How does the financial market impact the economy?

Answers

Answer 1

Financial markets help to efficiently direct the flow of savings and investment in the economy in ways that facilitate the accumulation of capital and the production of goods and services.

The needs of borrowers and lenders are met by the combination of well-established financial markets and institutions as well as a wide range of financial products and instruments, which benefits the economy as a whole.

Investors can specialize in specific industries or services, diversify their risks, or do both thanks to financial markets (like those that trade stocks or bonds), instruments (including bank CDs, futures, and derivatives), and institutions (like banks, insurance companies, mutual funds, and pension funds). Financial markets and financial institutions, collectively contribute to economic growth; nevertheless, the relative proportion of the two does not seem to be a significant determinant in growth.

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which costs are affected by the level of output produced?

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The costs that are affected by the level of output produced is:

Variable costs

What are Variable Costs?

Variable costs are the accrued costs that are dependent on the amount of productivity invested by the employees. The variable costs are not stable because they vary with the level of output at every point in time.

The opposite of variable cost is fixed cost. Raw material and delivery costs are some examples of variable costs.

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Lee, the CEO of Libra Inc., decided that the best way to diversify this food processing company would be to set up its own small-scale beverage producing unit in a new area where its new products would have high demands. This decision by Lee best reflects a(n) _________.

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The decision that Lee wants to take to diversify the food processing company is known as a greenfield entry.

What is a greenfield entry?

This refers to the establishment of a company's subsidiary in another nation or area apart from the company's current location.

Lee wants to establish a new division in another area so this must be a greenfield entry.

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When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in:

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When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in: strategic trade-offs.

What are strategic trade-offs?

This is a term that is used in the business word to refer to the sacrifices that a firm would make in order to be able to deliver on its goals.

Trade offs could be the service levels that the firm is not able to achieve.

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Santiago was excited to find out that he was accepted at the college of his choice, but knew that he would need financial aid to pay for it. Luckily, he was approved for a government grant. What does this mean for Santiago

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This means that Santiago can go to the college as he is provided with the financial support.

What is the meaning of Government Grant?

The financial grant given the government of any level such as the federal level, State level or Local level to provide some funds to useful projects is known as Government Grant.

According to the above scenario, Santiago is provided the government grant now he can attend the college.

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A full outer join with the matching rows removed is known as a ______________.

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A full outer join with the matching rows removed is known as a UNION JOIN

What is UNION JOIN?

Union join is a SQL command used to join matching rows data analysis. it is an important query used to locate and join matching rows in a given raw data.

This operator is crucial because it helps removes any duplicates present in the results being combined.

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what are letters of reference called

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Letters of reference are called letter of recommendation

What are reference letter?

Letter of reference is a letter written on behalf of an individual to point out potential and capacity that the person posses.

This can be done former employer for an employee who has worked with him or her.

Therefore, letters of reference are called letter of recommendation.

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In general, the short-run economic framework deals with issues of:

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In general, the short-run economic framework deals with issues of aggregate demand.

What is aggregate demand?

Aggregate demand measures the total demand of a particular goods or services.

This can be done for a given time and product to determine the stable products.

Therefore, In general, the short-run economic framework deals with issues of aggregate demand.

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The change in the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy due to a change in its price is called:

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The change in the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy due to a change in its price is called a Shift in Demand.

Shift in DemandWhen a fundamental driver of demand changes, the location of the demand curve will move to the left or right.The demand curve shifts to the right to indicate increases in demand. A rise in income, an increase in the cost of a substitute, or a decrease in the cost of a complement could all contribute to this.An increase in the quantity needed at every price results from a movement in demand to the right. For instance, if drinking coke gets more popular, demand will rise regardless of price.

Hence, the change in the quantity of a good, service, or resource that consumers, firms, and governments are willing and able to buy due to a change in its price is called a Shift in Demand.

