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Ratling [72]
2 years ago
11

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previou

s owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.
a. $160,000.
b. $250,000.
c. $10,000.
d. $90,000.
e. $260,000.
Business
1 answer:
Aloiza [94]2 years ago
8 0

Answer:

c. $10,000.

Explanation:

Gross domestic product is the sum total of all goods produced in a country in a given period. Sale of used good are not considered in GDP because the original value of the used item would have been recorded previously as GDP when it was first produced.

Therefore in this scenario the money paid for the house ($250,000) is not considered to be part of GDP since the original value of $90,000 would have been recorded as GDP 10 years ago.

However the commission of $10,000 that the real estate agent collected for his services is considered a contribution to GDP.

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Lists two things that both increase the money supply?
DENIUS [597]

Answer:

Decrease is taxes

Increase in government spending

Explanation:

Government policies that increases the money supply in an economy is known as expansionary fiscal policy. They are:

1. Decrease is taxes - when government reduces the tax rate, the amount paid as taxes falls and as a result individuals, companies have higher disposable income whuch can be used for consumption or saving. This increases the money supply in the economy.

2. Increase in government spending - if the government increases it's spending on public goods for example, money supply would increase. If the government constructs a road, labour would be employed and paid wages. This payment increases the income of Labour and money supply increases.

Central bank policies that increases money supply are known as expansionary monetary policies. They include:

1. Open market purchase: The central bank purchase securities from the open market to increase money supply.

2. Reduction in reserve requirement ratio : if the reserve requirement ratio is reduced , commercial banks would have more money to give out as loans and this would increase money supply.

6 0
3 years ago
Which of the following statements is true of process​ costing? A. It tracks and assigns both period costs and product costs to u
Dahasolnce [82]

Answer:

B) It accumulates product costs by production departments.

Explanation:

Process cost is used to ascertain the cost of a product at all stages of production. Total cost is an addition of all the individual process costs. Usually this is used in companies that produce homogeneous goods.

For example manufacturers for processed foods, and chemicals.

7 0
3 years ago
America's basic cold war strategy emerged when the Truman administration adopted the recommendations of U.S. diplomat and Soviet
Goshia [24]

Answer:

The containment doctrine.

Explanation:

American government's fear of Soviet expansion (communism) triggered the entrance of the US into the cold war. During the 1940s the US developed an strategy of nuclear deterrence since it lacked sufficient amount of troops to confront the Soviet army in eastern Europe. The Truman Doctrine helped to expand the cold war to the whole world.

3 0
3 years ago
Question #8
mojhsa [17]
It’s mainly talking about money and workers and how businesses increase the focus on the task soo i think the answer is “The economy”
3 0
2 years ago
Read 2 more answers
Which one of the following is a means by which shareholders can replace company management? Multiple Choice Stock options Promot
Katena32 [7]

Answer:

Proxy Fight

Explanation:

Proxy fight refers to that scenario wherein a group of shareholders coming together so as to gain more shareholder proxies and thus gain majority of the votes.

In such cases, outsiders convince the existing shareholders of a corporation to vote against the management and thus collectively lead to it's replacement.

This represents one of the common means of corporate takeover.

Disgruntled shareholders may unite against a management decision or any sort of oppressive policies by such means, usurp the existing management and appoint their own preferred candidates as their replacement.

5 0
3 years ago
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