How do your financial choices impact the economy?

1) Decide whether you would expect relationship between the following pairs of dependent and independent variables (respectively

kvasek [131]

Answer:

(a) GDP is a dependent variable and aggregate net investment is a independent variable. There is a positive relationship between the variables which means that an increase in the net investment will lead to increase GDP.

(b) There is a negative relationship between the variables which means that as the supply of wheat increases, as a result price of wheat falls. So, as the number of acres of wheat planted in a season increases as a result price of wheat decline.

(c) There is a negative relationship between the variables which means that an increase in the interest rate in an economy will lead to increase the cost of borrowings and hence, net investment falls.

(d) There is a negative relationship between the variables because of the law of demand. It states that an increase in the price of a commodity will lead to reduce the quantity demanded for that commodity.

(e) There is no relationship between these variables. Both the variables are totally uncorrelated.

4 0

3 years ago

Trade adjustment assistance promotes political support for free-trade agreements by:

Rus_ich [418]

Answer:

option C is the right answer

Explanation:

trade adjustment assistance programme was created to reduce the burden or damaging impart of import felt by some sector of the economy of a nation. and it creates an incentive to reduce trade barriers and export subsidies

4 0

3 years ago

With a patent on drug Z27, why would Able Drug Company charge customers $7 per 100 units even though its cost of producing 100 u

Dafna1 [17]

If Able Drug Company already has a patent on a drug called drug Z27, then they have the rights to charge it higher than cost of production. They do this so that they would gain profit from the drug that they have patented and to be able to expand their business more with it.

5 0

2 years ago

Compute the payback period for each of these two separate investments:

Gnesinka [82]

Answer:

A. 1.89 years

B. 2.33 years

Explanation:

According to the scenario, computation of the given data are as follows,

(A) After-tax income = $72,115

Expected cost = $250,000

Useful life = 4 years

Salvage value = $10,000

Depreciation Value = ($250,000 - $10,000) ÷ 4 = $60,000

Annual net cashflow = After tax income + Depreciation

= $72,115 + $60,000 = $132,115

Payback Period = Machine expected cost ÷ Annual net cash flow

= $250,000 ÷ $132,115

= 1.89 years

(B) After-tax income = $39,000

Machine cost = $200,000

Useful life = 8 years

Salvage value = $13,000

Depreciation value = ($200,000 - $13,000) ÷ 4 = $46,750

Annual net cashflow = After tax income + Depreciation

= $39,000 + $46,750 = $85,750

Payback Period = Machine expected cost ÷ Annual net cash flow

= $200,000 ÷ $85,750

= 2.33 years

4 0

2 years ago

At December 31, 2017, Shorts Company had retained earnings of $2,184,000. During 2017, the company issued stock for $98,000, and

marta [7]

Answer:

Beginning retained earnings = $1816000

so correct option is C) $1,816,000

Explanation:

given data

retained earning = $2,184,000

issued stock = $98,000

paid dividends = $34,000

Net income = $402,000

to find out

retained earnings balance

solution

we know that Ending retained earnings equation is

Beginning retained earnings + Net income - Dividends = Ending retained earnings

put here value we get

Beginning retained earnings

so

Beginning retained earnings + $402,000 - $34,000 = $2,184,000

Beginning retained earnings = $1816000

so correct option is C) $1,816,000

7 0

2 years ago