All categories

4 years ago

Economists include the word final in the definition of gdp because we ____________.

1 answer:

4 0

GDP - Gross domestic product is a measure if the final goods and services produced in their economy over a period of time. Economist use the word final in the definition of GDP because they are not counting unfinished products or services. An example often used to show a good that is not final is a car rental company. If Enterprise was sold a car from Ford for their rental car fleet, it is not a final good because it will be rented out to a customer. Enterprise is not the final consumer in the process.

You might be interested in

Brubaker & Goss has received requests for capital investment funds for next year from each of its five divisions. All reques

Mumz [18]

Answer:

Soft rationing

Explanation:

Soft rationing is when a company reduces the capital funds it uses for it business processes. This can occur as a result of internal factors like shareholders not wanting to have a high debt profile for the company, wanting to raise capital slowly, and the uncertainty of future funding needs (some future project may be more important than present ones).

In this scenario Brubaker & Goss management has decided to allocate the available funds based on the profitability index of each project since the company has insufficient funds to fulfill all of the requests.

This is using soft rationing to limit use of funds.

7 0

4 years ago

Read 2 more answers

In the long run, an increase in the saving rate in a steady-state economy will cause A. a decrease in the capital/labor ratio an

ANTONII [103]

Answer: C) an increase in the capital/labor ratio and an increase in consumption per worker

Explanation:

An increased in the saving rate in a steady state caused the increased in the consumption for each worker when the ratio of the capital labor become capital stock under the golden rule. As, the rate of the higher saving automatically increased the growth of the economical rate. When there is shifting from lower to higher in the steady state then, the rate of the growth increased.

4 0

4 years ago

The net cash flow from operating activities is an inflow of $47,042, the net cash flow from investing activities is an outflow o

Alex_Xolod [135]

Answer:

$9,097

Explanation:

Net cash flow from operating activities = + $47,042

Net cash flow from investing activities = - $21,831

Net cash flow from financing activities = - $28,397

Net cash flows for the period = - $3,186

Beginning cash account balance = $12,283

Net cash flows for the period = - $3,186

Ending cash balance = $9,097

5 0

3 years ago

Variable costs as a percentage of sales for lemon inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How mu

GREYUIT [131]

When sales increase by $40,000, operating income will change by $-12,000.

<h3>By how much would operating income change?</h3>

The net operating income is total revenue less direct and indirect expenses. Direct expense is variable cost and indirect expenses are fixed costs.

Operating income = total revenue - variable expenses - fixed costs

Initial operating income: 600,0000 - (0.8 x 600,000) - 130,000 = -10,000

New operating income: (600,000 + 40,000) - [0.8 x (600,000 + 40,000)] - 130,000 = 2,0000

Change in operating income: -10,000 - 2,000 = $-12,000

To learn more about operating income, please check: brainly.com/question/26848906

#SPJ1

6 0

2 years ago

According to okun’s law, how much output (real gdp) was lost in 2009 when the nation’s unemployment rate increased from 5.8 perc

WINSTONCH [101]

Answer: Decline in GDP = $1009.3 billion

Explanation:

Okun's law shows us the relationship between a nation's unemployment rate and its level of output or real GDP.

According to the Okun's law,

$Loss in GDP= 2* (9.3 - 5.8) = 7%$

Therefore, a 7% decline in GDP as compared to the level in 2009 means,

$Change in GDP = -0.07 * 14419 billion$

= 1009.33 billion or 1009.3 billion

Thus, GDP declined by $1009.3 billion.

5 0

3 years ago

Economists include the word final in the definition of gdp because we​ ____________.

Economists include the word final in the definition of gdp because we ____________.