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The total liabilities because Assets = Liabilities + Owner's Equity.

Corporations can borrow money to finance their company, therefore however much you borrow affects assets and owner's equity.

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Q: What corporate characteristic causes the rate of return and rate of equity percentage to be different?
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What is quality-loss causation model?

A quality-loss causation model shows different features for the loss and the causes of it. The categories for it are areas of correction, basic causes, immediate causes, incident, and loss.


Why does division of labor lead to increased specialization?

The division of labor causes each worker to perform a different and unique task.


Income Elasticity of Supply and Demand?

The price elasticity of supply (or demand) is the percentage change in supply/demand for a one-percentage change in price. Eg, if the price elasticity is 1, a 1% change in the price of a good causes a 1% drop in price. (Note that elasticity is given in absolute value, since it is usually negative.)


Discuss the different causes of market failure?

Under/over provision of merit or demerit goods. Can be corrected by the imposing of taxation, subsidies, negative add campaigns, etc.


What are tariffs How do they impact the economy?

A tariff is simply a tax or duty placed on an imported good by a domestic government. Tariffs are usually levied as a percentage of the declared value of the good, similar to a sales tax. Unlike a sales tax, tariff rates are often different for every good and tariffs do not apply to domestically produced goods.Except in all but the rarest of instances, tariffs hurt the country that imposes them, as their costs outweigh their benefits.Tariffs are a boon to domestic producers who now face reduced competition in their home market. The reduced competition causes prices to rise.The sales of domestic producers should also rise, all else being equal.The increased production and price causes domestic producers to hire more workers which causes consumer spending to rise.The tariffs also increase government revenues that can be used to the benefit of the economy.

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