answer should base on micro economics
2007-02-09 00:31:49 · 5 answers · asked by christine_dinusha 1 in Social Science ➔ Economics
Accounting cost is the costs that are associated with doing business such as overhead, advertising, purchasing supplies, etc. Economic cost includes these, but also includes opportunity cost, or the value of the best opportunity that has to be foregone in order to pursue the current endeavor.
A free market economy is one in which the market is unregulated and supply and demand are allowed to dictate what gets produced and what the price will be. There are no clear examples of a free market economy, because no pure free market economy exists. China is definitely NOT a free market. It is more of a command economy. Supply and demand is not allowed to fluctuate and control prices. Just look at their exchange rate, which is the price of their currency. It is fixed, and is not regulated by supply and demand.
A mixed economy is one that is generally free market, but has some regulations on the economy. A good example of this is the United States. We have a mixed economy. While the market is generally unregulated, we do have regulations that prohibit monopolies. We also have certain price ceilings and such that are in some areas, such as rent control and the like. Thus, we are more of a mixed economy.
Hope this helps.
2007-02-09 02:35:34 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
a) Economic cost includes opportunity cost. For example if you start a business at some building you own you pay 0 rent. So the accounting cost is 0 but the opportunity cost is the amount you could rent the building out for as opposed to using it yourself. There is always a cost associated with using a good.
b) Free market economy lets prices be determined by the interaction between buyers and sellers. A mixed economy has some government interferance on prices. ie the minimum wage--the government is interfering with the market and not allowing a true market price to prevail.
2007-02-12 03:23:21 · answer #2 · answered by Nate 2 · 0⤊ 0⤋
I can't believe that our world functions around the Media. We all get drug around by our noses. All the media does is report the bad. Yes we are spending a lot on the war. But its because we have a large military force. Not all nessesarily due to the war. Yes we have 1000's of troops over there and yes we have 1000's of troops all over the world. And yes we pay them a paycheck every 2 weeks. and medical and rent and what ever else they need. 70 percent of troop re up and stay in the military. Why?? Because it is a good paying job with retirement. My kids are both in the military and they say the media sucks! that there are the few trouble makers that are never satisfied. If we didn't do what we did over there, it would all be in our laps. And I can almost promise if Hillary or Obama become president this is where we will be fighting. If you look here on our own ground You might want to look at people that have nothing better to do than sit around making new problems for us. Never satisfied,never looking at the good in anything. Needing the media to make thier miserable lives more miserable. We sit and whine about our economy?? Don't even start me on illegal immigration, All the loud mouths that complain that they are here taking our jobs, HAHAHA We as a society are so spoiled by high paying jobs, I would love to see those who complain go and pick tomatoes. or cut our lawns. I agree very strongly that if they are here on our welfare system they should be kicked out. But when the americans say they will pick tomatoes then please feel free to kick them all out.Well the housing boom made a lot of very stupid people do stupid things. Like buying houses they couldn't afford because the media told them they could. If you couldn't afford a 100,000 dollar house what made you think you could afford a 500.000 one. I mean now the recession is all blamed on the war, and not the unstable real estate market. Banks are going bank rupt and people are losing thier houses all because the media said BUY NOW> Here's your sign!
2016-03-28 23:26:28 · answer #3 · answered by Charlene 4 · 0⤊ 0⤋
economic cost is based on projected figure driven from the annual reports.
But the accounting cost is the one which is driven from actual figures and resulted oriented.
free market economy is the one where the supply n demand is same and the best example is china
mixed ecomony is the one where everybody can do the business but there is no clear example of tat
2007-02-09 01:11:26 · answer #4 · answered by aamirtaj 3 · 0⤊ 0⤋
Economics cost = accounting cost + cost of opportunity
dunno about the other
2007-02-09 00:34:15 · answer #5 · answered by chocolateknight69 3 · 0⤊ 0⤋