Answer:
The correct answer is A) the role of the government should be limited, since the market will always be self-correcting.
Explanation:
Principle of minimum state intervention, free market or laissez faire: at least government, the best, economic processes were considered as capable of self-regulation, in other words, economic forces themselves will direct production, exchange and consumption to Its most efficient level. State action must be confined to enforcing individual rights (especially property rights), providing national defense and some public services of general interest (justice, some types of education, etc.).
Answer:
The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.
Explanation:
The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.
The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.
Answer:
According to studies of human decision-making, the most likely is:
c. After reading the article, all members of the group oppose capital punishment.
Explanation:
The article, provided for reading by supporters and opposers, will likely sway the 40% of the group, who are initially supportive of capital punishment, to now oppose capital punishment,especially if the article critically opposes capital punishment. There is no way majority of the group will support capital punishment. Therefore, options a and b are incorrect. For option d, after reading the article, the opinions of some opposers and supporters may shift either way. They will not remain the same as before. This rules out option d, leaving only option c as the correct option.
Answer:
A) Country 1's PPF lies further to the right than country 2's PPF.
Explanation:
Production Possibility Curve shows the combination of two goods, that an economy can produce - by utilising given resources & technology best efficiently.
If country 1 produces twice the output of both goods compared to country 2. Then, country 1's PPF would lie further to the right than country 2's PPF. As, more quantities implies rightward shifted PPC, signifying more quantities of goods that can be produced.
Efficient or inefficient production leads to production inside or on PPC, doesn't shift PPC. Population change is also irrelevant in this case.
Answer:
B. - 5.71%
Explanation:
Given that
Purchase price = 1000 × 35 = 35000
Selling price = 1100 × 30 = 33000
Recall that
ROI = Net profit/total investment × 100
And that
Net profit = selling price - purchase price
= 33000 - 35000
= -2000
Therefore,
ROI = -2000/35000 × 100
= - 0.05714 × 100
= - 5.71 %
Thus, total return on investment is -5.71%
