Answer:
1. C
2. B
3. D
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
The various factors that have an effect on the GDP of a country's economy are;
1. The Interest Rate Effect: As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.
2. The Wealth Effect: The purchasing power of money held in savings accounts falls as prices rise.
3. The Export Effect: As prices rise in the United States, foreigners purchase fewer U.S. goods.
Answer:
A. The approach of lowering prices temporarily to gain market share
Explanation:
Penetration pricing is a strategy that marketers use to quickly gains market share of a new product. The strategy involves lowering the price of new products to woe customers to buy. The lowering of the price is temporary. Marketers use this strategy to introduce a product as a pocket-friendly alternative.
Penetration pricing is used where a product will be in competition with other existing brands. After the product has gain market share, marketers may increase the price to make profits.
Answer:
A. Increases and so aggregate demand shifts.
Explanation:
Answer:
The correct answer is:
Debit: Account receivable $5,800
Credit: Sales revenue $5,800
Debit: Cost of goods sold $4,000
Credit: Merchandise inventory $4,000
Explanation:
On 1st May
Upon sale of inventory on credit
Debit: Account receivable $5,800
Credit: Sales revenue $5,800
On 1st May
To record cost of goods sold of merchandise inventory:
Debit: Cost of goods sold $4,000
Credit: Merchandise inventory $4,000
