1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elina [12.6K]
4 years ago
10

Do the following activities contribute to US GDP in 2020? Explain why or why not? In which year do these activities contribute t

o US GDP and to which component of expenditure?
(a) A new Toyota Camry built in Japan and sold in the US in 2019

(b) A new Toyota Camry built in Tennessee in December 2013 and sold in Canada in January 2020

(c) A used Toyota Camry built in Japan in 2007 and sold in the US in December 2020

(d) A new Toyota Camry built in Tennessee in December 2013 and sold in North Carolina in June of 2020

(e) A used Toyota Camry bought by a used car dealership for $5000 and sold for $6000 in 2020
Business
1 answer:
ale4655 [162]4 years ago
8 0

Answer:

Explained below.

Explanation:

In option (a) no it does not contribute to the US GDP in any year. The transaction appears in expenditure as an increase in consumption and a decrease in net exports that offset. According to option (b) yes it contributes to US GDP in 2013. The transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in net exports offset by a decrease in investment. According to option (c), the transaction appears in expenditure as an increase in consumption in 2014 offset by a decrease in net exports. Option (d) represents the transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in consumption offset by a decrease in investment. According to option (e) yes, it contributes $1000 to US GDP in 2014. The $6000 purchase price exceeds the price paid by the used car dealer. The difference represents value added by the dealership - this is a service that should be counted as part of GDP.

You might be interested in
In January, 2006, Findley Corporation purchased a patent for a new consumer product for $720,000. At the time of purchase, the p
bezimeni [28]

Answer:

b. $360,000.

Explanation:

Data provided in the question

Purchase value of the patent = $720,000

At the time of purchase, the patent life is 15 years

And, the useful life of the patent is 10 years

So, the amortization expense recorded value is

= $720,000 ÷ 10 years × 5 years

= $360,000

The five years is counted from the year 2006 to the year 2011

8 0
3 years ago
Blanchard and Hersey's Situational Leadership style used which two dimensions to determine employee readiness?
Darya [45]

Answer:

According to Hersey and Blanchard, readiness refers to "the extent to which a follower has the ability and willingness to accomplish a specific task" (1988, p. 174). The two dimensions composing employee readiness are willingness and ability related to a specific task.

3 0
3 years ago
Susan can pick 4 pounds of coffee in an hour or gather 2 pounds of nuts. Tom can pick 2 pounds of coffee in an hour or gather 4
Charra [1.4K]
4 + 2 = 6
2 + 2 = 4
totally 10
4 0
3 years ago
Which refers to business practices that are deliberately misleading?
Ber [7]

Answer:

Fraud is the correct answer.

Explanation:

5 0
3 years ago
Read 2 more answers
The company cost of capital for a firm with a 60/30/10 debt/common/preferred split, 8% cost of debt, 15% cost of equity, preferr
sveticcg [70]

Answer:

b. 8.82%

Explanation:

WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt

Cost of Preferred Stock calculation :

Cost of Preferred Stock = Expected dividend / Market Price x 100

                                        = $6 / $50 x 100

                                        = 12 %

After tax cost of debt calculation :

After tax cost of debt = Interest x (1 - tax rate)

                                    = 8 % x (1 - 0.35)

                                    = 5.20 %

therefore,

WACC = 15% x 30 % + 12 % x 10 %+ 5.20 % x 60 %

           = 8.82 %

6 0
3 years ago
Other questions:
  • The local board of education wants to prohibit students from bringing cell phones to school. What new evidence might be
    11·2 answers
  • Survey data can be collected with questionnaries. Which type of question has a limited number of preselected responses?
    12·1 answer
  • How do businesses help a country's economy
    6·2 answers
  • The degree of a consumer's willingness to adopt new products and services shortly after they have been introduced is known as __
    12·1 answer
  • The average cost method of process costing differs from the FIFO method of process costing in that the average cost method: Grou
    7·1 answer
  • Each country must answer three economic questions.<br>Define and describe each economic question
    8·1 answer
  • When recommending a 529 Plan to a client, the registered representative should inform the customer about the: A income-phase out
    8·1 answer
  • When the demand for the economy is expanding, the demand for loanable funds will ________.
    6·1 answer
  • If a broker receives a due diligence fee from a buyer under the north carolina standard offer to purchase and contract, when can
    15·1 answer
  • Purely domestic firms will be at a disadvantage to mnes in the event of market disequilibria because
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!