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2 years ago

Why do economists pay attention to the balance of trade?

1 answer:

3 0

Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

<h3>Why is a balance of trade vital to the economy?</h3>

The Balance of trade plays a significant role in the calculation of the Gross Domestic Product of a country. As a part of GDP calculations, exports are brought and imports are subtracted from the total.

The more the change surplus, the more the GDP of a country.

Therefore, Economists use the BOT to analyze and measure the relative power of a country's economy. Hence, Economists pay special attention to the Balance of Trade.

Learn more about balance of trade here:

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Southeastern Bell stocks a certain switch connectorat its central warehouse for supplying field service offices. Theyearly deman

Tomtit [17]

Answer:

a. 300 units

b. $3,750

c. $3,750

d. 100 units

Explanation:

a. The computation of the economic order quantity is shown below:

= $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

= $\sqrt{\frac{2\times \text{15,000}\times \text{\$75}}{\text{\$25}}}$

= 300 units

b. For annual holding cost, first we have to find out the average inventory would equal to

= Economic order quantity ÷ 2

= 300 units ÷ 2

= 150 units

Now the Carrying cost = average inventory × carrying cost per unit

= 150 units × $25

= $3,750

c. For ordering cost, first we have to compute number of orders would be equal to

= Annual demand ÷ economic order quantity

= $15,000 ÷ 300 units

= 50 orders

Now Ordering cost = Number of orders × ordering cost per order

= 50 orders × $75

= $3,750

d. The computation of the reorder point is shown below:

= (Annual demand ÷ total number of days in a year ) × lead time

= (15,000 units ÷ 300 days) × 2 working days

= 100 units

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3 years ago

Financial literacy is the set of skills and knowledge needed to make __________ about money matters. A.informed decisions B.unin

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3 years ago

Which of the following is a benefit of determining your personal vision:

labwork [276]

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• Here, - 0.4 is the smaller number, and 44.4 is the larger number.

• Therefore, the difference between the two is 44.4 - (- 0.4).

• Now, in mathematics, - and - makes a +.

This implies that, 44.4 - (- 0.4) = 44.4 + 0.4 = 44.8

∴ The required difference is 44.8.

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3 years ago

Consider three bonds with 5.50% coupon rates, all making annual coupon payments and all selling at face value. The short-term bo

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Answer:

a. $965.74

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Explanation:

In this question we use the Present value formula i.e shown in the attachment below:

1. Given that,

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Rate of interest = 6.5%

NPER = 4 years

PMT = $1,000 × 5.5% = $55

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price would be $965.74

2. Given that,

Future value = $1,000

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NPER = 8 years

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The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price would be $939.11

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3 years ago