What want or need can a hair salon satisfy

During the mid-1980s, we observed a significant reduction in oil prices. In the United States, we would expect that this reducti

docker41 [41]

Answer:

<h2>A reduction in the oil prices in United States would lead to a a larger reduction in the GDP deflator than the CPI.Hence,the correct answer in this case is option D) or a larger reduction in the GDP deflator compared to the CPI.</h2>

Explanation:

In Macroeconomics GDP deflator and Consumer Price Index(CPI) both indicates the fluctuations or variations in the overall price level of all the goods and services in the economy.However,CPI only includes the prices of goods and services that are finally consumed or purchased by the consumers or buyers in the economy and excludes the goods and services involved in any commercial,business to business or government exchange or transaction.On the other hand,GDP deflator estimates the price level of all the goods and services produced by the economy.Therefore,GDP deflator is a relatively comprehensive and broader price indicator in the economy compared to the CPI and is inclusive of all types of commercial transactions between all entities,unlike CPI.Now,in this context,oil is used both for final consumption by consumers or buyers as well as for commercial purposes or intermediate good by firms and companies for production of final goods and services.In many common instances,oil is heavily traded in the international market and is a major export commodity for most of the oil producing countries.Therefore,CPI,in this case,would only register the reduction in price of oil that has been used only for final consumption by the consumers or buyers in the economy.In contrast,GDP deflator will account for the overall reduction in price of oil that is produced by US in general which is used for all commercial,government or administrative and final consumption.Consequently, oil price reduction in US will cause a relatively higher reduction in its GDP deflator than the CPI.

5 0

3 years ago

Which of the following is an ethical method of gathering competitive intelligence?

larisa86 [58]

The answer is B and I did the test and I got it right

8 0

4 years ago

Read 2 more answers

Hollyfield Corporation sold a piece of equipment on September 30, 2018 for $201,000 cash. The equipment had been purchased on Ja

PilotLPTM [1.2K]

Answer:

$2,000

Explanation:

the gain or loss on disposal is

6 0

3 years ago

Dove, Inc., had additions to retained earnings for the year just ended of $486,000. The firm paid out $175,000 in cash dividends

irinina [24]

Answer:

(A) $1.97 per share

(B) $0.52 per share

(C) $20.37 per share

(D) 2.26 times

(E) 23.35 times

(F) 1.00

Explanation:

The computation is shown below:

(A) Earning per share = (Net income) ÷ (Number of shares)

where,

Net income = Retained earnings + dividend paid

= $486,000 + $175,000

= $661,000

And, the number of shares are 335,000 shares

Now put these values to the above formula

So, the value would equal to

= ($661,000) ÷ (335,000 shares)

= $1.97 per share

(B) Dividend per share = (Total dividend) ÷ (number of shares)

= ($175,000) ÷ (335,000 shares)

= $0.52 per share

(C) Book value per share = (Total equity) ÷ (number of shares)

= ($6,825,000) ÷ (335,000 shares)

= $20.37 per share

(D) Market to book ratio = (Market price per share) ÷ (book value per share)

= $46 ÷ $20.37

= 2.26 times

(E) Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $46 ÷ $1.97

= 23.35 times

(F) Price sales ratio = (Market price per share) ÷ (Total sales per share)

where,

Total sales per share = (total sales) ÷ (Number of shares)

= (154,00,000) ÷ (335,000 shares)

= $45.97 per share

So, the price sales ratio = $46 ÷ $45.97 = 1.00

6 0

3 years ago

Little's law states that the average number of people in a waiting line is the average customer arrival rate multiplied by the:

a_sh-v [17]

John Little is known for his queueing theory which is basically a theory on the probability of a customer waiting in the same line. This is applicable in every establishment that does first come, first serve basis. The probability of a person staying in line, and not changing to other lines, is expressed by the so-called Little law. It states that the average number of customers in the waiting line is equal to the average effective arrival ate multiplied with the average time that the customer spends in the waiting line. This law is very useful and valid because it does not count into factors the miscellaneous things like process distribution, service distribution, service order, etc.

7 0

3 years ago