Answer:
C. Retained earnings increased $28,200 during 2018.
Explanation:
Total liabilities = Total assets - Total equities
= $217,000 - $123,000
= $94,000
Common stock as at December 31, 2018 = Total equity - Total retained earnings
= $123,000 - $83,000
= $40,000
Retained earnings at year end =
Opening retained earnings + net income - dividend paid
$83,000 = Opening retained earnings + $33,900 - $5,700
$83,000 = Opening retained earnings + $28,200
Opening retained earnings = $54,800
Change in retained earnings = Closing retained earnings - Opening retainer earnings
= $83,000 - $54,800
= $28,200
Therefore, Option 'C' is the correct option.
Negative Externality
This is the cost that is suffered by a third party as the result of a transaction. One example is the sale of cigarettes. The negative externality is the negative effects of cigarette smoke on people and the environment.
Answer:
the organization's formal and informal practices
Explanation:
Answer:
An excise subsidy has only a substitution effect since the subsidy artificially lowers the price of the subsidized good causing the consumer to increase consumption of the good, but no income effect.
Explanation:
The above is true due to the fact that the consumption of goods increases. This could have been reduced had it been that, there was never any excise subsidy on those goods.
Answer:
1. The size of the economy as a whole grows as a result of free trade.
2. Consumers benefit from free trade.
3. Free trade can reduce cost of trading:
Explanation:
The three strongest arguments that you can offer to the Indian government about why the policy shift to freer trade is desirable for India are as follows:
1. The size of the economy as a whole grows as a result of free trade: It provides for more efficient production of goods and services. This is because it encourages goods and services to be created in areas with the finest natural resources, infrastructure, or skills and experience. It boosts productivity, which can lead to greater long-term wages. There is universal consensus that growing global trade has boosted economic growth in recent decades.
2. Consumers benefit from free trade: By removing barriers and promoting competition, it lowers prices. Quality and choice are likely to improve as a result of increased competition.
3. Free trade can reduce cost of trading: Non-tariff barriers can be reduced, resulting in less red tape and lower trading costs. Companies that deal in multiple nations might reduce their compliance expenses by working with a single set of laws. In principle, this will lower the cost of goods and services.
