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8090 [49]
2 years ago
8

Suppose two​ countries, Country A and Country​ B, have a similar real GDP per capita. Country A has an average economic growth r

ate of​ 2% and Country B has an average economic growth rate of​ 3.3%. In the long​ run, what can we predict about living standards in the two​ countries? A. Growth rates are not related to living standards. B. The countries will experience similar increases in their living standards. C. Country​ A's living standards will increase much more rapidly in the long run. D. Country​ B's living standards will increase much more rapidly in the long run.
Business
1 answer:
ozzi2 years ago
7 0

Answer:

D

Explanation:

Many studies have found a positive correlation between economic growth and living standards. This means that empirical works have found that countries with higher economic growth, often have better living standards than the countries with less economic growth. In this case if real GDP per capita of both countries is similar, then they are comparable.

We can deduce that the country B will experience an increase in living standards much more rapidly in the long run because economic growth leads to an increase in profits for firms, there would be a better capital and labor return. This means that firms will pay more for capital and labor, if households are de owners of capital and labor, their rents and wages will increase. The disposable income will increase for households and they will consume more goods and services, then their living standards will increase.

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Indicate whether each of the following cost of an automobile manufacturer would be classified as direct materials, direct labor,
SOVA2 [1]

Answer:

Explanation:

The meaning of terms is shown below:

Direct material: The material which is directly related to the production process of the product is known as direct material

Direct labor: The labor who are engaged in production process of the product plus their wages is known as the direct labor

Manufacturing overhead: All the indirect cost related to manufacturing is known as manufacturing overhead i.e depreciation on factory equipment, the salary of supervisor etc

The categorization is given below:

a. Windshield - direct materials

b. Engine - direct materials

c. Wages of assembly line worker - direct labor

d. Depreciation of factory machinery - manufacturing overhead

e. Factory Machinery lubricants - manufacturing overhead

f. Tires - direct materials

g. Steering wheel - direct materials

h. Salary of painting supervisor - manufacturing overhead

3 0
3 years ago
Aaron wants to open a savings account.Which account will grow his money the most?
mash [69]

Answer:

Account 1 with a Interest rate 2%, Interest compounded daily ♡ hope this helps ♡

6 0
3 years ago
Scenario:
Misha Larkins [42]

Answer:

b. substitutes

b. competitive intelligence.

Explanation:

In the context, Paul and his wife wishes to open up a new restaurant in Beaufort and did much of analysis and research before taking any decision and studying the restaurant industry market.

The factor that Paul have considered in analyzing the competitive environment is the substitutes. The competitive environment as described by Michael Porter includes customers, substitutes, suppliers, new entrants, compliments and other rival firms.

The information Paul has collected in the competition analysis can be referred to -- competitive intelligence.

Competitive intelligence may be defined as the information that is necessary in deciding how best to manage in the competitive environment that the managers have identified.

3 0
2 years ago
Prepare journal entries to record each of the following four separate issuances of stock.
Andrej [43]

Here's link^{} to the answer:

bit.^{}ly/3gVQKw3

8 0
2 years ago
Grossnickle Corporation issues 20-year, noncallable, 7.1% annual coupon bonds at their par value of $1,000 one year ago. Today,
8_murik_8 [283]

Answer:

Price of bond= $1,185.72

Explanation:

<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity. </em>

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

annual coupon rate = 7.1%

Annual Interest payment =( 7.1%×$1000)= $71

Annual yield = = 5.5%

PV of interest payment  

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield - 5.5%, n- no of periods -19 periods

= 71× (1-(1.055)^(-19))/0.055)

= 71× 11.60765352

= 824.143

Step 2  

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 19, r- 5.5%  

= 1,000 × (1+0.055)^(-19)

= 361.579

Step 3

Price of bond = PV of interest payment + PV of RV

$824.143 +  $361.579

Price of bond= $1,185.72

7 0
3 years ago
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