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2 years ago

After a recession when the economy starts to expand again, firms tend to?

1 answer:

6 0

After a recession when the economy starts to expand again, firms tend to increase share repurchases faster than they increase dividends.

An economy is the area of production, distribution, trade and consumption of goods and services. Generally, it is defined as a social domain emphasizing practices, discourses, and material expressions related to the production, use, and management of scarce resources.

Economy is defined as the management of community, business, or family financial matters. An example in economics is the US stock market system.

The economy is the system in which goods are produced and exchanged. Without a viable economy, the nation will collapse. There are three main types of economy: free market, command economy and mixed economy.

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Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increas

Alborosie

Answer:

Net export decreases and net capital outflow decreases

Net export increases and net capital outflow decreases

Net export decreases and net capital outflow increases

Net export increases and net capital outflow increases

Explanation:

Net export = export - import

export would comprise of goods and services produced in the US that are been sold to foreign countries

Import would comprise of foreign produced goods and services that are been sold in the US

Net export would increase when export occurs and decrease when import occurs

Net capital outflow measures the flow of funds in a country. It is the difference between purchase of foreign assets by the citizens of a country and the purchase of domestic assets by foreigners

Net capital outflow = purchase of foreign assets by citizens - purchase of domestic assets by foreigners

Net capital outflow is positive when purchase of foreign assets occur and negative when purchase of domestic assets occur.

1. the setting up of the factory is an import and there is a flow of funds into the US economy. Thus, net export and net capital flow decrease

2. A Apple computer is produced in the US. The sale to a German constitutes an export but there is a flow of fund into the US economy. net export increase and net capital outflow decreases

3. Sony is not produced in the US. the purchase of the TV constitutes an import and there is a flow of funds out of the US economy. Net export reduces and net capital outflow increases

4. The opening of the fashion company outlet in the UK constitutes an export and there is a flow of funds out of the US. Net export increases and net capital outflow increases

7 0

2 years ago

In a decision to either sell as is or process a product further, __________costs are considered irrelevant and _____________cost

MrRa [10]

In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.

The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.

Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.

Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.

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6 0

1 year ago

A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from th

ozzi

Explanation:

The free enterprise system is one influenced by the market, which will determine all economic variables, such as price, products and services, and is a system independent of government control to function.

Therefore, it is correct to state that in a free enterprise system, the offer and demand of the consumer for a product or service that will be the determinant of the success or failure of an organization.

As an example of an entrepreneur, we can mention Steve Jobs, who created one of the largest technology companies in the world, Apple. The free enterprise system was one of the reasons for Apple to succeed in becoming one of the most valued companies in the world, due to the fact that it brought innovative products to the market that became examples of products of value to consumers, which made company to grow and become so successful in the market. If the company operated in a government-controlled market, it would probably have to follow specific rules and restrictions for the production of its products that could limit the company, and its performance could be restricted and not as innovative as the company in the market, which is one of the reasons why it achieved success.

5 0

3 years ago

Currently, the yield curve is ascending. A customer believes that the Federal Reserve will start to tighten credit by raising sh

sleet_krkn [62]

Answer:

Short-selling long-term bonds and taking long position on short-term assets

Explanation:

When the yield curve ascends, the long-term bond's price will go down. Hence, do short-sell the long-term bonds. On the other hand, short-term asset's price will be depreciated because Fed tightens credit and raise short-term rate, which is the chance to purchase and make profits from capital gains.

3 0

3 years ago

Sub-prime loan company is thinking of opening a new office, and the key data are shown below.

Nookie1986 [14]

To complete the above question, please see below:

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)

WACC 10.0% 
Opportunity cost $100,000 
Net equipment cost (depreciable basis) $65,000 
Straight-line depreciation rate for equipment 33.333% 
Annual sales revenues $123,000 
Annual operating costs (excl. depreciation) $25,000 
Tax rate 35%

The answer is 12,271

5 0

3 years ago