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DerKrebs [107]
4 years ago
9

Place each of the following transactions in one of the four components of expenditure: consumption, investment, government purch

ases, and net exports. a. Boeing sells an airplane to the U.S. Air Force. b. Boeing sells an airplane to American Airlines. c. Boeing sells an airplane to Air France. d. Boeing sells an airplane to Amelia Earhart. e. Boeing builds an airplane to be sold next year.
Business
1 answer:
slega [8]4 years ago
7 0

Answer:

a. Boeing sells an airplane to the U.S. Air Force. - government purchases.

The U.S. Air Force is a branch of the government, and is buying the airplane from Boeing. Therefore, this is a government purchase.

b. Boeing sells an airplane to American Airlines. - investment.

America Airlines, a private company, is buying the airplane to make profit from it. Therefore, it is an investment.

c. Boeing sells an airplane to Air France. - net exports.

Boeing, an American manufacturer, is selling an airplane to a foreign company: Air France, this is an import, and imports are part of net exports.

d. Boeing sells an airplane to Amelia Earhart. - consumption.

Amelia Earhart, a person, is buying an airplane. This is private consumption.

e. Boeing builds an airplane to be sold next year. - investment.

This airplane is finished inventory ready to be sold, and this type of inventory is considered an investment in the GDP calculation.

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Which of the following correctly describes an example of a secondary competitor?
OverLord2011 [107]

Answer: A coffee shop that also sells pastries would be a secondary competitor for a bakery that sells pastries, among other products.

(took the test)

5 0
3 years ago
In April, Holderness Inc, a merchandising company, had sales of $251,000, selling expenses of $17,000, and administrative expens
Rainbow [258]

Answer:

The net income is $59,000

Explanation:

Please refer to the attached file for calculation.

3 0
4 years ago
n a free-market system, the allocation of benefits and costs is determined primarily by a. Interaction between a private party a
ivann1987 [24]

Answer:

The answer to this question is A. Interaction between a private party and another private party

Explanation:

A free market economy, otherwise known as a capitalist economy is one that is controlled by private individuals with little or no government control.

A free or capitalist system may be defined as one in which all or most means of production are owned and controlled by private individuals and in which the economic activity of the government is at minimum.

In a capitalist economic system, private individuals play greater role than the government in taking decision about on what to produce, how to produce and the distribution of what is produced.  

Hence, the allocation of benefits and costs is determined in a free market economy by  A. Interaction between a private party and another private party

7 0
3 years ago
Sheffield Corporation exchanged 2750 shares of Pharoah Company common stock, which Sheffield was holding as an investment, for e
AveGali [126]

Answer: Please refer to Explanation

Explanation:

When recording Equipment here the value of the shares at current value should be used and not the cost of the equipment.

DR Equipment $162,250

CR Investment in Pharaoh Company $137,500

CR Gain on Exchange $24,750

(To record Exchange of shares for Equipment)

Workings.

Investment in Pharaoh Company.

= 2,750 shares * $50(purchase price)

= $137,500

Gain on Exchange

= 2,750 shares * (Market Price - Purchase Price)

= 2,750 shares * ( 59 - 50)

= $24,750

Equipment.

= Investment in Pharoah Company + Gain on Exchange

= 137,500 + 24,750

= $162,250

6 0
3 years ago
Match the following definitions to the correct term. A. Patent B. Research and development costs C. Trademark D. Intangible asse
zlopas [31]

Answer:

A. Patent: government license that provides title over an invention and right to use for a certain amount of time.

B. Research and development costs: costs incurred to develop new products or processes.

C. Trademark: a brand name or symbol that is registered under an individual or a business.

D. Intangible assets: non-physical assets, e.g. patents

E. Copyright: the legal right that the owner of a work (e.g. song, movie) possesses to decide who can use his work or not, and charge a fee for it.

F. Plant assets: asset that is used to generate revenue and whose useful life is more than one year.

G. Goodwill: when a business is sold, it represents an intangible asset associated with the reputation of the business.

H. Franchise: a business model where a franchisee starts a business by using someone else's (franchisor) business model and know how.

3 0
4 years ago
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