All categories

3 years ago

What does the investment component of GDP measure?

Business

1 answer:

Allisa [31]3 years ago

8 0

Answer:

b. spending on goods to be used in future production

Explanation:

There are basically four components of Gross domestic product (GDP) which are as follows

GDP = Consumption spending + investment + government spending + net exports

where,

Net exports would equal to

= Export-import

Here, investment means the investment is done on goods which increase in productivity for the future period so that overall output could be increased

You might be interested in

Ms. Benoit is a self-employed architect who earns $300,000 annual taxable income. For the past several years, her tax rate on th

svetlana [45]

Answer:

Less revenue the government collect = $30,000

Less revenue the government collect = $11,250

Less revenue the government collect = $36,250

Explanation:

A.Present revenue collection = $300,000 x 35%

Present revenue collection = $105,000

Forecast present revenue collection = $300,000 x 25%

Forecast present revenue collection = $75,000

Less revenue the government collect = $105,000 - $75,000

Less revenue the government collect = $30,000

B.New revenue collection = $375,000 x 25%

New revenue collection = $ 93,750

Less revenue the government collect = $105,000 - $93,750

Less revenue the government collect = $11,250

C.New revenue collection = $275,000 x 25%

New revenue collection = $ 68,750

Less revenue the government collect = $105,000 - $68,750

Less revenue the government collect = $36,250

7 0

3 years ago

"A potential client is 81 years old and has asked his representative for recommendations of speculative "Dot Com" stocks. The cu

torisob [31]

Answer:

allocate a portion of the customer's portfolio to "Dot Com" stocks that will not reduce the customer's retirement income below the amount needed for comfortable living

Explanation:

Given that the potential client is concerned that his purchasing power is decreasing and wishes to allocate an increased portion of his portfolio to aggressive growth stocks.

Hence, the best recommendation is to "allocate a portion of his portfolio to "Dot Com" stocks that will not reduce his retirement income below the amount needed for comfortable living"

8 0

2 years ago

Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only o

tester [92]

Answer:

The special order should be rejected since it decreases net profit.

Explanation:

Alpha = $225

Beta = $175

total production capacity = 130,000 pounds

raw materials = $6 per pound

Production costs per unit Alpha Beta

direct materials $42 $24

direct labor $42 $32

variable manufacturing overhead $26 $24

fixed manufacturing overhead $34 $37

variable selling expenses $31 $27

<u>common fixed expenses $34 $29 </u>

total cost per unit $209 $173

Cane expects to sell 114,000 Alphas.

Net profit = (114,000 x $225) - (114,000 x $209) = $25,650,000 - $23,826,000 = $1,824,000

If the new sales order is accepted, Cane's revenue will increase to:

101,000 x $225 = $22,725,000
29,000 x $156 = $4,524,000
total = $27,249,000

Their total cost will by:

114,000* x $209 = $23,826,000
16,000 x ($209 - $34 avoidable fixed costs) = $2,800,000
total = $26,626,000

*This sale increases the output, but previous costs cannot be avoided.

Net profit with special order = $27,249,000 - $26,626,000 = $623,000

The special order should be rejected since it decreases net profit.

6 0

3 years ago

Baskets Inc. gathered the following actual results for the current month: Actual amounts: Units produced 6000 Direct material

ss7ja [257]

Answer:

price variance $(22,800.00) UNFAVORABLE

Explanation:

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $6.00

actual cost $9.00

quantity 7,600

difference $(3.00)

price variance $(22,800.00)

We calculate the actual cost by dividing total cost by the lbs purchased:

68,400/7,600 = 9

Because the diference is negative, the variance is unfavorable.

Each pound cost more than it was planned.

8 0

2 years ago

What basically compares what an individual owes compared with how much they earn monthly?

STALIN [3.7K]

Answer:

C. Debt to Income Ratio

Explanation:

The debt to income ratio (DTI)provides a picture of the level of debts of a borrower. The DTI is usually expressed as a percentage of gross income. A high debt to income ratio indicates a person spends a high percentage of income on paying debts.

Lenders use the debt to income ratio to assess a borrower's ability to repay debts. Individuals with low DTI are preferred to those with a high one.

3 0

2 years ago