B. Because the government can't and shouldn't control the prices of items or which items and services are sold, they should lay down the ground rules of trading, buying, and selling, so that they Can prevent monopolies and collusion.
Answer:
d. The present value of perpetuity varies directly with the annual repayments.
Explanation:
A perpetuity is a security or bond which pays a fixed amount of cash flow at a fixed interval forever. So the amount it pays stays the same and it keeps paying for ever. The formula to find the present value of a perpetuity is
Cash flow of perpetuity/Interest Rate
So if the annual payment is 100 and the interest rate is 5% the present value of the annuity is
100/0.05=2,000
If we keep the interest rate the same at 5% and increase the cash flow by 100 to 200 the new present value of the perpetuity is
200/0.05=4,000
This proves that the present value of a perpetuity varies directly with the annual repayments or cash flow of perpetuity.
Answer:
Absolute, Comparative, Opportunity cost, Gains of trade, Not possible
Explanation:
The terms that will be filled in these blanks are economic terms that are used often in the business. The completed sentences have been written below -
- To have absolute advantage means to be able to produce more using the same resources.
- To have comparative advantage means to have a lower opportunity cost.
- Comparative advantage is the basis for gains of trade.
- It is not possible for one producer to have a comparative advantage for every good.
<span>Absolute Dominion is the current law involving ground water in Maine, Indiana, and Texas which in effect states that the owner of the property has complete control over the groundwater underneath their property and may pump that water up without regard to causing shortages with neighbors. Basically, you can pump as much as you want without worry about legal repercussions. Contrast this to the "reasonable use" rule that's used in most of the rest of the United States. The reasonable use rule prohibits landowners from "wasting groundwater" or transporting the groundwater off their property for use elsewhere. Now, how does this affect Nestle? In Maine there was a company called "Poland Springs" which pumped out groundwater for drinking in the local community. This company was purchased in 1980 by Perrier which is based in France. And finally, in 1992, Nestle purchased Perrier. Under Absolute Dominion, Nestle has no limit on how much groundwater they can pump and export to other locations without regard to long term sustainability.</span>