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EleoNora [17]
3 years ago
15

One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second

bag of flour is sold to a consumer in a grocery store for $2.00. Taking these three transactions into account, what is the effect on GDP?a.GDP increases by $2.00.b.GDP increases by $3.00.c.GDP increases by $5.00.d.GDP increases by $6.00.
Business
1 answer:
Liula [17]3 years ago
3 0

Answer:

Taking these three transactions into account, what is the effect on GDP?

c.GDP increases by $5.00

Explanation:

The Gross Domestic product usually abbreviated as the GDP, is a measure of how much a goods and services a country can produce during a particular time period. The quantity of goods and service is usually expressed in monetary terms. it serves a a broad measure of a country's overall economic status. A higher GDP usually implies that the quantity of goods and services being produced in monetary terms is very high, there for it can be concluded that the general health of the economy is good.

To determine the GDP in our case, we need to determine the total value of a finished product to determine how much the GDP changes. The intermediate good is not included since it is not sold as a finished product but as a raw material in the production of a finished product. The following commodities are sold as finished products, for example; the bread and the second bag of floor. The change on GDP is as follows;

Change in GDP=Final GDP-initial GDP

where;

Change in GDP=unknown, to be determined

Final GDP=0+3+2=$5.00

initial GDP=assumed to be 0

replacing;

Change in GDP=5-0=$5.00

The effect on GDP is an increase of $5.00.

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Answer:

The correct answer is (D) all, maximizes her total utility.

Explanation:

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Consumer equilibrum enables an individual to obtain complete satisfaction from his or her money. Consumer equilibrum is found by comparing the ratio of the marginal utility to the price of a commodity.

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Answer:

Cost of goods sold=$955000

Explanation:

we know that to calculate cost of goods sold we have to first finds cost of goods manufactured and to calculate cost of goods manufactured we will need total manufacturing cost.

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Total manufacturing cost= raw material used+direct labour+ factory overhead

Raw material used=?

     Raw material (open)=         72000

Add:  Raw material purchase=<u>467000</u>

                                                  539000

less: Raw material (ending)=   (<u>93000</u>)

      Raw material used            446000

Total manufacturing cost=446000+363000+213000=1021000

Step#2: Cost of goods manufactured (COGM)=?

we know that: COGM= Total manufacturing cost+ work in process (open)-work in process (end)

          COGM= 1021000+63000-84000=1000,000

Step#3: Cost of goods sold (COGS)=?

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The 1803 decision of the United States Supreme Court in the case of Marbury v. Madison established
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For 2019, Skresso Co. reported $1.82 of earnings per share of common stock. During 2020, the firm had a 4% common stock dividend
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Answer:

$1.75

Explanation:

Earnings per share to be reported = Earnings per share of commo stock * (1 - 4%)

Earnings per share to be reported = $1.82 * 96%

Earnings per share to be reported = $1.7472

Earnings per share to be reported = $1.75

So, the 2019 earnings per share to be reported in the annual report for 2020 are $1.75.

4 0
3 years ago
You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for $1,030. These bonds make annual pa
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Answer:

total rate of return on the Bond = 9.40%

Explanation:

given data

coupon bonds  = 5.8%

bonds price =  $1,030

maturity time = 14 year

required return on the bonds = 5.1 percent

solution

we know here market price of the bond is Present Value of Coupon Payments + Present face Value  

so that face Valueof  bond = $1,000

and here annual Coupon Amount will be

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annual coupon amount = $58

and here Market Price of the Bond will be

Market Price of Bond = Present Value of Coupon Payments + Present face Value    ......................1

here Present Value of Coupon Payments  at PVIFA 5.10% and 14 Years

Present Value Annuity Inflow Factor (PVIFA) =  \frac{1-(1/(1+r)^t}{r}  ....2

Present Value Annuity Inflow Factor =  \frac{1-(1/(1+0.0510)^14}{0.0510}

Present Value Annuity Inflow Factor = 9.83566

and

Present Value Inflow Factor (PVIF) 5.10%, 14 Years= \frac{1}{(1+r)^t}   ...........3

Present Value Inflow Factor (PVIF) = \frac{1}{(1+0.0510)^14}

Present Value Inflow Factor = 0.49838

so

Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )

Market Price of Bond = $1,068.85

so total rate of return on the Bond will be

total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price]  ...............4

total rate of return on the Bond = \frac{58+(1068.85-1030)}{1030}

total rate of return on the Bond = 9.40%

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3 years ago
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