A higher interest rate is one economic mechanism by which government borrowing can crowd out private investment. This is further explained below.
<h3>What is the economic mechanism?</h3>
Generally, A mechanism is a mathematical representation of the organizations that govern and coordinate economic activity.
In conclusion, Increasing the interest rate is one of the ways in which the government may stifle private sector investment. This will be detailed in further detail in the following paragraphs.
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Answer:
Capitalism is an economic system based on investing money in the expectation of making a profit. The means of production are usually privately owned by private entrepreneurs who often use wage labor to create added value. In doing so, they enjoy a great deal of legal freedom to dispose of these means, free enterprise production. This freedom also means that there is competition, which means that entrepreneurs have an interest in increasing the efficiency of their company. Hence, the capital owner will not fully consume the profit but reinvest in the business and capital accumulation takes place. The distribution of products is regulated by the market, in which the role of the government is, in principle, limited to that of market master.
Answer:
(a)
Payment = $4,459
(b)
payment = $4,120
Explanation:
solution
we know that Payment will be here
in 1st part (a)
payment = Mercahndise - sales and allwances - discount + frieght ..............1
so here
Discount = (merchandise - sales return and allowance) × Discount% .........2
put here value
Discount = ( 5,700 - 1600 ) × 1%
Discount = $41
so
from equation 1 payment will be
Payment = 5700 - 1600 - 41+400
Payment = $4,459
and
in 2nd part (b)
from equation 2
put the value
Discount = (4,800 - 800 ) × 2%
Discount = $80
so
Payment will be here
payment = 4800 - 800 - 80 + 200
payment = $4,120
Answer:
Individual rewards for contributions to the team
Explanation:
A team should share rewards among themselves not to individuals, because effective teams are made of collaborators not competitors. By giving individual rewards for contributions to the team it reduces how effective the team behavior is.
For example, if a particular team is giving certain rights over others, there may begin to exist a competitive spirit amongst the team.
Answer:
c.$1,080,000 for A; $648,000 for B
Explanation:
For computing the total direct material purchase first we have to find out the production units which are shown below:
As we know that
Production units = Ending inventory units + sales units - beginning inventory units
= 9,000 units + 75,000 units - 12,000 units
= 72,000 units
Now the total direct material purchase for Material A and Material B is
For Material A
= 72,000 units × 3 lbs × $5 per lb
= $1,080,000
For Material B
= 72,000 units × 0.5 lbs × $18 per lb
= $648,000
Therefore, the third option is correct
