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Which of the following best summarizes the importance of business failure and the central idea of "creative destruction in a market economy"?
a When a business fails, the assets and resources from that business become unemployed, resulting in higher government subsidies.
b Business failure allows the assets and resources from that business to move into other areas where they will be more productive.
c Only through frequent business failure will it be possible to avoid income being concentrated into the hands of a few rich entrepreneurs.
d The new, rival businesses that drive out old competitors tend to be less efficient and less creative than the older established businesses.
Assume that Toyota transports the cars to London by itself at a cost of $120 per car. What price should Toyota set in London in order to maximize its profit? What will its profit in London be in this case?
Select a current exchange rate practice and explain the economic factors that influence that practice. As always, please provide references to support your efforts.
Explain the intended purpose, or role, of the Annual General Meeting (AGM), and discuss whether the AGM fulfils that role. In your response consider challenges of shareholder engagement and the impact and effectiveness of the ‘two strike rule'.
The Federal Government and the Federal Reserve Bank both use their respective policy tools to make "corrections" to the economy. As we learned, both entities are able to stimulate a sluggish economy, as well as "cool down" one that may be growi..
Consider a zero-coupon corporate bond that promises to pay a return of 12% next period. Suppose that there is a 20% chance that the issuing company will default on the bond payment, in which case there is an equal chance of receiving a return of eith..
he columbia company manufactures a battery-powered saw. due to increased demand during the past few years columbia has
the next question refers to the followingtotal cost schedule for a competitive
Are there any externalities associated with this good Explain whether the private market should provide this good or the government should provide this good. Explain in terms of whether the characteristics of the good would make it difficult to be..
You are an industrial hygienist conducting personal sampling on a worker who is overseeing a production process involving use of acetone (Note: The Occupational Safety and Health Administration has established a Permissible Exposure Limit of 1000 par..
How much can he withdraw at the end of each month to have the fund last 20 years? How many years will the fund last if he withdraws $100,000 up front for a vacation condominium and then withdraws $2,000 at the end of each month.
A decrease in government spending initially and primarily shifts which curve in what direction? An increase in government spending initially and primarily shifts which curve in what direction?
A delivery company can buy a new van for $50,000. It can ?nance the purchase with a bank loan. The annual interest rate is 12%. Interest payments are tax deductible and the corporate tax rate is 30%.What is the annual user cost of a van?
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