1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Direct strategies of power are used when: A. one is an expert or has more knowledge. B. one is a novice or has less knowledge. C
ziro4ka [17]

Answer:

(A) one is an expert or has more knowledge.

Explanation:

Power is an individual's ability to influence others and do what the individuals wants as well as persons ability to resit the influence attempts of others.

3 0
3 years ago
Which action can hurt your credit score? I. Paying your phone bill late. II. Taking the bus to work. III. Maxing out several cre
Leviafan [203]
Paying your phone bill late and maxing out your credit card can hurt your credit score. 
7 0
3 years ago
Read 2 more answers
A construction firm needs to hire a construction superintendent, whose primary responsibilities involve organizing, supervising,
mamaluj [8]

Answer:

c. content validation

Explanation:

In this scenario it seems that the construction firm is using content validation by placing the applicant in the room and asking her to point out the 10 common and expensive errors. Content Validation is a method that is used in order to make sure that a test is correctly measuring the information for which it is intended.

3 0
2 years ago
ROI: Fill in the Unknowns Provide the missing data in the following situations: North American Division Asian Division European
nordsb [41]

Answer and Explanation:

The computation of the missing data  is shown below:

<u>Particulars     North American    Asian            European</u>

<u>                      division                 Division            Division </u>

Sales            $2,000,000        $5,000,000     $1,050,000

Net Operating

Income        $80,000             $200,000            $168,000

Operating

assets         $500,000          $2,000,000         $700,000

Return on

Investment   16%                      10%                      24%

Return on sales 0.04              0.04                      0.16

Investment

turnover           4                    2.5                         1.5

Working notes :  

1. For North American division

Sales is

= Net operating income ÷ return on sales

= $80,000  ÷ 0.04

= $2,000,000

Operating assets is

= Net Operating income ÷ return on investment

= $80,000 ÷ 16%

= $500,000

Investment turnover is

= Sales ÷ operating assets

= $2,000,000 ÷ $500,000

= 4

For Asian Division

Operating assets is

= Net operating income  ÷  return on investment

= $200,000  ÷ 10%

= $2,000,000

Return on sales is

= Net Operating income ÷ sales

= $200,000 ÷ $5,000,000

= 0.04

Investment turnover is

= Sales ÷ operating assets

= $5,000,000  ÷ $2,000,000

= 2.5

For European division:

Sales is

= Operating assets × investment turnover

= $700,000 × 1.5

= $1,050,000

Return on investment is

= Net operating income ÷  operating assets × 100

= $168,000 ÷ $700,000

= 24%

5 0
3 years ago
Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows.
Arlecino [84]

Answer:

1 . Debit Asset , bank increase normal balance is Debit balance , Credit Equity stock increase , normal balance is credit balance

2 . Debit Asset , Vehicles , increase , normal balance is Debit balance . Credit Asset , Bank , decrease , normal balance is Debit balance

3 . Debit Expense , Supplies , increase , normal balance is Debit . Credit Liabilities , Accounts payable , increase , normal balance is credit balance .

4 . Debit Asset , Accounts receivable , increase , normal is balance Debit . Credit Income , Service rendered , increase , normal balance is Credit balance .

5 . Debit Expense , Advertising , increase , normal balance is Debit balance . Credit Asset , Bank , decrease , normal is balance Debit .

6 . Debit Asset , Bank , Increase , normal balance is Debit balance . Credit Asset , Accounts receivable , Decrease , Normal balance is Debit balance .

7 . Debit Liability, Accounts payable, decrease, normal  is balance credit balance . Credit Asset, Bank, Decrease, normal balance is Debit balance .

8 . Debit Equity , Dividends Paid , decrease , normal balance is credit balance .

Credit Asset , Bank , decrease , normal balance is Debit balance

Explanation:

6 0
3 years ago
Other questions:
  • In response to the new employee end of shift policy Brianna proposes that Ollie pay its employees on their breaks instead of mak
    14·1 answer
  • Select the correct answer.
    15·1 answer
  • What is the name for a treasury certificate given by the government to an investor in exchange for money? A. Earned income B. Ca
    10·1 answer
  • You can see that you have hundreds of visitors to your website each month. You are using web analytics software to find why this
    9·1 answer
  • In September 2010, the NBER's Business Cycle Dating Committee decided that the recession that began in December of 2007 had ende
    14·1 answer
  • The following information relates to Oriole Company for the year 2020.
    8·1 answer
  • In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made leg
    14·1 answer
  • Allowance Method of Accounting for Bad Debts— Comparison of the Two Approaches. Kandel Company had the following data available
    11·1 answer
  • What is a sinking fund?
    9·1 answer
  • A bond is selling for 95% of par and has an annual coupon rate of 6% and will mature in five years. There are semi-annual coupon
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!