Scenario # 6 Venezuela -Venezuela is the most northerly nation of South America. It has a long Caribbean and Atlantic coast on the north and east. Neighbors include Colombia, Brazil, and Guyana. Venezuela’s economy is dominated by petroleum products that represent about 95% of the country’s exports. The petroleum industry is entirely government owned. The country’s main trading partners are the United States, Germany, and Japan. Petroven, a Venezuelan government owned corporation, might decide to reduce the production of oil from 2 million barrels per day to 1.5 million barrels per day. In order to make up for the loss of oil revenue, Petroven might raise the price of the oil by 50%. What economic system would allow the government to make decisions like this?

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u. s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.