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Step2247 [10]
3 years ago
10

Critical analysis Q4 Suppose a group of British Investors finances the construction of a plant to manufacture bay boats in Houst

on, Texas The construction of the plant will have no effect on U.S. GDP. Suppose the plant generates $250,000 in corporate profits this year. These profits will have no effect on U.S. GDP for which of the following reasons?
A) Only losses count against GDP.
B) Foreign Income earned within U.S. borders must be deducted from production.
C) Profits are not a component of GDP.
D) Profits earned in the domestic economy are counted as part of GDP under the resource cost-income approach.
Business
1 answer:
babunello [35]3 years ago
3 0

Answer:

The correct answer is option (D) Profits earned in the domestic economy are counted as part of GDP under the resource cost-income approach.

Explanation:

Solution

Gross domestic product (GDP) refers to sum of all value of goods and services manufactured within the geographical border of the country.

Now the investment for plant in carried within the geographical borders of The United States so it will include in GDP as gross domestic capital formation.

Thus the construction of the plant will cause a  rise in U.S GDP.

Now this plant produce profit of $250000. profit produced within the economy so it will include in GDP.

These profit will increase US GDP since profits gained in the domestic economy are counted as a part of GDP under the resource cost or operating in income approach.

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In​ Keynes's analysis of the speculative demand for​ money, what will happen to money demand if people suddenly decide that the
Serggg [28]

Answer:

The correct answer is option C.

Explanation:

When the interest rate falls below the normal level, people expect the interest rates to rise in future and bond prices to fall. This causes investors to sell the bonds at present so that they can buy bonds when they are selling at lower prices in future as of result of an increase in interest rates. Money demand will, as a result, will decrease.

4 0
3 years ago
Pure monopoly refers to Multiple Choice any market in which the demand curve for the firm is downsloping. a standardized product
skelet666 [1.2K]

Answer:

a single firm producing a product for which there are no close substitutes.

Explanation:

A pure monopoly is a single supplier having a market or industry i.e. defined. The firm should be considered as an industry also in this there is no competitor or any subsitution existed. It can be arise at the time when the market share of the one firm is more than 90%

So as per the given situation, the above represent the answer

5 0
2 years ago
Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities
algol [13]
B I think sorry if wrong :/
8 0
2 years ago
Net income was $503,000 in 2020, $473,000 in 2021, and $521,000 in 2022. What is the percentage of change from (a) 2020 to 2021,
Butoxors [25]

Answer and Explanation:

The computation of the percentage of change is as follows;

a. For 2020 to 2021

= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)

= ($473,000 - $503,000) ÷ ($503,000)

= -5.96% decrease

b .For 2021 to 2022

= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)

= ($521,000 - $473,000) ÷ ($473,000)

= 10.15% increase

In this way it is calculated

6 0
3 years ago
The objective of present value when used to determine an accounting measurement for initial recognition purposes is to Capture t
rusak2 [61]

Answer:

The objective of present Value is to present a set of cash flows based on their estimated fair value; to help decision makers in assessing the viability or otherwise of an option of investments.

Values don't stay the same year on year, various influences act to most times make the same $ amount lessened by tomorrows valuation; some factors like inflation, obsolescence, opportunity cost of not investing in other activities (cost of capital)....all these play a role in determining time value of money.

Present value attempts to harmonize all these influences and present a fair value of our $ dollar estimate of future values based on the impact of these factors.

3 0
3 years ago
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