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oksian1 [2.3K]
2 years ago
11

What impact do you think the following events will have on long run economic growth? Why?

Business
1 answer:
Ann [662]2 years ago
5 0

Answer:

a) Seizing the farms from his political rivals, and giving them to his friends, even when they do not know about farming, will result in less economic growth, because the human capital employed in farming is now of less quality. If things turn sour, a famine could even result (there have been many examples of this kind of situation throughout history).

b) This kind of red-tape will result in less economic growth, because investments that could have been made during the current year, will be postponed at least one year due to the bureaucracy.

c) The government of Tempestia is improving the judiciary, granting it independence and credibility. This will result in more economic growth because now both citizens, and international investors have more confidence in the country, since they feel that their property rights will be enforced, giving them an incentive to invest and take risks.

d) This kind of protectionist policies will likely result in less economic growth because the lack of international trade makes things more expensive for consumers, keeping their incomes from growing, and also because protectionism leads to the misallocation of resources by keeping afloat inefficient economic sectors that under a free trade system would otherwise collapse to give way to more efficient sectors.

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On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July 1, 2018, the company
attashe74 [19]

Answer:

The Journal entry is as follows:

On July 1,

Cash A/c                                  Dr. $439,200

Finance charge Expense A/c Dr. $10,800

To Financing arrangement A/c                       $450,000

(To record the amount of borrowings)

Workings:

Finance charge expense = ($600,000 × 1.8%)

                                          = $10,800

So, cash account = $450,000 - $10,800

                             = $439,200

4 0
2 years ago
You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.2
postnew [5]

Answer:

a. project A; because its NPV is about $335 more than the NPV of project B.

Explanation:

As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.

Here we have to determined the net present value for both projects having different required rate of return

So based on the net present value the first option is correct as the project A is more than the project B

Therefore the first option should be accepted

5 0
2 years ago
Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering and co
Artyom0805 [142]

Answer:

A. 27,000

B. 77,000

Explanation:

What is Reggie's accounting profit?

REVENUE - EXPENSES AND DEPRECIATION

90000-18000-6000-3000=63000

What is Reggie's economic profit?

REVENUE - EXPENSES AND DEPRECIATION - IMPLICIT COSTS

90000-18000-60000-3000-76000 = -13000

1) accounting profit = TR - explicit cost

= 90,000 - 63,000

= 27,000,

2) economic profit = TR - economic cost

= 90,000-(13,000)

= 77,000

3 0
2 years ago
The following transactions are July activities of Bennett’s Bowling, Inc. Bennett’s collected $13,100 from customers for games p
defon

Answer: This is a lot to read , and I dont feel like reading it , plus im in 8th grade I dont understand this tbh :(

Explanation:

5 0
2 years ago
A company has total assets of $1,000, current liabilities of $130, and total liabilities of $350. if debt is the only long-term
Len [333]
<span>long-term debt=Totol liability-Current liability long-term debt=$350-$130 =$220 long-term debt ratio=long term debt/ total assets =$220/$1,000 =22% so long term debt ratio is 22%</span>
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2 years ago
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