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3 years ago

Purchasing power parity does not hold in the short to medium run because:____.

Business

1 answer:

maria [59]3 years ago

8 0

Answer:

some goods aren't internationally traded

Explanation:

Purchasing power parity is most popularly known as the PPP. It may be defined as the measure of the prices of the various countries which makes use of the price of some specific goods in order to compare the absolute purchasing capability or power for the countries' currencies.

It is used to measure and compare prices at different locations.

The purchasing power does not hold good in the short to the medium run as different countries produces different goods and as such all the goods are not internally traded all over the locations or countries.

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On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expe

loris [4]

Answer:

a) See the image attached for the sheet of closing entry

b) New balance = (174000-111000-12000) = 51000

8 0

4 years ago

According to Karl Marx, capitalists really produced all wealth, and the laborers were the recipients of the wealth.

nikdorinn [45]

Answer: false

Explanation:

Capitalists are the business owner who own the means of production such as factories, tools, and raw material, and who are also entitled to any and all profits. The other, much larger class is composed of labor. Laborers do not own or have any claim or priviledge to the means of production, the finished products they work on, or any of the profits generated from sales of those products. They work only for wages making this kind of system according to Marx an uneven arrangement, capitalists exploit workers. Capitalist do not produce all the wealth and the laborers are exploited

3 0

3 years ago

A machine cell uses 192 pounds of a certain material each day. Material is transported in vats that hold 22 pounds each. Cycle t

kari74 [83]

Answer:

Number of vats is 1.75 or 2

Explanation:

given data

Cycle time for the vats T = 1.50 hours

Material is transported C = 22 pounds

inefficiency factor X = 0.07

to find out

How many vats will be used

solution

we get here planned used rate that is

planned used rate = $\frac{192}{8}$

planned used rate = 24 pieces per hour

so here total no of container will be

N = $\frac{DT(1+X)}{C}$ ..............1

here N is total no of container

put here value and we get

N = $\frac{24*1.50*(1+0.07)}{22}$

N = 1.75

so Number of vats is 1.75 or 2

8 0

3 years ago

One-year Treasury securities yield 4%. The market anticipates that 1-year from now 1-year Treasury securities will yield 2.1%. I

Lesechka [4]

Answer:

3.05%

Explanation:

According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.

Mathematically,

(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1

Here,

r2,0 is the rate of interest for 2 year treasury security from today

r1,0 is the rate of the interest for 1 year treasury security from today

r1,1 is the rate of the interest for 2 year treasury security from Year 1

By Putting Values, we have:

(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1

(1 + r2,0)^2 = 1.06184

By taking square-root on both sides, we have:

(1 + r2,0) = 1.0305

r2,0 = 3.05%

8 0

4 years ago

A city has built a bridge over a river and it decides to charge a toll to everyone who crosses. For one year, the city charges a

lara [203]

Answer: in the inelastic portion of the demand curve

Explanation:

Remaining part of the question is:

.. in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion?

Elasticity measures how much quantity demand changes in response to a change in price.

An inelastic demand means that when prices change, demand does not change as much. You can therefore increase prices with a good that has inelastic demand and still expect close to the same demand.

If the city wants to raise as much revenue as possible from the tolls, they should increase prices on the inelastic portion. Because it is inelastic, the demand will remain close to the same which would increase revenue as the same number of people are paying higher.

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3 years ago