Which of the following statements is true about taxes?

U.S. car dealers sell both used cars and new cars each year. However, only the sales of the new cars count toward GDP. Why does

Airida [17]

Answer:

It will be double counting

Explanation:

GDP or gross domestic product is the measure of the total value of productions in the economy per period. In calculating the GDP, economists consider only finished products produced within the borders of a country in a financial year.

Second-hand cars cannot be counted in the calculation of GDP because it will result in double counting. GDP is calculated using the income, expenditure, or production approach. The second-hand cars were accounted for when they were purchased or sold for the first time. If the production method was used, the vehicles were accounted for in the year they were manufactured.

3 0

3 years ago

When output and employment slowed in early 2008, the Bush Administration and the Democratic Congress passed a legislation sendin

Xelga [282]

Answer:

Yes, the Keynesian economists would favor this action.

Explanation:

Keynesians argue that in times of recession, the aggregate demand should be increased through government policies so that the economy recovers and output increases. The policy by Bush government put more money in the hands of people and as such their purchasing power increased. This increase in purchasing power would lead to an increase in aggregate demand according to the Keynesians.

5 0

4 years ago

Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,000 (original cost of $40,000 l

Sati [7]

Answer:

Loss on exchange is -$7,800

initial value of tractor is $42,200

Gain on exchange is $8000

Initial value of tractor is $58,000

Explanation:

The amount of gain or loss recognizable on the exchange is the difference between the fair value of the old asset and its book value

Loss on the asset=$10,200-$18,000=-$7,800

Initial value of the new tractor=fair value of the old tractor+cash payment

Initial value of the new tractor=$32,000+$10,200=$42,200

If fair value were $26,000

gain on the exchage=$26,000-$18,000=$8,000

Initial value of the new tractor=$32,000+$26,000=$58,000

3 0

3 years ago

Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of th

postnew [5]

Answer:

TRUE

Explanation:

Marginal Benefit is addition to total benefit due to a business decision.

Marginal Cost is addition to total cost due to a business decision.

Marginal Benefit & Marginal Costs are determinants while considering a business decision. A decision will be taken if : Marginal Benefit ≥ Marginal Cost, as entrepreneurial decision maker would be better off or at least neutral while taking decision. If MB < MC , it is loss making for the entrepreneur to take that decision & hence is discouraged to take that.

6 0

4 years ago

Lauren is the owner of a bakery that earns 0 (zero) economic profit. Last year, her total revenue was $145,000, her rent was $12

kow [346]

Answer: The correct answer is " a. $92,000.".

Explanation: The explicit costs are observable, that is, those that we can easily take into account and decrease our operating result (salaries paid to employees, material costs, taxes, etc.)

So her total explicit cost were: $12 000 + $65 000 + $15 000 = $92 000.

6 0

3 years ago