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o-na [289]
3 years ago
6

The country of Growpaw does not trade with any other country. Its GDP is $20 billion. Its government purchases $3 billion worth

of goods and services each year, collects $6 billion in taxes, and provides $2 billion in transfer payments to households. Private saving in Growpaw is $4 billion. What is investment in Growpaw?a.$5 billionb.$4 billionc.$3 billiond.$2 billion
Business
1 answer:
Anna [14]3 years ago
8 0

Answer:

option a) 5 billion

Explanation:

Data provided in the question:

GDP = $20 billion

Cost of goods and services = $3 billion

Tax collected = $6 billion

Transfer payments to households = $2 billion

Private saving in Growpaw = $4 billion

Now,

Disposable income = GDP - taxes + transfer payments

=$20 billion - $6 billion + $2 billion

= $16 billion

Consumption = Disposable income - Savings

= $16 billion - $4 billion

= $12 billion

Thus,

Investment = GDP - consumption - government purchases

= $20 billion - $12 billion - $3 billion

= $5 billion

Hence,

the correct answer is option a) 5 billion

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Answer:

what must be sacrificed in using a resource for its next-best use

Explanation:

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3 0
2 years ago
1. Discuss why is finding and implementing the right pricing strategy critical to a company’s success?
statuscvo [17]

The importance of pricing in business is one of the most important features that decides the profitability of the business. Following are the suitable reasons for it :

1) Effects on the profit margins - The pricing of the product determines how much the company will make per unit of the product sold. If the pricing is apt, then the items sold will eventually increase and profitability will rise.

2) Competition - Competition in the market depends ultimately on the pricing and quality of the product. The right pricing of the product (low from your competitors) gives you a competitive advantage over other similar competitors.

Thus, setting the right price is very critical in a business. (for example how setting prices to 99$ and 100$ makes the difference).

An example of a well-priced product/company is Mcdonald's, it uses the low-cost strategy to maximize its profit and market share. It follows the right pricing of its products, which gives McDonald's an edge over its customers and capitalizes on the e-market.

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4 0
2 years ago
Renting provides _________ flexibility but can lead to _________ costs in the long-term
xxMikexx [17]
Greater higher!!!!!!!!!!!!!
6 0
3 years ago
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Lapatulllka [165]

Answer:

20

Explanation:

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Using this formula

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Answer:

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This goes to define Bodily injury liability as a car insurance coverage that pays for injuries a driver causes to other people, including other drivers, passengers and pedestrians. This policy covers or takes care of medical expenses and lost wages as well as legal and funeral expenses in some cases of the injured persons.

6 0
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