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3 years ago

Which indicators do economists use to determine the state of the economy? Check all that apply.

Business

2 answers:

lesantik [10]3 years ago

8 0

Answer:

The answers are: 1)prices, 4) employment levels and 5) gross domestic product (GDP)

Explanation:

The main economic indicator economists use to determine the state of the economy is the gross domestic product. The gross domestic product (GDP) includes the value of all the final and legal products and services produced in the country during the year. The increase of the general level of prices is called inflation. Employment indicators, especially the unemployment rate are very accurate thermometers of the economy. When an economy is hot (low unemployment rate), it means it is growing.

Cerrena [4.2K]3 years ago

8 0

Answer:

1.)prices

4.) employment levels

5.) gross domestic product (GDP)

Explanation:

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XYZ Company has expected earnings of $3.00 for next year and usually retains 40 percent for future growth. Its dividends are exp

Verizon [17]

Answer:

Price of stock = $40

Explanation:

According to the dividend growth model, the price of a stock is the present value of expected dividend discounted at the required rate of return.

This is done as follows:

Price of a stock = D×(1+r)/(r-g)

D(1+g) - Dividend for next year = 100%-40%× $3 = $1.8

g- growth rate - 10%

r- required rate of return - 15%

Price of stock = 1.8× (1.1)/(0.15-0.1)

= $40

6 0

3 years ago

Marston Manufacturing Company has two divisions, L and H. Division L is the company’s low-risk division and would have a weighte

uysha [10]

Answer:

Should Marston Manufacturing Company accept or reject the project?

Marston C Company should reject the project because its expected return is lower than Division H's cost of capital.

Since the divisions' risk is so different, and probably their projects are also very different, the company should use different costs of capital to accept of reject the projects based on each division's cost of capital.

Imagine another situation where Division L is evaluating a project that yields 10%. If they used the company's WACC, then they should reject the project, but if they used the division's cost of capital, then they should accept the project (in this case I would recommend accepting it).

Explanation:

Division H's risk = 14%

Division L's risk = 8%

WACC = 11%

3 0

2 years ago

Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produc

ziro4ka [17]

Answer:

Total= 45,684 feet

Explanation:

Giving the following information:

Production budget:

February= 10,993

March= 8,559

Each chair produced uses 5 board feet of wood.

Management wants an ending inventory level of raw materials to equal 20% of the production needs (in wood) for the next month.

Direct material budget:

Production= 10,993*5= 54,965

Desired ending inventroy= (8,559*5)*0.2= 1,712

Beginning inventory= (10,993*5)*0.2= (10,993)

Total= 45,684 feet

6 0

3 years ago

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basi

vazorg [7]

Answer:

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

Explanation:

Actual variable overhead rate = $\frac{Actual variable overhead}{Actual Hours}$ = $\frac{66,170}{6,400} = 10.34$

Therefore variance with the budgeted standard variable overhead

= (Standard Overhead rate - Actual overhead rate) $\times$ Actual Hours

= ($9.70 - $10.34) $\times$ 6,400 = -$4,096

And Fixed Overhead variance = Standard Fixed Overhead - Actual Fixed Overhead = $69,000 - $74,000 = -$5,000

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = -$4,096 + -$5,000 = -$9,096

Since the value of variance is negative it means the expense both variable and fixed are over absorbed, which means it is unfavorable.

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

3 0

2 years ago

General mills actively researches people who don't buy their products to find out why they are not adopters. this practice is m

Margaret [11]

Answer:

The answer is idea generation.

Explanation:

Idea generation refers to the process of creating and developing ideas. During this process, General Mills would come up with ideas and test whether this product would interest people to buy it. At this step as well General Mills can explore why previous products did not succeed and strive to counter these obstacles in the future product.

8 0

2 years ago