Answer:
A) What is the GDP price index for 1984, using 2005 as the base year?
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the GDP price index using 2005 as base year = [($15 / $20) x 100] = 75
B) By what percentage did the price level, as measured by this index, rise between 1984 and 2005? ...percent.
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the price level increased by: [(100 - 75) / 75] x 100 = 33.33%
C) What were the amounts of real GDP in 1984 and 2005?
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In 1984, real GDP = $20 x 7,000 buckets = $140,000 or we can also use another method = ($15 x 7,000) / 0.75 = $105,000 / 0.75 = $140,000. The answer using both methods should be the same.
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In 2005, real GDP = $20 x 22,000 buckets = $440,000
Answer:
Money
Explanation:
Capital is a term used to mean wealth, which includes cash deposits or other financial assets that an individual or an organization has to invest or for developments. It is money invested in a business to generate profits. Economists consider capital is a factor of production.
Answer:
The price of a 6-month call option on C.A.L.L. stock is $13.52
Explanation:
According to the given data we have the following:
P = Price of 6-months put option=$10.50.
So = Current price=$125
X = Exrecise price=$125
r = Risk free interest rate= 5%
T = Time 6 months = 1/2
In order to calculate the price of a 6-month call option on C.A.L.L. stock at an exercise price of $125 if it is at the money, we would have to use the formula of put-call parity as follows:
C=P+So- (<u> X )</u>
( 1+r)∧T
C=$10.50+$125-(<u>$125 )</u>
(1+0.05)∧1/2
C=$135.5-121.98
C=$13.52
The price of a 6-month call option on C.A.L.L. stock is $13.52
Answer:
The answer is: D) $6,277.50
Explanation:
Total costs are made up of fixed costs + variable costs.
Fixed costs are costs that don't change with an increase or decrease in the production levels (Botana's fixed costs are $1,200).
Variable costs are costs that change with an increase or decrease in the production levels (Botana's variable costs = $8.10 per labor hour x 775 labor hours = $6,277.50)
Answer:
<u>Globalize</u>
Explanation:
Globalization in simple terms refers to integration of domestic economy with the world economy. It lays emphasis upon removing trade barriers and making the world one big market.
The concept of Globalization gave rise to the emergence of multi national corporations operating multiple businesses in different countries.
As companies go global, the intensity of competition increases as it's no longer restricted within domestic boundaries. Such international competition induces companies to come up with new innovations and methods so as to survive globally. This enhances the efficiency.
Thus, this serves as one of the motives for the companies to Globalize.