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Paul [167]
2 years ago
6

List five of the most widely followed indicators of the economy.

Business
1 answer:
Kobotan [32]2 years ago
3 0

Answer:

1. Gross Domestic Product

GDP represents the market value of all final goods and services produced within a country during a given period. The figure is usually given in nominal and real formats, with real GDP adjusting for changes in monetary value. Given its vast breadth, this indicator is among the most-watched by the financial markets.

The expansion of a country's GDP is indicative of a growing economy, while a contraction in GDP indicates a slowdown in a country's economy. Meanwhile, a country's projected GDP growth rate can be used to determine an appropriate level of sovereign debt or determine if companies operating within the country are likely to experience growth.1

2. Employment Indicators

The productivity and wealth of a country's citizens is arguably the ultimate determiner of economic success. Employment indicators, such as labor force, payroll, and unemployment data estimate how many citizens are employed and whether they are making more or less money than before.

The financial markets carefully watch these employment indicators, especially in developed countries that generate most of their income from domestic consumer spending. A fall in employment is often followed by a fall in consumer spending, which can hurt GDP statistics and overall economic growth prospects.2

3. Consumer Price Index

CPI measures changes in the prices of consumer goods and services that are purchased by households. The index is a statistical estimate created by using prices from a sample of representative items collected periodically. Often times, this measure is used as a gauge of inflation, which can positively or negatively affect a country's currency.3

The financial markets carefully watch CPI figures for signs of inflation. Rising inflation can lead to higher interest rates and reduced lending, while deflation can lead to lower interest rates and greater lending.4

4. Central Bank Minutes

Central banks create monetary policy and exert significant control over a country's economy. Consequently, the financial markets tend to listen closely to every word that central bankers utter publicly for clues about the future. Central bank minutes are formal releases that contain valuable economic commentary that can signal future policy action.5

In the U.S., the Federal Reserve issues what's called the Beige Book, which contains anecdotal information about current economic conditions from each Federal Reserve Bank. Similar notes are released by many other central banks, including the Bank of Japan, European Central Bank (ECB), and others on a regular or semi-regular schedule.6

5. PMI Manufacturing & Services

The Purchasing Manager's Index (PMI) is an economic indicator developed by Markit Group and the Institute for Supply Management. By polling businesses on a monthly basis, the index reflects the acquisition of goods and services by purchasing managers. The two most important surveys are the PMI Manufacturing and PMI Services indices.

The financial markets watch the PMI Manufacturing and PMI Services indices as key leading economic indicators because companies stop purchasing raw materials when demand dries up. This can indicate problems in an economy much before other reports like retail sales or consumer spending

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The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Y
Mandarinka [93]

Answer:

payback 5 years

if the ltaer years cash flow increases several times, it would not affect the payback date. This is a disavantage of this method, it is focus on recover the investment without considering the total cash flow of the project.

Explanation:

Payback = the time in the life of a project on which the initial ivnestment is recover.

       -31,000 Balance

Year 1  2,000 -  29,000

Year 2 0          - 29,000

Year 3 8,000  -  21,000

Year 4 9,000  -  12,000

Year 5 12,000              0

At year 5 the proejct achieve payback

5 0
3 years ago
on January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residua
Licemer1 [7]

Answer:

Annual depreciation= $189,600

Explanation:

Giving the following information:

On January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of five years is estimated to be 62000.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (1,010,000 - 62,000)/5= $189,600

6 0
3 years ago
_______ refers to how you articulate or form your words. A. Inflection B. Modulation C. Pitch D. Enunciation
enot [183]
The answer is “D. Enunciation”
6 0
3 years ago
During the past five years, the nation of Andolvia began a massive undertaking: teaching farmers how to successfully grow and ha
kykrilka [37]

Answer:

The correct option is C,import quotas.

Explanation:

Import quota is an approach to prevent home industries from high foreign competition by placing a ceiling on the quantity of locally manufactured goods that can be imported.

By import quotas,the businesses are provided a level playing ground to thrive as they able to sell their products at reasonable prices and not chased out of business by foreign manufacturers that produce in large quantity at reduced cost in order to sell at a very competitive price.

7 0
2 years ago
Read 2 more answers
MC Qu. 97 The standard materials cost to produce... The standard materials cost to produce 1 unit of Product R is 7 pounds of ma
OleMash [197]

Answer:

total direct materials cost variance is $6,000 Favourable

Explanation:

first we get here Standard cost to manufacture

Standard cost to manufacture 6,000 units is = 7 × $47 × 6,000

Standard cost = $1,974,000

and

now we get here Actual cost to manufacturing

Actual cost to manufacturing 6,000 units is = 41,000 × $48

Actual cost = $1,968,000

and

now we get here Direct material cost variance that is express as

Direct material cost variance = Standard cost - Actual cost         ..........1

put here value

Direct material cost variance = $1,974,000 - $1,968,000

Direct material cost variance = $6,000 Favourable

4 0
2 years ago
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