Answer: True
Explanation:
Export income is money that a company makes when it sells goods and services to other countries and its citizens. When international travellers spend on goods and services in a country therefore, they are increasing the export income of a country.
Domestic travellers are also important as they keep the flow of domestic funds going by recycling it when they go to another part of the country.
Answer:
The answer is "The wage rate will fall and employment will be increased until the new wage rate is equal to MRP.
Explanation:
Firms always try to maximize their profit. Therefore when they hire labor, the increase in labor costs must be lower than the labor's increase to the firm's total revenue. And this forms the "Marginal Revenue Productivity" which is simply the theory that suggests "Wages are paid at a level that is equal to the value of the marginal product of labor". Supply of labor is a function that is inversely proportional with wage rate. So if the supply of labor increases, the correct answer is that "The wage rate will fall and firms will increase employment until MRP equals the new wage rate." Hope this was helpful.
Answer:
$1 = 1.372 CD
Explanation:
Spot rate, 1$ = 1.3750 Canadian dollars
Canadian securities annualized return = 6%
U.S. securities annualized return = 6.5%
Term = 6 month ≅(180 days)
Forward exchange rate in 180 days, 1$ = Spot rate * (1+US rate*6/12) / (1+CD rate*6/12)
= 1.3750 CD * (1 + 6%*6/12) / (1 + 6.5%*6/12)
= 1.3750 CD * (1 + 0.03) / (1 + 0.0325)
= 1.3750 CD * 1.03/1.0325
= 1.371670702179177 CD
= 1.372 CD
So, the the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market is $1 = 1.372 CD
Answer: 1. Capital Budgeting
2. Payback Period
3. Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)
Explanation:
Payback period was the earliest <u>Capital Budgeting</u> selection criterion. The <u>Payback Period</u> is a "break-even" calculation in the sense...
The Payback period is one of the most simple methods in Capital Budgeting and the earliest as well. It simply checked how long it would take to pay back an investment which made it very alluring to investors who wanted to know how long it would be till they started getting a profit.
It therefore essentially checked when the project would Break-Even.
The formula is,
Number of Years Prior to Full Recovery + (Unrecovered Cost at Start of Year / Cash flow during the year)
This means that to calculate the Payback Period, for example, say the investment was $500 and the project brought in $120 for 5 years.
That would mean that in year 4 it would have brought it $480. Year 4 is the <em>Number of Years prior to Full recovery</em>.
The $20 left is the <em>Unrecovered cost at the start of the year</em> and the <em>Cashflow for the year is $120</em>. The Payback is therefore,
= 4 + (20/120)
= 4.17
Answer:
In the range of diseconomies of scale
Explanation:
Economies of scale refers to a concept whereby a firm accrues cost advantage owing to it's increased scale of production.
Economies of scale points towards efficient production.
Conversely, Diseconomies of scale refers to the phase wherein a firm experiences cost disadvantages owing to increase in organizational operations and output level.
Reasons for operation of this phase being, lack of motivation and proper coordination between employees since there are too many employees and management gets difficult.
In the given case, as the corporation decreased it's inputs, the output fell less proportionately which means the firm was earlier operating in the phase of diseconomies of scale.
