Answer:
(a) Command
Explanation:
A command economy is also known as planned economy and it can be defined as a type of economy in which the government owns and control the means of production.
This ultimately implies that, in a command economy, the government owns the means of production.
Societies that operate a command economy generally practices communism.
Communism is a system of philosophical, political, social organization and economical ideologies that advocates the elimination of private property but a profit-based economy with public ownership of the means of production.
It ultimately aims to ensure each person contributes and receives according to their abilities and needs.
Vietnam, China and Cuba are examples of communist countries that operate a command economy.
In conclusion, a command economy requires that the method of exchange, distribution, as well as the means of production of goods and services and allocation of resources for production should be controlled or regulated by the public (government) rather than the private sector.
Answer:
OD. A person who goes to earn a college degree will have to pay the full costs of going to college
Answer:
Average rate of return = 14
%
Explanation:
Average rate of return = Annual average return/ Average Investment
Average investment =( Initial investment + scrap value)/2
Average investment = 138,000 + 12,000/2 =75,000
Average annual return = Savings in cost - energy cost - depreciation
Depreciation = (initial cost - scrap value)/2= (138,000 - 12,000)/2= 12600
Average annual return = 29,780-6,680-12600= 10500
Average rate of return = 10,500/75,000 × 100= 14
%
Average rate of return = 14
%
Answer:
$40,000
Explanation:
The accounting procedure involved in the above is that one picks the lower between the actual interest incurred and the interest computed on the weighted average amount of accumulated expenditures for PPE.
The actual interest incurred on specific construction debt and other borrowings
= $50,000 + $20,000
= $70,000
Since the interest computed on the weighted average amount of accumulated expenditure for the building is $40,000 , the lower between the actual interest incurred and interest on weighted average amount of accumulated expenditure is $40,000, hence will be the capitalized amount.
Answer:
that he should reduce his prices. Yachts are luxury goods and therefore exhibit a high price elasticity of demand. Thus, reducing prices would increase revenue.
Explanation:
Luxury goods usually have a high elasticity of demand when compared with necessity goods which are highly inelastic.
An elastic demand means that a change in price would have a considerable impact on quantity demanded.
Therefore, if the price of the yachts which is a luxury good with high elasticity is reduced, demand for yachts would increase and revenue would increase.
