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Lelu [443]
2 years ago
8

Adding the market value of all final and intermediate goods and services in an economy in a given year would result in?

Business
1 answer:
Anestetic [448]2 years ago
4 0

When the market value of all final and intermediate goods and services in an economy are added up in a given year, this would lead to <u>Double Counting. </u>

<h3>What is double counting?</h3>

Double counting is a problem in Gross Domestic Product calculation where intermediate goods are added to final goods to determine the country's productivity.

Adding intermediate goods is a faux pass because the value of intermediate goods are included in the final goods and services price so there is no need to add them again.

If they are added, then the value of the intermediate goods would have been counted twice or double. This is where double counting comes from.

For instance, when making bread, flour is an intermediate good. The bread already includes the cost of this flour so adding the cost of the flour would mean inflating the true cost of the bread.

In conclusion, this is double counting.

Find out more on double counting at brainly.com/question/1112587

#SPJ1

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ChimneySweep provides cleaning services for residential chimneys and fireplaces. The cleaning service requires $20 in variable c
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Answer:

$498.75

Explanation:

The computation of the average cost per cleaning service call is given below:

= (Fixed costs of labor, the company’s truck, and administrative support + number of service calls per months × total number of months in a year × variable cost per cleaning material) ÷ (number of service calls per months × total number of months in a year)

= ($459,600 + 80 × 12 × $20) ÷ (80 × 12)

= ($459,600 + $19,200) ÷ ($960)

= $498.75

6 0
3 years ago
econ301 2. What advantages do franchise business offer nonprofit that seek side business to generate revenues to support their c
Solnce55 [7]

<u>Explanation:</u>

A franchise business is one that allows another business (or non-profit) to carry out certain commercial activities, in a sense acting as an agent for the company.

Consider the following advantages:

1. Capital

The franchisor (the company that grants permission) may provide all the capital required to open and operate the non-profit.

2. Better-quality management. The years of experience accumulated by the franchisor may be of benefit to the non-profit. Thus, improving the quality of operations.

Other benefits include;

  • increase their speed of Growth  
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6 0
3 years ago
Faris currently has a capital structure of 40 percent debt and 60 percent equity, but is considering a new product that will be
sineoko [7]

Answer:

Levered beta = Unlevered beta x  (1  + (1 - T)D/E

Levered beta  = 1.6 x  (1 + (1 - 0.4)70/30

Levered beta = 1.6  x  (1  +  0.6)70/30

Levered beta = 1.6 x (1.06)70/30

Levered beta = 3.96

Explanation:

Levered beta is also known as equity beta. It is calculated as unlevered beta multiplied by 1 + (1 - Tax rate) multiplied by debt-equity ratio of the division.

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Economic problem in corona globally ?
malfutka [58]
People won’t wear masks
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If you were an investor in a rent-to-own business that takes more than a year to collect revenues while the customers take immed
ratelena [41]

Answer:

I would prefer cash basis over the accrual bases.

Explanation:

Remember accounting entries are prepared on the basis of Accrual Principle. That is transactions are recognized when they meet the definition and recognition criteria of assets, liabilities, incomes and expenses not when cash is received. Taxable Income calculation follows this accrual principle as well.

This means an will mean that as an investor in a rent-to-own business, i will be taxed more often on the Revenues which are not yet paid for and this will be bad for my liquidity.

I would want to have my cash and pay the taxes when i have actually received cash on my revenues so that i wont run into liquidity problems. This is only possible if the cash basis was to be used.

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