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3 years ago

In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because:

Business

1 answer:

Dvinal [7]3 years ago

8 0

Answer:

of changes in price level

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year.

Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

For example, country A produces 10 kg of rice at $10 per kg in 2019 and 50kg of beans at $30 per kg in 2018. In 2019, it produces 10 kg of rice at $20 per kg in 2019 and 50kg of beans at $40 per kg in 2019. 2018 is the base year.

Nominal GDP in 2018 = (10 x $10) + (50 x $30) = $1600

Nominal GDP in 2019 = (10 x $20) + (50 x $40) = $2200

Real GDP in 2018 = (10 x $10) + (50 x $30) = $1600

Real GDP in 2020 = (10 x $10) + (50 x $30) = $1600

We can see that even though the country produced the same quantity of outputs in both years, nominal GDP differed but when the effect of rise in prices was eliminated, real GDP for both years was the same.

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Determine the beginning cash balance for Sweet Treats Eats if the net cash provided by operating activities is $35,000, net cash

Nataly_w [17]

Answer:

$50,000

Explanation:

Given the following information for Sweet Treats Eats

net cash provided by operating activities = $35,000

net cash used by investing activities = $42,000

net cash provided by financing activities = $12,000

ending cash balance = $55,000

Beginning cash balance + $35,000 - $42,000 + $12,000 = $55,000

Beginning cash balance = $55,000 - $35,000 + $42,000 - $12,000

= $50,000

6 0

3 years ago

In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are m

olga_2 [115]

Answer:

market-oriented economy is the correct answer.

Explanation:

8 0

3 years ago

Colby Company has a process costing system in which the weighted-average method is used. The company adds all materials at the b

ivanzaharov [21]

Answer:

$7,650

Explanation:

Ending work in progress = Beginning Work in progress + Units started - Units completed and transferred

= $22,000 + $90,000 - $97,000

= $15,000

Equivalent units = Units completed and transferred + Ending work in progress

= $97,000 + $15,000

= $112,000

Total cost = Material cost (Beginning) + Material cost during the month

= $11,000 + $46,100

= $57,100

Cost per equivalent unit = $57,100 ÷ $112,000

= $0.51

Materials cost of the work in process inventory at March 31 = Ending work in progress × Cost per equivalent unit

= $15,000 × $0.51

= $7,650

4 0

3 years ago

Quality that measures usefulness vs. price paid is which definition of quality? A. Conformance to specifications B. Fitness for

Fantom [35]

Answer:

C. Value for price paid

Explanation:

The quality of goods are measured with the usefullness of the goods to the consumer and how much he is willing is pay for the product is etermined by the utility of goods to the consumer. Higher amount is paid for the goods, which has higher utility to the consumer and it also define quality to the consumer. Price and utility of product remain the main determinant for the quality.

Value of price paid is determined by utility or usefulness of the product for each dollar paid to buy it.

8 0

3 years ago

B) Answer the following questions.

lana [24]

Answer:

Yes, agree, business transactions are economic transactions. Two reasons why:

Profit motive: economic transactions have a profit motive: they are carried out and agreed upon between the two parties, because the parties feel that they will be better off after the transaction is completed. Business transactions are based on the profit motive.
Things of value: goods and/or services, are exchanged between the parties. In business transactions, either a good (for example, an asset), or a service (for example, employees), is always exchanged.

6 0

3 years ago