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zimovet [89]
3 years ago
9

A United States-based faculty member goes on sabbatical and works in Finland for a government-run university teaching classes fo

r its International MBA program. The faculty member returns to the U.S. with a paycheck for $50,000 and spends $38,000 of it on a German manufactured car from a dealership in Miami, Florida. Using the classic expenditure model, how much does the GDP increase in each country?
A) $38,000
B) $50,000
C) $0
Business
1 answer:
vodomira [7]3 years ago
8 0

Answer:

A $38,000- Germany:  B $50,000- Finland: C $0 , America

Explanation:

GDP represents the total value of all the goods and services produced within the country. The expenditure method is one of the methods that economist use in calculating the value of GDP.  Expenditure refers to spending. In measuring the GDP, the expenditure method takes account of expenditure on all the output of a country. Economists add up the values of finals goods and services produced within the borders of a country and multiply them by their prices. The result is the nominal GDP.

The formula for calculating GDP is as follows

GDP equals consumer spending on goods and services plus investor spending on business capital goods plus government spending on public goods and services plus net exports​

In Germany, GDP will increase by $38,000. It is the value of the car produced in Germany. In the formula, it is part of the net exports for the country.

In Finland, the GDP will increase by $50,000. It is the value of services offered by the American while working in Finland. In Calculating GDP, all output within the country is considered regardless of the person who produced it.

In the USA, the GDP will increase by 0$. The car was bought in the US, but it was an import. The expenditure formula does not consider imports. The amount of $50,000 was not earned within the borders of the US.

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Narrowed

Explanation:

Span of control is the term now used more commonly in business management, particularly human resource management. Span of control refers to the number of subordinates a supervisor has.

Span of control has narrowed as the persons are capable of fullfill the requierements on any specific task without constant supervision

8 0
3 years ago
15pts-- multiple choice!
katrin2010 [14]
Answer: bonds
Explanation: will allow for a risk free option and to gain money from a little bit of time and money
(not 100% sure on answer but I believe it is bonds)
6 0
3 years ago
Label the following statements as True or False.
kumpel [21]

Answer:

1. All else equal, countries with more natural resources have a higher GDP per capita than those with few natural resources. - True

All else being equal (ceteris paribus), if a country is endowed with more natural resources, it will have a higher GDP per capita than a country with less natural resources, because it will be able to trade and transform those natural resources for a lower cost, allowing it to produce more goods and services.

2. Over the past two hundred years, improvements in productivity have offset lost productivity reduction due to less land being available. - True

This statement is true. In the modern-era, thanks to the green revolution, and other technological improvements, more food can be produced in less land. Many analysts coincide that if the green revolution had not come about, humanity would have been subject to permanent famine.

3. The key to prosperity in the 20th century is an economy rich in natural resources. - False

The key to prosperity in the 20th century is simply producing more goods and services, and human capital has been seen as a more important factor for this than natural resources. For example, countries that are poor in natural resources and are rich such as Japan and South Korea, are so because they have very well-educated populations that produce high quality goods and services.

4. Human and physical capital are only beneficial to an economy when there is an abundance of natural resources in the economy. - False

Human and physical capital can benefit an economy even in the absence of natural resources, because natural resources can be imported. Again, the example of Japan works because the island nation is poor in natural resources, but rich in human capital, and not so deprived of physical capital, and has managed to become a developed nation by highly compex finished goods for natural resources.

6 0
3 years ago
Suppose the economy's production function is ???? = ????K 0.3???? 0.7 . If K = 2000, N = 100, and A = 1, then Y = 246. If K and
densk [106]

Answer:

Y=38.8

Y will increase by 38.8

Y=246+38.8

Y=284.8

Explanation:

Y=A. F(K, L)

Y=A. K^0.3, L^0.7

Then

Y=246

A=1

K=2000

N or L=100

Solutions

200=1(2000^0.3, 100^0.7)

Now the question says both k & N are increased by 0.20

Therefore

Y=1(2400^0.3, 120^0.7)

Y=1(10.3 + 28.5)

Y=38.8

4 0
3 years ago
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