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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 <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.

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On January 1, Parson Freight Company issues 8.0%, 10-year bonds with a par value of $3,200,000. The bonds pay interest semiannua

madreJ [45]

Answer:

Dr Cash 2,982,557

Dr Discount on bonds payable 217,443

Cr Bonds payable 3,200,000

Explanation:

Preparation for the bond issuance Journal entry

Since we were told that the Company has par value of the amount of $3,200,000 and the bond selling price of $2,982,557 which means the bond issuance should be recorded as:

Dr Cash 2,982,557

Dr Discount on bonds payable 217,443

(3,200,000-2,982,557)

Cr Bonds payable 3,200,000

6 0

3 years ago

Consider an economy at full employment. if consumers and firms become less optimistic about the future economy then:____.

Troyanec [42]

If consumers and firms become less optimistic about the future economy then (C) unemployment will rise.

<h3>What is unemployment?</h3>

Unemployment is the state of being capable of working, actively seeking work, but unable to find any.
It should be noted that in order to be considered unemployed, a person must be an active member of the labor force and actively seeking remunerative work.
Unemployment reduces demand, consumption, and purchasing power, resulting in lower profits for businesses and budget cuts, and workforce reductions.
It starts a vicious cycle that is difficult to break without outside intervention.
Unemployment will rise if consumers and businesses become less optimistic about the future economy.

Therefore, if consumers and firms become less optimistic about the future economy then (C) unemployment will rise.

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The complete question is shown below:
1. Consider an economy at full employment. If consumers and firms become less optimistic about the future economy then

a) price levels will rise.

b) output will rise.

c) unemployment will rise.

7 0

1 year ago

______________ produce fundamental changes that can transform a company or even revolutionize an industry, while ______________

Whitepunk [10]

Answer: Incremental innovation ( answer for both the blanks)

Explanation: In simple words, incremental innovation refers to the process under which small improvement are made to the current practices of business. Such improvements through innovation results in better products and services offerings.

Such small changes however occur in large volumes and can easily revolutionize any industry.

3 0

3 years ago

What is generally the reason for a company to issue bonds?

valkas [14]

The general reason for a company to issue a bond is to "Raise Money" and that's one of the main reason they do it.

4 0

3 years ago

Ten rational numbers between 4 and - 4

mote1985 [20]

3, 3.5, -2, 3.7, -1, 0, 2, -3, -2.7, -1.34

6 0

3 years ago