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Imagine that the price level abroad is twice as high as in home (‘our’) country. mark correct statements.(several possible)
(a) The (absolute) purchasing power parity equals 1.
(b) The (absolute) purchasing power parity equals 1/2.
(c) If E = 0.75 the home currency is undervalued.
(d) If the home currency is undervalued it means that the same goods, on average, have higher prices abroad than in our country.
(a) The (absolute) purchasing power parity equals 1.
(b) The (absolute) purchasing power parity equals 1/2.
(c) If E = 0.75 the home currency is undervalued.
(d) If the home currency is undervalued it means that the same goods, on average, have higher prices abroad than in our country.
Mark correct statements about the balance of payments (BoP). (several answers possible)
(a) BoP is always balanced, literally speaking, because it is an accounting identity.
(b) If the current account (CA) in the BoP is in surplus, it means that the country exports more goods and services than it imports.
(c) If the capital account (CP) in the BoP is in surplus, it means that the country exports more capital than it imports.
(d) How the BoP equilibrium is achieved depends on the exchange rate regime.
(a) BoP is always balanced, literally speaking, because it is an accounting identity.
(b) If the current account (CA) in the BoP is in surplus, it means that the country exports more goods and services than it imports.
(c) If the capital account (CP) in the BoP is in surplus, it means that the country exports more capital than it imports.
(d) How the BoP equilibrium is achieved depends on the exchange rate regime.
Obtain data about 2015 fourth quarter gross domestic product at www.bea.gov to complete the table below.
GDP total in billions? Per person in dollars? Percent total?
Consumption? Per person in dollars? Percent total?
Investment? Person in dollars? Percent total.
Government purchase? Person in dollars? Percent total?
Net exports per person in dollars? Percent total.
GDP total in billions? Per person in dollars? Percent total?
Consumption? Per person in dollars? Percent total?
Investment? Person in dollars? Percent total.
Government purchase? Person in dollars? Percent total?
Net exports per person in dollars? Percent total.
Expenses Details Actual ($) Budget ($) Variance ($)
Rent 16,000 15,000 1,000
Advertising 220,000 250,000 30,000
Office Salaries 550,000 500,000 50,000
Promotion 150,000 140,000 10,000
Jack had great difficulty understanding the report, as he hadn’t been told what a variance is and didn’t understand the concept of budgetary control. He thought the report was rather unfair, as Office salaries included salaries of accounting and administrative staff over whom he had no control. Also, the rent paid, although relating to his department, was negotiated by the managing director. Jack raised these concerns with the accountant, who told him that he was not expected to do anything about the report; it was only ’for the record’. You are required to comment briefly on the above.
Rent 16,000 15,000 1,000
Advertising 220,000 250,000 30,000
Office Salaries 550,000 500,000 50,000
Promotion 150,000 140,000 10,000
Jack had great difficulty understanding the report, as he hadn’t been told what a variance is and didn’t understand the concept of budgetary control. He thought the report was rather unfair, as Office salaries included salaries of accounting and administrative staff over whom he had no control. Also, the rent paid, although relating to his department, was negotiated by the managing director. Jack raised these concerns with the accountant, who told him that he was not expected to do anything about the report; it was only ’for the record’. You are required to comment briefly on the above.
You have been asked to prepare the annual budget for a small business. The CEO has been helpful and shown you around. They have been responsible for the previous period’s budgets. You have been introduced to the three departmental managers of marketing, production and logistics. The marketing manager has given you a sales forecast that they are confident with.
a. Describe who else you will talk to in order to set the sales assumption forecast. How will you document this? How is the sales budget used to build the other budgets?
b. What five steps does shim propose for building the master budget?
c. Who is responsible and what standards for negotiations should be set during budget meetings with the managers and CEO?
d. In what circumstances do NFP’s complete for funding and what can influence the outcome of funding applications?
a. Describe who else you will talk to in order to set the sales assumption forecast. How will you document this? How is the sales budget used to build the other budgets?
b. What five steps does shim propose for building the master budget?
c. Who is responsible and what standards for negotiations should be set during budget meetings with the managers and CEO?
d. In what circumstances do NFP’s complete for funding and what can influence the outcome of funding applications?
Sama Manufacturing uses general journal to record its day-to-day business transactions. Sama recently purchased a production plant to increase the production volumes. Sequence of the transactions relating to the plant are given below:
a. On 1 January 2012, purchased a plant for PKR 2,000,000 cash
b. On 31 December 2012, recorded depreciation expense using sum of years digit method with 5 years of useful life and zero salvage value at the end of useful life
c. On 1 January 2013, Sama replaced the old plant at 90% book value with a new plant for PKR 3,000,000
Record the general journal entries using the above sequence of transactions. (Show working)
a. On 1 January 2012, purchased a plant for PKR 2,000,000 cash
b. On 31 December 2012, recorded depreciation expense using sum of years digit method with 5 years of useful life and zero salvage value at the end of useful life
c. On 1 January 2013, Sama replaced the old plant at 90% book value with a new plant for PKR 3,000,000
Record the general journal entries using the above sequence of transactions. (Show working)
I have a question about the phrase "returns to scale." I understand what increasing or decreasing returns to scale mean in terms of a production function and in terms of isoquants. I am just having trouble breaking down the senses of the actual words in the phrase. It doesn't mean "a scale that is being returned (coming back) to," right? Does it mean something like "returns" as in marginal outputs, when all inputs are increased proportionally? Then what does scale mean here?
What is the difference between long run classical model and short run?
Economics
Use cost theory to explain how an individual firm may change its production and alter its prices when intecr change feein the UK go down.
Assume the firm operates in a minimalistic competition market structures when the interchange fees go down,explain how consumers are likely to benefit s?
Assume the firm operates in a minimalistic competition market structures when the interchange fees go down,explain how consumers are likely to benefit s?
Use AS-Ad model to explain how rapid innovation may lead to decline in the general price level?
Give two current examples to illustrate the point that innovation might lead to a fall in prices?
Give two current examples to illustrate the point that innovation might lead to a fall in prices?