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On January 1, 2020, Archer, Incorporated, paid $100,000 for a 30% interest in Harley Corporation. This investee had assets with a book value of $550,000 and liabilities of $300,000. A patent held by Harley having a book value of $10,000 was actually worth $40,000 with a six-year remaining life. Any goodwill associated with this acquisition is considered to have an indefinite life. During 2020, Harley reported net income of $50,000 and paid dividends of $20,000 while in 2021 it reported net income of $75,000 and dividends of $30,000. Assume Archer has the ability to significantly influence the operations of Harley. The amount allocated to goodwill at January 1, 2020, is

Answers

The amount allocated to goodwill at January 1, 2020, is $16,000.

Goodwill

First step

Book value purchased = (550,000 - 300,000) ×30%

Book value purchased= 250,000 ×30%

Book value purchased= 75,000

Excess=75,000 × 30%

Excess= 25,000

Second step

Allocated to patent= (40,000 - 10,000)×30%

Allocated to patent= 30,000×30%

Allocated to patent= 9,000

Third step

Goodwill = 25,000 - 9,000

Goodwill=$16,000

Therefore the amount allocated to goodwill at January 1, 2020, is $16,000.

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Economists believe that people's wants are:

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Economists believe that the wants of people are infinite.

What is want in economics?

These are the basic needs of people. In the field of economics it is believed that the wants of people are too numerous.

People have so many needs and the resources that are required to fulfill them are limited. This is the concept of scarcity.

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Suppose your main competitor has just introduced a new technology by which customers are really delighted about that technology. the customers are increasing substantially after introducing that new technology in the market. as a top-level manager, what should you do at this moment for your organization?

Answers

As a top-level manager of the organization, the duty of the manager is to come up with a business strategy that can be effectively applied to the situation so that it works in favor of the organization.

How a company can conquer technological challenges?

Sustaining in the market by lowing the prices of the products.Introducing discounts and combo offers to attract customers.Creating better customer-business relationships so that a business rapport can be built.Working with the team, brainstorming some ideas which can bring positive results for the organization with the existing products available in the market.

Thus, these are some of the ways a manager can adapt to survive through a technological threat.

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Redmont company's gross salaries and wages are $30,000, and it withholds $4,500 for income taxes and $2,000 for fica taxes, the journal entry to record the employees' pay should include a:

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Based on the income taxes and the fica taxes, the journal entry needed to record employees' pay should include a credit to Salaries and Wages Payable for $23,500.

What journal entry would represent the date?

An amount will have to be credited to the Salaries and Wages payable account to show that the company owes wages.

The amount is:

= Gross salaries - taxes

= 30,000 - 4,500 - 2,000

= $23,500

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kentucky licensee giana manages three star realty’s main office. she’s in charge of training and mentoring the firm’s staff. what kind of licensee is she?

Answers

Giana who is in charge of training and mentoring the firm’s staff is a:

Principal Broker

Who is a Principal Broker?

A principal broker is found in many real estate offices. The role of these brokers is to ensure that all the staff and their methods of engagement are in agreement with the proscribed laws of the nation and state.

Since Giana has to train and mentor the firm's staff to conform to agreed standards, she can be referred to as a Principal Broker.

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country x has a budget deficit. which of the following changes in government budget outlays and tax revenues will result in a decrease in country x’s government budget deficit?

Answers

The combination of outlay and Tax revenue that will help correct the deficit situation of Country X is found in Option D. This condition means that the country's tax revenue is in excess of its spending by $200 Million.

What is a Budget Deficit?

When there is a shortfall between the available funds or revenue required to service the budget, the country is said to be operating in a budget deficit situation. Note that outlay means spending.

Thus, it is correct to state that The combination of outlay and Tax revenue that will help correct the deficit situation of Country X is found in Option D

See the attached image.

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When marketers adapt their products by offering less expensive products that are tailored to consumers with modest incomes, they are paying close attention to:

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When marketers adapt their products by offering less expensive products that are tailored to consumers with modest incomes, they are paying close attention to: economic factors.

What are economic factors?

Economic factors are those factors that are used to determine what causes the competitiveness in the business environment of the firm.

