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Juliette [100K]
3 years ago
11

6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transa

ctions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers The costs of air and water pollution Expenditures on federal highways The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP. g
Business
1 answer:
jekas [21]3 years ago
8 0

Answer:

a.

  • The quality of goods available to consumers
  • The costs of air and water pollution
  • The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

b. investment; decreases; no overall change

Explanation:

a. GDP only measures goods that have monetary value so when a good cannot be properly quantified in terms of cash, it is difficult to account for it in GDP. Also, even if the good has monetary value for the Government was unaware of it, they will be unable to use it in the calculation of GDP.

For these reasons, the quality of goods available to consumers, the costs of air and water pollution and the value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government will not be a part of GDP calculation.

b.<em> When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the </em><em><u>investment</u></em><em> component of GDP while also </em><em><u>decreasing</u></em><em> net exports by the same amount. Therefore, the purchase of wood from Brazil causes </em><em><u>no overall change </u></em><em>in US GDP. </em>

Purchasing raw materials for use in production is considered Investment by GDP. However, since it was imported it will reduce Net Exports which means that the transaction would cancel itself out in the GDP calculation as it would both increase investment and decrease Net exports by the same amounts.

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Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $15,000,000 of 20-year, 9
konstantin123 [22]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $15,000,000

      To Bonds payable $15,000,000

(Being issue of bonds is recorded)

2. Interest expense on bonds Dr, $675,000

        To cash $675,000 ($15,000,000 × 9% × 6 ÷ 12)

(Being payment of interest is recorded)

3. Bonds payable Dr, $15,000,000

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       To Cash ($15,000,000 × 0.96) $14,400,000

(Being redemption on bonds is recorded)

3 0
3 years ago
Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 4
KiRa [710]

Answer:

1. Cost per unit = 860,500/45000 units = $19.12

2. Mark up = 12% * 800,000 = $96,000/45000 units = $2.13

mark up = 2.13/19.12 = 11.14%

3. Therefore selling price per unit = $19.12+$2.13 = $21.25

Explanation:

Variable direct materials cost per unit............................ 5.50

Variable direct labor cost per unit.................................... 7.65

Variable factory overhead cost per unit .........................2.25

Variable selling and administrative cost per unit........... .90

TOTAL VARIABLE COST PER UNIT..................................16.3

TOTAL VARIABLE COST = $16.3*45000 units = $733,500

Fixed factory overhead cost $82,000

Fixed selling and administrative costs 45,000

TOTAL COST = $ 860,500

1. Cost per unit = 860,500/45000 units = $19.12

2. Mark up = 12% * 800,000 = $96,000/45000 units = $2.13

mark up = 2.13/19.12 = 11.14%

3. Therefore selling price per unit = $19.12+$2.13 = $21.25

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3 years ago
The American Opportunity tax credit:_____. A. is 50% of the first $1,200 of tuition and fees paid and 100% of the next $1,200. B
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Answer:

C. Is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents

Explanation:

American Opportunity tax credit was called the HOPE credit. It is available for the first four years of an individual's post secondary school education.

It covers 100% of the first $2,000 cost for tuition, fees, books, and course material.

Items that do not qualify are room and board, transportation cost and personal expenses.

The tax credit is available for qualifying expenses paid on behalf of the taxpayer and his or her spouse, in addition to those paid for dependents.

6 0
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The answer is "no one is completely self-sufficient".

Being self sufficient means that one is able to supply one's own or its own needs without external assistance which in an individual case is impossible, everyone needs to rely for some service or something on others, and other people rely on someone too for a specific service this is how a society works.

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n 1973, long lines of cars appeared at American gas stations, which either ran out of fuel or limited how much a customer could
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Answer: the oil embargo

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