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Bas_tet [7]
3 years ago
8

A company produces 100 cars in the year 2017 but only manages to sell 90 of the cars. In the year 2018 they sell the 10 cars tha

t were not sold in the previous year to consumers. In which spending categories of gdp do we record the 10 cars?
Business
1 answer:
forsale [732]3 years ago
7 0

Answer:

The question has below options:

A. The unsold cars count as inventory investment for 2017. 2018 GDP is not affected.

B.The unsold cars count as consumption spending in 2018.

C. The unsold cars count in the inventory investment category for both years and count as consumption spending in 2018.

Option B is the correct answer

Explanation:

The unsold stock of 10 cars in 2017 is classified as investment  since  the cost of producing them is expected to yield returns in 2018 when they have been sold.

However, the unsold stock of 2017 becomes 2018 consumption of GDP since it relates to household expenditure in 2018, as a result it is accorded such classification.

It cannot be classified as government expenditure as the government is not the one purchasing the vehicle

Also, the ten cars have nothing to do with import or export as they are trade within the domestic economy

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Assume that the weekly payroll of Hunter Hardware, Inc., is $1,000. The end of the year, December 31, falls on Tuesday. Hunter H
Andru [333]

Answer:

A. Dr Salaries Expense 400

Cr Salaries Payable 400

Explanation:

The adjusting Journal entry that Hunter Hardware make on Tuesday, December 31 will be: Dr Salaries Expense 400

Cr Salaries Payable 400

Calculated as:

First step is to calculate the Accrued salary

Using this formula

Accrued salary=Weekly payroll / 5 days*Number of days for which salary were not paid

Let plug in the formula

Accrued salary = $1,000/5 days*2days

Accrued salary= $200 x 2 days

Accrued salary= $400

Therefore the adjusting Journal entry that Hunter Hardware make on Tuesday, December 31 will be to Debit Salaries Expense 400 and

Credit Salaries Payable 400

6 0
2 years ago
Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statem
oee [108]

Answer:

1. $425,000

2. $24,250

Explanation:

The computations are shown below:

1. For Average Operating Assets  

Average operating assets = (Beginning Operating Assets + Ending Operating Assets) ÷ 2

= ($390,000 + $460,000) ÷ 2

= $425,000

2. Residual income =  Operating income - (Average operating assets × Minimum Required Rate of Return)

= $66,750 - ($425,000 × 10%)

= $66,750 - $42,500

= $24,250

5 0
3 years ago
Consider the statements. Indicate whether each statement falls mainly under the field of microeconomics or macroeconomics.
Nastasia [14]

Answer:

microeconomics

macroeconomics

macroeconomics

macroeconomics

microeconomics

microeconomics

Explanation:

Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.

Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources

5 0
2 years ago
Assume the auto market is initially in equilibrium with imports from Japan taking up a significant share of the market. Now assu
Zanzabum

Answer:

It depends

Explanation: If the quota is a lower value than the current level of japan sales, the equilibrium price will go up, because the supply will be lower than the demand pushing the price to rise and incentivizing other car suppliers to increase the offer. If the quota is higher than the current sales of Japanese cars, and if the demand keeps pushing the supply to go up, the market share of Japanese car will grow until meeting the quota. The price will go up until achieve equilibrium again. After that point, the market supply will be based on changes in the market no related to Japanese imports.

7 0
3 years ago
You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employee
Dmitrij [34]

Answer:

This presentation helps you choose which of the five health insurance options works best for your family.

Explanation:

In this instance the most appropriate statement will be one that helps the employee choose the best plan for themselves.

A statement with the you voice and language that is simple to understand will be best.

The statement - This presentation helps you choose which of the five health insurance options works best for your family. Best embodies these traits that will attract employees to the fair

8 0
3 years ago
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