When the government prevents prices from adjusting naturally to supply and demand, efficiency is improved in the economy. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxviii]. A market economy cannot possibly produce a socially desirable outcome because individuals are motivated by their own selfish interests. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxix]. While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity.
Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important. Clearly, SOX has both positive and negative effects. However, the implementation problems of the Act do not provide sufficient reason to weaken or eliminate SOX requirements or to adopt significant exemptions based on company size. 2. What advantages would China offer foreign companies to list on its exchanges?
The problem is that the company’s existing pricing system is not working with its current operating environment. DOP still used traditional method which allocated costs based on volume instead of cost’s drivers. All variable costs, fixed cost and overhead cost are proportionally volume related. All the costs were allocated based on the cost of item purchased as illustrated in the table 1.1. Allocating cost this way would not be accurate since DOP could not see the improvement in cost control from electronic order and desktop delivery.
They make their own prices, which would in most cases be more of a benefit to the producer. Both structures make it very difficult for others to enter the industry, limiting and sometimes blocking entry and competition. Industrial Regulation seeks to prevent unfair practices of restricting market entry, opening markets up for competition. Ideally, prices with regulate themselves in a fair competition, preventing one or a few companies from setting the prices that would be deemed as inappropriate. It also works to prevent the practices of unfair pricing and charging higher prices to consumers while the companies produce less product, limiting choices for consumers.
They express alarm over the fact that capitalistic principles were violated by the bailout and that the federal government overstepped its bounds. They condemn the fact that irresponsible business practices were rewarded by a government handout. Finally, they further their argument by proposing that the natural flow of a free market economy, which relocates resources to where they will be most productive, was stemmed at the cost of the advancement of new, innovative businesses. These vastly different views have been well articulated and argued extensively by their proponents; however, this question still calls for a definitive answer: was the auto bailout in the best interest of America? Works Cited and Consulted Biden, Joseph.
This view is supported by the orthodox historical opinion which is explained in source V by Michael Burleigh. He states that the “governement was characterised by multi-centred incoherence” because the different state institutions all competed to work towards the Fuhrer and his ideology. This is exemplified by the way in which different institutions focussed on Hitlers different views on how the economy should be used. On the one hand Hjalmar Schact, Reich Minister of Economics, tried to focus the economy on the living standards and employment opportunities for the public. On the other hand Hermann Goering, head of the Four Year Plan, aimed to focus the economy onto preparing the country for war.
Economics Laws – Poor vs. Wealthy Countries Universal Economic Laws The discussion question posed by the author of our course text book asks if we agree with the idea posed by many social scientists that say poorer Third World countries should not embrace and follow models based on a universal economic law (Skousen, 2010, p. 46). I would tend to agree with that point of view. The large number of variables that would have to be taken into account to produce accurate universal economic models that cover all of the countries in the world seems out of our reach at this time. In fact Skousen states about economic predictions in general – “Uncertainty exists for two reasons: the vast, complex number of factors and players involved in the economy, and the fact that behind the numbers are individuals who are constantly changing and reevaluating their motives.
Antitrust Claims against Microsoft Monopolies, Trusts and Government Regulations Monopoly occurs when a large corporation or business fixes price to eliminate competition because they are the only major provider of a particular product. Monopoly affects economic growth negatively because since the price cannot be determined by the market, business is restricted. Trusts in business enable confidence to be built so that business can be conducted in fairness. Antitrust policies are regulations by government to ensure that businesses can operate on a certain degree of trust thereby ensuring that the market is not monopolized. Since monopoly caused unreasonable price hike, government must be able to exercise control or consumers and the economy will both be affected.
Although however, this strained their relationship between the USSR from having conflicting national interests, this economic concept could be said to have been a huge tension between the USSR and America, as it excluded Russia, alienating them by spreading their capitalist ideologies and all the while ignoring their need for help in rebuilding themselves. Truman based his entire strategy of containment on George Kennan’s analysis of communism. Kennan implied the entire problem is the ideology, and the leaders who believe in it. The American hostility to communism therefore played a huge role in the shaping of the Cold War and showing the divide between the superpowers and highlighting the personalities and conflicting interests between
Franklin would admit that the first parts of the New Deal were in part experimental. He would weed out what didn’t work and press on with what did. His persistence with the new deal through 1939 brought America out of the depression and returned a balanced budget. With the economy on the up rise, Roosevelt now turned to foreign policy, something that had been put on a back burner because of the economy. He felt strongly about keeping good relations with other countries, but at the same time warned Americans of the danger of remaining isolated from a world that was slowly being taken over by dictators in Germany, Italy, and Japan.