The nineteenth-century British economist Thomas Malthus argued that the law of diminishing returns implied that capital would increase relative to labor.
Who was Thomas Malthus ?
Thomas Robert Malthus was a British economist who is known for the population growth philosophies outlined in An Essay on the Principle of Population. He stated that the populations would continue expanding until growth is stopped or reversed by disease, famine, war, or calamity.
He stated that in advanced economy consumption, saving and investment all should expand simultaneously. Importance to the accumulation of capital for economic development. He regarded capital as indispensable to development.
Hence , Thomas Malthus argued that the law of diminishing returns implied that capital would increase relative to labor.
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the owner of a chain of supermarkets notices that there is a positive correlation between the sales of root beer and the sales of ice cream over the course of the previous year. during seasons when sales of root beer were above average, sales of ice cream also tended to be above average. likewise, during seasons when sales of root beer were below average, sales of ice cream also tended to be below average. which of the following would be a valid conclusion from these facts?
Another factor, such as the temperature outside, may have an impact on beer and ice cream sales.
The correlation coefficient measures what.
on November 11, 2022, revised.A number between -1 and 1 is the correlation coefficient, which indicates the strength and direction of a relationship between variables.To put it another way, it shows how similar two or more variables' measurements are across a datasets.
The correlation coefficient can assume what values.
The correlation coefficient can be anywhere from -1.0 to 1.0.To put it another way, the values can't be higher than 1.0 or lower than -1.0.A perfect negative correlation is represented by a correlation of -1.0, while a perfect positive correlation is represented by a correlation of 1.0.
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refer to exhibit 9-7. the total revenue collected by a profit-maximizing single-price monopolist is
The total revenue collected by profit-maximizing single-price monopolist is not 9000.
Who is a monopolist?An entity that completely dominates the market for a specific item or service is known as a monopolist. Because they provide them more power, monopolists are likely to support policies that benefit monopolies. Because there are no competing products, a monopolist has little motivation to develop their product. They are motivated by maintaining the monopoly, not anything else. When a single supplier of a given good or service emerges as a monopolist, a monopoly has formed. A monopsony, on the other hand, is when only one entity has the authority to make purchases of goods or services. It also differs from an oligopoly, in which a small number of sellers control a market.
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in periods of rising prices, under which inventory cost flow assumption does profit margin (pm) appear to be higher?
In a period of rising prices, FIFO produces the highest profit margin and the highest ending inventory.
FIFO and LIFO bookkeeping are forms used in directing stock and commercial matters including the amount of money a party has to have hampered inside the stock of produced merchandise, natural resources, parts, parts, or feedstocks.
Profit margin gauges the strength at which point a party or a trading activity forms services, basically by separating income by revenues. Expressed as an allotment, the profit border signifies how many cents of profit have existed to create each greenback of sale. Profit margins decide how much money you are making and show the overall monetary well-being of your trade.
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at mattress store, nate signs a contract to buy bedroom furniture. the contract sets a schedule of $500 monthly payments, subject to a late fee of 150 percent. nate finds the language of the contract difficult to understand. this is most likely
Nate finds the language of the contract difficult to understand, this is most likely procedural unconscionability which is option D.
Since Nate is finding the language of the contract hard to comprehend. This is doubtlessly an instance of procedural unconscionability. In agreement regulation, procedural unconscionability alludes to a circumstance where the unjustifiableness results from disparities between the gatherings in regard to old enough, knowledge, and relative bartering power. Besides, procedural unconscionability projects a sign that the two parties didn't unreservedly agree to all terms proposed.
Substantive unconscionability alludes to the unseemliness of the real terms and arrangements in an agreement. This is not the same as procedural unconscionability, which alludes to the real techniques taken while going into the agreement. Such procedural unconscionability can result from the contrast in age, knowledge, haggling power, and so on. While these two conventions are unique, they really do as a matter of fact connect with each other, as procedural unconscionability will typically bring about unseemly considerable terms in the agreement.
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after reading the following listed articles on sox reporting for this week, provide a critique of sox. in your opinion, do the benefits of sox outweigh its cost? legislated ethics: from enron to sarbanes-oxley, the impact on corporate america by howard rockness and joanne rockness, published in the journal of business ethics. the unexpected benefits of sarbanes-oxley by stephen wagner and lee dittmar, published in the harvard business review.
