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sergejj [24]
2 years ago
8

The chart gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP

for both years. Use 2017 as the base year. 2016 2017 Price Quantity Price QuantityIce cream $7.00 600 $3.00 400Blue jeans $70.00 20 $20.00 90Laptops $300.00 5 $300.00 52016 nominal GDP: $2016 nominal GDP: $2017 nominal GDP: $2017 nominal GDP: $2016 real GDP: $2016 real GDP: $2017 real GDP: $2017 real GDP: $
Business
1 answer:
Mrac [35]2 years ago
4 0

Answer:

Explanation:

The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2017 as the base year.

Year                 2016             2017  

                      Price      Quantity Price Quantity  

Ice Cream $7.00        600      $3.00 400

Blue Jeans $70.00          20       $20.00   90

Laptops       $300.00            5       $300.00     5

2016 nominal GDP = $_(7 x 600) + (70 x 20) + (300 x 5)_ =  $7,100

2017 nominal GDP = $_(3 x 400)+(20 x 90) + (300 x 5)_  = $4,500

2016 real GDP = $__(7100-4500)/ 4500)) / change in ice cream price of 50%+ change in blue jean price of (70-20/20) 250%_______

= 0.57/3 = 0.19% growth. Technically the economy was better in 2016 than in 2017.

2017 real GDP = will be same as nominal, hence no growth  since this is the base year

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Wheldon Wheels Inc. (WW) is a US-based manufacturer that exports car parts to Taiwan. WW expects to receive 20,000,000 Taiwan do
ra1l [238]

Answer: Enter into a futures contract

Explanation:

Wheldon Wheels inc. operates in the United states, The company exports car Parts to Taiwan which means they do business with companies in Taiwan. The amount that Wheldon Wheels inc receives when they export car parts depends on the Exchange rate between a US dollar and Taiwan Dollar.

Exchange rates between currencies fluctuates every day in the market which presents a problem of uncertainty because when exchange rate changes the value of the transaction changes and that will increase or decrease a company's profits in each transaction.

Wheldon Wheels Expects to receive 20 000 000 Taiwan dollars in 90 days, since the company is in The united states the amount of 20 000 000 of Taiwan Dollars Receivable will need to be converted into US dollars. The Problem is, The exchange rate may decrease or increase in the next 90 days which will affect how much Wheldon Wheels receives in dollars.

Wheldon Wheels inc may Protect them selves against Exchange rate Fluctuations by entering into A Future Contracts with a Bank or exchange dealer. Futures Contract will provide Wheldon Wheels inc with an opportunity to sell 20 000 000 Taiwan Dollars in 90 days at a fixed predetermined exchange rate. The Dealer Promises to Buy 20 000 000 Taiwan Dollars in 90 days at a Predetermined Fixed exchange rate.

example

suppose the (WW) enters into a Futures contract to sell 20 000 000 Taiwan Dollar in 90 days at an Fixed exchange rate of $1 = 1.5 Taiwan dollar, if the market exchange rate in 90 days is $1 =  1.3 Taiwan dollar Wheldon Wheels inc would be protected. The Exchange rate for the 20 000 000 Taiwan Dollar transaction would remain at $1 = 1.5 Taiwan dollar

5 0
3 years ago
Read 2 more answers
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 4,600 Salaries expense 1,800
Naily [24]

Answer:

                                                  <u>Cowboy Law Firm</u>

                    <u>Income statement for the period ended December</u>

                                                                          Amount in $

Service revenue                                                   8,500

Utilities                                                                  (1,000)                                    

Salaries expense                                                 <u> (1,300)</u>

Net income/(loss)                                                 <u>  6,200</u>

Explanation:

An income statement is a part of the financial statements that shows how profitable the activities of an entity was for a given period of time. It is usually stated as the income statement for a period end.

The elements of the income statement include the revenue otherwise called sales, expenses including cost of goods sold, operating expenses etc and the profit or loss as well as the other comprehensive income/loss.

5 0
3 years ago
Cave Hardware's forecasted sales for April, May, June, and July are $150,000, $250,000, $100,000, and $290,000, respectively. Sa
dmitriy555 [2]

Answer:

$160,000

Explanation:

The computation of budgeted cash payments in June is shown below:-

For computing the budgeted cash payments in June first we need to find out the may credit sales and June cash sales.

May credit Sales = May = $250,000 × 40% × 100%

= $100,000

and

June cash sales = $100,000 × 60%

= $60,000

Cash collection budgeted June = May credit Sales + June cash sales

= $100,000 + $60,000

= $160,000

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3 years ago
Help me out here I got a d
Aneli [31]

Answer:

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3 years ago
Exercise 2-15 Computing net income LO A1 A corporation had the following assets and liabilities at the beginning and end of this
Ipatiy [6.2K]

Answer:

a. $32,039

b. $19,439

c. -$12,961

d. $9,639

Explanation:

We will use accounting equation to solve the above question.

Assets = Liabilities + Equity

Also;

Net income will be the difference in equity plus dividends minus contributions

= [Ending equity - Beginning equity ] + Dividends

Since the beginning and ending equity is the same for all the years, then we'll have

$71,500 = $30,652 + Equity

Equity = $40,848

Ending equity = $122,500 - $49,613

= $72,887

a. Income : $72,887 - $40,848 + 0 - 0

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b. $72,887 - $40,848 + $1,050 × 12 - 0

= $19,439

c. $72,887 - $40,848 + 0 - $45,000

= -12,961

d. $72,887 - $40,848 + $1,050 × 12 - $35,000

= $32,039 + $12,600 - $35,000

= $9,639

6 0
3 years ago
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