Some of the factors are

Wages Interest rateInflationGovernment policies

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Savion is restoring a car and has already spent $4,000 on the restoration. He expects to be able to sell the car for $5800. Savion discovers that he needs to do an additional $2,400 of work to make the car worth $5,800 to potential buyers. He could also sell the car now, without completing the additional work, for $3,800. What should he do?.

Answers

Based on the selling price of the car and the cost to work on it, Savion should sell the car now for $3,800.

Why should Savion sell the car?

The profit if he works on the car is:

= Selling price - Addtional work cost

= 5,800 - 2,400

= $3,400

The profit from selling the car is $3,800 which is more than the profit if additional work is done of $3,400.

The $4,000 is irrelevant as it is a sunk cost.

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During the production era it was believed that one should produce as much as you can, because:

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During the production era it was believed that one should produce as much as you can, because: the resources was unlimited.

What was the production era?

This was the era that started the industrial revolution in the United States. The industrial era is known for the low cost production and mass production.

People produced goods and there was market for the products hence there was profitability.

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In cities where people typically go to retire, there tends to be larger markets for Viagra. Nancy, a Viagra saleswoman, recently moved from Park City Utah (an amazing place to retire) to Florida (another common place to retire) simply because of its warmer climate and will need to spend some time looking for a new job at one of the many Viagra sales firms in Florida. Nancy would be considered:

Answers

Nancy, who was a Viagra saleswoman in Utah before moving to Florida, would be considered frictionally unemployed.

What is frictional unemployment?

Frictional unemployment exists in a situation when a person could be gainfully employed but decides to seek employment elsewhere.

The movement from employed status to seeking employment creates frictional unemployment.

Thus, Nancy, who was a Viagra saleswoman in Utah before moving to Florida, would be considered frictionally unemployed.

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Product package sizes are becoming smaller around the world in a phenomenon called….

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They are called ShrinkFlation

Which trim level is available exclusively for customers who participate in the 2023 ariya reservation program?.

Answers

The PLATINUM+ e-4ORCE is the trim level that is available exclusively for customers who participate in the 2023 Ariya reservation program.

What is the Ariya reservation program?

The reservation program is organized by Nissan firm to the public.

In conclusion, the PLATINUM+ e-4ORCE is said to be the trim level that is available exclusively for customers who participate in the 2023 Ariya reservation program.

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Lee Sun's has sales of $3,300, total assets of $3,000, and a profit margin of 6 percent. The firm has a total debt ratio of 42 percent. What is the return on equity

Answers

The return on equity  is 11.37%.

What does an equity means?The value that would be restored to a company's shareholders if all of its assets were sold and all of its obligations were settled is known as equity. We can also think of equity as the amount of ownership that remains in a company or asset after all debts related to that asset have been paid off.

Net income = $3,300 x 0.06 = $198

Total debt ratio = 0.42 = ($3,000 - total equity)/$3,000

Total equity = $1740

Return on equity = $198/$1740

                              = 0.1137 or 11.37%

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John, who has an inflation adjusted wage, would like to borrow a loan from the Bank of Titon. Suppose the inflation rate is predicted to be 8%. In order for the loan payments to be more favorable to John, the interest rate should be:

Answers

In order for the loan payments to be more favorable to John, the interest rate should be:6%.

What is inflation?

Inflation occur when their is increase in the price of goods and services,

Based on the given scenario if the inflation rate is  8%. The best alternative is for John to receive the interest rate at 6% as this will enable the loan payment to favor him compare to 8% which is higher.

Therefore In order for the loan payments to be more favorable to John, the interest rate should be:6%.

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an economic policy maker would rank a _____ shock as the least preferred type. a. positive demand b. negative demand c. positive supply d. negative supply

Answers

The negative supply shock would most likely be ranked as the least preferred type by an economic policy maker.

What is a negative supply shock?

It refers to a change in supply which resulted to a decreases output causing prices to increase.

