Complete Question:
The market system:
A. produces considerable inefficiency in the use of scarce resources.
B. effectively harnesses the incentives of workers and entrepreneurs.
C. is not consistent with freedom of choice in the long run.
D. has slowly lost ground to emerging command systems.
Answer:
B. effectively harnesses the incentives of workers and entrepreneurs.
Explanation:
An economic system can be defined as a series of governmental or societal arrangements and a coordinating mechanism used for the allocation of available resources, economic inputs, goods and services across a particular country. The economic system differs according to the method used to coordinate economic activities and who the factors of production belongs to.
Generally, there are basically two (2) main types of economic systems and these are;
1. Command systems.
2. Market systems.
The market system effectively harnesses the incentives of workers and entrepreneurs because workers are able to engage in division of labor and are well compensated for their efficiency in service while the entrepreneur are usually rewarded with an increase in sales and profits.
The market system allows participants to have property rights such as trademarks, patents and copyright. Also, market systems are regulated by the competition among individuals (traders or entrepreneurs) and this gives direction to the market as they pursue self interests and are independent.
Answer:
(D) - It engages in Foreign Direct Investment, which by itself raises US net capital outflow
Explanation:
Foreign Direct Investments (FDIs) are investments in physical assets, infrastructures, etc and other long-term assets made in a foreign country. They differ from Foreign Portfolio Investments (FPIs) which are investments in stocks, bonds, treasury securities and other listed securities which can be sold easily in financial markets. For instance, when a US-based corporation invests in the stocks or bonds of a French company, this is FPI. Whereas, when the US-based corporation establishes a company in France by investing as plants and machinery, this is FDI.
FDIs requires cash commitment for investing in the foreign nation. However, because the assets created as a result of these investments are owned by the originating country, it increases the volume of assets the country has abroad leading to an increase in net capital outflow. Net Capital Outflow is the volume of capital investment made by a nation in other countries, less the capital investment made by other countries into the nation.
Therefore, when Stryker builds and operate a new factory in France, it engages in Foreign Direct Investment. By itself this action raises US net capital outflow.
Answer:
business owners or even countries who sell thier goods to others
Answer:
Total utility is the sum of marginal utilities
.
Explanation:
In the economy, utility is a measure of relative satisfaction. In other terms, it is a term that refers to the total satisfaction that a consumer experiences when consuming a good or service. Given this measure, one can speak of increasing or decreasing utility in a meaningful way and thus explain economic behavior in terms of attempts by the economic agent to increase his or her utility. Utility is often modeled as a unit influenced by the consumption of various goods and services, the possession of wealth and the enjoyment of free time. Total utility, therefore, is the sum of all the marginal utilities that compose the total accumulation of consumption of the individual.
Answer:
$320 left for me after all taxes have been paid.
Explanation:
Individual Tax is paid on dividend received from the investment in the shares. The corpporation declare the dividend after deducting the corporate tax.
Amount of Earning = Number of shares x Per share earning = 100 shares x $4per share = $400
Earning After tax = Amount of Earning x ( 1 - Individual Tax rate )
Earning After tax = $400 x ( 1 - 0.20 )
Earning After tax = $400 x 0.8
Earning After tax = $320
