Answer:
Correct answer:
b) lower prices for consumers and producers
Explanation:
In United States of America, food is one of the fundamental things which the government guarantee its citizens. Most agricultural products are subsidized by the government both for the farmers (producer) and the citizens (consumers).
<em>The subsidy for the producer could be inform of payment of incentive, giving out agricultural implements and grants. On the other-hand, the subsidy to the consumer could be inform of reduced price of the agricultural food crops.</em>
Answer:
Check the explanation
Explanation:
a)
In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0
Year 1 =$150000
Subsequent years= $0
b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.
Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.
Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.
Situations and scenarios affects the ability of managers to make rational decisions.
Let understand that an approach of making rational decisions is based on obtained data which effectively allows decision-making, thereby reducing chances of errors, assumptions and all causes for poor judgments
- Thus, the main key for decision-making strategy is information and data management.
- The problem cited by Hebert Simon is because some of decision made by managers are based on assumptions.
In conclusion, quick and rational decisions should be embraced by manager although its requires keeping a track of information and data of different scenarios.
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Answer:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Explanation:
Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.
The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.
When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.
Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
