Question

The Bureau of Economic Analysis provides profit data for various industries in the United States. Go to www.bea.gov Click on Corporate Profits Click on National Income and Product Accounts Tables Choose a table from a list of Selected NIPA Tables Scroll down and find the Table 6.16D on Corporate Profits by Industry”

In your initial response to the topic you have to answer all questions:

1. Based on the most-recent figures, which of the following categories of industry classifications has the greatest profits:

•Financial or nonfinancial •Manufacturing , transportation and warehousing, wholesale trade, or retail trade •Durable goods or nondurable goods

2.During the past years, which sectors had the largest and smallest percentage increase in profit?

3. Which sectors, if any, experienced losses?

4. What are the implications of the profit changes for expansion or contraction of the particular industries?

Answer 1

1.

1. Nonfinancial
2. Manufacturing
3. Durable goods

2. During the past years,

Under non financial sector,

highest percentage increase in profit is faced by Electrical equipment, appliances, and components from $19.6B in 2015 to $23.7B in 2016, about a 20.9% increase in profit.

smallest percentage increase in profit is faced by Motor vehicles, bodies and trailers, and parts from $26.3B in 2015 to $26.4B in 2016, about a 0.4% increase in profit.

Under financial sector, highest percentage increase in profit is faced by Other financial sectors which includes credit intermediation and related activities; securities, commodity contracts, and other financial investments and related activities; insurance carriers and related activities; funds, trusts, and other financial vehicles; and bank and other holding companies from $397.1B in 2015 to $409.9B in 2016, about a 3.2% increase in profit

3. Petroleum and coal products experiencd loss from profit of $17.3B in 2015 to loss of $2.2B in 2016.

4. Profit in business is that businessman retains and reinvests a part of its profits in business undertaking stands on sound footing. It can expand and diversify business not only from reinvestment of funds but also getting loans from external sources for business.Contraction is commonly called "recession" and represents a shrinking of the money supply as companies and consumers curtail borrowing and spending. Companies still book profits as they sell off inventory, but instead of using this money to manufacture more goods, they add it to money accumulated during the expansion phase and use it to fund research and development of new products, renovation or replacement of old equipment, and other steps toward preparing to expand company business when the expansion phase increases demand. When the industry has contracted enough, the Fed steps in to spur the industry by lowering interest rates and adding money . This brings on the bottom, or trough, of the recession.