Urgent help needed. Thanks in advance.

The president of a poor country has announced that he will implement the following measures that he claims are designed to incre

Studentka2010 [4]

Answer:

The correct answer is number (2): Reduce reliance on market forces because they allocate goods and services in an unfair manner.

Explanation:

Relying on market forces imply letting supply and demand freely decide the levels of quantity demanded and supplied goods and services and their corresponding prices. This scenario could lead to unfair market competition and inhuman labor standards. For that reason, government intervention is necessary to set fair rules for organizations and individuals within society.

3 0

3 years ago

Erin mcqueen purchased 50 shares of bmw, a german stock traded on the frankfurt exchange, for 64.5 euros (€) per share exactly 1

faust18 [17]

Erin McQueen purchased 50 shares of BMW, a German stock traded on the Frankfurt Exchange, for 64.5 euros (â‚¬) per share exactly 1 year ago when the exchange rate was 0.67 â‚¬/US$. Today the stock is trading at 71.8 (â‚¬) per share, and the exchange rate is 0.75 â‚¬/US$.

a. Did the depreciate or appreciate relative to the US$ during the past year? Explain.

b. How much in US$ did Erin pay for her 50 shares of BMW when she purchased them a year ago?

c. For how much in US$ can Erin sell her BMW shares today?

d. Ignoring brokerage fees and taxes, how much profit (or loss) in US$ will Erin realize on her BMW stock if she sells it today?

Answer:

a. The euro appreciated against the US dollar.

At the beginning of the past year, the €/$ exchange rate was 0.67. This means $0.67 was required to buy one Euro.

At the end of the year, the €/$ exchange rate was $0.75, meaning $0.75 are needed to buy one Euro.

Since it costs more U.S. dollars to buy one Euro at the end of the year, the USD has depreciated against the euro and the euro has appreciated against the USD .

b. Erin paid $4813.43 for the purchase of 50 BMW shares a year ago.

Share price of BMW a year ago = €64.50

Price for 50 BMW shares = €3225 (€64.50 × 50)

€/$ = 0.67

Price in $ = $4813.432836 (3225/0.67)

c. Erin can sell her BMW shares for $4786.67

Share price of BMW a year ago = €71.8

Price for 50 BMW shares = €3590 (€71.8 × 50)

€/$ = 0.75

Price in $ = $4786.666667 (3590/0.75)

d. Erin will lose $26.76 if she sells today.

Gain or Loss = Today's price ($) - Price a year ago ($)

Gain or Loss = -26.76616915 ($4786.666667 - 4813.432836)

4 0

3 years ago

If an economy is operating on its production possibilities curve for consumer goods and capital goods, this means that: a. it is

DIA [1.3K]

Answer:

d. more consumer goods can only be produced at the cost of fewer capital goods.

Explanation:

The production possibility curve is a curve that shows the two combinations of goods and services produced in an economy when its resocurces are fully employed.

To increase the production of one good, more quantity of the other good has to be given up.

The opportunity cost of production increases as more quantity of one good is produced.

In this question, to produce more consumer goods, fewer capital goods would be produced.

I hope my answer helps you

6 0

4 years ago

When workers go out on a strike not approved by the union, the strike is called a?

igomit [66]

Wildcat strike is where workers just strike without telling the union or getting approval

6 0

3 years ago

On April 12, Hong Company agrees to accept a 60-day, 9%, $7,200 note from Indigo Company to extend the due date on an overdue ac

vazorg [7]

Answer: the answer is B

8 0

3 years ago