Rules were established in 2002 by the Sarbanes-Oxley Act (SOX) to safeguard the public from corporate fraud and other predatory business practices.The act established a system of internal corporate checks and balances and increased corporate financial reporting transparency.
Has SOX been effective?
It is generally acknowledged that SOX improved at least two significant aspects of investor protection:
1) CEO and CFO accountability for all financial disclosures and controls related to them
2) corporate audit committees' increased professionalism and engagement.
How has the Sarbanes-Oxley Act (SOX) affected businesses' internal controls?
The act established new regulations for businesses, such as shifting responsibility for the complete and accurate handling of financial reports and establishing new auditor standards to reduce conflicts of interest.The act imposes harsher penalties on violators to discourage fraud and the misappropriation of corporate assets.
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which of the following would increase aggregate demand? group of answer choices a deficit in the government budget an increase in taxes an increase in government borrowing a surplus in the government budget a decrease in government spending previousnext
The deficit in the government budget and an increase in taxes would increase aggregate demand.
A government budget is a document prepared by a government and/or other political body that outlines the expected tax revenues and proposed spending/expenditures for the next financial year. In most parliamentary systems, budgets are submitted to parliament and often require parliamentary approval.
A government budget is a document that presents the projected revenues and expenditures of a government agency for the financial year. Government budgets often require legal approval and are subject to political pressure from competing interest groups for resources.
A budget is a spending plan based on income and expenses. In other words, it is an estimate of how much money you can make over a period of time. B. Earn and spend for a month or a year.
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The default modifier used by most search engines is:
A. NOT.
B. OR.
C. ELSE.
D. AND.
___given the information in questions 1 and 2, explain what happens to the returns to capital and labor in each country after trade begins.
Capital and labor in each country gets equalized as the trade begins.
Trade causes a decline in the return to a country's scarce factor while increasing the return to its abundant factor (capital and skilled labour in the USA) (ie unskilled labour in the USA). The benefits of factors across nations are equalised as a result of trade.
The benefits of factors across nations are equalised as a result of trade. Therefore, with trade, wages and capital return should become comparable across nations. This is a solid conclusion that is predicated on equal technology across nations, absence of transportation expenses, and protection.
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In 2004, the number of credit card and debit card transactions were quite similar. By 2018, they had very different usage. What do you think caused the variance in growth?.
34% of Americans use credit cards for these kinds of everyday purchases. 71% of Americans who say they mostly use debit cards for everyday purchases have been in credit card debt at one point or are still in credit card debt.
Which of the following is a benefit of using a debit card?
Like a check or cash, you can easily access your money. Your account is debited for the purchase amount. If the card is reported missing before it is used, liability is limited to nothing under federal law. Overdraft and maintenance fees may apply monthly.
Debit cards and checks are not money. They are instructions to the bank for moving funds between accounts. Money is not what a credit card is. It's an identification card that lets you borrow money.
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a company that produces printers in the us is concerned with high inventory levels and inventory imbalance in europe. the european distribution center often finds itself with too much inventory of printers customized for certain markets, and not enough inventory of printers customized for others. customization is done in the us plant by adding labeling and documentation in the correct language and power supply. in order to address this problem, the company is considering shipping unlocalized printers to the european dc and localizing them after observing local demand. what supply chain concept is the manufacturer considering? group of answer choices
"Postponement" is the proper response because the company intends to change how they localize.
The administration of the flow of goods and services between businesses and locations in the commercial world is known as supply chain management. This encompasses all procedures that turn raw materials into finished commodities.
The company intends to alter how they localize, thus "postponement" is the appropriate response. Then, "once [they notice] local demand], they will localize printer," they will ship to Europe first.
By delaying the ultimate distribution to end customers under this strategy, the corporation will be able to take advantage of the best opportunity for the product and service offerings while minimizing inherited risks. They were involved in late customization in the aforementioned instance in accordance with local emotions.
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suppose you bought a bond with an annual coupon rate of 5.4 percent one year ago for $890. the bond sells for $920 today. a. assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. what was your total nominal rate of return on this investment over the past year? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. if the inflation rate last year was 3 percent, what was your total real rate of return on this investment? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
A bond is a kind of security below which the issuer owes the holder a debt, and is obliged relying at the phrases to pay off the principal of the bond at the adulthood date as properly as interest over a special quantity of time.
