You do an internet search and the results list includes the Web site www.FDIC.gov. This information is?

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

Katen [24]

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.

Answer to the First Question

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.

Answer to the Second Question:

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

5 0

3 years ago

How to paraphrase this information

Bumek [7]

When paraphrasing, you must summarize the info without losing any of the key points.

You could say "Please submit your budget requirements for major purchases in order of highest priority to lowest priority to assist in annual planning."

This sentence hits all of the key elements more succinctly.

5 0

3 years ago

A _____ savings account pays interest and allows for a regular deposits and withdrawals

lisov135 [29]

Answer:

Regular savings account 

Explanation:

One requires to commit small amounts of income each month on a regular savings account.

In exchange for providing your savings provider a fixed level of income every month, they normally pay you a higher rate of return than, for instance, if you invest a lump sum in a cash ISA or easy access account.

However, the best regular savings rates also exceed the prices on the longer fixed-rate offers offered.

This type of account has rigorous terms of service that may cause you to lose your competitive rate if you fail to adhere to them.

7 0

2 years ago

Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs

Neporo4naja [7]

Answer:

Correct answer is c. $211,555.

Explanation:

Here inventory cost means total ordering cost plus total carrying cost for they year. This can be determine by using simple EOQ (economic order quantity) formula given below.

EOQ =((2* Annaul Requirement * cost per order)/carrying cost per unit)^ (1/2)

EOQ = ((2*800,000*540)/(370*14%))^(1/2)

EOQ = 4,084 units

so

Total order cost = 800.000/4,084 * 540 = 196 (aprox) *540 = 105,840 -A

Total Carrying cost = 4,084/2 * (370*14%) = 105,776-B

Total Cost = A+B = $ 211,555 (aprox)

0 0

3 years ago

Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the r

guajiro [1.7K]

Answer:

b) A free market in tradable permits is typically more efficient that government regulation

Explanation:

When companies are forced to buy rights to pollute, they are paying a cost for the pollution they create. If they pollute more, they will end paying more for that pollution. (demand of rights to pollute)

On the other hand, companies that pollute almost nothing can sell rights to pullute saving money: this will create a benefit for companies who take care of environment. (supply of rights to pollute)
Then, there will be a market of rights to pullute, where some companies will sell and others will buy rights to pullute. In this market, the price of rights to pollute will be determined efficiently.
Because the production of absolutely every good or service sold in our economy implies pollution, there is a cost society is willing to pay in terms of pollution to get the goods and services it consumes. For example, I am willing to keep buying soda, besides I now for sure its production has certain negative effects on environment. I demand the product, therefore the company (that pollutes) has incentives to keep selling the product.
The cost we are willing to pay to keep consuming goods will be related to the demand and supply of rights to pollute : companies whose producs are more demanded (by us!) would buy more rights to pollute when neccesary, and companies whose products are not that demanded will buy less rights to pollute, transmiting this results to prices.
Then, pollution rights became an efficient way of assigning a price to pollution.

4 0

2 years ago