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3 years ago

Why are only final goods and services included in the calculation of GDP?

Business

1 answer:

zavuch27 [327]3 years ago

5 0

Answer:

Only final goods and services are included in the calculation of GDP to avoid counting things multiple times.

Explanation:

In the calculation of the GDP only final goods and services are included because the prices of the these already have the costs of all the things that were used to produce them. If we count the intermediate products and services that were used for the final output, we will be double counting which will give a result that is not a correct estimation.

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On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $350,000 annually for 15 years beginning Mar

Levart [38]

Answer:

Answer for the question:

On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $350,000 annually for 15 years beginning March 31, 2022. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $3,187,770 lease liability. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

Determine the interest rate implicit in the lease agreement. (Do not round intermediate calculations.)

Is given in the attachment.

Explanation:

3 0

4 years ago

During 2019, half of the treasury stock was resold for $180,000; net income was $510,000; cash dividends declared were $1,320,00

Sliva [168]

Answer:

$5,790,000 using opening balance assumption which was not provided in the question

Explanation:

Shareholders Equity 2019= Opening Shareholders Equity + Resold Treasury Stock + Net income - Cash Dividends Paid

Here

Resold Treasury Stock is $180,000

Net income $510,000

Cash Dividends Paid $1,320,000

Opening Shareholders Equity is missing so we assume the following remainder part as I didn't find the remainder part anywhere:

As of Dec. 31, 2018, Warner Corporation reported the following: Dividends payable- 20,000; treasury stock- 600,000; paid-in capital-share repurchase- 20,000; other paid-in capital accounts- 4,000,000; retained earnings- 3,000,000.

Opening Shareholder Equity = Opening paid-in capital accounts + Retained earnings - Treasury Stock + Paid in Capital share repurchases

Opening Shareholder Equity = $4,000,000 + $3,000,000 - $600,000 + 20,000 = $6,420,000

By putting values, we have:

Shareholders Equity = $6,420,000 + $180,000 + $510,000 - $1,320,000

Shareholders Equity = $5790,000

4 0

4 years ago

What would a central bank need to do to reverse the effects of a favorable supply shock on inflation? what would its reaction do

denis-greek [22]

A favorable supply shock is a sudden increase in supply that makes the short-run aggregate supply curve (SRAS) shift to the right, average price levels go down and real GDP also shifts to the right. In this case, average price levels go down as shown in the figure below from p1 to p2 SRAS shifts right.

This may make create deflation in an economy and discourage new producers to enter the market, to bring back inflation, the central bank may reduce interest rates and decrease the money supply in the market, and in short, will follow expansionary monetary policy. This will make people demand more and hence as aggregate demand shifts to correct average price levels may again go up. This move will create new jobs in the market as aggregate demand will increase in the short term.

A supply shock is an event that causes unexpected cost increases or production disruptions. This shifts the short-run aggregate supply curve to the left, boosting inflation and lowering real domestic production.

Learn more about supply shock at

brainly.com/question/9270152

#SPJ4

6 0

2 years ago

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable compet

balu736 [363]

Answer:

resources that are valuable, rare, costly to imitate, and non-substitutable

Explanation:

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable competitive advantage through product excellence. A firm can, however, develop an advantage through product excellence with resources that are valuable, rare, costly to imitate, and non-substitutable

Apart from product excellence, Intangible assets that have no physical presence like Brand reputation, trademarks and intellectual property are all intangible assets unlike physical resources, cannot buy from the market by other competitors. They are developed within a company and constitute the source of sustainable competitive advantage.

In particular, the resources that generate competitive advantage are those that possess the VRIO characteristics,which implies that they are

Valuable, hence there will be no competitive disadvantage

Rare, hence there will be no competitive parity

Imitate, - are costly and difficult to imitate hence they cannot be copied

Organised to Capture Value - which means they are non-substitutable.

4 0

4 years ago

A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests.

adoni [48]

B it false
we should all know that

7 0

3 years ago