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Sonja [21]
3 years ago
7

Suppose that GDP is $10,000, Consumption is $6,000, and Government spending is $1,500 with a deficit of $200. (Assume net export

s are zero) What is the level of private saving in this economy
Business
1 answer:
Marta_Voda [28]3 years ago
8 0

Answer:

private saving = $2700

Explanation:

given data

GDP = $10,000

Consumption = $6,000

Government spending = $1,500

deficit = $200

solution

we know here equation of GDP that is express as

GDP = Consumption + investment + Government spending   ...................1

we consider here tax revenue that is = T

T - Government spending = - deficit

T = Government spending - deficit

T = $1500 - $200

T = $1300

so we can say from equation 1

( GDP - Consumption - T ) + ( T - Government spending ) = investment

and investment = private saving + public saving

so private saving will be

private saving = GDP - Consumption - tax revenue  ................2

private saving = $10000 - $6000 - $1300

private saving = $2700

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Companies can become reasonably mature in project management by designing the right support systems. in general, how much time u
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The early years of a business is linked to survival and growth. It is natural for the founders to not be able to focus on operational excellence.

However, as the company starts to make a profit, the founders are able to work on developing new processes to streamline everything and make it more manageable.

It can take up to 5 years before a company can reach organizational excellence.
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6 0
3 years ago
A local transit authority charges​ $1 for a bus ride. An economics study suggests that in the price range from​ $0.50 to​ $1.50,
Sunny_sXe [5.5K]

Answer:

To increase its revenue, transit authority should lower the fare.

Explanation:

The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.

A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.

5 0
3 years ago
Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees
astra-53 [7]

Answer:

d. skill-based pay system

Explanation:

Skill-based pay system is when the amount paid to an employee is linked to the employees skills, education or knowledge.

The skill-based pay system pays employees for been proficient at their jobs and it encourages employees to gain more skills.

5 0
3 years ago
Andy Basil Industries Inc. reported the following information about the production and sale of its only product during the first
grandymaker [24]

Answer:

Cost of Goods Sold = $ 400,000

Explanation:

Units Sold = $360,000/ $225= 1600

Sales ​                                                                  $360,000

Direct materials ​$176,000

Direct labor ​$100,000

Variable factory overhead ​$44,000

Fixed factory overhead ​$80,000

Total Manufacturing Costs   $ 400,000

Variable selling and administrative expenses ​$20,000

Fixed selling and administrative expenses ​$10,000

Cost of Goods Sold = $ 400,000

As ending Inventory Finished Goods is 400 units it is not included in the Cost of Goods Sold.

3 0
3 years ago
Sunland Company collected $22400 in May of 2016 for 4 months of service which would take place from October of 2016 through Febr
kati45 [8]

Answer:

There is something wrong with this question because October to February is not four months, it's five months.

We can calculate this assuming 3 months of 2016 (October, November, December) and 2 months of 2016 (November and December).

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No option is correct.

6 0
3 years ago
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