Answer:
C) $650,000
Explanation:
Government entities should record their assets at fair market value, not at cost basis. They should also include the land improvements as part of the total value of the land:
total value of the land = $500,000 (donated land) + $150,000 (land improvements) = $650,000
Answer:
New Trade Theory
Explanation:
New Trade Theory explains one reason why some countries specialize in specific industries for factors other than natural resources, quantity of labor force, or comparative advantage.
This reason is that some industries can only support a limited number of firms around the world. An example of this is the aeronautic industry, which only has a few players, with two giant firms dominating above all others: Boeing (US), and Airbus (Europe).
While the United States and the European Union can specialize in making planes through their respective giant companies, most other countries in the world cannot do so: they neither have the techology, nor the expertise, nor the capital to create a successful competitor for Aribus or Boeing. It is not even clear if the market needs or would support a third industry giant either.
Here are several reasons why economists are concerned about the <span>proliferation of regional trade agreements:
- </span><span>Regional trade agreements terms can conflict with those of the WTO
- </span><span>Regional trade agreements may limit trade from outside the regions in agreement
Regional trade agreements basically could make the economy within a certain region became secluded from other countries and may raise the price of certain commodities.</span>
Answer:
B) Inflation is everywhere and always a monetary phenomenon.
Explanation:
Henry Thornton developed this theory in 1802. According to the Quantity Theory, In an economy, there is a direct relationship between the quantity of money in the economy and the prices of goods and services. The price levels are directly related to the amount of money in circulation, which is the cause of inflation. Hence the consumer has to pay more for the same amount of commodity.
Answer:
A. Price makers
B. Brand name
Explanation:
A. The hotels charge very high prices for wine and soft drinks because they are not price takers. They do not consider the price prevailing in the market for the products they are offering to the customers. They are price makers and select to charge the price they want to maintain their current hospitality. It their perception that wine and soft drinks are part of luxury. The food is an essential and people are not allowed to bring outside food in the hotel so they will buy it but when they will consume food they will also require the drinks as a part of their meal.
B. The people in today's world are so much brand conscious. They will pay for a name tag so they will be regarded for their high status in the society despite of low quality products. The ease of shopping at the branded stores is another reason for their high sales.
