Durable goods industries and non-durables industries
Why does the business cycle influence output and employment in durable goods industries more strictly than in industries generating non-durables?
Expert
Since durable goods last, consumers can postpone buying replacements. It happens while people are worried regarding a recession & whether there will be a paycheque next month. And firms will soon end generating what people are not buying. Therefore durable goods industries suffer large output declines at the time of recessions. On the contrary, consumers cannot long postpone the buying of non-durables such as food; thus recessions only slightly reduce nondurable output.
Why do analysts compute financial ratios? Ratios are comparative measures. Since the ratio illustrates relative value, they let financial analysts to compare information which could not be compared in its raw form. For instance, rati
Normal 0 false false
Describe advantages and the disadvantages of new stock issue? A new stock issue increase funds and decreases the riskiness of the firm. This also tends to send a negative signal to the market as many investors believe a company would just sell
Denote whether each of statements applies to microeconomics or macroeconomics: a. In Canada, the unemployment rate was 7.0 percent in January 2005. b. A Canadian software firm d
Describe depreciation expense as it seems on the income statement. Accounting depreciation is the allocation of asset's primary cost over time. Depreciation cost on an income statement is the amount of the asset=s initial cost allocated to
Assume the total demand for wheat and the net supply of wheat per month in the Kansas City grain market are as:
18,76,764
1956251 Asked
3,689
Active Tutors
1443858
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!