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patriot [66]
3 years ago
14

A simpler way to calculate purchasing power parity between two countries is to compare the price of a (________) good that is in

fact identical across countries.
Business
1 answer:
forsale [732]3 years ago
7 0

Answer: Standard Good.

Explanation:

Purchasing power parity theory states that the exchange rate between the currencies are in equilibrium when the purchasing capacity is identical in both the nations. The purchasing power is equal in both the countries only if the price level of certain fixed basket of goods in one nation is identical to the other nation.

If the price level in any of the one nation increases, as a result its currency depreciates against the currency of other nation.

Purchasing power parity is calculated by comparing the price of standard good that is similar across nations but one key problem is that different people of different countries consumes different set of goods and services. So, it is difficult to compare purchasing power of different countries.

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A map made to show the distribution of one or more phenomenon is a(n) ________ map.
Vaselesa [24]
<span>A map made to show the distribution of one or more phenomenon is a THEMATIC map. A thematic map emphasizes a distinct characteristic over the map, showing which regions are more susceptible to it.</span>
7 0
3 years ago
Olongapo Sports Corporation is the distributor in the Philippines of two premium golf balls-the Flight Dynamic and the Sure Shot
lesya [120]

Increase in contribution margin = P 183,750×45.9% = P84,341.25.

Gross margin and gross margin both consider the profitability of businesses of all sizes. The difference between them is that gross margin compares profits and sales in dollars, whereas gross margin compares costs and sales. To calculate profit margin, start with gross profit, which is the difference between sales and COGS. Then find the percentage of sales that equals the gross profit.

Margin is the down payment you make for the total cost of your home. Lenders will only finance up to 75-90% of the total cost of the property, leaving the rest as margin. Lenders see this upfront payment as a sign of commitment, and large payments reduce lending risk.

Learn more about margin at

brainly.com/question/10218300

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6 0
2 years ago
At what debt to income ratio might a Marine be considered overextended
natta225 [31]

Answer:

21% to 30%

Explanation:

The debt to income ratio indicates the percentage of the earnings that are being used to pay the debts every month. The guidelines for Marines state that when the ratio is less than 15% they have to be careful when taking a loan and when it is from 16% to 20% they should avoid taking more debt. Also, from 21% to 30%, they are overextended and shouldn't take more debt and more than 30% indicates that they have to get help to decrease the debt.

According to this, a Marine might be considered overextended when the debt to income ratio is between 21% to 30%.

6 0
3 years ago
January 1, 2016, Karev Corporation granted options to purchase 5,300 of its common shares at $6 each. The market price of common
sergey [27]

Answer:

$1.64 per share

Explanation:

The computation of Number of Shares for computing Diluted Earning per share is shown below:-

Proceeds expected = 5,300 × $6

= $31,800

No. of Shares re-purchased = $31,800 ÷ $11

= $2,891 (rounded)

Net Effect of Stock Option = 5,300 - $2,891

= 2,409 shares

Number of Shares for computing Diluted Earning per share = Outstanding shares + Net Effect of Stock Option

= 71,105 + 2,409

= 73,514

Diluted earnings per share for the quarter = Net income for the quarter ÷ Number of Shares for computing Diluted Earning per share

= $120,805 ÷ 73,514

= $1.64 per share

So, for computing the Number of Shares for computing Diluted Earning per share we simply applied the above formula.

8 0
4 years ago
Suppose an economist tests the theory that when the price of leather increases, fewer pairs of shoes are produced. He observes m
Salsk061 [2.6K]

Answer:

b. cannot test his theory because his observations violate the ceteris paribus assumption

Explanation:

As per the law of supply, when price of an input rises, quantity supplied of a good falls, keeping other factors affecting supply as constant (ceteris paribus).

Leather and Shoes are complimentary goods in the sense that leather serves as an input for the product i.e shoes. So if the price of leather rises, production of shoes would fall, keeping other factors constant.

When the price of an input rises, the quantity supplied falls, keeping other factors affecting supply as constant.

In the given case, the price of inputs has increased and yet the production of shoes has increased owing to an advancement in the technology. Technology is a different determinant of quantity supplied and considered as an other factor affecting supply.

5 0
3 years ago
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