SHORT ESSAY: What exactly is this principle of the invisible hand in relationship to the free market? Answer in at least 150 words.

Answers

Answer 1

Answer:

Answer: The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand.

Description: The phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations'. He assumed that an economy can work well in a free market scenario where everyone will work for his/her own interest.

He explained that an economy will comparatively work and function well if the government will leave people alone to buy and sell freely among themselves. He suggested that if people were allowed to trade freely, self interested traders present in the market would compete with each other, leading markets towards the positive output with the help of an invisible hand.

In a free market scenario where there are no regulations or restrictions imposed by the government, if someone charges less, the customer will buy from him. Therefore, you have to lower your price or offer something better than your competitor. Whenever enough people demand something, it will be supplied by the market and everyone will be happy. The seller end up getting the price and the buyer will get better goods at the desired price.

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A local barbecue joint makes one massive batch of potato salad each day. If they run out of this 37) savory side before the end of the day, their last few customers are less than satisfied, but if they make too much, they sell it to the local hog farmer for feed. Every serving costs an equivalent of $0.23 to make, but can be sold for $2.50 to customers and for $0.12 to the hog farmer. The average daily demand is for 400 servings with a standard deviation of 40 servings.How many servings should be made each day?A) 462 B) 455
C) 467
D) 453

Answers

Answer:

option (C) 467

Explanation:

Data provided in the question:

Every serving costs = $0.23

Selling cost to customer = $2.50

Selling cost to hog farmer = $0.12

Average daily demand, d = 400

Standard deviation, s = 40 servings

Now,

Cs = Selling price - Cost

= $2.50 - $0.23

= $2.27

Co = Cost - Discounted price

= $0.23 - $0.12

= $0.11

Service level = $(Cs)/(Cs+Co)$

= $(\$2.27)/(\$2.27+\$0.11)$

= 0.9537

For the service level of 0.9537, the z value from the standard z table = 1.68

Therefore,

Servings made each day = d + zs

= 400 + 1.68 × 40

= 467.2 ≈ 467

Hence,

The correct answer is option (C) 467

Of the following, which does NOT represent an example of a traditional workplace document?a. an Evite
b. an e-mail
c. a contract
d. a memorandum

Answers

a . an evite which is more for social advents and not work .

Sheridan Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August. Aug. 1Established the petty cash fund by writing a check payable to the petty cash custodian for $225. 15Replenished the petty cash fund by writing a check for $220.30. On this date, the fund consisted of $4.70 in cash and these petty cash receipts: freight-out $96.00, entertainment expense $48.70, postage expense $41.70, and miscellaneous expense $32.50. 16Increased the amount of the petty cash fund to $325 by writing a check for $100.00. 31Replenished the petty cash fund by writing a check for $309.30. On this date, the fund consisted of $15.70 in cash and these petty cash receipts: postage expense $139.80, entertainment expense $96.40, and freight-out $71.80. (a) Journalize the petty cash transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

Answers

Answer:

01-Aug

Dr Petty Cash $225

Cr Cash $225

15-Aug

Dr Freight Out $96

Dr Postage Expense $41.70

Dr Entertainment Expense $48.70

Dr Miscellaneous Expenses $32.50

Dr Cash Over and Short $1.1

Cr Cash $220

16-Aug

Dr Petty Cash $225

Cr Cash $225

31-Aug

Dr Postage Expense $139.80

Dr Entertainment Expense $96.40

Dr Freight Out $71.80

Dr Cash Over and Short $1.3

Cr Cash $309.30

Explanation:

Preparation of the petty cash transactions.

01-Aug

Dr Petty Cash $225

Cr Cash $225

(To Record Establishment of fund )

15-Aug

Dr Freight Out $96

Dr Postage Expense $41.70

Dr Entertainment Expense $48.70

Dr Miscellaneous Expenses $32.50

Dr Cash Over and Short $1.1

($220-$96-$41.70-$48.70-$32.50)

Cr Cash $220

(To Record Expenses)

16-Aug

Dr Petty Cash $225

Cr Cash $225

(To increase cash in fund )

31-Aug

Dr Postage Expense $139.80

Dr Entertainment Expense $96.40

Dr Freight Out $71.80

Dr Cash Over and Short $1.3

Cr Cash $309.30

($309.30-$139.80-$96.40-$71.80)

(To Record Expenses)

Consumers should be concerned about high interest rates because high interest rates __________.

Answers

Consumers should be concerned about high interest rates because high interest rates equals to higher interest/ more money that needs to be paid.

What is capital market?

Answers

It's a financial market where people can buy or sell long-term debt or equity-backed securities

The example of capital markets are : New York stock Exchange, American stock exchange, London stock exchange, NASDAQ, Etc

NEED HELP ASAP! Which of the following graphs represents the housing market with rent control in place?

Answers

Answer:

The first graph represents the housing market with rent control fully in place. In such a housing market, rent does not get out of hand before government intervention.

Explanation:

With the first graph, t the market could not reach the equilibrium point without the rent control stopping the market forces of supply and demand from exceeding a controlled price (rent). It shows the effect of price control on the market dynamics. With a control on the price (house rent by government), a certain price is imposed on the suppliers and consumers so that they do not go above the prescribed limit. This is what obtains in a controlled economy. On the other hand, in a free market, government does not intervene with control mechanisms, instead it allows the market forces to interact, enabling aggregate production and consumption of goods and services.

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