Answer:
The characteristics of a mixed economy include allowing supply and demand to determine fair prices, the protection of private property, innovation being promoted, standards of employment, the limitation of government in business yet allowing the government to provide overall welfare, and market facilitation by the self-interest of the players involved.
Group of answer choices.
A. German tourists traveling abroad.
B. American tourists traveling in France.
C. Canadian firms selling in Germany.
D. Canadian investors with money investments in Germany.
Answer:
B. American tourists traveling in France.
Explanation:
A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country.
For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.
In this context, a stronger euro is less favorable for American tourists traveling in France because the currency of the Americans, which is the U.S dollars would exchange at a far lesser rate to the euros.
However, a stronger euro would be more favorable for German tourists that are traveling abroad, Canadian firms that trade or sells its products in Germany, and Canadian investors who are having money investments in Germany.
Note: Euro is the official currency (legal tender or money) of Germany.
Answer:
The short run refers to a period of less than one year.
Explanation:
The statements is false that the short run refers to a period of less than one year.
The short run, long run and very long run are different time periods in economics.
<u>Short run – where one factor of production (e.g. capital) is fixed</u>.
long run – Where all factors of production are variable,
Unlike in accounting where operating period refer to a period of one year, <u> there is no hard and fast definition as to what is classified as "long" or "short" and mostly relies on the economic perspective being taken.</u>
Answer:
It should replace the old machine. In the current accounting period.
Explanation:
We need to perform a relevant cost analysis:
Keep the machine:
F0 = $0
F1 = $1500 maintenance
F2 = $3,000 maintenance
F3 = $6,000 maintenance
F4 = $12,000 maintenance
F5 =$24,000 maintenance + 250 resale value
replace the machine:
F0 = -12,000 purchase + 4,000 sale of old machine = -800
F1 = $900 maintenance
F2 = $900 maintenance
F3 = $900 maintenance
F4 = $900 maintenance
F5 =$900 maintenance + 1,500 resale value
As revenues are the same for each machine, we ignore them. We will only focus on the cost each machine generate:
We solve for the present worth of each machine with a discount rate of 12%
As the present worth of the new machine is lower, the best decision for the company is to purchase the new machine and sale the old machine.
Delaying this will incur in higher maintenance cost (1,500 - 900)
and a lower recovery value (4,000 - 2,000)
As there is no cost saving for delaying the purchase, it should be made immediately.
