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Kobotan [32]
3 years ago
13

Unit 1 Quiz Submit 6 A market economy has several benefits, but it also has some drawbacks. What is one negative effect a market

economy can produce? OA. It creates extreme divisions between the wealthy and the poor. OB. It lets many workers choose where they want to be employed. OC. Goods and services are only produced for uses planned by the government D. The lack of competition means that consumers have fewer choices Reset Next​
Business
1 answer:
Lesechka [4]3 years ago
6 0

Answer:

A. It creates extreme divisions between the wealthy and the poor

Explanation:

The market economy is profits driven. The prices of goods and services, including essential goods, are set to generate profits for the producer. Only people with resources are able to acquire these goods.  

The market economy creates social inequities as those with fewer resources will always afford little. Meanwhile, owners of the factors of production continue making profits and growing more wealthy. Economies with a market economy will have people at both extreme ends of wealth; those with a lot and those who barely have any

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A machine costing $180000 was destroyed when it caught fire. At the date of the fire, the accumulated depreciation on the machin
Colt1911 [192]

Answer:

The answer  is: gain on disposal of $114500

Explanation:

The gain on disposal is calculated by the following formula:

gain on disposal=replacement cost - (purchase cost - depreciation expense)

gain on disposal = $210,500 - ($180,000 - $84,000) = $210,500 - $96,500 = $114,500

The journal records should be as follows:

  • Dr Cash 210,500
  • Dr Accumulated depreciation 84,000
  • Cr Machine 180,000
  • Cr Gain on disposal 114,500

5 0
3 years ago
Carson Electronics uses65 percent common stock and 35 percent debt to finance its operations. The aftertax cost of debt is 5.8 p
Lina20 [59]

Answer:

$471,319.20

Explanation:

Carson's WACC = (0.65 x 16.1%) + (0.35 x 5.8%) = 10.47 + 2.03 = 12.5%

The PV of the investment = CF / (1 + wacc) + {[CF / (wacc - g)] / (1 + wacc)}

PV = $46,000 / 1.125 + {[$46,000 / (9.5%)] / 1.125}

PV = $40,890.71 + ($484,210.53 / 1.125)

PV = $40,890.71 + $430,428.49 = $471,319.20

8 0
3 years ago
According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products fr
vredina [299]

Answer: b. International trade allows a country to specialize in items that can be produced most efficiently in that country.

Explanation:

Adam Smith with his Absolute Advantage theory, David Ricardo and his Comparative Advantage theory and the Heckscher-Ohlin theories believed that goods should be purchased from Countries that are more efficient in producing said goods so that the resources in the buying country can be channelled towards producing the good that the country can produce efficiently as well.

They believe this to be the foundation of global trade and that each country stands to gain if they buy the goods they are less efficient at producing and sell the goods that they are more efficient at producing. This way resources are properly channelled in an Economy and both countries involved in the trade can achieve high Economic growth as they are utilising their resources efficiently.

6 0
3 years ago
From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom
notsponge [240]

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.

The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.

Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.

4 0
3 years ago
list three examples of human capital you would like to develop and specifically how you might be able to develop it
Gnesinka [82]

Answer:

Examples of human capital include communication skills, education, technical skills, creativity, experience, problem-solving skills, mental health, and personal resilience.

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3 0
2 years ago
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