Answer:
0.42
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
If the absolute value of income elasticity of demand is less than one, it means demand is inelastic.
Income elasticity of demand = percentage change in quantity demanded / percentage change in income
5/12 = 0.42
<span>Several multinational companies close their factories in the nation because of its changing economic climate.
Shifts left. The maximum production of the economy is lower because their are fewer factories.
A mass e-learning initiative makes education cheaper and accessible across the nation.
Shifts right. This makes education less expensive, freeing up public and private money for investment and other uses which can further increase output.
Government money is illegally taken by increasingly corrupt bureaucrats and politicians.
Shifts left. this money is taken out of the economy where it could otherwise be invested in factors of production.
New economic policies facilitate the signing of new international trade agreements.
Shifts right. Increased trade opens up markets to foreign imports/exports and investment, increasing the maximum capacity of the economy. </span>
January February
Opening Cash Balance 47000 290700
Add: Collection from Customer 331800 378100
Collection of Notes Receivable 18000
Proceeds of Sale of Security 5400
Less: Payments for Purchases 106100 141100
Cash Dividend 12700
Cash Balance 290700 520400
Options:
a.trade specialization
b.trade internalization
c.trade creation
d.trade diversion
Answer:D.trade diversion
Explanation: Trade diversion is a term used in international trade to describe the shift in trade between one nation to another by a third party due to trade preference,leading to a reduced volume of trade between the two nations who originally are trade partners.
TRADE DIVERSION OCCURS WHEN THERE IS A SPECIAL INTEREST OR PREFERENCE DISPLAYED BY ONE OF THE TRADING PARTNERS.
The increased volume of trade between the companies in the United States of America and that if Mexico which has led to a reduced volume of trade between the United States of America and Taiwan is a TRADE DIVERSION.
Answer: 80.17 days
Explanation:
The Receivable days estimated is calculated by the formula:
= Accounts receivable * 365 / (Annual sales * Gross profit margin)
= 2,200 * 365/ (32,000 * 31.3%)
= 2,200 * 0.03644169329
= 80.17 days
