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Svetllana [295]
3 years ago
7

A mechanic builds an engine and then sells it to a customized body shop for $7,000. The body shop inserts the engine into the ca

r and resells it to a dealer for $20,000. The dealer then sells the finished vehicle for $42000. a. When the consumer drives off with the car, GDP increases by $ . b. What is the value added by the mechanic? (Assume that the value of the materials used to build it is zero.) $ c. What is the value added by the body shop? $ d. What is the value added by the dealer? $ e. The total value added is the amount that GDP increased.
Business
1 answer:
lora16 [44]3 years ago
3 0

Answer:

The answers are:

A) The GDP increases by $42,000 when the consumer drives off with the car (a new final product was sold).

B) The mechanic added $7,000 to the car´s value.

C) The body shop added $13,000 to the car´s value.

D) The car dealer added $22,000 to the car´s value.

E) The total value added (by the mechanic, body shop and car dealer) is $42,000, the same amount as the GDP increased.

Explanation:

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Alexandra [31]
The correct answer from given options is "focus group".
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7 0
3 years ago
According to ___________________, if the money supply grows at 6%, real gdp grows at 2%, and the velocity of money is constant,
IceJOKER [234]

The quantity theory of money predicts that the inflation rate will be 4% if the money supply increases by 6%, real GDP increases by 2%, and the velocity of money remains constant.

All the money and other liquid assets present in an economy on the measurement date are referred to as the money supply. The money supply roughly consists of deposits that can be utilized virtually as easily as cash in addition to actual currency.

Governments issue coin and paper money supply through a mix of national treasuries and central banks. By dictating to banks what reserves they must maintain, how to offer credit, and other financial issues, bank regulators have an impact on the amount of money that is available to the general people.

By regulating interest rates and altering the amount of money flowing through the economy, economists study the money supply and create policies based on it. Because the money supply may have an impact on price levels, inflation, and the business cycle, both the public and private sectors conduct analyses. The most significant determining factor in the money supply in the United States is Federal Reserve policy. The term "money stock" also applies to the money supply.

Learn more about money supply here

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5 0
2 years ago
According to the circular flow model of the market system, when resource-owners' money income is rising, then the costs to busin
mojhsa [17]

Answer:

(B) False

Explanation:

In the circular flow, the raw material that is basic resource provider gets to increase his income which means that his profit margin is high thus sales value is high and therefore, the result will be higher cost for the producers using such resources.

Since the cost to producers is revenue to resource owner's, this means high revenue to owner's and high cost to producers.

Thus, above stated statement is

(B) False

5 0
3 years ago
Schlictor company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the
Nataly [62]

Answer: Schlictor's operating leverage when 2000 units are sold is 3.

The degree of operating leverage is used to calculate the change in operating income with respect to a percentage change in sales.

We can calculate operating leverage of a firm with the help of the following formula:

Degree of operating leverage = \frac{Sales - Variable Costs}{Sales - (Variable costs + Fixed Costs)}

Substituting the values from the question we get

Degree of operating leverage = \frac{(50 * 2000) - (50*0.40*2000)}{[50*2000] - [(50*0.4*2000) + 40000]}

Degree of operating leverage = \frac{100000 - 40000}{[100000] - [(40000) + 40000]}

Degree of operating leverage = \frac{60000}{20000}

Degree of operating leverage = 3

4 0
3 years ago
Ayayai Corporation engaged in the following cash transactions during 2020. Sale of land and building $194,800 Purchase of treasu
Maksim231197 [3]

Answer:

$91,900 (provided)

Explanation:

The cashflow statement shows how much cash has been used up or generated by the company's activities which are classified into 3 groups;

  • Operating,
  • investing and,
  • Financing.

The sale of land and building, purchase of land and equipment are investing activities. Others are financing activities as they relate to owner's equity and long term debts.

The net cash provided (used) by investing activities

= $194,800 - $44,700 - $58,200

= $91,900

4 0
3 years ago
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