All categories

2 years ago

The largest component of gdp is investment spending. is

Business

1 answer:

antiseptic1488 [7]2 years ago

8 0

Answer:

The statement is false. The largest component of GDP is private consumption, or simply: consumption.

Explanation:

Consumption includes all purchases of goods and services made by individuals and households except for the purchase of new houses (these are considered investments).

In the U.S., consumption accounts for around 70% of GDP. This is why some economists say that the U.S. is a consumer-based economy.

You might be interested in

Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $

TiliK225 [7]

Answer:

The correct option is C ,$15,300

Explanation:

GDP is a short form of Gross Domestic Product which is an indicator of total goods produced in an economy in a period of one year.

Using the expenditure method,GDP van be computed using the below formula:

GDP=C+I+G+(X-M)

C is the consumption in the economy which is $9000

I is the level of investment at $3,000

G is the government expenditure of $3,500

X is the export of $2,500

M is the import of $2,700

GDP=$9000+$3000+$3500+($2500-$2700)

GDP=$15,300

Hence the GDP is $15,300

8 0

3 years ago

At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000

marin [14]

Answer:

1.267 = Overhead Rate

Explanation:

<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

$\frac{Cost\:Of\: Manufacturing\: Overhead}{Cost\: Driver}= $Overhead \:Rate$

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

$\frac{1,270,000}{1,010,000}= $Overhead Rate$

<em>Using Direct Materials cost, the rate would be:</em>

$1.257425743= $Overhead Rate$

3 0

2 years ago

g Which inventory costing method assigns to ending merchandise inventory the newestlong dashthe most recentlong dashcosts incurr

Lena [83]

Answer:

B. First-in, first-out (FIFO)

Explanation:

First-in, first-out (FIFO) is an accounting principle which refers to a process whereby assets that are purchased first are sold first. In this situation, the cost in which the particular inventory was purchased is still the same cost with which it is sold out.

First-in, first-out principle can be used to determine the profitability of a merchandise with its associated cost taken into consideration.

5 0

3 years ago

Read 2 more answers

Which of the following could be a synonym for the world 'externality'?

abruzzese [7]

Answer: option C. side-effect

Externality is an economic term, used to refer the damage or benefit that an individual or community experience, due to the activity of other agents who are pursuing other objective.

For example, when a enterprise burns fuel to produce energy, the increase of CO2 is an externality.

5 0

2 years ago

Demand management variables include: A. Pricing, inventory, and advertising B. Reservations, pricing, and advertising C. Subcont

Marta_Voda [28]

Answer:

B. Reservations, pricing, and advertising

Explanation:

Demand management variable analyses profit contribution of products and customers. Enhancing demand for profitable products and customers, while decreasing demand for unprofitable ones.

Demand management involves pricing, advertising, reservation, and complimentary offerings.

It is a way for the business to maximise profit from activities that gives it more profit, while reducing activities that are relatively less profitable. This increases the efficiency of the business.

8 0

2 years ago