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DIA [1.3K]
3 years ago
5

A manufacturer produces 500,000 MP3 players in the first quarter of the year. It sells 400,000 of them and adds 100,000 of them

to inventory. All the players added to inventory are purchased by consumers in the second quarter. How are the 100,000 that go into inventory counted in GDP?
Business
1 answer:
Digiron [165]3 years ago
3 0

Answer:

$100,000 is accounted in first quarter GDP as change in inventory

Explanation:

Changes in inventory is accounted in the current period GDP as it is an investment. It is a part of gross private investment of GDP. Changes in inventory happens when closing inventory differs from opening inventory.

When sales are more than goods produced, it indicates that the company has purchased its own inventory for investment purpose.

In this case $100,000 inventory in quarter 1 would be included in quarter 1 GDP as part of private investment.

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What kind of economy might a country have if it was influenced by Western thought
vova2212 [387]

Option;

A. communist

B. capitalist

C. democratic

D. republican

Answer: B. Capitalist

Explanation:

Capitalist economic system is one where the ownership and investment are distributed, the fluidity of her wealth and production which are made and maintained by individuals or corporation or by means of wealth which are state owned.

Example of capitalist countries include Switzerland, Australia, Estonia, Canada, United Arab Emirates amongst many others.

3 0
3 years ago
Personal selling requires the __________ flow of communication between a buyer and a seller, often in a face-to-face encounter,
emmainna [20.7K]
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5 0
3 years ago
here are seven firms in the automobile industry. The market shares of the firms are 34​ percent, 21​ percent, 17​ percent, 9​ pe
Lemur [1.5K]

Answer:

The answer is  "Option 4".

Explanation:

The Herfindahl-Hirschman Index formula:

HHI=s_{12} + s_{22}  + s_{32} + s_{42} +........ + s_{n2}

here sn is the firm n's share of the market proportion represented the society in general number instead of a decimal

Index Herfindahl-Hirschman:

= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 62 + 52\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 25\\\\= 2092

Index Herfindahl-Hirschman(Result of the merger, firms with profit margins of 6% and 5% provided market shares of respectively).

= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 112\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 121\\\\= 2188

The market with just an HHI of less than 1,500 is called a competitive industry, one on an HHI of 1,500 to 2,500 is called a moderately competitive store, and one on an HHI of 2,500 or higher is considered a highly potent store by us Justice department.

All businesses operate in a moderately crowded market, as well as a merger such as this reduces competition (increases chances of monopoly). Also as result, the Justice Dept may examine its merger but will most likely deny this because the Herfindahl-Hirschman index has risen.

8 0
3 years ago
Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of
Naddik [55]

Answer:

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Explanation:

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6 0
3 years ago
Working Capital includes which of the following?
Contact [7]
Owners capital and cash
3 0
3 years ago
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