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2 years ago

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

Business

1 answer:

maria [59]2 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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Alex Timbers, a wood supplier, receives an order of 10 wooden logs from a furniture manufacturing company. The client brief ment

tester [92]

Answer:

Inaccurate

Explanation:

The information that was given to Alex Timbers who was a wood supplier that furniture manufacturing company requires teak wood, this information was inaccurate.

Because we can see in the scenario which is mentioned in the question that the quality specialist of that furniture manufacturer company observes that the logs that was sent by Alex Timbers are very big, as the company itself ordered for teak wood, and we know that teak wood is very big. So, we can say that information provided by the company was inaccurate.

4 0

3 years ago

Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) . PW(B). If MAR

vivado [14]

Answer: The relationship between A and B project cannot be determined with the information given.

Explanation: The relationship between PW(A) and PW(B) is the correlation between project A and Project B in a portfolio.

This is not possible to be calculated with the information given.

But an expression of calculating this is;

PW is the present value of A and B projects.

MARR is the minimum acceptable rate of return

The calculate the correlation of the two project, divide MARR by the multiple of the two project.

That is;

Correlation = MARR ÷ [PW(A) × PW(B)]

Therefore;

Correlation = i11% ÷ [PW(A) × PW(B)]

This shows that the relationship cannot be determined with the limited Information supplied.

3 0

3 years ago

when a market allocation of resources maximizes the total surplus received by all members of society we say there is

crimeas [40]

Whenever there is maximization of total surplus that is been received by those that are part of society by market allocation of resources then there is market Efficiency.

Economic efficiency can be regarded as economic state whereby there is allocation of resource to serve each individual or entity in way that everyone is satisfied while minimizing waste and inefficiency.

Therefore, When there is an economy efficiency, there would be maximization of total surplus.

Learn more at:brainly.com/question/15520856?referrer=searchResults

8 0

3 years ago

Last year, Cool Lope, Inc. had an inventory turnover rate of 6.8. This year, the turnover rate is 7.1. Based on this information

AnnyKZ [126]

Answer:

The answer is D.

Explanation:

Inventory turnover is a measure of the number of times inventory is sold in a given period of time period such as in a quarter or in a year.

The formula is Cost of goods sold ÷ the average inventory.

Higher inventory is better than lower inventory because the higher the inventory turnover, the better a business is selling goods(inventories) very quickly and that demand for their product exists. While low inventory turnover depicts weaker sales and declining demand for a company's products

8 0

3 years ago

Lyle corp. is a distributor of pharmaceuticals and sells only to retail drug stores. lyle received unsolicited samples of non-pr

Rudik [331]

Fair market value should include as gross income in Lyles return for the receipt of these samples. It is the estimate of the market value of a property when the buyer and seller are knowledgeable and unpressured. Precedent or extrapolation helps in finding the Fair market value estimate.

8 0

3 years ago