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Firdavs [7]
3 years ago
8

Consider an economy that produces only DVDs and DVD players. Last year, 10th DVDs were sold at $20 each and 5 DVD players were s

old at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the base year is:A) $100.
B) $700.
C) $1,300.
D) $300
Business
1 answer:
trapecia [35]3 years ago
8 0

Real GDP this year using last year as the base year is

B) $700

Explanation:

  • Last year, 10th DVDs were sold at $20 each and 5 DVD players were sold at $100 each, while this year 15 DVDs were sold at $10 each and 10 DVD players were sold at $50 each. Real GDP this year using last year as the base year is  $700.
  • Gross Domestic Product (GDP) is the monetary value of all finished goods and services made in a country during a specific period of time.
  • The Gross Domestic Product calculates the real value of economic activity within a country.
  • GDP is a number that shows the net worth of the output of a country in local currency.
  • It represents the value of all goods and services produced in a specific time period within a country's borders.
  • Gross domestic product (GDP) is the total value of everything produced in a country.

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Answer:

True

Explanation:

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8 0
3 years ago
The risk premium for exposure to aluminum commodity prices is 4%, and the firm has a beta relative to aluminum commodity prices
sp2606 [1]

Answer:

C.  13.6 percent

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × risk-free rate of return + Beta × market risk premium

= 4% + 0.6 × 4% + 1.2 × 6%

=  4% + 2.4% + 7.2%

= 13.6%

The (Market rate of return - Risk-free rate of return)  is also known as market risk premium

5 0
3 years ago
What will happen to the governmentâs tax revenues if Song chooses to spend more time pursuing her other passions besides work in
ira [324]

Answer:

Government's tax revenues would decrease by $1,250

Explanation:

Please refer the complete question below

Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $20,000 of tax). Answer the questions below assuming that Congress increases the income tax rate such that Song's average tax rate increases from 20 percent to 25 percent.   What will happen to the government’s tax revenues if Song chooses to spend more time pursuing her other passions besides work in response to the tax rate change and therefore earns only $75,000 in taxable income

If Song opts for pursuing his other passions he will end up earning $75,000 and therefore since the tax rate is now 25% he will have to pay $18,750 ($75,000 x 25%) as against the $20,000 ($100,000 x 20%) taxed previously and hence government's tax revenues would decrease by $1,250 ($20,000 - $18,750).

8 0
3 years ago
The knowledge and skills acquired by a worker through education and experience is a description of which factor of production? p
Marta_Voda [28]

Answer:

human

Explanation:

I took the test

6 0
3 years ago
"Assume that Stephanie accumulates savings of $ 2 million by the time she retires. If she invests this savings at 12​%, how much
Lyrx [107]

Answer:

Explanation:

This is an annuity question. Use present value of annuity formula to solve this;

You can use a financial calculator to solve it. I'm using "Texas instrument BA II plus" calculator

<em>(Note: if using the same calculator as above ,enter the numbers first, then each respective function )</em>

N ; duration on investment = 20

I/Y; interest rate per year = 12%

PV; Present value = -2,000,000

FV; Future value = 0 (in annuities, use 0 if not given)

then CPT PMT = 267,757.56

Therefore, Stephanie will be able to withdraw $267,757.56

7 0
3 years ago
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