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elena-14-01-66 [18.8K]
3 years ago
8

What role should government play in a free market economy?

Business
2 answers:
igor_vitrenko [27]3 years ago
8 0
Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
Kisachek [45]3 years ago
5 0

Answer: Stabilize the economy

Explanation:

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You can buy property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) (L
kolbaska11 [484]

Answer:

a) Present Value of sales = $2,722,332.78

b) Property is not attractive. NPV$ (277,667.21)

c) Property is attractive. NPV-$520,874.79

Explanation:

The present value of the property

PV = S×  (1+r)^(-n)

S- Sales value

r- interest rate -8%

n- number of years

PV - present value

PV = 4,000,000× 1.08^(-5) = $2,722,332.78

b.  Is the property investment attractive to you?

We calculated the PV of the investment as follows

NPV = PV of sales value - initial cost

= 2,722,332.78 - 3,000,000=$ (277,667.21)

The property investment is not attractive because it will produce a loss in capital i.e negative NPV

C

To determine we will calculate the NPV again with considering the additional rental income

PV of annual rent = 200,000 ×  (1-1.08^(-5))/0.08= 798,542.00

NPV = 798,542.00  + 277,667.2119  - 3,000,000 =520,874.79

The property is attractive as it produces positive NPV

8 0
4 years ago
alachi is a manager at a home goods store. he subscribes to theory x. in managing his employees, he is most likely to
RideAnS [48]

Alachi is a manager at a home goods store. he subscribes to theory x. in managing his employees, he is most likely to assume the average worker prefers to be directed.

<h3>What is Management Style?</h3>

There are many management styles and it depends on the mind mindset off employer or manager, a manager with theory X assumes that the employees does not like to work and there needs to be directed, they can only be motivated with salary. While the manager theory Y assumes that the employees like their job and are responsible for the work they do, they need some guidance but are responsible for the work, they can be motivated with appraisals, appreciations and more rewards.

Alachi as a manager is a theory X manager and assumes that the workers prefers to be directed and therefore he would delegate the task and provide the complete guidance to them.

Learn more about Management style at brainly.com/question/27207232

#SPJ1

7 0
1 year ago
Activity rates are calculated by a.dividing the budgeted activity cost by the total activity-base usage. b.dividing the total ac
Ierofanga [76]

Answer: The correct answer is option (A)

Explanation: Activity rates is calculated by dividing the budgeted activity cost by the total activity-base usage.

Activity Rate = (Budgeted Activity cost) ÷ ( total activity base usage)

6 0
3 years ago
Describe two things you can do to make sure you are using another person's work fairly.
sergeinik [125]

Answer:

Paraphrase and cite.

7 0
3 years ago
What the date of jean ribault attempts to settle charlesfort?
PtichkaEL [24]
The precise date varies but the year is certain. Jean Ribault attempted to settle Charlesfort in 1562. This piece of land is nowadays known as South California. The colony of Charlesfort failed because he couldn't come back and bring more resources because he was imprisoned after a revolution. When he eventually came back he found it to be completely abandoned.
8 0
3 years ago
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