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True [87]
2 years ago
14

In an economy, the total expenditures for a market basket of goods in year 1 (the base year) were $5,000 billion. In year 2, the

total expenditure for the same market basket of goods was $5,500 billion. What was the GDP price index for the economy in year 2?
Business
1 answer:
deff fn [24]2 years ago
4 0

Answer:

The GDP price index for the economy in year 2 is 110.

Explanation:

It is given that the total expenditures for a market basket of goods in year 1 (the base year) were $5,000 billion.

Price of market basket in base year = $5000

In year 2, the total expenditure for the same market basket of goods was $5,500 billion.

Price of market basket in specific year = $5500

GDP price index:

\text{GDP price index}=\frac{\text{Price of market basket in specific year}}{\text{Price of market basket in base year}}\times 100

\text{GDP price index}=\frac{5500}{5000}\times 100

\text{GDP price index}=110

Therefore the GDP price index for the economy in year 2 is 110.

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When Yahoo! develops new online services, the company develops a version of the service and shows it to customers. It solicits i
Assoli18 [71]

Answer:

Correct Option is B (Rapid Prototyping)

Explanation:

Correct Option is B (Rapid Prototyping)

Rapid Prototyping is a technique which is used to test a new technology or hypothesis by giving it to the customer. Customer then use the product and provide feedback. From the customer feedback, changes are made according to the requirement and the feedback provided by the customer.

7 0
2 years ago
In a period of falling interest rates, a bond dealer would engage in which of the following activities?I Raise prices in interde
vredina [299]

Answer:

C. I, II, III

Explanation:

In a period of falling interest rates, a bond dealer would engage in all of the following activities except for IV. Therefore, a dealer would raise his quoted price in Bloomberg. If the dealer has an appreciated bond that he wishes to sell, he can place ''Request for Bids'' for those bonds in Bloomberg. The dealer may buy bond the he has previously sold short to limit losses due to rising price. To protect existing short position against the rising price, the dealer will buy call options, not put options. Put options are used in protecting existing long position from falling price.

8 0
3 years ago
Net credit sales for the year are $750,000. The end of year accounts receivable balance is $160,000. The allowance for doubtful
alexandr402 [8]

Answer: $3000

Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.

The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

8000 (balance before bad debts have been accounted for)

- 5000 (balance after bad debts have been accounted for)

= $3000.

5 0
3 years ago
Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its
klemol [59]

Answer:

The acquisition cost is $38140

Explanation:

acquisiton cost = invoice price + applicable sales tax - cash discount + freight paid + cost of insurance + installation cost +testing and adjusting costt                

= $34000 + $2000 - $400 + $260 + $125 + $2000 + $425

= $38410

Therefore, The acquisition cost is $38140.

6 0
3 years ago
Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year.
andrew-mc [135]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Fusaro Corporation uses a predetermined overhead rate base on machine-hours.

Estimated total fixed manufacturing overhead= $684,000

Estimated activity level= 40,000 machine-hours

Actual activity level 37,700 machine-hours

First, we need to calculate the predetermined overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 684,000/40,000= $17.1 per machine hour

Now, we can allocate the manufacturing overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 17.1* 37,700= $644,670

5 0
2 years ago
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