Answer:
The quota system is not efficient since the total supply is less than the equilibrium quantity. This will produce a deadweight loss which equals the lost supplier surplus plus the lost consumer surplus. The deadweight loss s the area between the demand and supply curve, and between the imposed quota and the equilibrium quantity.
Graph 1 shows the market equilibrium while graph 2 shows the deadweight loss.
Answer:
The correct answer is letter "E": Entrepreneurs.
Explanation:
Entrepreneurs are individuals with special sights for investments. They tend to look for new ways of doing typical activities and by innovation set a business plan for a potential good or service to be offered to the public or a specific market. They find ways to use factors of productions to achieve the venture's goal.
Answer:
Tort law is the civil law that enables the employees to seek compensation by the business if anything wrong is done against them.
Explanation:
Tort law secures the rights of employees and enables them to ask for compensation if they are mentally disturbed or physically harmed by the business activities or management team. The law also protects individuals from the threats of harm and compensation can be seek by providing proofs in the court.
Answer:
Elastic- D
Explanation:
When the demand of a product is said to be elastic, it means the price and other factors have a large effect on the quantity purchased by consumers. An increase in price will produce an effect where the quantity purchased decreases.
Elastic demand as opposed to inelastic demand indicates that the consumers can do without that product and can afford to do comparisons before shopping as there is no desperation for the product.
Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
