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siniylev [52]
2 years ago
6

The purpose of a theory, in general, is to ________________________________. Select the correct answer below: determine the leve

l of economic activity in a society take a complex, real-world issue and simplify it down to its essentials implement a method to view the world through the same lens as other disciplines, such as anthropology and biology determine which goods and services consumers are most likely to select
Business
1 answer:
Sergeeva-Olga [200]2 years ago
6 0

Answer:

take a complex, real-world issue and simplify it down to its essentials.

Explanation:

A theory can be defined as a simplified but abstract representation that gives a detailed relationship about the interaction between two or more variables.

Generally, the main purpose of a theory is to take a complex, real-world issue and simplify it down to its essentials. Thus, in economics, a theory gives a detailed explanation and an understanding of issues such as inflation, recession, taxation, etc and any problem associated with them.

In order to test theories, economists usually make use of economical models such as the production possibility frontier (PPF), Mundell-Fleming model, Classical model, Keynesian IS/LM model, Solow growth model, etc.

You might be interested in
1. Identify and briefly discuss three factors which influence the choice of crops produced by commercial farmers?[ 2. What is th
wolverine [178]

Answer:

1. a) Location,

    b) earnings

    c) Whether the crop can be produced by its resources or not

Explanation:

Farmer traders consider location as an important element for their crops, the location depends on the quality of the land and the taxes it will pay, and the location of their crop is important for the transport of their products to ensure they arrive in the best condition to the market.

Likewise, the farmer considers as an influential factor how much profit he will obtain with the harvested product, choosing to cultivate the one that produces the greatest benefits, also he must consider having all the labor and resources that are necessary to carry out his harvest and be able to transport it to market it.      

2. Dairy producers need to consider the proximity of farms to the distribution market because the product has a limited time to go expire .

Explanation:

Dairy products are the most delicate and difficult to transport since they have a short time to expire, this is one of the reasons that commercial farmers should take into account that the location of their farm is at a considerable distance from the market, in this way being able to transport their product more safely and distribute it without fear that it expires and lose all their profits.

3. A commercial farmer is concerned with two costs, one of which is the cost of transportation and the other cost is whether there will be a benefit to his crop.

Explanation:  

Commercial farmers at the time of cultivation consider two very important costs for them, one of them the cost of transporting their products to the place of distribution, so they must ensure that it is not very high since it is also important for them the benefit they will get, for this reason, farmers take care that the investment is less so they can enjoy good profits.

   

4. Von Thunen's theory mentions that the distance to the market is a critical point for farmers. Von Thunen explains that a farmer's earnings may decrease the further from the market where he sells his products.

Explanation:

5.  1. One of Von Thunen's assumptions is that there is only one market available and it is self-sufficient without outside influence.

    2. Another assumption is the physical environment is uniform; without rivers, mountains, etc.

    3. And one last assumption is that all farmers act to maximize profits.

Explanation:

1. In Von Thunen's first assumption, he considers there is only one market available and it does not need external influences, but this assumption may not be so correct since there cannot be a single market due to the consumer demand that exists and because there are other farmers from different cities that will bring their products, also cities need an external influence for change, and changes are necessary for the growth of the city.

2. In his theory, Von Thunen mentions the physical environment of the places for agricultural production is uniform, which is difficult due to the landforms that create modifications in the terrain, this uniformity that Thunen mentions could only be achieved if the grounds were modified by men.

3. Thunen's last assumption mentions a very successful situation where farmers carry out actions to obtain the greatest profits, they will continue working to continue obtaining the best benefits.

6. 1. In the middle ring is the market. The market is central because it is the most important part of the city and is easily accessible from the surrounding areas.

   2. The next ring consists of intensive farming and dairy. These products are closer because they are in higher demand and other products can expire.

  3. The next ring is the forest. Wood was also in high demand due to the fact that it was used for heating and cooking. And it had this location because the wood was very heavy and difficult to transport.

  4. The penultimate ring was used for extensive cultivation as bread grains. These are lighter, which makes them easier to transport and cost less money.

  5. And finally, the final outer ring is used for livestock. Animals can be born and raised further from the market because they transport themselves, which means there is no need for fuel, saving the farmer money.

Explanation:  

Von Thunen in his theory mentioned the importance of geographical distribution in agriculture, in which merchant farmers could take advantage of the conditions of the land. For Thunen the distribution and location of the land in an appropriate way would generate the best benefits, for it must organize from the most essential and difficult to transport to the easiest to transport, in this way, for Von Thunen the rings in the markets should be formed.

   

<em>I hope this information can help you.</em>

5 0
3 years ago
You have found an asset with 12.60 percent arithmetic average return and a 10.24 percent geometric return. Your observation peri
adoni [48]

Solution:

In years      Best estimate of return            Working note

5                   12.36%              ((5-1)/(40-1)*0.1024)+((40-5)/(40-1)*0.126)

10                   12.06%             ((10-1)/(40-1)*0.1024)+((40-10)/(40-1)*0.126)

20                    11.45%               ((20-1)/(40-1)*0.1024)+((40-20)/(40-1)*0.126)

The formula for the return on assets is calculated by dividing the net income by the total average assets. The profit margin and total asset sales can also be represented as a consequence of this ratio. For the calculation of the total asset return, either formula may be used.

7 0
3 years ago
Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on insta
inessss [21]

Answer:

See the journal entry below.

Explanation:

Before preparing the journal entry, the following are calculated first:

Income tax expense in 2019 = (Taxable income in 2019 * Tax rate in 2019) + (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($158,000 * 40%) + ($195,000 * 45%) + ($92,100 * 45%) = $193,395

Deferred tax liability in 2019 = (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($195,000 * 45%) + ($92,100 * 45%) = $129,195

Income tax payable in 2019 = Taxable income in 2019 * Tax rate in 2019 = $158,000 * 40% = $63,200

Income tax payable in 2020 = Taxable income in 2020 * Tax rate in 2020 = $195,000 * 45% = $87,750

Income tax payable in 2021 = Taxable income in 2021 * Tax rate in 2021 = $92,100 * 45% = $41,445

The journal entry will look as follows:

<u>Date                  General journal                  Debit ($)         Credit ($)    </u>

31 Dec 2019      Income tax expense          193,395  

                             Deferred tax liability                                129,195      

                             Income tax payable                                 63,200

<u><em>                            (To record income tax payable.)                                 </em></u>

31 Dec 2020     Deferred tax liability            87,750      

                             Income tax payable                                 87,750

<u><em>                            (To record income tax payable.)                                 </em></u>

31 Dec 2021     Deferred tax liability            41,445      

                             Income tax payable                                41,445

<u><em>                            (To record income tax payable.)                                 </em></u>

5 0
2 years ago
As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loa
solniwko [45]
I believe u should not give put loans at all ,or make the interest rate very low so they 'll have a better chance to pay it off
5 0
3 years ago
The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mo
777dan777 [17]

Answer:

Purchase money mortgage.

Explanation:

A purchase money mortgage is the loan that is given to the individual buying the property.

This loan is issued by the seller of the property as a part of the transaction made when selling the property. The interest rate that comes with this type of loan is high.

The buyers benefit from the purchase money mortgage due to the flexible requirements that is needed in collecting the loan while the sellers benefits from the high interest rates that is added to the loan.

5 0
3 years ago
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