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3 years ago

What were some potential negatives smith explained could plague the free-market system?

1 answer:

3 0

According to Smith the functioning of the free market requires an ethical position, for Smith justice has a fundamental function. The market mechanism does not require direct contact between consumers and producers. The relationship is usually indirect and is made through the prices and sales that occur in the market. If you want something and you have the money to buy it, it is done, and if there are enough people to do the same, the sales of that product will skyrocket and the rest of the companies will start producing more of that good and will employ more means.

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Welfare analysis: Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surp

lianna [129]

Answer:

I sold a used laptop for $139, even though I was willing to go as low as $130 in order to sell it - producer surplus PRODUCER SURPLUS

Even though I was willing to pay up to $147 for a watch and even though the seller was willing to go as low as $137 in order to sell it, we couldn't reach a deal because the government imposed a tax of $16 on the sale of watches. - neither NEITHER

Even though I was willing to pay up to $47 for a jersey sweater, I bought a jersey sweater for only $39. - CONSUMER SURPLUS

Explanation:

Producer surplus is the difference between the price of a good and the least amount the seller is willing to sell the product.

In this question, the producer surplus is $139 - $130 = $9

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

In this question, the consumer surplus is $47 - $39 = $8

I hope my answer helps you

3 0

3 years ago

Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present valu

sineoko [7]

Answer:

A. $19,034

Explanation:

The computation of the present value for 20 years cash flow is shown below:

For the First 10 years

Given that

Payment for first 10 years = $2,000

Discount rate = 11%

Now the present value is

= $2000 ÷ 1.11 + $2,000 ÷ 1.11^2 +...........+ $2,000 ÷1.11^10

= 11,778.46402 ..............(1)

For the Next 10 years

Given that

Payment for next 10 years = 3,500

Discount rate = 11%

Now the present value is

= $3,500 ÷ 1.11 + $3,500 ÷ 1.11^2 +...........+ $3,500 ÷ 1.11^10

= 20,612.312

So, today present value is

= $20,612.312 ÷ 1.1110

= 7,259.339 ...........................(2)

Now

Total present value is

= $7,259.339 + $11,778.46402

= $19,034

3 0

3 years ago

Advertising increases levels of consumer purchase of specific brands which in turn affects gross domestic product. T/F

jeka57 [31]

Answer:

The correct answer is False.

Explanation:

Advertising really tries to increase the purchase levels of products and services, not specific brands. Therefore, this statement is false considering that although all economic transactions affect GDP (positively or negatively), the advertising function is not aligned with its duty.

8 0

3 years ago

Read 2 more answers

Gross primary productivity is higher than net primary productivity. The difference between the two is

elena55 [62]

dotnt ask me about high school stuff

3 0

3 years ago

Jasmine (29) is filing as a single taxpayer. In 2019, she received income from the following sources:

lianna [129]

Answer:

$38,720

Explanation:

From the given information:

Using Schedule 1 (Form 1040), Additional Income & Adjustment to Income.

The taxable income can be determined as follows:

Particulars Form Amount($)

Wages (Form 1040, Line 1) 36,000

Add: Unemployed Income Schedule 1, Line 7 4,320

Add: Gambling winning Schedule 1, Line 8 500

Total Income $40,820

Less: Student loan Interest Schedule 1, Line 20 2,100

Taxable income $38,720

3 0

3 years ago