Answer:
a. exports exceed imports by $50 billion
Explanation:
The formula to calculate GDP of a country is,
GDP = Consumption (C) + Investment (I) + Govt. spending (G) + (Exports (X) - Imports (M))
Thus, we already know the three components and the figure of total GDP. To find out net exports, we simply equate both figures.
1.2 trillion = 1200 billion
1200 = 690 + 200 + 260 +Net exports (X-M)
1200 = 1150 + Net exports
Net exports = $50 bn
A net exports of positive $50bn means that exports exceed imports by $50bn and answer a is correct.
Answer: D. Since Hiro’s economic profit is negative, he would be better off if he didn’t operate the consulting business and taught economics instead.
Explanation:
Economic Cost is calculated by taking into account all costs, both Implicit and Explicit. Implicit Costs are also known as Opportunity costs and are referred to as the income you could be earning if you were doing the alternative.
Hiro's Economic Cost can hence be calculated by,
Economic Cost = Implicit costs + Explicit Costs
= (50,000 + 100) + 57,000
= <em>$107,000</em>
Subtracting that from his Revenue per year gives,
= 100,000 - 107,000
= -<em>$7,000</em>
Hiro is experiencing an Economic Loss by operating his business and would be better off Teaching Economics at the small local college.
Answer:
A. Lost $100
Explanation:
Short position refers to a trading technique which involves selling the currency for it to buy later and make a profit.
To calculate the loss if you don't have a forward contract:
Your loss will be
= €1,000 x ($1.50/€ - $1.60/€)
= $100
Answer:
3. Dividend distribution to shareholders
Explanation:
The type of transaction that would be reported on a company's Statement of Changes in Equity is Dividend distribution to shareholders. The Statement of Changes in Equity is not regarded as part of the Financial Statements of a company but it is usually presented annually as a separate statement.
The Statement of Changes in Equity shows the details about changes in a company's assets, liabilities, and the owner's equity. The Statement of Changes in Equity is necessary because it shows important details about equity reserves that are not usually stated in financial statements. It shows the details about changes in the share capital of the company and the total income and loss of the company and the impact of it on the company, additional money invested into the business and details of the investment done, the dividend distributed and/or paid to shareholders and if there is any change in accounting policy of the company. It will also show the proceeds from any sale made by the company, unlike the financial statements.
Some of the transactions that will be reported in the Statement of Changes in Equity will include
The Net/total profit or loss of the shareholders.
The changes in share capital reserves either increase or decrease.
The dividend distributed and/or paid to shareholders.
Whether there is a change in the accounting policy of the company.
