Answer:
B
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
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
Government spending - It includes government consumption expenditure and gross investment.
The GDP would differ because the prices of oranges and apples are different
For example, if the price of an apple is $4 and the price of an orange is $1.
The contribution of apples to GDP =$4 x 100 = $400
The contribution of oranges to GDP =$1 x 100 = $100
The answer is dividing its required reserves by the reserve ratio
Answer:
True
Explanation:
There is always a conflict of interest between Management and Shareholders. The Managers Interest if to increase their remunerations and Shareholders interest is to have maximum return from the business. An increase in remuneration will result in the reduction of shareholder's return in the form of expense. In this cash the business is going to expand internationally which will create new opportunities for the business. The Increase in in compensations of manager will result in increase in return as well. The manager will try to target the potential market and make the expansion succesful to be compensated more. So, goal is consistent with the goals of shareholders.
Answer: 3 units of labor
Explanation:
Diminishing Marginal Returns refers to a scenario where less marginal output is recorded as more inputs are invested.
From the exhibit, that point would be at 3 units of labor.
At 0 units of labor, 0 units of output was recorded.
At 1 unit of labor, 50 units of output was produced. This means 50 more units were produced.
At 2 units of labor, 110 units of output were produced. This means 60 more units were produced.
At 3 units of labor, 155 units of output were produced meaning that only 45 more units were produced as a result of the extra unit of labor.
This 45 units is less than the 60 units that adding the second unit of labor added to production meaning less marginal output was recorded as more inputs were invested starting here.
The investing section is the only section that differs between the direct and indirect methods of preparing the statement of cash flows.
The cash flow direct method determines the change in cash receipts and payments reported in the Cash Flows from Operations section. The indirect method adds or subtracts net income earned in a period to calculate changes in asset and liability accounts to determine implied cash flows.
The indirect method adjusts income statement items directly in the cash flow statement based on operating cash inflows and outflows. This method provides a more logical representation of cash flow. Under the indirect method, operating cash flows are calculated on an accrual basis.
Learn more about the indirect method at
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