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3 years ago

Activities included (and not included) in the calculation of GDP

Business

1 answer:

kicyunya [14]3 years ago

5 0

Answer:

Included in 2020 GDP

1. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24.

4. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in San Francisco on February 2, 2020.

5. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 11, 2020. Roadway Motors imports the convertible into the United States on May 29, 2020.

NOT INCLUDED IN 2020 GDP

2. The Jones family buys an antique silver platter at an auction in upstate New York on March 11, 2020.

3. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

The purchase of chocolate would be added to GDP as part of consumption spending on non durable items.

the purchase of the antique silver platter would not be added as part of GDP because it wasn't produced in 2020 and only goods produced in 2020 would be added to 2020 GDP.

The corn syrup is an intermediate good and it would not be added in the calculation of GDP. only final goods are added in the calculation of GDP.

The automobile would be added to GDP as part of investment spending by businesses.

the import of cars would be added as part of net export in 2020 GDP

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Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inv

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Answer:

2018 ending invnetory $ 311,710.00

2019 ending inventory $ 371,004.76

2020 ending inventory $359,804.76

2021 ending invnetory $ 361,904.76

Explanation:

We need to build up the layers

we divide each year by the base to convert into same year dollars

year-end inventory // cost index base year

beg $255,000 1.00

2018 $319,360 1.03 $310,058.25

the layer will be

beginning 255,000 at 1.00 = 255,000

2018 layer $55,058.25 at 1.03 = 56,710

Total ending inventory 311,710

Year 2019:

year-end inventory // cost index base year

2019 406560 1.12 363000

beginning layer 255,000.00 at 1.00 = 255,000

2018 layer 55,058.25 at 1.03 = 56,710

2019 layer 52,941.75 at 1.12 = 59,294.76

total ending inventory: 371.004,76

Year 2020:

year-end inventory // cost index base year

2020 384770 1.09 353000

beginning layer 255,000.00 at 1.00 = 255,000

2018 layer 55,058.25 at 1.03 = 56,710

2019 layer 42,941.75 at 1.12 = 48,094.76

total ending inventory: 359.804,76

explanation: as the inventory decrease we remove form the last layer rather than adding a new paer for hte year 2020.

Year 2021:

year-end inventory // cost index base year

2021 372750 1.05 355000

beginning layer 255,000.00 at 1.00 = 255,000.00

2018 layer 55,058.25 at 1.03 = 56,710.00

2019 layer 42,941.75 at 1.12 = 48,094.76

2021 layer 2,000.00 at 1.05 = 2,100.00

ending inventory $361,904.76

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The Boston Consulting Group’s Growth-Share Matrix classifies a firm’s products into four categories based on growth rates of the

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Answer:

False

Explanation:

The Boston Consulting Group’s Growth-Share Matrix is a business planning tool that evaluates the potential of brand portfolios and alternative strategies.

The BCG matrix framework classifies a brand portfolio into four categories based on industry attractiveness (industry growth rate) and competitive position (product market share).

The four categories are:

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stars
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cash cows

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3 years ago

Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then s

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Answer:

c.relinquish

Explanation:

-Reap means to receive a compensation.

-Harvest means to collect or gather something.

-Relinquish means to voluntarily give control of something to someone else.

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All of the following factors would be signs of an investor's significant influence over an investee except the common stock held

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Answer:

The investor participates in the investee's policy-making process.

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It is the Job of Board of Directors.

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