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2 years ago

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

1 answer:

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 Double Counting.

<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.

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Victor is the recipient of $1 million from a lawsuit. Victor decides to use the money to purchase a small business in Florida. H

ryzh [129]

Answer:

Economic profit = -$25,000 option c

Opportunity cost = $175,000 option d

Accounting profit to allow for zero economic profit = $175,000 Option c

Explanation:

Economic profit is the difference between revenue and implicit cost. Implicit cost is the sum of out-of-pocket accounting cost and opportunity cost.

opportunity csot is the value of the benefit sacrificed in favour of a decision.

Economic profit = Accounting profit - opportunity cost

Opportunity cost for victor includes

1. The $100,000 per year which he would have earned had he invested the money in a bond

2. The annual salary of $75000 he forfeited

Total opportunity cost = 100,000 + 75,000= $175,000

Economic profit = 150,000 -175,000 = -$25,000

To attain an economic profit of zero , the accounting profit ought to be the same at the opprotunity cost of $175,000

Economic profit = -$25,000 option c

Opportunity cost = $175,000 option d

Accounting profit to allow for zero economic profit = $175,000 Option c

7 0

3 years ago

Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,400,000, with an addit

Travka [436]

Answer: $3,570,000

• assets installation, shipping and installation costs.

Explanation:

The The total cost of Alexander's new equipment will be calculated thus:

= $3,400,000 + $170,000

= $3,570,000

The coat of the new equipment consist of (assets installation, shipping and installation costs).

3 0

3 years ago

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $206,000 of raw materials on credit

neonofarm [45]

Answer:

$14,000 under applied

Explanation:

Given that

Material production = $203,000

Application rate = 150%

The computation of amount of overhead is shown below:-

Overhead = Material production × Application rate

= $203,000 - ($126,000 × 1.5)

= $203,000 - $189,000

= $14,000 under applied

Therefore, for computing the overhead we simply multiply the material production with application rate percentage.

3 0

3 years ago

Suppose some banks decide to increase their holdings of excess reserves relative to deposits. Ceteris paribus, this action will

slava [35]

The action of the bank will put decreased pressure on the money supply, and to reduce the impact of this action, the Fed could decrease the discount rate.

Basically, a decrease in discount rate will make it easy and cheaper for commercial banks to borrow money from Federal Reserve System and thus, results to increase in available credit and lending in the economy

Therefore, if the commercial banks decide to increase their holdings of excess reserves supposed to be remitted to Feds, then, this will put decreased pressure on the money supply, and the Fed would act by decreasing the discount rate.

Read more about this here

brainly.com/question/20023706

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2 years ago

At the end of the first year of operations, Yolandi Company had $900,000 in sales and accounts receivable of $350,000. XYZ’s man

vivado [14]

Answer:

1. $13,500

2. $13,500

3. $336,500

Explanation:

1. Bad debt expense:

= Sales × Percent of sales uncollectible

= $900,000 × 1.5%

= $13,500

Therefore, the bad debt expense for the year 2019 is $13,500.

2. Allowance for Doubtful accounts = $13,500

3. For the end of 2019, what is the company's net realizable value:

= Accounts receivable - Allowance for Doubtful accounts

= $350,000 - $13,500

= $336,500

6 0

3 years ago