I believe that the $500 cheque from your parents has already been counted when it was earned and therefore would neither increase or decrease GDP. GDP is defined basically as a bulk measure of production that is equal to the sum of all gross values of all units involved in production.
Answer:
Positive statement:
It is basically based on target and truth. Moreover, optimistic deliveries are have to be compelled to validate or nullified yet can't correct than
Normative Statement:
Adaptable announcements are particular and also the materials are value primarily based. The statements are basically valuation primarily based so that they can't be tried.
- <u>Since the statement 1</u><u> </u>are often proved or contradicted by grouping and evaluating the information, thus this can be a positive statement.
- <u>Since the statement 2</u> is opinion primarily based, we tend to can't take a look at it, and thus this can be a normative statement.
- <u>Since the statement 3</u> are often tested by seeing those conditions. Hence, this can be a positive statement.
- <u>Since the statement 4</u> is opinion primarily based, thus we tend to can't take a look at it. Therefore, this can be a normative statement.
Answer:
$440,000
Explanation:
Sassy Company budgeted operating income
Operating income will be :
(20-12) $80,000 - $200,000
=8×$80,000-$200,000
=$640,000-$200,000
=$440,000
Therefore the budgeted operating income at a level of 80,000 widgets per month will be $440,000
Answer:
The correct answer is B. The use of collateral makes it more costly for borrowers to take advantage of their asymmetric information.
Explanation:
In finance, a collateral or guarantee is a transferable asset or a surety, or even a promise of guarantee, used to cover the credit risk during financial transactions in the event that the borrower cannot meet his payment obligations.
A secured loan means a loan in which the borrower commits certain assets as a guarantee of credit, this the latter then becoming a partially secured debt for the creditor who made this loan.
The guarantee may consist of cash (pledge of cash account in retail bank, cash-collateral in investment bank) or securities.
Another form consists of a simple commitment: commitment by signature of a bank towards its client, promise of collateral or mortgage, letter of intent.
