Assignment 10
Assignment 10: National and Global Finance
(16.0 points) 1. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose a pet store, a restaurant, a tutoring business, or something else. This can be the same type of company you chose in assignment 8 or 9, or it can be different. a. Describe the type of business you chose. (1-2 sentences. 0.5 points)
The type of business I would start would be for family or friends gatherings. This business would be place people come to eat and social, a nice, warm evening.
b. Describe at least two ways in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points)
Whether business owners know it or not, but the government create laws and regulation to protect the business.
Two ways the government would have an impact on my business is by setting a price ceiling and price floor. These both determines whether or not my items it too high or low for its’ good.
2. Describe at least one advantage and one disadvantage of price ceilings and price floors. Do you think price ceilings and floors are more helpful or more harmful to consumers and the economy? Explain. (2-4 sentences. 1.0 points)
Price controls are the government intervention in free markets. In the case of agriculture without price floors mass starvation could occur as there is often a 2 to 10 year turn around on agricultural investment. Price ceilings on certain food products may also ease starvation. Remember that perfect free markets have never existed except in theory.
3. Describe at least two negative outcomes of having too little money and credit in the economy. (2-4 sentences. 2.0 points)
It would cause scarcity or currency, leading to rapid deflation, and also, overproduction of goods means major markets would plummet in value. Overbalancing demand, leading to major losses for the producers.
4. Describe at least two
(16.0 points) 1. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose a pet store, a restaurant, a tutoring business, or something else. This can be the same type of company you chose in assignment 8 or 9, or it can be different. a. Describe the type of business you chose. (1-2 sentences. 0.5 points)
The type of business I would start would be for family or friends gatherings. This business would be place people come to eat and social, a nice, warm evening.
b. Describe at least two ways in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points)
Whether business owners know it or not, but the government create laws and regulation to protect the business.
Two ways the government would have an impact on my business is by setting a price ceiling and price floor. These both determines whether or not my items it too high or low for its’ good.
2. Describe at least one advantage and one disadvantage of price ceilings and price floors. Do you think price ceilings and floors are more helpful or more harmful to consumers and the economy? Explain. (2-4 sentences. 1.0 points)
Price controls are the government intervention in free markets. In the case of agriculture without price floors mass starvation could occur as there is often a 2 to 10 year turn around on agricultural investment. Price ceilings on certain food products may also ease starvation. Remember that perfect free markets have never existed except in theory.
3. Describe at least two negative outcomes of having too little money and credit in the economy. (2-4 sentences. 2.0 points)
It would cause scarcity or currency, leading to rapid deflation, and also, overproduction of goods means major markets would plummet in value. Overbalancing demand, leading to major losses for the producers.
4. Describe at least two