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baherus [9]
3 years ago
9

What will happen to the trade balance and the real exchange rate of a small open economy when government purchases increase, as

during a war? Does your answer depend on whether this is a local war or a world war?
Business
1 answer:
kkurt [141]3 years ago
7 0

Answer: When a government purchase increases during a war, be it a local war or a world war. it means that it's savings has reduced, therefore the trade balance will fall. And if the purchase is done to import more goods into the country, the trade balance becomes negative, leading to a deficit.

The exchange rate of the currency will reduce because the country the government is making more currency to be available and surplus, by increasing it's purchase. When they is excess currency in the world market, the currency reduces it value. In a world war, or local war, the exchange rate may not actually reduce because, it will be difficult for the country to have enough money to make its currency to be available in the world market.

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Efficiency-wage theory suggests that paying a. high wages might be profitable because they lower the efficiency of a firm’s work
Greeley [361]

Answer:  Option B                                    

     

Explanation: In simple words, efficiency theory states that direct monetary benefit is the best motivator for the worker and if the employer pays high wage then the worker will definitely work more efficiently.

It further states that higher wage will be covered by the extra benefit that the worker will provide with his or her performance.

Thus, the correct option is B.

4 0
3 years ago
During the RFP stage, B2B buyers:
Thepotemich [5.8K]

Answer:

The correct answer is c. invite suppliers to bid on supplying what is requested.

Explanation:

B2B sales require special attention due to the profile of your buyer.

In this type of sale, buyers have a position much more linked to decision making, so they spend more time on a detailed and critical analysis of the proposal.

The B2B buyer chooses companies that allow the creation of strong business relationships, with a guarantee of supply and deadlines.

This is because B2B negotiations demand an effort, time and investment that, in case of any inconvenience, it can be difficult to recover and find a new supplier.

7 0
3 years ago
"Using the given information, determine the cost of one no rechargeable alkaline battery; and compare with the cost of one recha
sergij07 [2.7K]

Answer:

Over the life of the battery, the battery that is most cost-effective is:

The AA alkaline non rechargeable battery.

Explanation:

a) Data and Calculations:

Number of times that NiCad batteries can be recharged (reused) = 100 times

Cost of a 4 pack of AA NiCad rechargeable batteries = $10.80

Recharging cost = $1 ($0.01 * 100)

Total cost of AA NiCad rechargeable batteries = $11.80

Cost per use = $0.12 ($11.80/100)

Cost of a 4 pack of AA alkaline non rechargeable batteries = $3.69

Cost per use of AA alkaline non rechargeable batteries = $0.04 ($3.69/100)

b) The comparison and the resulting conclusions are based on the assumption that the non rechargeable and the rechargeable batteries enjoy equal useful life.  Therefore, the AA alkaline non rechargeable batteries are also used 100 times.

7 0
3 years ago
Suppose that a perfectly competitive industry is in long-run equilibrium. Every firm is producing at minimum average total cost,
elixir [45]

Answer:

B. firms will exit the industry

Explanation:

When the firms is producing at the minimum average total cost, the amount of profit margin that they get tend to be high. This means that they can fulfill their target profit even by producing less amount of product.

Even when the demand in the market is decreased, Such firms will most likely accumulated enough profit to survive for a long period of time before they go bankrupt. This is why the firms is very unlikely to exist the industry in a short run.

7 0
3 years ago
can produce two types of light fixtures, the indoors model and the outdoors model. if the total sales are expected to be 21,050
mars1129 [50]

Answer:

$1,000,000    

Explanation:

The computation is shown below:

<u> Particulars               Indoors Model                Outdoors Model            Total </u>

No of Units

(21,050 in ratio 2:3)     8,420                                   12,630                  21,050

Sales                          1,263,000                            2,778,600            4,041,600

Less: Variable costs   168,400                                 505,200              673,600

Contribution margin   1,094,600                            2,273,400               3,368,000

Less: Fixed costs

(2,160,000 + 208,000)                                                                    2,368,000

Operating Income                                                                           1,000,000

7 0
3 years ago
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