In which of the following situations would Adam Smith argue that government intervention in the marketplace is justified?

a. Many food items begin to arrive from abroad, and their cheap price is putting many
local farmers out of work.
b. A general economic downturn has occurred, leaving many out of work.
c. A clothing manufacturer invents a new machine that makes it much more competitive
than its rivals.
d. Two growing cities have no road to connect them and no private party is seeking to
build one.


d. Two growing cities have no road to connect them and no private party is seeking to
build one.

Business

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A purchase on account with an invoice price of $1,500 has been made. The entry to record the payment after the 2 percent discount period would include a(n)

A) decrease to Accounts Payable for $1,500. B) decrease to Purchases Discounts for $30. C) increase to Accounts Payable for $1,470. D) decrease to Cash for $1,470.

Business

New revenue recognition rules require that sellers report sales net of expected sales discounts.

Answer the following statement true (T) or false (F)

Business

A__________is a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill

Fill in the blanks with correct word.

Business

In order to fertilize his vegetable farm, John, a farmer, needs to choose from two fertilizers: Nitro Plus and Phosphate Max. Each bag of Nitro Plus costs $7 and contains 8 pounds of nitrogen and 6 pounds of phosphate. Each bag of Phosphate Max costs $9 and contains 4 pounds of nitrogen and 8 pounds of phosphate. John’s vegetable farm requires at least 32 pounds of nitrogen and 48 pounds of phosphate. (Assume fractions of a bag are allowed). At the optimal solution, how many bags of Phosphate Max does John use?

A. 3.2 bags B. 1.6 bags C. 2.1 bags D. 4.8 bags

Business