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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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Kris is considering taking her poutine food truck to the local wine festival to vend. She is pondering the amount of food to sto
marta [7]

Answer:

A.

Under the MaxiMax criteria, the best of the maximum payoffs of all the alternatives will be selected.

Maximum payoff under large stock = $22000

Maximum payoff under medium stock = $14000

Maximum payoff under small stock = $9000

The , best of above payoff is $22000, so large stock alternative will be selected.

B.

Under the MaxiMin criteria, the best of the minimum payoffs of all the alternatives will be selected.

Minimum payoff under large stock = -$2000

Minimum payoff under medium stock =$6000

Minimum payoff under small stock =$4000

The , best of the above payoffs is $6000, so medium stock alternative will be selected.

C.

Under equally likely criteria,

Expected payoff under the large stock = (22000 + 12000 -2000)/3 = $10666.67

Expected payoff under the medium stock = (14000 + 10000+6000)/3 = $10000

Expected payoff under the small stock = (9000+8000+4000)/3 = $7000

The maximum payoff is with the large stock alternative, then large stock alternative is selected.

D.

With the given probabilities,

Expected payoff under the large stock = (.3*22000 + .5*12000 -.2*2000) = $12200

Expected payoff under the medium stock = (.3*14000 + .5*10000+ .2*6000) = $10400

Expected payoff under the small stock = (.3*9000 + .5*8000 + .2*4000) = $7500

The maximum payoff is with the large stock alternative, then large stock alternative is selected.

E.

EVPI = EVWPI - EVWOPI

EVPI = (.3*22000 + .5*12000 + .2*6000) - 12200

EVPI = $1600

6 0
3 years ago
The Importance of Starting Early.
Inessa05 [86]

Answer:

1. Lulu started saving $200/month in a 401(k) earning 6% interest compounded monthly when she was 45 years old. How much will be in her account when she retires at age 65?

Lulu made 12 x 20 = 240 payments

to calculate how much she earned we can use the future value of ordinary annuity formula:

FV annuity = payment x {[(1 + r)ⁿ - 1] / i} = $200 x {[(1 + 0.5%)²⁴⁰ - 1] / 0.5%} = $200 x 462.04 = $92,408.18

2. How much money did Lulu deposit into her account over the course of the 20 years?

240 x $200 = $48,000

3. What dollar amount of interest did her account earn?

$92,408.18 - $48,000 = $44,408.18

4. Murphy started putting $100/month into his 401(k) earning 6% APR when he was 25 years old. How much will be in his account when he retires at age 65, if interest is compounded monthly?

480 payments, again we use the same formula as in (1):

FV annuity = $100 x {[(1 + 0.5%)⁴⁸⁰ - 1] / 0.5%} = $100 x 1,991.49 = $199,149.07

5. How much money did Murphy deposit into his account over the course of the 40 years?

480 x $100 = $48,000

6. What dollar amount of interest did his account earn?

$199,149.07 - $48,000 = $151,149.07

7. Murphy's account earned how much more interest than Lulu's account?

$151,149.07 - $44,408.18 = $106,740.89

7 0
3 years ago
On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned C
VLD [36.1K]

Answer:

True

Explanation:

The company received $15000 and credited it to the unearned consulting Revenue accounts because it had not performed any services yet.

According to the accrual principle, the company can only report the amount earned in a period. If the company achieves the required  10% of consulting services by 31st march, it will record 10 percent of $15,000 as its income.

10 percent of $15000= 10/100 x $15000

                                     =$1500

3 0
3 years ago
Al's Auto Accessories Store began an accounting period with an inventory of $3,500 worth of auto accessories. During the account
kozerog [31]

Answer:

$4000

Explanation:

The cost of goods sold is also referred to as the cost of sales.

COGS=Beginning Inventory+net Purchases −Ending Inventory

Cost of good issued: $ 3500

Net purchases: $ 2000

End of year Inventory: $1500

COGS=$3500+$2000-$1500

=$5500-$1500

=$4000

3 0
3 years ago
A graph of the quantity sellers produce at all different prices is called
egoroff_w [7]

Answer:

A: Supply curve

Explanation:

The supply curve is a graphical illustration of the quantities of goods and services that firms are willing to sell in the market at different prices. As per the law of supply, the higher the price, the more quantities suppliers will be willing to produce. There exists a direct relationship between price and quantity supplied.

The supply curve is upward sloping. It illustrates how the quantity supplied changes at different prices. The supply curves can be described as the graphical presentation of the law of supply.

3 0
3 years ago
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