The required details for bond in given paragraph
Selling price of bonds 920
Add: Annual interest 54
Total amount received 974
Less: Invested 890
Total Dollar returns 84
Total Dollar returns 84
Divide: Invested amount 890
Nominal ratee of return 9.44%
Real rate of return = (1+ Nominal rate) / (1+ Inflation rate) -1
1.0944 /1.03 - 1 = 6.25%
Bonds and shares are both securities, however the predominant distinction among the 2 is that stockholders have an equity stake in a business enterprise while bondholders have a creditor stake in a business enterprise. As creditors, bondholders have precedence over stockholders. This way they'll be repaid earlier of stockholders, however will rank behind secured creditors, within side the occasion of bankruptcy.
Another distinction is that bonds generally have a described time period, or adulthood, and then the bond is redeemed, while shares commonly stay exceptional indefinitely. An exception is an irredeemable bond, that's a perpetuity, that is, a bond with out a adulthood.
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when a broker-dealer sells a security to a client and charges a commission on the transaction, it is acting as the client's:
When a broker-dealer sells a security to a client and charges a commission on the transaction, it is acting as the client's Agent
What is broker-dealer ?Without owning the securities, a broker-dealer who buys or sells securities to a customer is acting as the client's agent or broker. On this kind of transaction, the client pays a commission and the broker-dealer bears no risk. The client is assessed a markup or markdown when acting as a principal.A broker-dealer purchases stocks, bonds, and other types of securities. Then, at a price greater than the purchase price, they sell the shares to a different investor. The dealer's spread, which is the difference between the two prices, is what the broker-dealer calls the profit it makes from the transactions.
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ext year's annual dividend divided by the current stock price is called the: multiple choice yield to maturity. total yield. dividend yield. capital gains yield. earnings yield.
Next year's annual dividend divided with the aid of using the cutting-edge inventory rate is referred to as the: dividend yield.
The required details for dividend yield in given paragraph
The dividend yield or dividend–rate ratio of a proportion is the dividend according to proportion, divided with the aid of using the rate according to proportion. It is likewise a enterprise's general annual dividend bills divided with the aid of using its marketplace capitalization, assuming the variety of stocks is constant. Dividend yield is used to calculate the incomes on investment (stocks) thinking about handiest the returns within side the shape of general dividends declared with the aid of using the enterprise for the duration of the year. Its reciprocal is the rate/dividend ratio. A dividend is the entire amount of cash that an investor gets as earnings from proudly owning stocks of a enterprise, or every other dividend-yielding asset, for the duration of the financial year. Dividend price is every other manner of announcing dividend.
More specifically, whilst you pay attention humans speaking approximately dividends in greenback figures within side the media, or elsewhere, they may be regarding the dividend price. Alternatively, inventory dividends also can be quoted the use of the dividend yield, that is expressed as a percentage.
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Which of the following is not a standard licensure requirement for the AEMT?
A. Completion of an NREMT-developed AEMT course.
B. Possession of a valid and current driver's license.
C. Successful completion of a state-approved AEMT exam.
D. Proof of immunization against communicable diseases.
A. Completion of an NREMT-developed AEMT course is not a standard licensure requirement for the AEMT.
The same services as EMTs are offered by AEMTs. They can also provide some drugs and fluids, though. They are also taught how to operate the cutting-edge medical equipment that the ambulance carries.
The minimal degree of license required to treat patients with some advanced care on the scene or while they are being transported is AEMT. The goal of AEMT practice is to reduce risk. Their advanced abilities can be safely used outside of hospitals.
To become certified as an AEMT, you must complete the following:
Hold an EMT-level or higher state license or current certification.Finish a state-approved Advanced EMT course. The EMT program PLUS an extra 350 hours of instruction are normally needed for an AEMT curriculum. To be certified, candidates must have finished the course within two years. Hold a valid CPR-BLS certification for "Healthcare Provider" or a comparable credential. Clear the cognitive test.To know more about AEMT:
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What are the three types of metrics that an organization should collect to support csi.
Process, technology, and service metrics are the three different categories. To assess the quality, worth, compliance, and performance of the process, process metrics are measured in terms of KPIs and CSFs.
