1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zanzabum
3 years ago
7

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for

2016? Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households. Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440
Business
1 answer:
Katen [24]3 years ago
5 0

Answer:

1) C) The value of the services of the real estate agent

2) B) $6,400

Explanation:

First, there are two questions lumped together as one

Question 1:  Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

A) The value of the house in 2013

B)The value of the house in 2016 minus depreciation

C) The value of the services of the real estate agent

4) The value of the house in 2016

Question 2: Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.

Products         Quantity                            Price

Shoes            40                                     $60

DVDs             100                                   $18

Tomatoes       2,000                              $1

Ketchup          300                                  $4

Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440.

<u>Answer to the First Question</u>

First the Gross Domestic Product of a Country usually represents the market value or referred to as total monetary value of finished products as well as services that were engaged in during a specific period of time and within the borders of that country. The thing about GDP is that it only reflects items that are captured as products or services and which are reported for the year.

In the question therefore, the GDP will only reflect the value of product or service that was newly created in 2016. The house was built in 2003, therefore the relevant GDP item (value of the house) was captured in 2003.

The only new value is the Value of the services of the real estate agent who was engaged in 2016 to facilitate the sales of the house.

<u>Answer to the Second Question:</u>

Nominal GDP  represents GDP valued at current market prices for products or services.

To calculate the Nominal GDP we look at the goods and then calculate based on their current market prices.

(Shoes = 40 pieces x $60) + (DVDS = 100 pieces x $18) + (Tomatoes (1000x$1 - 1/2 purchased by households)  + (Ketchup 300 x $4)

= $2400+ $1,800+ $1000+ $1,200

= $6,400

You might be interested in
When ________, business firms will collectively supply a lower quantity of output at any given price, and the supply curve will
Ganezh [65]

When <u>cost of production increase </u>  business firms will supply lower quantity of output

<h3>Effect of production cost on prices </h3>

When the cost of production increases, producers will tend to produce a lesser quantity of goods and services and this is cause an increase in demand over supply in the open market.,

An increase in demand without a corresponding increase in supply will cause the supply curve to shift to the left.

Hence we can conclude that When <u>cost of production increase </u>  business firms will supply lower quantity of output

Learn more about shift in supply curve : brainly.com/question/23364227

#SPJ1

7 0
1 year ago
He encourages his r&amp;d department to develop innovative products and focuses on being quick to respond to market changes. tec
bekas [8.4K]
<span>He encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. technology sales has an </span>adhocracy culture.

Hope this helps !

Photon
3 0
3 years ago
When can a bank repossess someone's car?
Marysya12 [62]

Answer:

A. when the owner defaults on the loan payment

6 0
2 years ago
Read 2 more answers
The following items are reported on a company's balance sheet: Cash $160,000 Marketable securities 75,000 Accounts receivable (n
marusya05 [52]

Answer and Explanation:

a. The current ratio is

We know that

Current ratio = Current Assets ÷ Current Liabilities

= $440,000 ÷ $200,000

= 2.2

Cash $160,000

Marketable Securities $75,000

Account receivable $65,000

Inventory $140,000

Current Assets $440,000

Account Payable $200,000

current liabilities $200,000

b

Quick ratio =( Current assets - inventory ) ÷ Current Liabilities

= ($440,000 - $140,000 ) ÷ $200,000

= 1.5

7 0
3 years ago
The Smelting Department of Kiner Company has the following production data for November. Production: Beginning work in process 3
Anvisha [2.4K]

Answer:

(A) 18,600 units

(B) 13,821 units

Explanation:

(A) The computation of the equivalent unit for material cost is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (10,500 units × 100%) + (8,100 units × 100%)

= 10,500 units + 8,100 units

= 18,600 units

(B) The computation of the equivalent unit for conversion cost is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (10,500 units × 100%) + (8,100 units × 41%)

= 10,500 units + 3,321 units

= 13,821 units

6 0
3 years ago
Other questions:
  • A married customer who has an individual account dies. The broker who handles the account learns that one of the major holdings
    15·1 answer
  • So im 12 yrs old and i have been asked to babysit my neighbors two boys for 4 hours 5 days a week ( one 4 one 2 yrs old) since i
    15·1 answer
  • Walter Company uses a job-order costing system to account for product costs. The following information pertains to the current y
    7·1 answer
  • Traveler's checks have no reserve requirements and are included in M1. When people travel during the summer and convert some of
    10·1 answer
  • The central bank requires Southern to hold 10% of deposits as reserves. Southern Bank's policy prohibits it from holding excess
    14·1 answer
  • Prepare journal entries to record the following transactions involving the short-term securities investments of Krum Co., all of
    15·1 answer
  • 3. (01.02 MC)
    6·1 answer
  • Can someone PLEASE PLEASE HELP ME WITH THIS!!!!!
    13·1 answer
  • What’s is the key feature of a business
    11·1 answer
  • Contribution margin ______.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!