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iren [92.7K]
3 years ago
10

Question 6 (10 points)

Business
1 answer:
mafiozo [28]3 years ago
3 0
The answer is decreases
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Any restructuring of operations that _______ the difference between a foreign currency’s inflows and outflows may _______ econom
Ad libitum [116K]

Answer:C. reduces; reduce

Explanation:

The extent to which the value of the firm would be effected by unanticipated changes in exchange rates reduces as the difference between a foreign currency’s inflows and outflows reduces also and vice-versa.

8 0
3 years ago
Eric and Deborah are partners at a law firm. They are trying to determine which of them has a comparative advantage in typing th
Sergio [31]

Answer:

Eric's opportunity cost of typing pages is <u>$25</u> per page.

Based on all of these facts, <u>Deborah</u> has a comparative advantage in typing pages.

Explanation:

Eric's opportunity cost of typing is $500 / 20 pages = $25 per page.

Since's Deborah's opportunity cost of typing pages is 20% less than Eric's, then she has a comparative advantage in typing pages.

The person, business or country with the lowest opportunity cost has the comparative advantage in producing that good.

6 0
3 years ago
Ralph’s Hardware updated its accounting system and agreed to purchase a computer system from a manufacturer, Bits and Bytes (BB)
Andrej [43]
Given:
<span>Fact 1: During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.”
</span><span>Fact 2: The written contract, which the parties later signed, disclaimed all warranties, express and implied. 
</span><span>Fact 3: After installation the computer produced only random numbers and letters, rather than the desired accounting information

The express warranty is given in Fact 1 where the Sales Rep promised that the system was "A-1" and "perfect". There is a breach in express warranty here IF the written contract also expresses the same promises. 

However, the written contract </span>disclaimed all warranties, express and implied. AND BOTH PARTIES SIGNED THIS CONTRACT. It implies that the buyer has read through the contract and has agreed with what is written in the contract. Thus, they can't file a suit against BB for breaching an express warranty since the written and signed contract has already disclaimed all warranties. 

4 0
3 years ago
Purchasing power parity does not hold in the short to medium run because:____.
maria [59]

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

8 0
2 years ago
Shawn puts money into an account. One year later he sees that he has 6 percent more dollars and that his money will buy 5 percen
Paladinen [302]

Answer:

d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.

Explanation:

Nominal interest rate = real interest rate + inflation rate

Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.

If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.

The nominal interest rate is 6 %

Inflation rate = nominal interest rate - real interest rate

= 6% - 5% = 1%

I hope my answer helps you.

7 0
3 years ago
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