1. Illegal and unreported economic activity: While goods such as illegal drugs, gambling, and prostitution are sold in markets, the transactions are hidden for obvious reasons.
2. Home production and bartered goods/services: If cash doesn't change hands, the transaction will not be included in GDP. One of the somewhat misleading aspects of GDP is that whether certain things are included depends not on the nature of the good or service, but whether it was (openly) exchanged for cash.
Answer:
A) Gift loans of $14,000 in which interest foregone is in the form of a gift.
Explanation:
You are free to give anyone any type of gift that is worth up to $14,000, this includes gifts in cash, assets (e.g. car) or gift loans. Any gift above that threshold will result in taxes paid by the person that receives the gift.
The IRS defines gift loans under Section 7872(f)(3) as:
<em>“The term “gift loan” is any below-market loan where the forgoing of interest is in the nature of a gift.”</em>
As long as the forgone interest doesn't exceed $14,000, then no taxes should be paid.
Answer: Debt Payment, National Defense and Welfare of the United States
Explanation:
When the Articles of the Confederation which was the first Constitution of the United States was ratified in 1781, it included a clause that empowered the State Governments to decide what to give to Congress. Some of them gave less and some gave nothing of what they were supposed to give.
Congress was therefore powerless and risked falling apart and with it, the Central Government.
The Constitution of 1789 changed this by including the 'Taxing and Spending' clause.
This clause gave Congress the right to impose taxes. The clause states that Congress can levy taxes to enable it to pay off American debt as well as for the defense and general welfare of American citizens.
<span>I would emphasize the ease of use. Consumers in a grocery store are regularly bombarded with visual stimulation, from brightly colored packaging to flashy statements, none of which are indicators of a healthy food. But by simply turning the package around and looking at the food label, one can quickly compare and deduce the health value of food as the labels are uniform and easy to read. Allowing the consumer to select the food that best for them, rather than the simply the most appealing package.</span>
Answer:
D) Repositioning
Explanation:
Perceptual mapping is the graphical representation of a product to explain the consumers' perception.
Product positioning is a method to explain the product's benefits to the targeted consumers.
Product differentiation is the process of distinguishing a product from other goods to force the customers to purchase.
Psychographics is a qualitative explanation based on the consumers' preferences.
Finally, <em>repositioning</em> is focusing on changing the customers' view engaged with the brand or product. It usually depicts a variety of a product's brand image. Since Mott's used an advertising method that changes the consumers' thought and perception, he used this <em>repositioning</em> strategy.
