If these were the given choices:
A) They will be included in the nondurable consumption
category of GDP.
B) They will be included in the residential investment
category of GDP.
C) They will be included in the government spending
category of GDP.
D) They will be included in the inventory investment
category of GDP.
E) They will be included in the durable consumption
category of GDP.
My answer is: <span>D) They will be included in the inventory investment category of GDP.</span>
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<span>GDP stands for Gross Domestic Product. It is the monetary value of all the finished goods and services produced in a given period within a country. These monetary value is equivalent to the current market price of said finished goods and services. </span>
This isn't really a business question, but generally vegetables would be a healthier choice for a pizza topping instead of meats and cheeses.
Answer:
b. there are no gains from specialization and trade between the two countries.
Explanation:
If the two countries are producing goods with the same opportunity cost, then there is no need or advantage gained from the trade of goods between these two countries.
Usually, countries trade with each other if one has a comparative advantage of producing one good over the other trading country. Then in this case is can specialize in making that good and trade the excess to the other country.
However, in the case when two countries are producing apples and oranges. And opportunity cost producing orange for country 1 is one apple and same for country 2
Opportunity cost for Country 1 : 1 Apple = 1 Orange
Opportunity cost for Country 2 : 1 Apple = 1 Orange
Then countries will gain no additional benefit from specializing in one good.
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Alexis and Damian are both taking a course on picking a career. They go to the same art club so they both know what they enjoy doing. Surprisingly, Alexis and Damian might find careers in the Architecture and Construction Career Cluster that allow them to express themselves through art. Create a list of possible jobs in this cluster that could use an artistic person and explain a task that each job does that the two students might particularly enjoy.
Answer:
The company has current ratio almost half than the industry average. This is an indication that the company has lesser current assets than industry average. The ability of the company to meet its short term obligations is not suitable as the other companies in the industry are maintaining double current ratio. The ratio should never go below 1 as if it does the company may face its operational financing and working capital management issues.
The debt to equity ratio is significantly higher than the other companies of the same industry. The industry average is 4 whereas the company has ratio 20. This is significantly higher which indicates that there is heavy burden of debt on the company. High debt/ equity ratio indicates high risks. Investors avoid investing in such companies which have high debt/ equity ratio.
Explanation:
The company can go for equity financing as it will also help reduce its debt / equity ratio. The company will become less riskier and financing will be divided in debt and equity. The debt burden on assets will be reduced. There can be reduction in certain debt covenants. The company can use equity financing to fund its operations as well as purchase of non current assets to increase production and ultimately profitability of the company could rise.