Among other supply shock, this is least preferred type of supply shock by an economic policy maker.

Therefore, the Option D is correct.

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____,while holding demand constant, results in an increase in the equilibrium price of the good, but a decrease in the equilibrium quantity of the good. Multiple choice question.

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The complete statement is "A decrease in the supply of a good, while holding demand constant, results in an increase in the equilibrium price of the good, but a decrease in the equilibrium quantity of the good. Multiple choice question.". This is further explained below.

What is the equilibrium price of the good,?

Generally, the equilibrium price of the good is simply defined as If supply and demand are equal, then the price at which the market clears is the equilibrium price of the commodity or service.

In conclusion, In this case, a downward trend is represented by an upward or leftward shift in the supply curve.

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a decrease in a supply of a good

Mary is preparing a purchase offer for her buyer client. It's a fairly standard offer: a little less than list price, with the seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay

Answers

Answer:

I think that Mary is doing right

Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney). Thus option D is correct.

What is list price?

The price of a good or service that is mentioned or recorded is called the list price. In a seller's pamphlets of sales literature, list prices are provided. To fix the prices that merchants charge for a vendor's items, a list price is published.

A form of money down known as a mortgagee mortgage involves the buyer lending the seller a note. It is applied to the purchase's total cost. If the standard forms used by Mary's firm were initially drafted or cleared by an attorney, she may use them.

The attempt to purchase would become a contract and when both parties have signed it and any subsequently is must or amendments have been accepted. Therefore, option D is the correct option.

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The question is incomplete, the complete question will be :

Mary is preparing a purchase offer for her buyer client. It's a pretty standard offer: a little below list price, with the seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay?

A. No, Mary is not an attorney and shouldn't prepare contracts.

B. No, Mary should have her client prepare the offer.

C. No, Mary should hire an attorney to prepare the purchase offer.

D.Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).

Since most data for a given market study is not readily available, analysts must be creative in their use of data that they are able to obtain. The primary source for detailed household demographic information is:

Answers

The primary source for detailed household demographic information is The U.S Bureau of the Census

What is a Census?

This refers to the count of people in a given geographical area and is usually done country-wide to find out the population.

Hence, we can see that since most data for a given market study is not readily available, the primary source that can be used to get household demographics is the U.S Bureau of the Census

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suppose a small economy produces only the three goods listed in the the table above. what is the value of gdp in this economy?

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Suppose a small economy produces only the three goods listed in the table below, the value of GDP in this economy is $27,000.

What is GDP?

GDP means Gross Domestic Product.

The GDP shows the monetary value of all finished goods and services produced in a country during a specific period.

Data and Calculations:

GDP Table

Product       Price     Quantity  Total Value

Shovels      $20          40           $800

Books          50        500      $25,000

Pizzas           10         120         $1,200

Total GDP =                         $27,000

Thus, suppose a small economy produces only the three goods listed in the table below, the value of GDP in this economy is $27,000.

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for a monopolist: a. price equals average total cost. b. price is above marginal revenue. c. marginal revenue equals zero. d. marginal cost equals zero. e. average total cost equals marginal cost.

Answers

For a monopolist b. price is above marginal revenue.

What Is Marginal Revenue?

Marginal revenue can be regarded as  increase in revenue which is been gotten from  the sale of one additional unit of output.

As a monopolist that is the the only seller in the market, then their marginal revenue is usually above price because they don't have a competitor that is close enough.

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If a test is being used to make a dichotomous decision (e. G. , suitable or unsuitable for the job), the _____ marks the point of decision

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If a test is being used to make a dichotomous decision (e. G. , suitable or unsuitable for the job), the cutting marks the point of decision.

What is the usefulness of cut off mark in a test?

cut off mark in a test is been used in the selection process after the test which is very important in the point of decision.

And this will be necessary to get the good hand for the job when the  test is being used to make a dichotomous decision.

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Scarcity exists when there are _______ resources available to satisfy all the competing uses.

Answers

Few resources or limited resources or not enough

Have a nice day.
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