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Vika [28.1K]
4 years ago
7

Suppose an apartment complex converts to a condominium, so that the former renters are now owners of their housing units. Suppos

e further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid. What happens to GDP as a result of this conversion?
Business
1 answer:
Lorico [155]4 years ago
6 0

Answer:

GDP is likely to remain same as a result of this conversion.

Explanation:

GDP is the total value of goods & services, produced by an economy, during a given year.

It can be calculated by 2 methods

  • By Expenditure method : GDP = Private Final Capital Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
  • By Income method : NDP = Compensation of Employees + Operating Surplus (Rent + Profit + Income) + Mixed Income

Given case - Converting a rented apartment into a resident owned condominium , with value of housing services = rent formerly paid :

This brings no change in the GDP, as : The apartment 'rent' previously paid was included in 'operating surplus' of national income, by Income method. And, the equal condominium value is now included in investment addition i.e 'Gross domestic capital formation' , by Income method.

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The price of an item, the amount you pay per 100 grammes and comparison of quality and/or price from different brands/stores. 
5 0
3 years ago
Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $ 40,000 Acco
gtnhenbr [62]

Answer:

$131,000

Explanation:

The computation of the amount of quick assets is shown below:

Quick asset = Account  Receivable + Cash + marketable securities

= $65,000 + $30,000 + $36,000

= $131,000

We simply added the account receivable, cash and the marketable securities so that the quick assets could come plus it contains more liquidity that converted into cash in a very short period of time and the rest of the items are ignored as there are not relevant

7 0
3 years ago
The average monthly rent for one-bedroom apartments in Chattanooga has been $700. Because of the downturn in the real estate mar
Olenka [21]

Answer:

y>700 and 700>y>0

Explanation:

Though there is not so much information, but the fact that $700 is an average. We can work with two hypothesis at first, he first Hypothesis before the downturn the rent are over $700. And the second one, the bedroom rent are under $700.

1) Graphically, the shaded area before the downturn, represents the set of values for Rents greater than $700. So, rent (y) > 700

2) Graphically, the shaded area after the downturn, represents the set of values for Rents lesser than $700. So, rent 700 <y<0

5 0
4 years ago
In which of the following situations would the use of temporary workers be most appropriate?
makkiz [27]

Answer: Option D  

                     

Explanation: In simple words, temporary workers refers to an arrangement under which an individual is hired to perform a job for a specified period of time as per the needs of the employing organisation.

     Hence in the given case, tax preparation company is a suitable form for temporary employees as they have few business clients and that too handled individually.

If some of the clients shifts to another firm then the subject firm can delpoy the temporary worker who was handling such client.

Thus, the correct option is D.

8 0
3 years ago
All of the following will occur if the government places an effective price ceiling on candy bars except:
miskamm [114]

Answer:

c. there will be a surplus of candy bars. 

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If a price ceiling is effective, the price ceiling is set below equilibrium price.

If price is set below equilibrium price, the quantity supplied would fall and this would lead to an excess of demand over supply. Also, scarcity of the product for which a price ceiling has been set would occur.

A black market would occur. There would be a drop in the quality of product as sellers would be trying to maximise profits.

I hope my answer helps you

6 0
4 years ago
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