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denis-greek [22]
3 years ago
14

Consider whether each of the following events is likely to increase or decrease real GDP. In each case, do you think the well-be

ing of the average person in society most likely changes in the same direction as real GDP?Why or why not?
a. A hurricane in Florida forces Disney World to shut down for a month.
b. The discovery of a new, easy-to-grow strain of wheat increases farm harvests.
c. Increased hostility between unions and management sparks a rash of strikes.
d. Firms throughout the economy experience falling demand, causing them to lay of workers.
e. Congress passes new environmental laws that prohibit firms from using production methods that emit large quantities of pollution.
f. More high school students drop out of school to take jobs mowing lawns.
g. Fathers around the country reduce their workweeks to spend more time with their children.
Business
1 answer:
STALIN [3.7K]3 years ago
3 0

Answer:

a. A hurricane in Florida forces Disney World to shut down for a month.

Likely to decrease GDP because the economic activity of Disney World, which is part of GDP either as investment or consumption, is frozen for a whole month.

The average person will not likely feel the effects of the shutdown because as a percetange of the whole population, the amount of people who either work, or go to Disney World in a given month, is very small.

b. The discovery of a new, easy-to-grow strain of wheat increases farm harvests.

Likely to increase GDP because the harvest of wheat will be much larger, raising the value of that economic activity.

The average person is likely to benefit from this event because the larger wheat output means lower prices, and wheat is a food staple.

c. Increased hostility between unions and management sparks a rash of strikes.

Likely to decrease GDP because the companies involved in the strikes will stop their economic activity until an agreement is reached.

The average person will not feel the effects unless they are either part of the unions or part of the management of the firms involved.

e. Congress passes new environmental laws that prohibit firms from using production methods that emit large quantities of pollution.

Likely to decrease GDP because firms cannot replace their polluting methods for non-polluting ones very quickly. They will have to produce less.

The average person will feel the effects because the enviromental law comes from Congress, so is a federal law, applies nationally, and as a result, the number of firms affected is very large.

f. More high school students drop out of school to take jobs mowing lawns.

likely to increase GDP in the short-run, because students are now taking part of an economic activity. In the long-run, this is likely to decrease GDP because less educated people are less productive and thus, contribute less to GDP on average.

The average person will not feel any effects unless the number of high shcool drop outs is very large.

g. Fathers around the country reduce their workweeks to spend more time with their children.

likely to decrease GDP simply because fathers are now working less, and producing less. However, this could change if worker productivity goes up, and the fathers produce the same in less time.

Again, whether the average person feels the effects or not depends on the number of fathers that take this decision.

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The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders
ollegr [7]

Answer:

See below

Explanation:

1. Complete accrual basis income statement

Sales

($28,000 + $3,000)

$31,000

Less cost of goods sold

($13,000 + $2,000 - $3,000)

-$12,000

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($9,000 - $2,000)

-$7,000

Depreciation expenses

-$4,000

Income tax

($4,000 + $1,000)

-$5,000

Amortization expense

-$1,000

Gain on sale of equipment

$2,000

Net income

$4,000

2. Cash flow statement (Indirect)

Net income

$4,000

Adjustments;

Add depreciation

$4,000

Add write off intangibles

$1,000

Less gain on sale of equipment

-$2,000

Less increase in accounts receivables

-$3,000

Less increase in inventory

-$3,000

Add increase in accounts payable

$2,000

Less decrease in accrued payable

-$2,000

Add increase in deferred income tax payable

$1,000

Net cash from operations $2,000

7 0
3 years ago
Rinker Audio Products has a fully-staffed purchasing department that procures various inputs. It also has various domestic manuf
Mandarinka [93]

Answer: Logistics

Explanation: Logistics refers to the group of complex operation that are to be performed within an organisation by different individuals under the guidance of various different experts of such tasks. These operations are dependent on each other for their effective performance.

Thus, we can conclude that the combination of Rinker's manufacturing, distribution and purchasing activities will collectively be called as logistics.

7 0
3 years ago
The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are
cluponka [151]

Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.

<u>Explanation:</u>

Expansion happens when an economy becomes because of expanded spending. At the point when this occurs, costs rise and the money inside the economy is worth short of what it was previously. The cash basically won't purchase as much as it would previously. At the point when a cash is worth less, its swapping scale debilitates when contrasted with different monetary standards.  

There are numerous strategies used to control swelling; some function admirably, while others may have harming impacts. For instance, controlling swelling through pay and value controls can cause a downturn and cause work misfortunes. One well known strategy for controlling swelling is through a contractionary financial arrangement.

The objective of a contractionary strategy is to lessen the cash supply inside an economy by diminishing security costs and expanding loan fees. This diminishes going through in light of the fact that when there is less cash to go around: the individuals who have cash need to keep it and spare it, rather than spending it. It additionally implies there is less accessible credit, which can diminish spending. Diminishing spending is significant during expansion since it helps stop monetary development and, thus, the pace of swelling.  

There are three fundamental instruments to complete a contractionary approach. The first is to build financing costs through the national bank. On account of the U.S., that is the Federal Reserve. The Fed Funds Rate is the rate at which banks acquire cash from the legislature, yet so as to bring in cash, they should loan it at higher rates.1

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3 years ago
To correct for positive externalities, the government should:_________
liberstina [14]

Answer:

e

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

3 0
3 years ago
mungo purchases disability income insurance. the benefit is a payment of $2000 per months during qualifying periods of disabilit
r-ruslan [8.4K]

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A length of incapacity is a non-stop time frame throughout which a man or woman is below a disability as defined by segment 21  of the Social security Act. there may be no restriction on what number of hours you could work on SSI, alternatively, a restriction on how a lot you can make in a month.

A character in 2022, you need to be making less than $841 of countable earnings per month and feature much less than $2,000 in belongings to qualify. For a pair, the limit is $3,000.A closed duration of incapacity is the time period between the onset of incapacity and the date whilst a claimant is bodily able to return to work performing a significant gainful hobby. Calculating gain payment quantities. Your Weekly benefit quantity WBA relies upon for your annual income.

Learn more about The benefits here:-brainly.com/question/24679979

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