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Rudiy27
3 years ago
15

One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second

bag of flour is sold for $1 to a grocery store who sells it to a consumer for $2.00. Taking these four transactions into account, what is the effect on GDP?a. GDP increases by $3.00.b. GDP increases by $5.00.c. GDP increases by $6.00.d. GDP increases by $7.00
Business
1 answer:
Phoenix [80]3 years ago
8 0

Answer:

The correct answer is option b.

Explanation:

GDP is a measure of economic growth that shows the level of final goods and services produced in an economy in a year. It includes only final goods and services, intermediate goods are not included.  

So here the value of flour used to make bread will not be included as it is an intermediate good. But the value of bread will be included. The value of the second bag of the floor will be included as it is a final good sold to the consumer.  

Increase in GDP

= $3 + $2

= $5

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Answer:

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a) The chances are high that your decision will be biased, especially because the current problem is complex and past patterns will be an inaccurate guide.

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The correct answer is: c) You will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization.

Explanation:

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7 0
3 years ago
An investment earns 10% the first year, earns 15% the second year, and loses 12% the third year. the total compound return over
denpristay [2]
<span>The compound return over 3 years is 3.67%. This is found by evaluating the following expression: (1.10*1.15*0.88)^1/3 - 1 = 3.67%.</span>
8 0
3 years ago
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Answer:

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Answer:

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8 0
3 years ago
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