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Thread ID: 71514 2006-08-08 03:18:00 Economics Question allblack (6574) PC World Chat
Post ID Timestamp Content User
477011 2006-08-08 10:01:00 I should probably point out that this is more of an accounting question rather than economics. Accounting is a horrible creature, and from my (brief) introduction to it at University, I understand that under the new accounting standards introduced next year (or so), there has to be revaluation of the above.

I think i'll stick to economics :P
DangerousDave (697)
477012 2006-08-08 12:49:00 Afternoon.

...Can someone please explain to me using words of one syllable or less why an airport increasing the value of it's assets leads to an increase in charges to it's customers (airlines/leaseholders)?...

It is to do with the Return On Funds invested.

Your house worth $200,000 is rented out at 8% return on funds, = $16,000 pa.

Property prices increase and it is now worth $400,000.

You can now rent it out at 8% return on $400,000, = $32,000 pa.

You didn't invest that amount, but that is what you could now sell it for.

If you did sell, the new buyer could expect an 8% return on his/her $400,000 funds invested.
xxll (5902)
477013 2006-08-08 22:38:00 Now . . . on the econimics stage, this is junk science . The cost of doing business is factored into the general business expenditures . . right?

Improvements should not be costed out to the consumer . . right?



Wrong Joe . :D The consumer is the endpoint of all sales . All of the costs of producing and pumping a gallon of gas make up the final price at the pump . If one of those costs is a new pipeline then it gets factored into the price of the oil which emerges from the pipe .

However this isn't an openended equation . If oil from Venezuela is cheaper than the Alaskan oil, refineries will buy from Venezuela instead . So there is economic pressure to keep the new pipe costs down .

Incidentally, we now pay US$4 . 10/gal and they pay considerable more in Europe . Youse guys don't know how lucky you are . :)
Winston001 (3612)
477014 2006-08-08 23:02:00 To make accurate comparisons, we need to remember that tricky thing . . .
that I used to know, but the brain is tired this morning .

A gallon is not always a gallon .

Ours is 8 pints .
A US gallon is . . ?

Someone remind me, please .

Edit: Of course it would be easier in litres . . .

.
Laura (43)
477015 2006-08-08 23:10:00 To make accurate comparisons, we need to remember that tricky thing ...
that I used to know, but the brain is tired this morning.

A gallon is not always a gallon.

Ours is 8 pints.
A US gallon is..?

Someone remind me, please.

Edit: Of course it would be easier in litres...

.

There are 8 pints in a US gallon, but the pints are different to Imperial pints :)

The nemonic used to be, a pint of water weighs a pound and a quarter, hence an Imperial gallon weighs 10 lb.

But, a US pint (water) weighs 1lb, so a US gallon (water) weighs only 8 lb.

Hence a US gallon is only 0.8 the volume of an Imperial gallon.


Edit for the purists like Graham: the Imperial definition is 'exact' the US gallon size is approximate.
Terry Porritt (14)
477016 2006-08-08 23:14:00 Thanks, Terry, for a good start...

(Did I mention that the brain is tired this morning..?)
Laura (43)
477017 2006-08-09 03:47:00 A US-born friend was taught in his Boulder (Colorado) schools that
A pint's a pound the world around. This is the world referred to in the "World Cup" which is, I think the top competition in some US business involving bats and balls. The pint = 16 ounces applies in the US and its colonies.

But Terry's wrong: I wouldn't call it an approximation; I'd call it "short measure".:D
Graham L (2)
477018 2006-08-09 05:27:00 BULLETIN! BULLETIN! BULLETIN!

The price of gasoline, regular grade in Chicago passed the $4 . 00/US gallon mark this afternoon .

Let's see, 1 US gallon at $4 . 00+ US dollars . Currency exchange at the moment is US dollars to NZ dollars= $1 . 59739

Now, 1 gallon (US) to 1 gallon NZ =1: 0 . 8327

So, if you take the hypotenuse of the drift and add skrim to the overall balance you get 2 . 50408479 x 0 . 8327 = 2 . 0851514 . . . and I have NO IDEA what I just calculated!

I leave the math to others . . . it makes my head hurt tonight!
SurferJoe46 (51)
477019 2006-08-09 22:38:00 Interesting Joe. Had the impression that petrol in the USA was still much cheaper than here. Is the $4 mark high end or is it close to what you'd consider a normal price? What do you pay in California? Winston001 (3612)
477020 2006-08-09 23:10:00 www.fueleconomy.gov Terry Porritt (14)
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