I need help on Personal Finance.

If the current exchange rate is 1 euro to 1.5 U.S dollars, according to the theory of purchasing power parity, a haircut that co

STALIN [3.7K]

Answer: (1) 10 euros (2) 15dollars

Explanation:

S= P1 /P2

where:

S= Exchange rate of currency 1 to currency 2

P1 = Cost of good X in currency 1

P2 = Cost of good X in currency 2

(1) s = 1.5, P1 = 15 dollars, P2 = ???

so,

1.5 = 15 / P2

P2 = 15/1.5 = 10 euros

Hence, according to the theory of purchasing power parity,

The price of a haircut that cost 15 dollars in Dallas will be 10 euros in Paris.

(2) S = P1/P2

taking 1 euro to 1.5dollars exchange,

1.5 = P1/P2 but P2 = 10 euros

hence P1 = 1.5 x 10 = 15 dollars.

Hence, according to the theory of purchasing power parity,

A wheel of French cheese that costs 20 euros in Paris should cost 15dollars in Dallas

4 0

3 years ago

___________ income is the amount that is used to calculate how much tax you owe.

snow_tiger [21]

Answer:

<em>Taxable Income</em> is the amount that is used to calculate how much tax you owe.

8 0

3 years ago

Which of the command systems would be the most appropriate when there are six victims at a mvc?

Olin [163]

Singular command. In a motor vehicle accident with multiple victims, the scene will be chaotic and having a single, clear leader will best help resolve the situation.

5 0

4 years ago

If your vehicle has an EFI system,

marta [7]

C: electronic fuel injection system control the fuel and air flow automatically during ignition. (In fact the most modern system probably completely ignore throttle input during ignition, at least those that are drive by wire rather than mechanical connections)

3 0

3 years ago

Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its o

Kisachek [45]

Answer:

the available options for the question are,

A. Cash Cr. $18, Food Revenue Dr. $18,

B. Cash Dr. $18, Food Revenue Dr. $18

C.Cash Dr. $18, Food Revenue Cr. $18

D. Cash Cr. $18, Food Revenue Cr. $18

and the correct answer is C.Cash Dr. $18, Food Revenue Cr. $18

Explanation:

the answer is simple. once they implement the accounting system, all the transaction will have at least a double entry.

when a cash sale is made for $18, this is a revenue stream for the business, while the cash balance of the business increases as well. Revenue account is an income and an increase in income is treated as increase in credit while the cash balance is an asset, and the increase of the asset is treated as a debit.

if you look at options A, B and D, all of these transactions are either mixed up or have both credits or debits which is wrong, because of this, only the answer C is correct.

5 0

3 years ago