Czech Republic macroeconomic indicatorsThe table below describes the development of some key macroeconomic indicators
Czech Republic macroeconomic indicators
The table below describes the development of some key macroeconomic indicators of the Czech Republic for period 2014 – 2018.
| 2014 | 2015 | 2016 | 2017 | 2018 | ||
| GDP | %, y/y, real terms | 2,7 | 5,3 | 2,5 | 4,4 | 2,9 |
| Final Consumption Expenditure | %, y/y, real terms | 1,6 | 3,2 | 3,4 | 3,4 | 3,3 |
| Household Expenditure | %, y/y, real terms | 1,8 | 3,8 | 3,6 | 4,2 | 3,2 |
| Gross Capital Formation | %, y/y, real terms | 8,6 | 13,0 | -4,3 | 4,0 | 5,5 |
| Gross Fixed Capital Formation | %, y/y, real terms | 3,9 | 10,2 | -3,1 | 3,7 | 10,5 |
| Exports of Goods and Services | %, y/y, real terms | 8,6 | 6,1 | 4,3 | 6,8 | 4,6 |
| Imports of Goods and Services | %, y/y, real terms | 10,0 | 6,9 | 2,8 | 6,0 | 6,1 |
| General Unemployment Rate | % | 6,1 | 5,0 | 4,0 | 2,9 | 2,2 |
| The share of unemployed persons | % | 7,70 | 6,57 | 5,55 | 4,26 | 3,20 |
| Average Gross Nominal Wages | %, y/y | 2,9 | 3,2 | 4,4 | 6,2 | 8,1 |
| Rate of Inflation | % | 0,4 | 0,3 | 0,7 | 2,5 | 2,1 |
| Exchange Rate: CZK/EUR | year average | 27,533 | 27,283 | 27,033 | 26,330 | 25,643 |
| General Governement deficit(surplus) | in % of GDP | -2,1 | -0,61 | 0,72 | 1,56 | 0,89 |
| General governement debt | in % of GDP | 42,17 | 39,96 | 36,81 | 34,66 | 32,71 |
With regard to the data contained in the table, provide the following information:
a.Describethe development of GDP in the Czech Republic in 2018 using the expenditure approach.
b.Briefly explain a relatively high growth of household’s expenditure during last 5 year.
a.Explainthe difference between General Unemployment rate and the Share of Unemployed persons.
b.Explain key factors of the development of the General Unemployment Rate of the Czech Republic in a given time period.
a.Evaluatethe development of inflation in the Czech Republic based on data contained in the table.
b.Explain the development of real wage in a given timeperiod.
What was the exchange rate commitment of the Czech National Bank?
Evaluate the fiscal indicators of the Czech Republic with regard to the Maastricht criteria.
a.Explain the differences between oligopoly and monopolistic competition.
b.Using graphs, explain how optimal price and quantity are set by a firm in monopolistic competition in a short time (in the case of maximization ofprofit).
a.Explain an income elasticity of demand.
b.Explain a price elasticity of demand.
c.Explain a cross elasticity of demand.
The Coca-Cola Company
The Coca-Cola Company, a beverage company, manufactures and distributes various nonalcoholic beverages worldwide. The company provides sparkling soft drinks; water, enhanced water, and sports drinks; juice, dairy, and plant-based beverages; teas and coffees; and energy drinks. It also offers
concentrates, syrups, beverage bases, source waters, and powders/minerals, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores. The company sells its products primarily under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, Fanta, Schweppes, Sprite, Thums Up, Aquarius, Dasani, glacéau smartwater, glacéau vitaminwater, Ice Dew, I LOHAS, Powerade, AdeS, Del Valle, innocent, Minute Maid, Minute Maid Pulpy, Simply, ZICO, Ayataka, Costa, FUZE TEA, Georgia, Gold Peak, and HONEST TEA brands. The Coca-Cola Company offers its beverage products through a network of company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers. The company was founded in 1886 and is headquartered in Atlanta, Georgia.
investor, would you currently suggest to buy/sell The Coca-Cola Company shares and why?
1 You are free to find and use any sources of The Coca-Cola Company information.
Preparation of financial statements
YOJ is preparing its annual financial statements as at 31 December 2X15. The following trial balance has been extracted from its general ledger:
| Trial balance in € | Debit | Credit |
| Equity shares | 125,000 | |
|
Retained earnings, as at 31. 12. 2X14
Building at acquisition cost Building accumulated depreciation, as at 31. 12. 2X14 Transport vehicles at acquisition cost Transport vehicles accumulated depreciation, as at 31. 12. Inventory (merchandise), as at 31. 12. 2X14 Trade payables Trade receivables Allowances for trade receivables, as at 31. 12. 2X14 Cash Borrowings from banks |
150,000
240,000
62,000
60,000
38,000 |
223,600
30,000
40,000
45,400
8,000
36,000 |
| Revenue from goods sold | 395,000 | |
| Cost of goods sold | 228,000 | |
| Salary and other payroll expenses | 80,200 | |
| Fuel consumption | 33,300 | |
| Services purchased | 7,900 | |
| Interest expense from bank borrowings | 3,600 | |
| Total | 903,000 | 903,000 |
To complete the preparation of financial statements, several year‐end closing transactions have
to be accounted for yet. The relevant information is as follows:
a)buildingis straight‐line depreciated at 5 % per annum on its acquisition cost
b)accelerated depreciation is applied for transport vehicles at 20 % per year using the diminishing balancemethod
a)basedon past experience, YOJ estimates that 8% of the closing balance of trade receivables will be never collected
b)impairmentof uncollectible receivables is classified as other operating expense/income
a)YOJ applies the periodic inventorysystem
b)theclosing balance of inventory as at 31 December 2X15 is 75,000 €
a)statutory tax rate applicable in the country of YOJ’s domicile is 20%
b)company’s tax advisor has prepared the tax‐filling, according to which incometax expense for 2X15 is 12,800 € Economics代写
c)liability from current income tax is due on 1 April 2X16; no advance payments have been made in2X15
d)do not consider the deferred incometax