What is process technology ?Process technology is the software and equipment, such as digital platforms and intelligent process automation (IPA), that is used to effectively produce and deliver goods and services as well as increase the speed and agility of business operations as a whole.Workflows can be automated, made simpler, and business processes sped up using process technology. Additionally, it can enhance those processes' precision, excellence, and dependability, enabling businesses to operate more quickly and adapt to changing customer demands and market priorities.Process Technology refers to any technology created prior to the termination of the Term and used in the production of Stack DRAM wafers, including technology created through Probe Testing and Product Engineering, regardless of the form in which any of the foregoing is stored.To learn more about process technology refer :
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the stock in bowie enterprises has a beta of 1.12. the expected return on the market is 12.40 percent and the risk-free rate is 3.27 percent. what is the required return on the company's stock? multiple choice 17.16% 15.33% 12.75% 13.12% 13.50%
The required return on the company's stock is 13.50 at The stock beta 1.12, Expected return on the market 12.40%, The risk-free rate 3.27%.
given data,
The stock beta = 1.12
Expected return on the market = 12.40%
The risk-free rate = 3.27%
the formula for Capital Asset Pricing Model is,
Required return = Risk free rate + Beta x (Market return - risk free rate)
substitute the above values in formula:
Required return = 3.27 + 1.12 x (12.40 - 3.27)
= 13.50
the required return on the company's stock is 13.50
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what was the motivation of record companies and radio stations in creating and targeting new demographics in the early 1970s?
increased sales and revenues was the motivation of record companies and radio stations in creating and targeting new demographics in the early 1970s
What film helped disco music earn massive crossover success with both black and white audiences?The popularity of Saturday Night Fever helped disco gain acceptability in the general public.When it was released in 1977, the movie appealed to audiences of all ages, and its soundtrack, which featured the Bee Gees and a number of obscure dance classics, went on to become the best-selling album in pop music history.In the history of salsa music, the 1970s were the most significant decade.Fania Records was successful in assembling a large number of outstanding Salsa artists and popularizing this genre through both radio and live performances, the most well-known of which were the "Fania All All-Stars" concerts.To learn more about pop music history refer,
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the costs of changing price tags and price listings are known as a. inflation-induced tax distortions. b. shoeleather costs. c. menu costs. d. relative-price variability costs.
Prices for updating price tags and price listings are well-known.
a. inflation-induced tax distortions.
Tax compliance refers to governmental actions and individual behavior aimed at guaranteeing that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs. A tax is a mandatory financial charge or another type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national). Around 3000–2800 BC, Ancient Egypt experienced the first recorded taxation. Non-compliance with the law includes avoiding taxes or resisting taxation, as well as failing to make payments on schedule. Taxes can be paid in cash and include direct and indirect taxes.
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Oliver industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has yearly maintenance costs of $29,000, yearly operating costs of $22,000, and yearly revenues of $97,000. Two years ago, the firm spent $6,000 upgrading the equipment used to make this product, and it expects to spend $5,000 on additional upgrades three years from now. In this scenario, oliver.
Since, the Oliver industries has spent money on upgradation 2 years back, its sunk cost will be $6,000
Given info:
Maintenace cost = $29,000
Operating cost = $22,000
Revenue = $97,000
Amount spent two years ago on upgradation = $6,000
Money that has previously been spent and can't be recouped is known as a sunk cost. The sunk cost phenomenon in business is an example of the notion that one must "spend to make money." A sunk cost is distinct from potential future expenses a company might incur, such decisions on the price of products or the cost of purchasing inventories. Sunk costs are disregarded when making future business choices since they won't change regardless of the choice made. Not all fixed expenses are sunk costs, but all fixed expenses are fixed costs. Sunk costs were different in that they cannot be recovered. Technology is not a sunk cost, for example, if it may be sold again or returned again for original price.
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a client is 55 years old, single with no children. he is beginning to think about retirement and wishes to modify his portfolio so that he can start receiving an assured income stream starting at age 65. which recommendation would be the best choice to meet the customer's changed investment objecti
The recommendation that would be the best choice to meet the customer's changed investment objective is to determine the minimum and maximum prices at which the ABCD and XYZZ stock positions are to be liquidated.
If this happens, the proceeds should be invested in 10- to 30-year maturity securities. A crucial component of your financial plan should be your investment goals and motivations. What types of assets you include in your portfolio should be determined by your objective. It's possible that you'd like to achieve the best tax outcomes, reduce your risk as much as you can, and concentrate on a target-date objective like retirement.
