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3 years ago

Which of the following statements regarding GDP is correct?

Business

1 answer:

nirvana33 [79]3 years ago

3 0

Answer:

Correct option is (a)

Explanation:

GDP or Gross domestic product includes monetary value of all goods and services produced within a country. It includes all private and public investments and exports less taxes and imports.

Option b, c and d are incorrect as GDP accounts for only domestic production and not foreign activities. Details about how income is distributed is not given by GDP. GDP provides details about economic condition of the nation. GDP does not indicate wholesome well being of the nation like human development, infant mortality and standard of living.

GDP accounts for factory production but does not account for any production carried out at the cost of environmental degradation.

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Individuals cannot purchase health insurance policies directly from commercial insurance companies.

kozerog [31]

Answer:

True

Explanation:

Commercial insurance companies have sales department, in which insurance sales agents are responsible to sell health insurance policies to the individuals.

4 0

3 years ago

In which countries do people prefer discussing business during meals?

vlada-n [284]

Hehs donee estable menudo

7 0

3 years ago

There are two people in the economy: Martha and Charlie. There are two goods in the economy: books and wine. Martha is endowed w

balu736 [363]

Answer:

Charlie consumes 100 books and 25 wines at pareto-optimal allocation, is the right answer.

Explanation:

According to the question, book is denoted with b whereas, wine is denoted with w.

The Utility function of Martha is- $U\left ( b,w \right )=6b+24w$

The Utility function for Charlie is- $U\left ( b,w \right )=bw$

$P_{b}$ = $1 : $P_{w}$ = $4

At pareto-optimality,

$MRS_{bw}=\frac{P_{b}}{P_{w}}\\\frac{w}{b}=\frac{1}{4}\\4w=b\\$

The budget constraint,

$1.b+4.w=m=1\left ( 20 \right )+4\left ( 45 \right )\\b+4w=20+180\\4w+4w=200\\w=\frac{200}{8}=25\\\therefore b=100$

Therefore, it may be said that Charlie must consume 100 books and 25 wine at pareto-optimal allocation.

3 0

3 years ago

Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for

algol13

Answer:

Butcher's warranty expense for Year 4 is $10,000

Explanation:

Since in the question, it is given that 5% of the toys are returned, and the warranty expenses should be charged on the replacement service or repair service. Even, the question has said the same.

So, the warranty expense computation is shown below:

= Sale units of toys × selling price per toy × returned percentage

= 10,000 toys × $20 × 5%

= $10,000

The warranty obligation part is irrelevant. Thus, we don't consider in the computation part. Therefore, it is ignored.

Hence, Butcher's warranty expense for Year 4 is $10,000

4 0

3 years ago

If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to

Trava [24]

Answer:

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

Explanation:

Current Ratio = Current Assets/ Current liabilities

An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.

Acid test Ratio= Current Assets - Inventory / Current liabilities

If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.

If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

5 0

3 years ago