1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Degger [83]
2 years ago
13

The PPP theory fails in reality for all of the following reasons EXCEPT Group of answer choices monopolistic or oligopolistic pr

actices in goods markets. restrictions on trade. inflation rates are unrelated to money supply growth. transport costs. the inflation data reported in different countries are based on different commodity baskets.
Business
1 answer:
kap26 [50]2 years ago
8 0

Answer:

inflation rates are unrelated to money supply growth.

Explanation:

purchasing power parity which is regarded as (PPP) is a macroeconomic analysis metric which gives comparison between economic productivity aas well as standards of living existing between countries. It can be regarded as economic theory which gives comparison of currencies of different countries using an approach of "basket of goods". The PPP theory can hold in reality for instance, when inflation rates are unrelated to money supply growth.

EXCEPT Group of answer choices monopolistic or oligopolistic practices in goods markets. restrictions on trade. the inflation data reported in different countries are based on different commodity baskets.

You might be interested in
Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly i
Rudik [331]

Answer:

$245,000.00

Explanation:

The amount of sales revenue to be made to achieve target profit is computed as follows:

<em>Sales revenue to achieve target income</em>

<em>= Total fixed cost for the period + target profit/ contribution margin</em>

Contribution margin = (Sales - variable cost) / sales   ×  100

The figure has been given as 40% in the question

Sales revenue to achieve target profit = (83,000 + 15,000)/0.4

$245,000.00

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?

Sales revenue to achieve target profit = $245,000.00

8 0
3 years ago
Use straight line (SL) depreciation to determine a. annual depreciation charge (5 points) and b. annual book values for the life
Andrew [12]

Explanation:

The computation is shown below:

Year            Depreciation                Book value

0                                                      $1,200,000

1                   $125,000                    $1,075,000

2                  $125,000                    $950,000

3                  $125,000                    $825,000

4                  $125,000                    $700,000

5                  $125,000                    $575,000

6                  $125,000                    $450,000

7                  $125,000                     $325,000

8                  $125,000                     $200,000

The depreciation expense is

= ($1,200,000 - $200,000) ÷ (8 years)

= $125,000

4 0
3 years ago
"DEF Corporation, after many profitable years, declares a one-time special cash dividend of $5.00 per share. After the announcem
Tju [1.3M]

Answer: B. 1 DEF Jan 50 Call

Explanation:

The Options Clearing Corporation (OCC) acting under its mandate of being an issuer and guarantor for options and futures contracts can alter options prices but does not do so for prices based on normal dividends as they are more regular and their effects are already accounted for in the price of the call.

When a company calls a one-time special cash dividend, this is new to the market which would not have incorporated it into the price of the call. The OCC will then adjust the price to account for this.

In this case it will do so by subtracting the dividend from the call;

= 55 - 5

= $50

The customer will then have 1 DEF Jan 50 Call .

8 0
3 years ago
sales of new homes increased each month of the last year the economy is likely in. recession. expansion a trough or a plummet
olya-2409 [2.1K]
Expansion ..............
5 0
3 years ago
During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.
Dima020 [189]

Answer:

Dr Accounts receivable 3,472

Cr Sales 3,20

Cr Sales tax payable 272

Explanation:

Since $3,200 is the credit sale and the state sales tax rate is 6% while the local sales tax rate is 2.5% which means we have to calculate for 6% of 3,200 as well as 2.5% of 3,200 which is: Sales tax payable

6%×3,200=192

2.5%×3,200=80

192+80= 272

The last step is to Debit Accounts receivable with 3,472 (3,200+272) , Credit Sales 3,200 and Credit Sales tax payable with 272

Far West Services Journal entry

Dr Accounts receivable 3,472

(3,200+272)

Cr Sales 3,200

Cr Sales tax payable 272

8 0
3 years ago
Other questions:
  • Your factory has been offered a contract to produce a part for a new printer. The contract would last for three​ years, and your
    15·1 answer
  • Which of the following will be included in the calculation of GDP using the expenditure​ method? A. A​ worker's wage B. A​ bank'
    8·1 answer
  • Which basic objective of direct marketing involves attempting to motivate customers to visit an event or retail outlet?
    14·1 answer
  • When Beta Company bought Gamma Company, Beta sold off about 30% of Gamma’s assets because they did not need them. Beta kept only
    13·1 answer
  • A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume
    15·1 answer
  • 3. Explain why price is equal to marginal revenue in pure competition but not in a monopoly. Include in your explanation why the
    14·1 answer
  • Anderson Company sold a piece of equipment for $36,500 cash on December 31 (after recording the annual depreciation entry for th
    13·1 answer
  • Which of the following would not be provided to entrepreneurs through a business incubator?
    8·1 answer
  • An important goal of parental discipline is to help the child adopt parental standards. the most effective disciplinary strategy
    9·1 answer
  • Economic activity in developing countries is limited at least in part due to limited investment. Investment is limited mostly du
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!