In order to reduce capital risk, a mix of maturities is used. The least effective method of risk reduction would be diversification among various coupon rates. Generally speaking, the more interest rate fluctuations cause price changes in bonds, the more volatile they are.
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Which of the following would shift the supply of Florida Oranges to the right? Group of answer choices
A. new chemical allows each orange tree to produce twice as many oranges as before.
B. one of the major orange grooves shuts down
C. a hurricane in Florida destroying a major part of the crop
The supply of Florida oranges would shift to the right if a hurricane hit Florida and destroyed a significant portion of the crop.
A hurricane is a sizable tropical storm that swirls and moves rapidly toward land. It develops in the open ocean and can reach speeds of over 72 mph. Hurricanes develop over the North Atlantic or Northeast Pacific. When they develop in the Northwest Pacific, they are referred to as crop typhoons and are known as cyclones in the Indian and South Pacific.
In regions of the ocean that are warmer with temperatures of at least 80 °F, hurricanes first develop as tropical disturbances. The warm seas' impact on low pressure is what's causing these disturbances. Storms crop develop if the ocean's temperature rises further. Regardless of the hurricane storm's speed, when it reaches 38 miles per hour it transforms into a tropical depression. Once it reaches wind speeds of 39 miles per hour, the tropical depression gradually turns into a tropical storm and gets its name.
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Mario has gross biweekly earnings of $784. 21. By claiming 1 more withholding allowance, mario would have $13 more in his take home pay. How many withholding allowances does mario currently claim?a. 3b. 4c. 5d. 6.
Withholding allowances does Mario currently claim is b.4.
What is gross earning?An individual's gross earning - also known as gross income when there is a salary - is an individual's total income before taxes or other deductions. It includes income from all sources, not just employment, and is not limited to cash income it also includes property or services received.
For businesses, gross income can be exchanged for gross margin or capital gains. A company's gross income, found on the income statement, is income from all sources less the company's cost of goods sold (COGS).
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adopter categories are classifications of individuals within a market on the basis of their innovativeness. when apple introduced the apple watch people waited in long lines before the doors opened. according to experts, those people can be categorized as:
People waited in line before the doors opened when Apple unveiled the apple watch. Those folks fall under the category of "innovators," say specialists.
Define the term innovation?The act of conceptualizing brand-new products, services, and ideas, as well as of approaching already-existing products, operations, and ideas in novel ways, is referred to as innovation. This process can be carried out by an individual or an organization.
An innovator is someone who can develop novel concepts, procedures, or goods. These people might also create updated versions of already produced goods.Process innovation is the term for adjustments made to increase a process's effectiveness. For instance, assembly lines represented a manufacturing innovation. Innovation in the business model is when processes are changed. Platforms for ride-sharing, like Uber and Grab, are one example of this.Adopter categories are divisions of people within a market based on how innovative they are. People waited in line that before doors opened when Apple unveiled the apple watch.
Thus, these individuals fit the following categories, according to experts: innovators
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the peter corporation and the sellers company have both announced ipos. you place an order for 950 shares of each ipo. one of the ipos is underpriced by $14.00 and the other is overpriced by $6.75. if you could get all of the shares you ordered for each ipo, what would your profit be?
Each IPO would cost $7250 if you could receive all of the shares you requested.
Why did you make money?The term "profit" refers to the monetary gain realized when the income from a commercial operation outweighs the expenses, charges, and taxes related to operating that enterprise.
950 shares were placed in total.
$14.00 is the under-price amount per share.
$6.75 is the overpriced amount per share.
Note: Underpricing will result in benefits at face value, while overpricing will result in losses.
Calculating overall profit:
Profit is equal to the number of shares times the underpriced share price. - (Number of shares x Per-Share Over-Price)
Profit equals ($1000 x $14.00) minus ($1000 x $6.75).
Earnings = $14,00 - 6,750
Earnings = $7,250
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generally, relationships in supply chains exist because the parties ___.
Generally, relationships in supply chains exist because the parties want or need something from one another.
The most frequent reference to a relationship is to family relationships and blood relatives. A strong, close, or intimate association or acquaintance between two or more persons is referred to as an interpersonal relationship. Relationships between two variables or sets of data in mathematics and statistics are known as correlation and dependence.
The foundation of happiness and leading a fulfilling life is relationships. This is because they offer a diverse range of benefits. Through relationships, we can connect with friends and family who we can share our lives with and who can support us when we need it. They frequently make us laugh a lot, which makes us happy a lot of the time.
