GDP include the value of final goods , to avoid double counting intermediate goods are not included in GDP
Answer:
a. $21,800
Explanation:
The discoun of issuance of the bond is amortized over the period until maturity. Total Interest expesne on a discounted bond is the sum of the coupon payment and the amortization of the discount amount.
Coupon payment = $200,000 x 10% = $20,000 per year
Discount on the bond = $200,000 - $191,000 = $9,000
Discount amotized per year = $9,000 / 5 = $1,800
Total Interest Expense = Coupon Payment + Amortization of Discount
Total Interest Expense = 20,000 + 1800 = $21,800
Answer:
B
Explanation:
when she is talking over the slides, some people are not good multi-taskers and want to listen to the more interesting thing, which is the audio.
Answer:
all firms produce and sell a standardized or undifferentiated product
Explanation:
A perfectly competitive market is a market in which there are many companies that offer the same product, there are not entry barriers which makes it easy for an organization to enter or exit the market. Also, the companies are not able to influence the market and they are not able to control the conditions in it. According to this, the answer is that in a perfectly competitive market, all firms produce and sell a standardized or undifferentiated product.
Bob has to own his land for 18 years if the price is increasing at the rate of 6% per year.
Given that land was bought by Bob for $16390, the price is increasing at the rate of 6%, price of land today is $46817.
We are required to find the time for which Bob need to own the land so that the price of the land is $46817 today.
Compounding means calculating amount on the principal and the amount added interest.
Rate of increasing the price of land be 6%.
Price when Bob bought the land=$16390.
Price of land today=$46817.
It is like compounding of interest and the sum is calculated as under:
S=P*
In the above equation P is theamount at beginning,r is rate of increasing and n is the number of years.
46817=16390
46817/16390=
=2.8564
=
(Approximately)
From both the sides we will get n=18.
Hence Bob has to own his land for 18 years if the price is increasing at the rate of 6% per year.
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