Your question is too broad. It took me two 48-hour courses to learn the basics of how the economy operates.
While it is interesting and I do not wish to discourage your curiosity, please make the question more specific.
For now, all I can say is that the primary function of an economy is integrating the 4 factors of production - Land, Labor, Enterprise and Capital - to produce goods profitably. This is made possible through the interactions between the consumers (also the labor), private firms, financial sector and the government sector. I would suggest watching a video on the circular flow on income on YouTube for more information on these interactions.
Furthermore, economics is concerned with solving the basic economic problem, which is the existence of unlimited wants in relation to the limited resources available on our planet. This leads us making choices (which wants to satisfy through production and consumption) and making sacrifices (which wants to give up as there only a limited amount of resources available). Economics in general deals with attempting to get the most out of the resources available. It deals with anticipating consumer behavior, trends and using this analyzed information to make decisions.
The last thing you should know is that economics is most broadly categorized into two field - Macroeconomics and Microeconomics.
Microeconomics deals with the interaction between individuals, i.e., individuals firms/industries, consumers. This deals with such things as factors affecting the demand of goods, the concept of elasticity, factor affecting supply of goods, the marginal utility theory and so forth.
Macroeconomics deals with the economy as a whole - this includes concepts such as national income (GDP), aggregate demand and supply, the multiplier effect, the factors affecting consumption, investment,government expenditure and net exports, the exchange rate systems and Balance of Payments.
P.S. In the above answer, I have only briefly mentioned the basics. If you would like further understanding of the basics then please YouTube/Google each economics term listed above.
Answer:
Business response options group is not a decision.
Explanation:
For decision-making within organizations, it is very important to have factors that allow you to achieve an advantage over other organizations, starting from planning to finding a business model, marketing plans that help with its implementation and recognition, direction to long term, objectives and strategies that lead to the achievement of these.
Answer:
Purchase 1,500 units of component 1 from supplier 1.
Purchase 2,000 units of component 2 from supplier 3.
Purchase 500 units of component 1 and 1,000 units of component 2 from supplier 2.
Total costs = $54,500
Explanation:
component 1 component 2
supplier 1 2 3 1 2 3
price $10 $15 $14 $13 $12 $10
capacity:
supplier 1 = 1,500
supplier 2 = 2,500
supplier 3 = 2,000
demand:
- component 1 = 2,000
- component 2 = 3,000
There are two ways to solve this, one using excel and the solver function or do it manually.
Manually, we must start with the supplier that has the lowest cost. In this case, the supplier with the lowest cost for component 1 is supplier 1 ($10) and component 2 is supplier 3 ($10).
We will start by purchasing 1,500 units of component 1 from supplier 1 at $15,000. That eliminates supplier 1's capacity, so we now only have suppliers 2 and 3. We still need 500 units of component 1 and 3,000 units of component 2.
We purchase 2,000 units of component 2 from supplier 3 at $20,000. This will consume all of supplier 3's capacity, so we only have supplier 2 left. We are still needing 500 units of component 1 and 1,000 units of component 2.
We will purchase the remaining units from supplier 3 at (500 x $15) + ($1,000 x $12) = $19,500.
Our total expense will be $54,500.
Missing information:
(a) Earnings per share s (b) Price-earnings ratio (c) Payout ratio times (d) Times interest earned times
Answer:
a) Earnings per share = $2.64
(b) Price-earnings ratio = 5.3
(c) Payout ratio times (you can calculate 3 payout ratios, the third type which is cash dividend payout ratio cannot be calculated because there is not enough information):
- total payout ratio = 26.44%
- common stockholders' payout ratio = 22.03%
(d) Times interest earned times = 7.77
Explanation:
earnings per share (EPS) = (net income - preferred stock dividends) / average outstanding common shares
- net income = $86,600
- preferred dividends = $4,900
- average outstanding common stocks = (24,700 + 37,100) / 2 = 30,900
EPS = ($86,600 - $4,900) / 30,900 = $2.64
price earnings ratio = market price per share / earnings per share = $14 / $2.64 = 5.3
2 ways to calculate payout ratio times:
- total dividends / net Income = $22,900 / $86,600 = 26.44%
- or common stockholders payout ratio = ($22,900 - $4,900) / ($86,600 - $4,900) = $18,000 / $81,700 = 22.03%
times interest earned = EBIT / interest expense
EBIT = net income + interest expense + income taxes = $86,600 + $16,700 + $26,400 = $129,700
times interest earned = $129,700 / $16,700 = 7.77
