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astraxan [27]
3 years ago
10

A ____________ gap between GDP and NDP indicates an increasing obsolescence/depreciation of capital goods..

Business
1 answer:
Tatiana [17]3 years ago
5 0

Answer:

Explanation:

GDP is gross domestic product and NDP is net domestic product.

GDP measures market value of total goods and services produced in a particular period of time.

NDP is net domestic product  . In its calculation,  we deduct the value of depreciation of capital goods produced from the value of GDP.

So

NDP = GDP - depreciation .

So growing gap between GDP and NDP reflects the increasing obsolescence of capital goods , which warrants replacement of capital goods .

OPTION A is correct.

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7 0
4 years ago
(05.01 MC) This quotation best supports which of the economic theories of John Maynard Keynes? A. Businesses and jobs rely most
tankabanditka [31]

Answer:

These two statements are correct:

A. Businesses and jobs rely most strongly on consumer demand.

B.Government regulation is necessary to stabilize the economy.

Explanation:

The first statement is correct because John Maynard Keynes that demand was the most important side of the economy, not supply. This is why his policies are sometimes referred to as "demand-side economics", while the policies of many of his detractors, such as Milton Friedman, are referred to as "supply-side economics".

The second statement is also correct because Keynes believed that a market economy was naturally subject to business cycles: cycles of boom and bust that could either benefit millions, or harm millions. Keynes thought that the government should regulate the economy in order to lessen the effect of those cycles.

5 0
3 years ago
Read 2 more answers
During 2017 the DLD Company had a net income of $85,000. In addition, selectedaccounts showed the following changes: Accounts Re
miv72 [106K]

Answer:

A) $84,500

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

Hence, amount of cash provided by operating activities

= -$3,000 + $1,000 + $1,500 + $85,000

= $84,500

The increase in asset other than cash is an outflow, increase in liability is an inflow of cash. Depreciation is a non-cash item added back while increase in building and bond payable are investing and financing activities respectively.

7 0
3 years ago
If consumers buy less of a commodity when their incomes rise, this commodity is .
WINSTONCH [101]
The commodity is an inferior good. 

An inferior good is one for which the quantity demanded decreases when the income of the consumer increases, or one for which the quantity demanded increases when the income of the consumer decreases. In contrast, a normal good is one for which the demand increases when the consumer's income increases.
6 0
4 years ago
Waterway Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo
Masja [62]

Answer:

$69,000

Explanation:

The double-declining method uses twice the rate of the straight-line depreciation method.  

In this case, we need to determine the depreciation rate under the straight-line method. The asset has a useful life of 5 years.

the depreciation rate = 1/5 x 100

=0.2 x 100

=20%

The Depreciation rate for the double-declining method is 40%. The straight-line method considers salvage value at the beginning, but double-declining depreciates until the salvage value.

In the first year under the double-declining method, the depreciation amount was $27,600.

It means 40% of the asset cost is $27,600.

The asset cost is 100%

40%=$27,600

100% = 27,600/40 x 100

=$690 x 100

=$69,000

Asset cost = $69,000

8 0
3 years ago
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