The three fundamental elements of all healthy partnerships are as follows: mutual respect, Mutual belief, and reciprocal affection.
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the following data were gathered to use in reconciling the bank account of azalea company: balance per bank $ 17,770 balance per company records 14,825 bank service charges 85 deposit in transit 2,620 nsf check 960 outstanding checks 6,610 question content area a. what is the adjusted balance on the bank reconciliation? $fill in the blank 3fb70cfaf00ffa5 1 question content area b. journalize any necessary entries for azalea company based on the bank reconciliation. if an amount box does not require an entry, leave it blank. blank - select - - select - - select - - select - - select - - select -
The adjusted balance on the bank reconciliation is $13,780. Any necessary entries for azalea company based on the bank reconciliation will be $ 1,045.
Balance as per bank = $ 17,770
Add: deposit in transit 2,620
Less: outstanding checks 6,610
The adjusted balance on the bank reconciliation is $13,780.
Necessary entries for azalea company
Account Title & Explanation DEBIT CREDIT
bank service charges $ 85
Accounts Receivable $960
CASH $1045
What exactly is a bank reconciliation?
A bank reconciliation statement summarises banking and business activity by reconciling the bank account of an entity with its financial records. Bank reconciliation statements verify that payments have been processed and cash collections deposited into a bank account.
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Pierre deposits $9,000 in a certificate of deposit that pays 1. 4% interest, compounded semi-annually. How much interest does the account earn in the first six months?.
The interest earned by Pierre in the first six months is $126
A certificate of deposit (CD) is a type of savings product that accrues interest on a single sum of money for a predetermined amount of time. Unlike savings accounts, CDs require that the money remain untouched over the full term to avoid penalties and lost interest. Savings accounts typically pay lower interest rates than CDs as compensation for liquidity loss. The majority of consumer financial institutions offer certificates of deposit (CDs), but each bank is free to set its own terms, rate of interest in comparison to savings and money market products, and early withdrawal fees.
Amount deposited = $9000
rate of interest = 1.4% compounded semi-annually
So, interest earned in the first six months:
= 9000*1.4/100= $126
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monopolistic competition is an industry characterized by: a product with no close substitutes. many firms facing their own downward-sloping demand curve. a small number of firms. barriers to entry and exi
Monopolistic competition describes an industry characterized by a product with many close substitutes.
Quizlet: What Does Monopolistic Competition Mean?Monopolistic rivalry a market system where several companies sell a differentiated product, where entrance is relatively simple, where the company has some influence over the price of its product, and where there is a lot of non-price competition. product differentiation
What is a monopolistically competitive industry?When numerous businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition develops. In a monopolistic competitive industry, entry barriers are low and rivals are not immediately impacted by the decisions of any one firm.
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what would be the possible implications if the central bank(s) were unable to maintain predictable exchange and interest rates?
The possible implications if the central bank were unable to maintain predictable exchange and interest rates is an unstable economy.
A stable and predictable exchange and interest rates are good for the economy. It makes people and businesses feel more confident since it makes them think that they know the inflation rate. It causes people and businesses to be able to make long-range financial plans, invest, and spend. This makes the economy functions better,
If the central bank fails to maintain a stable and predictable rate, it will increase uncertainty and market interest rate. People and businesses would be less likely to invest, and the economy would be less stable.
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after doing some research, patricia learned that the governments of some african countries were helping their farmers sell their cotton on the global market. the governments were offering financial assistance to any farmer who could produce over 100 pounds of cotton per year. what type of government intervention is this, and what would the result be in the global market for cotton? a.) this is a tax and supply will shift to the right. b.) this is a tax and supply will shift to the left. c.) this is a subsidy and supply will shift to the right. d.) this is a subsidy and supply will shift to the left.
After doing some research, Patricia learned that the governments of some African countries were helping their farmers sell their cotton on the global market. The government was offering financial assistance to any farmer who would produce over 100 pounds of cotton per year. This type of government intervention is called subsidy.
Moreover, the result of the global market for cotton will shift to the left. Government intervention refers to the action that is generally taken by the government to bring a change in the decisions that are being made by individuals, organizations, and groups on economic and social matters.
These actions are considered to be regulatory and are taken by the government. Here, the subsidy is paid on the cost of producing 100 pounds of cotton per year. So a condition is also put in for the subsidy being given.
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