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3 years ago

3 best basic economic questions

Business

1 answer:

Luba_88 [7]3 years ago

6 0

Answer:What should we produce?

How should we produce it?

For whom should we produce it?

Explanation:

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The country of Growpaw does not trade with any other country. Its GDP is $20 billion. Its government purchases $3 billion worth

Anna [14]

Answer:

option a) 5 billion

Explanation:

Data provided in the question:

GDP = $20 billion

Cost of goods and services = $3 billion

Tax collected = $6 billion

Transfer payments to households = $2 billion

Private saving in Growpaw = $4 billion

Now,

Disposable income = GDP - taxes + transfer payments

=$20 billion - $6 billion + $2 billion

= $16 billion

Consumption = Disposable income - Savings

= $16 billion - $4 billion

= $12 billion

Thus,

Investment = GDP - consumption - government purchases

= $20 billion - $12 billion - $3 billion

= $5 billion

Hence,

the correct answer is option a) 5 billion

8 0

3 years ago

Pesto Company possesses 80 percent of Salerno Company’s outstanding voting stock. Pesto uses the initial value method to account

hichkok12 [17]

Answer:

The retainesd earnings figure will increase by 464,400 dollars

Explanation:

Parent Company premium:

Premium: 750,000 / 20 years = 37,500 depreciation per year

unamortized portion at Dec 31th 2013:

amortized: 750,000 - 37,500 x 4 years = 150,000

unarmortized: 750,000 - 150,000 = 600,000

We must reverse 40% of the premium as is within the same company:

600,000 x 40% = 240,000

Subsidiary Discount:

16,500,000 X 40% = 6,600,000

Purchase at 96.6

Discount of 3.4 = 6,600,000 x 3.4% = 224,400

We must reverse this as is part of the same company.

In total retained earnings will increase by

240,000 + 224,400 = 464,400 dollars

8 0

3 years ago

Which of the following is not a step in creating a debt payment plan? a. Rank all debts in the order in which you would like to

7nadin3 [17]

Answer:

b. Consolidate all credit cards onto a single card with a single interest rate.

Explanation:

When a debt payment plan is initiated then, it is decided according to the outstanding amounts, that which shall be paid first and the order of payment for remaining debts.

For this monthly income and expenses are to be evaluated, in order to decide how much payment shall be made accordingly, in each month.

But this entire process do not involve the step of aggregating all the cards so that there is only one card with the same payment. There is no relation to any such payment.

7 0

3 years ago

A firm negotiates a(n) _________ with its bank. This arrangement gives the firm access to a specified amount of unsecured short-

Vesna [10]

Answer:

Line of credit

Explanation:

A line of credit refers to a mechanism of availing short term credit from banks whereby a borrower is provided with a preset limit till which funds can be availed anytime.

As the borrower repays the money borrowed, the line of credit gets restored to the previous level provided it is an open line of credit.

Line of credit specifies the maximum limit till which money can be borrowed. The rate of interest and repayment time period are decided by the lender which is usually a bank.

Borrower is usually supposed to pay interest upon the money actually borrowed and not the full limit of the line of credit.

7 0

3 years ago

The Peridot Company purchased machinery on January 2, 2019, for $800,000. A five-year life was estimated and no residual value w

Umnica [9.8K]

Answer:

1.- Without Retrospective effect

2.- No as it comes from a change in estimations not an accounting error.

3.- yes. It will give a full explanation about the reasons to extend the useful life.

4.- Depreciation expense for 2021: 60,000

Explanation:

1.- The change in the useful life does not represent an accounting error. It comes from the estimation process.

800,000 - 160,000 x 2 = 480,000 book value at beginning 2021

480,000 / 8 new useful life = 60,000 depreciation per year.

5 0

3 years ago