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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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iris [78.8K]

None of the options shows an alternative Tina has, a real alternative would be a credit card and cash ($190)

In economics, an alternative is an element that replaces or substitutes another. For an element to be considered an alternative it needs:

To belong to the same category or have the same function.
To be possible for the user to replace the first element using the alternative.

Based on this, let's analyze each of the options:

Jacket and $100: These are not alternatives because Tina wants a jacket and this product cannot be replaced with money as money will not protect Tina from cold weather.

Shoes and a jacket: These are not alternatives because Tina wants the two products not only one.

Credit card and $100: These would be alternatives if the total cost was $100. However, using a credit card Tina can pay for both products but using $100 she can only pay for one of the products.

Therefore, the options do not present alternatives; but one valid alternative is a credit card and $190.

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7 0

3 years ago

Analysts predicted earnings per share (EPS) for your company to be $0.XX at the close of 20XX. How does this compare to actual E

nikdorinn [45]

Answer and Explanation:

Earnings per Share, EPS = <u>Net Income dividend of preferred stock</u>

Number of stock outstanding

EPS depends on the earnings and its dilution due to increase in preferred stock also it depends on the net income earned

When EPS is higher than analyst prediction,

this may be due to increase in the net income

payback of common stock or preferred stock

thereby leading to reduction in the number of stock outstanding

When EPS is lower than analyst prediction

this would be due to reduction in the net income

increase of stock or preferred stock due to fresh issue

Insurance against issues that could lead to reduction on income and inrease in the activities that will lead to net income increase can help meet or surpass analyst prediction

7 0

3 years ago

Gitano Products operates a job-order costing system and applies overhead cost tojobs on the basis of direct materialsused in pro

IgorLugansk [536]

Answer:

$3,400

Explanation:

The computation of predetermined overhead rate for the year is shown below:-

Predetermined Overhead Rate = Estimated Manufacturing Overhead ÷ Estimated Allocation Base × 100

= $119,600 ÷ $92,000 × 100

= 130%

2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-

Overhead Applied = (Opening Value of Direct Material + Purchase of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate

= ($24,000 + $140,000 - $17,000) × 130%

= $147,000 × 130%

= $191,100

Overhead Incurred = $106,300 + $8,000 + $18,000 + $15,000 + $8,200 + $39,000

= $194,500

Underapplied overhead = $194,500 - $191,100

= $3,400

6 0

3 years ago

Nyeil is a consumer products firm that is growing at a constant rate of 6.5 percent. The firm’s last dividend was R3.36. If the

OleMash [197]

Answer:

31.12

Explanation:

Given that,

Growing at a constant rate = 6.5%

Firm’s last dividend, R = 3.36

Required rate of return = 18%

Expected dividend next year = 3.36 × (1 + 6.5%)

= 3.5784

Market value of stock:

= Expected dividend next year ÷ ( required return - growth rate)

= 3.5784 ÷ (0.18-0.065)

= 31.11652

= 31.12

3 0

3 years ago

An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer.)

Virty [35]

Answer:

A) Year 1 cost of goods sold

B) Year 2 cost of goods sold

D) Year 2 beginning inventory

Explanation:

A) Year 1 expense of merchandise sold : The Current year cost of Goods Sold is processed by deducting finishing stock from Opening Inventory and Purchases made during the year. So in the event that the completion stock isn't right, at that point the result of above calculation will not be right so the Year 1 expense of merchandise sold for example (Current year cost of Goods Sold) will be inaccurate.

D) Year 2 starting stock: year 2 starting stock is equivalent to year 1 completion stock. So on the off chance that off-base stock estimation is made at end of earlier year, at that point current year opening worth will be carried on as off-base.

B) Year 2 expense of merchandise sold: The explanation is same as ans q(i.e. Year 1 expense of merchandise sold) as off-base convey forward opening stock worth will bring about wrong calculation of cost of products sold for year 2.

6 0

3 years ago