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Paladinen [302]
3 years ago
5

Suppose a gold miner finds a gold nugget and sells the nugget to a mining company for $600. The mining company melts down the go

ld, purifies it, and sells it to a jewelry maker for $1,000. The jewelry maker fashions the gold into a necklace that it sells to a department store for $1,600. Finally, the department store sells the necklace to a customer for $2,200.
Required:

How much has GDP increased as a result of these transactions?
Business
1 answer:
KIM [24]3 years ago
8 0

Answer:

GDP grew by $2,200

Explanation:

G<em>ross domestic product (GDP) which is the total market value of all the final goods and services produced in a country over a given period of time. The GDP can be calculated using the value added approach.</em>

Here the GPD figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.

<em>Only the values added are summed, the cost of the inputs or intermediate goods are not included</em>

<em>In this question, the final value of $2200 represents the amount by which the GDP has increased in the period. This also can be verified using the value-added approach as follows</em>

                                                   Value added($)

Gold miner   -                                   600

Mining company : 1000 -600 =      400

Jewerlry maker  :1600 - 1000 =      600

Departmental store :2200 -1600 = <u>600</u>

Total value added                           <u>2,200</u>

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Answer:

The correct answer is accounting profit is positive.

Explanation:

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The implicit costs are the indirect costs incurred. They are generally the opportunity cost of sacrificing the alternative option. There is no actual payment involved.  

The accounting profits include only explicit costs incurred in the production process. It is the difference between total revenue earned and explicit cost.  

A normal profit means zero economic profits. But accountable profits is higher than economic profits, so there will be some positive accountable profit.

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Draw a curve that shows the relationship between quantity and total revenue when the demand curve for umbrellas is linear.
irakobra [83]

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Revenue is the amount of money generated WITHOUT subtracting the costs of business. In economics, the total sales test is a means of determining whether demand is elastic or inelastic. If an increase in price leads to an increase in total sales, demand is said to be inelastic because the increase in price does not significantly affect the quantity demanded.

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5 0
1 year ago
Internal resources, such as the legal department, training department, information technology department, tend to be under-utili
bixtya [17]

Answer:

b. All of the answers are correct.

Explanation:

Death Spiral is a situation when a company's goods or services produced are declining and fixed cost is same. The company will be exposed to a burden of fixed cost if its output is reduced.  

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3 years ago
State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credi
Leya [2.2K]

Answer:

No. Account Type                                                 Likely account entries

1. Fees Earned , normal balance is credit          (b) Credit entries only

2. Utilities Expense , normal balance is debit     (a) Debit entries only

3. Accounts Payable , normal balance is credit  (c) both debit and credit entries

4. Supplies , normal balance is debit                  (c) both debit and credit entries

5. Cash , normal balance is debit                       (c) both debit and credit entries

6. Accounts Receivable , normal balance is debit (c) both debit and credit entries

Explanation:

Accounts that normally have debit entries include assets (both long-term and current), expenses, and losses.  Accounts that normally have credit entries are liabilities, equity, revenue, income or gains.  Most accounts have debit and credit entries before their normal balances are indicated. The accounts with debit entries are mainly expenses and losses, while revenues and income have mainly credit entries.

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