
n200080 [17]

Answer:

$2,730,000

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $2,500,000

Adjustment made:

Add : Depreciation expense $160,000

Add: Decrease in accounts receivable $350,000

Less: Decrease in accounts payable -$280,000

Total of Adjustments $230,000

Net Cash flow from Operating activities             $2,730,000

8 0
3 years ago
Why do you think L.L. Bean empowered its employees to make independent decisions that ultimately have financial consequences?
postnew [5]

Answer:

(Note please, the background of L.L. Bean was not stated. I am answering on a general note.)

L.L. Bean empowered its employees to make independent decisions that ultimately have financial consequences so as to save time needed to consult superior authorities for directions.

Explanation:

In the course of business, some customers might have needs and inquiries that have to be responded to on the spot so that they do not lose their patience and move to other competitors.

When an organization empowers its employees to make independent decisions that might affect the company financially, it is in a bid to serve the customers better by saving their time. This also instills trust and confidence in the company because the employees are knowledgeable of their services.

4 0
3 years ago
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol
Len [333]

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

3 0
3 years ago
Which term is used when businesses do not maximise output from given inputs ?​
Sergio [31]

Answer:

What Is Efficiency? Efficiency signifies a peak level of performance that uses the least amount of inputs to achieve the highest amount of output.

4 0
2 years ago
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