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Lynna [10]
3 years ago
14

Balance of payments

Business
1 answer:
NemiM [27]3 years ago
8 0

Answer:

Option (D) is correct.

Explanation:

Balance of payment is defined as the difference between the total value of payments to the rest of the world and total value of receipts from the rest of the world over a period of time.

Balance of payments includes all the transactions take place between a nation with the rest of world.

Balance of trade is a sub-part of balance of payments which includes all the transactions of goods and services between the nations.

A country has either a negative balance of payment, balanced balance of payment or positive balance of payment.

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Sigma Corporation owns 80% of the stock of Epsilon Corporation, which pays it a dividend of $100,000. Sigma Corporation also own
kvv77 [185]

Answer:

d. $132,000

Explanation:

Sigma Corporation holds the stock of Epsilon Corporation and is subsidiary for the Sigma. The dividend declared by of $100,000 is entirely for the sigma whereas Sigma Corporation also holds 20% of the shares of Intergalactic Corporation. The dividend of $40,000 will be calculated in the dividend amount of Sigma but 20% will be deducted.

$100,000 + $40,000 * 80% = $132,000

6 0
3 years ago
Select the best term to describe the following examples.
Bezzdna [24]

Answer:

The correct answer is: Emotional contagion.

Explanation:

The emotional state of an individual can be affected by the exposure to emotional expressions of others around which means that the emotional state can be transferred from one person to another even in online interactions through a process called emotional contagion.

Emotional contagion implies an individual connecting its emotions to others' moods which is likely to be reflected in both parties' behavior.

6 0
3 years ago
Clancy is a bus driver who enjoys donuts and muffins. Suppose that the price of donuts increases. As a result, the purchasing po
FromTheMoon [43]

Answer:

INCOME EFFECT

Explanation:

Income Effect means change in real income/ purchasing power due to change in price, income staying same.

  • Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
  • Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.

Eg: Income, price of a consumer = Rs100, Rs10 respectively.

Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).

Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.

3 0
3 years ago
Value Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The c
sertanlavr [38]

Answer:

$3,504

Explanation:

Catering supplies = $500 + $76 x j + $14 x m

where,

j = number of jobs in a month

m = number of meals in a month

therefore,

Planning budget for June, use the Actual number of jobs and meals into the formula (Actual Activity).

June Catering supplies = $500 + $76 x 13+ $14 x 144

                                       =  $3,504

Conclusion

The catering supplies in the planning budget for June would be closest to $3,504.

6 0
3 years ago
When President Obama was president he had discussed raising income taxes for individuals earning over $250,000 in income. Explai
Allisa [31]

Answer:

A) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )

B)

i) Change in input price

ii) Change in production cost

iii) Increase in labor supply or increase in capital stocks

Explanation:

A) Effects of higher income taxes on aggregate demand curve

i) Higher income taxes will cause a decrease in disposable income and this will affect personal expenditure which will cause the aggregate demand curve to shift leftwards ( decrease in price level and real GDP )

B) The factors that will cause the short-run aggregate supply curve to shift

a) Change in input price

b) Change in production cost

c) Increase in labor supply or increase in capital stocks

7 0
3 years ago
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