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IRISSAK [1]
3 years ago
10

Firm A produces desks. It is situated in the US but imports wood from Brazil. Last year it imported $8,000 in lumber and sold 10

0% of its production for a total value of $56,000 (assume transportation costs are negligible). What was the total value added by this firm to the economy (in terms of GDP) last year (in dollars)?
(A) 56,000
(B) 64,000
(C) 48,000
Business
1 answer:
Veronika [31]3 years ago
6 0

Answer:

The correct answer is C: 48000

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

<u>The formula is: </u>

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

AddedGDP= 56000-8000

AddedGDP= 48000

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On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to rece
hichkok12 [17]

Answer:

a) What is the expected transaction price with variable consideration estimated as the expected value?

  • original cost $5,800 if job is finished in one month (15% probability)
  • bonus price for finishing 2 weeks earlier $5,800 x 1.25 = $7,250 (25% probability)
  • bonus price for finishing 1 week earlier $5,800 x 1.15 = $6,670 (60% probability)

expected transaction price = ($5,800 x 15%) + ($7,250 x 25%) + ($6,670 x 60%) = $6,684.50

b) What is the expected transaction price with variable consideration as the most likely amount?

$6,670, since it has a 60% probability

3 0
3 years ago
Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
Julli [10]

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

5 0
3 years ago
A transaction that is likely to cause an increase in a current liability is: Multiple Choice payment of accrued wages. accrual o
BartSMP [9]

Answer:

The correct answer is accrual of interest expense.

Explanation:

Interest expense is an expense you incur when you borrow money. The lender charges you a specific interest rate that is expressed in your loan document. As time passes, you are charged interest on the amount you borrowed. You may have to calculate the simple or compound interest on your loan depending on how it is structured. If the loan is for business, you will enter interest expenses in your accounting records.

8 0
3 years ago
Apply What You’ve Learned - Managing Credit Cards and ConsumerLoans
timama [110]

Answer:

1) In general, is it a good idea to make only minimum payments on your credit cards?

  • No, the small payment requirement is mathematically guaranteed to keep you in debt for many years.

All you have to do is analyze the interest rates charged by the credit card companies and it is really difficult for any investment to match those interest rates.

2) Assuming you have $1,500 in your budget this month with which to pay down your credit cards, how much should you pay on each card?

I would start with the cards that charge the highest interest rates. I would pay the full balance of the department store card and the gasoline card = $600 + $300 = $900

Since I have $600 left, I would then pay the minimum payments for the cards that charge the least interest rates. I would pay $40 to Discover card and $60 to VISA.

The remaining $500 would be used to pay MasterCard 1 card and lower its balance.

4 0
3 years ago
Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,00
Marina CMI [18]

Answer:

option (c) $600

Explanation:

Given:

Tax = $4 per unit

Initial equilibrium quantity = 2,000 units

Final equilibrium quantity = 1,700 units

Decrease in consumer surplus = $3,000

Decrease in consumer surplus = $4,400

Now,

Deadweight Loss is calculated using the formula:

Deadweight loss

= \frac{1}{2} × Tax × (Original equilibrium quantity - New equilibrium quantity)

on substituting the respective values, we get

Deadweight loss = \frac{1}{2} × 4 × (2,000 - 1,700)

or

Deadweight loss =  2 × (3)  = $600

Hence,

the correct answer is option (c) $600

4 0
3 years ago
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