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3 years ago

The unreported or illegal production of goods and services in the economy that is not counted in gdp is termed:

1 answer:

5 0

It is the underground economy. The underground economy alludes to illicit financial action. Exchanges in the underground economy are illicit either in light of the fact that the great or administration being exchanged is itself unlawful or in light of the fact that a generally licit exchange does not agree to government revealing necessities. The main class incorporates medications and prostitution in many wards.

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When prices rise , which of the following happens to income

katen-ka-za [31]

Answer:

It buys less.

Explanation:

4 0

3 years ago

An investor considers investing $20,000 in the stock market. He believes that the probability is 0.29 that the economy will impr

Dmitrij [34]

Answer: See explanation

Explanation:

a. What is the expected value of his investment?

Based on the information given, this will be:

= (0.29 x $26000) + (0.35 x $20000) + (0.36 x $14000)

= $7540 + $7000 + $5040

= $19580

b. What should the investor do if he is risk neutral?

If the investor is risk neutral, then he should invest $20000.

c. Is the decision clear-cut if he is risk averse?

If the investor is risk averse, then it should be noted that he should not invest $20000 since the expected value of the investment will be lesser than its investment. In this case, the decision isn't clear cut if he's risk averse.

3 0

3 years ago

Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assumi

vlada-n [284]

Answer: Consumption = $6 trillion

government purchases = $1.3 trillion

national saving = $0.7 trillion and

investment = $0.7 trillion

Explanation:GDP is the market value of all final goods and services within an economy during a given period.

GDP = Consumption + Investment/National Savings + Government Expenditure/purchases (in a closed economy)

National Savings/ Investment = Private saving + public saving = $0.5 trillion +$ 0.2 trillion = $0.7 trillion.

Government purchases = Taxes - Public saving = $1.5 trillion - $0.2 trillion = $1.3 trillion

Since, GDP = Consumption + Investment/National Savings + Government Expenditure/purchases (in a closed economy)

Therefore, Consumption = GDP - Investment - Government Expenditure

Consumption = $8trillion - $0.7trillion - $1.3trillion = $6 trillion

5 0

3 years ago

You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance

N76 [4]

Answer:

$46.43

Explanation:

Calculation for Below what stock price level would you get a margin call

First step is to calculate the Loan amount

Loan amount=(100 shares × $130 × 0.5

Loan amount= $6,500 × 0.5 = $3,250

Now let calculate Stock price level

0.30 = (100P $3,250)/100P

30 - P = 100P - $3,250

30-100P= - $3,250

-70P = -$3,250

P=$3,250/70

P = $46.43

Therefore Below what stock price level would you get a margin call will be $46.43

7 0

3 years ago

Rosewood Company made a loan of $12,200 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rat

Ymorist [56]

Answer:For Year 1 = $549 , For year 2=$183

Explanation:

Interest = Principal x Rate x Time ( Period)

For Year 1

Interest = P x R x T

= $12,200 x 6% x 9 / 12 ( Period from April to December

= $549

For year 2

Interest = P x R x T

= $12,200 x 6% x 3 / 12 ( Period from Jan of year 2 to April 1 st of year 2 since Ist year has been covered)

=$183

8 0

3 years ago