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Marianna [84]
3 years ago
10

In a small, closed economy, national income (GDP) is $750.00 million for the current year. Individuals have spent $300.00 millio

n on the consumption of goods and services. They have paid a total of $250.00 million in taxes, and the government has spent $400.00 million on goods and services this year. Use this information and the national income identity to answer the questions.
1. How much does the economy spend oninvestment?
2. What is national saving in the economy?
3. How are investment and national savingrelated in an economy like this?
Business
1 answer:
andrew-mc [135]3 years ago
6 0

Answer:

1. $50 million

2. $50 million

3. In a closed economy, national savings equals investment

Explanation:

For a closed economy, the formula for calculating GDP = C + I + G

Where C - Consumption

I - investment

G - Government Spending

To find investment ,

750 = 300 + I + 400

I = $ 50 million

National savings = private saving + Government saving

Private saving = Y − T − C

750 - 300 - 250 = $200 million

Public savings = T - G

250 - 400 = $-150 million

National savings = $200 - $ 150 million = $ 50 million

Nb - All numerical values are in $ millions

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Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as a.period costs
Dima020 [189]

Answer:

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as Product costs and expenses when the goods are sold, Option D.

Explanation:

Indirect costs are also manufacturing overheads which cannot be directly put on the product but they have to be allocated in some way. So, these are treated as 'product costs' and 'expenses' when the goods are sold. They are not period costs as per Option A and option C. Option B which says that it is product costs when incurred, which is also incorrect.

Examples of indirect costs can be accounting and legal expenses, rent, telephone expenses, salaries of administrative.

Direct costs includes the costs of direct 'labor', materials and commissions.

8 0
3 years ago
4: In 2013, the United States Postal Service charged $0.46 to mail a letter weighing up to 1 oz. and $0.20 per ounce for each ad
Gekata [30.6K]

Answer:

The function that would determine the cost in dollars, c(z), of mailing a letter weighing z ounces is (0.46 + 0.20z)

Explanation:

Weight of the letter = z ounces (z is an integer greater than 1)

cost to mail a letter weighing 1 ounce = $0.46

cost to mail an additional ounce = $0.20

cost to mail z additional ounces = z × $0.20 = $0.20z

Total cost of mailing a letter weighing z ounces = $0.46 + $0.20z

Therefore, cost function, c(z) = 0.46 + 0.2z

6 0
3 years ago
Read 2 more answers
Which of the following BEST describes a company's proper liquidity management?
Naddika [18.5K]

Answer:

A. Liquidity management is a balancing act, managers try to find liquidity levels that are neither too high not too low.

Explanation:

Maintaining proper liquidity is an important financial objective of management. Proper liquidity management demands that an entity should be able to meet his short term financial obligation and making sure that liquid assets of the entity are not idle. In order to achieve this, the best way to go is to maintain a level that is neither too high and not too low. Not too high means the entity is not holding too much cash or liquid assets than it currently need to meet its short term financial obligation.

For example, not keeping too much cash in current account but investing them in interest-earning investment assets.

Not too low means the cash or liquid assets held by an entity should not less than the amount needed to meet its short term financial obligation. For example, making sure that the entity has enough cash or readily convertible liquid assets that can be used to pay vendors, rent, interest and meet other short term financial obligation.

Option B is false because keeping too much does not help to maximize short term earnings which is a feature of proper liquidity management. Option C is wrong because there is no guideline to support that deferring coupon payment won`t attract payment and this does not connote proper liquidity management.

Option D is obviously false and does not describe proper liquidity management.

4 0
2 years ago
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Brittany and Brandon are both charged $250 for an office visit to the same specialist. Brittany's reimbursement policy has a ded
Contact [7]

Answer:

b) Brittany will pay more because she must pay the entire bill since she has not met her deductible while Brandon will have part of his bill paid by his policy.

Explanation:

since Brandon only $150 as the maximum amount his plan provides for a visit to any specialist, Brittany will have to pay more since Once she has met the deductible, the policy will cover the full cost of her visits.

7 0
2 years ago
Product Y sells for $15 per unit, and has variable expenses of $9 per unit. Fixed expenses total $300,000 per year. How many uni
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Answer:

b. 65,000 units

Explanation:

The number of units of products y must sell to yield an annual profit of $90,000 is computed as;

Break even point in sales units = (Fixed cost + Targeted profit) / Contribution margin

Given that ;

Fixed cost = $300,000

Targeted profit = $90,000

Contribution margin = $15 - $9 = $6

Therefore,

Break even point in sales units = ($300,000 + $90,000) / $6

= 65,000 units

The number of units of products y must sell to yield an annual profit of $90,000 is 65,000 units.

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3 years ago
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