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3 years ago

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?

2 answers:

5 0

The Economist magazine in the year 1986, proposed a new index as an alternate measure for exchange rate. This new index studies the price of a Big Mac and compares them to calculate exchange rates. It was argued that McDonald was already established in many countries. Therefore, it can be used as a yardstick to compare the purchasing power of various countries. Hence, serves as a measure of purchasing power party. The main problem with this as that not everybody’s consumption basket includes Bug Macs. Rather, a fraction of the total population consumes it. Instead of representing a basket of diverse goods, it represents a basket consisting of a single commodity. As a result, Big Mac index will not reflect true cost of living.

AnnZ [28]3 years ago

4 0

<span>While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.</span>

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At World Spice Market, Inc., the department manager uses a hand-held scanner to determine the quantity of each spice the store h

DiKsa [7]

Answer:

The correct answer is B. using technology to stay responsive to customer needs.

Explanation:

The use of technologies in companies is increasingly common in order to achieve an improvement in operation. This strategy allows having up-to-date information about any organizational area, as well as sales behavior in order to make investment decisions that allow the correct use of resources and the generation of profits. What is shown in the statement is that World Spice Market relies 100% on technology in order to determine the sales process, starting from the display case to the sale to the buyer.

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3 years ago

You have two options to repay a loan. You can repay $6,000 now and $5,940 in one year; or you can repay $12,000 in 6 months. Fin

Brums [2.3K]

Answer:

We will consider positive interest rate which is i=0.21 or i=21%

Explanation:

The formula for Future value is:

$FV=PV(1+i)^n$

The present value will become:

$PV=FV(1+i)^{-n}$

where:

n is the number of years

Since the condition is same present value,so the given data form the equation:

$6000+5940(1+i)^{-1}=12000(1+i)^{-1/2}$

Divide above equation by $(1+i)^{-1}$

$6000(1+i)+5940=12000(1+i)^{1/2}$

Let $z=(1+i)^{1/2}\\$ . Above equation will become:

$6000z^2+5940=12000z$

Rearranging above equation:

$5940-12000z+6000z^2=0$

Solving the quadratic equation:

z=1.1, z=0.9

Let $z=(1+i)^{1/2}\\$ will become:

$z=(1+i)^{1/2}\\\\z^2=1+i$

$i=z^2-1$

For z=1.1

$i=(1.1)^2-1\\i=0.21$

For z=0.9

$i=(0.9)^2-1\\i=-0.19$

we will consider positive interest rate which is i=0.21 or i=21%

7 0

2 years ago

A portfolio is comprised of 100 shares of Stock A valued at $22 a share, 600 shares of Stock B valued at $17 each, 400 shares of

Dafna1 [17]

Answer:

.4792 or 47.92%

Explanation:

The computation of the weight of C is shown below:

But before that first determine the following things

For A is

= 100 × $22

= $2200

For B

= 600 × $17

= $10200

For C

= 400 × $46

= $18400

For D

= 200 × $38

= $7600

So,

Total = 38400

And, finally

weight of C is

= $18,400 ÷ $38,400

= .4792 or 47.92%

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2 years ago

Prepare the general journal entries for Culver Company for____________.(a) The 2020 adjusting entry.(b) The sale of the Gordon s

-Dominant- [34]

Answer:

a) Debit fair value loss $7,900 Credit Investment $7,900

b) Debit Bank $66,300, Debit Fees $1,200 Credit investment $67,500

c) Debit investment $53,800, Credit Fees $1,300 Credit Bank $52,500

d) Debit Fair value loss $10,400 Credit Investment $10,400

Explanation:

c) the purchase of stock include fees and the fees are included in the cost of the shares and increase the cost of the asset hence they are capitalised on the cost. The fees are an expense directly associated with the purchase therefore are attributable costs.

the completed question

E17-15

(Equity InvestmentsTrading) Culver company has the following securities in its trading port- folio of securities on December 31, 2020.

Investments (Trading) Cost Fair Value

1,500 shares of Gordon, Inc., Common $73,500 $ 69,000

5,000 shares of Wallace Corp., Common 180,000 175,000

400 shares of Martin, Inc., Preferred 60,000 61,600

$313,500 $305,600

All of the securities were purchased in 2020.

In 2014, Culver completed the following securities transactions.

March 1Sold the 1,500 shares of Gordon, Inc., Common, @ $45 less fees of $1,200

April 1 Bought 700 shares of Earnhart Corp., Common, @ $75 plus fees of $1,300

Culver Companys portfolio of trading securities appeared as follows on December 31, 2021

Investments (Trading) Cost Cost Fair Value

5,000 shares of Wallace Corp., Common $180,000 $175,000

700 shares of Earnhart Corp. Common 53,800 $50,400

400 shares of Martin, Inc. Preferred 60,000 $58,000

293,800 283,400

Instructions

Prepare the general journal entries for Culver Company for:

(a)The 2020 adjusting entry.

(b) The sale of the Gordon stock.

(c)The purchase of the Earnhart stock.

(d) The 2021 adjusting entry for the trading portfolio

3 0

3 years ago

Values are a. acceptable behavior as defined by the company and industry. b. enduring beliefs and ideals that are socially enfor

Mrrafil [7]

Answer:

b. enduring beliefs and ideals that are socially enforced.

Explanation:

Values are general beliefs and ideas shared by some culture or community, which is also acceptable and enforceable by the society.

The common belief of a common individual to take the decision of good or bad by his own, with some values related to ethics is all in context of values.

It impacts individuals in very significant manner as is clearly visible in an individual what kind of values does he carry.

Therefore, correct answer is:

b. enduring beliefs and ideals that are socially enforced.

3 0

3 years ago

What are the disadvantages of using big macs to measure purchasing power​ parity? ​(check all that apply.​)?

What are the disadvantages of using big macs to measure purchasing power parity? (check all that apply.)?