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trapecia [35]
3 years ago
8

Indicate what components of GDP (if any) each of the following transactions would affect. a. Your parents buy a new house from a

local builder. b. Your parents pay an accountant to file their tax returns. c. New York hires workers to plow snow after a snowstorm. d. Honda expands its factory in Ohio. e. Ford sells a Mustang from its inventory to the Martinez family. f. Aunt Polly buys a new air conditioner from a domestic manufacturer. You buy a new Toshiba computer. g. the Jackson family buys an old Victorian house from the Walker family.
Business
1 answer:
Ira Lisetskai [31]3 years ago
4 0

Answer:

a. Consumption spending

b. consumption spending

c. government spending

d. investment

e. consumption and investment

f. consumption spending

g. not included in GDP

Purchase of a Toshiba laptop is consumption spending

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used or old products

5. sale or purchase of intermediate products

Consumption spending includes expenditures by households on durable and non durable goods and services

the following are durable consumption by households and are included in the calculation of GDP :

Purchase of a house

Purchase of a mustang

Purchase of an air conditioner

purchase of a  computer

the purchase of the old Victorian house isn't included in the calculation of GDP because it is old. Only items produced in the current year are included in the GDP. if the old home is counted, it would be double counting

hiring an accountant is an example of purchase of services by households and it is consumption spending.

Spending by businesses are included in investment spending.

expenditure by the government or state are included in government spending

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Svet_ta [14]

Answer:

Imports

Explanation:

Dominique owns an international grocery store, the World Food Market, where customers can purchase foods and canned goods from other countries. World Food Market is an example of a company that imports. Dominique imports products from different countries and make them available to its customers on their shelves. They have to buy those products from different sources. For this purpose, they have to put large amount of efforts in order to contact the foreign vendors and get their product imported in their country and ultimately at their store by spending costs and efforts. By importing products from other country, they can provide large product assortment to their customers.

5 0
3 years ago
Which of the following is correct? a. Short run fluctuations in economic activity happen only in developing countries. b. During
ivolga24 [154]

Answer:

The answer to this question is D When real GDP falls, the rate of unemployment generally rises.

Explanation:

Gross domestic product (GDP) is the total value of everything produced in a country, whether by its citizen or foreigners.

Real GDP is a measurement of economic output that accounts for the effects of inflation or deflation.  It provides a more realistic assessment of growth.  

Therefore when real GDP falls, the rate of unemployment  rises and this brings inflation  

8 0
3 years ago
Salim has an investment worth $300,000. The investment will make a special payment of X to Salim in 2 years from today. The inve
sasho [114]

Answer: $‭20,455.66

Explanation:

These are fixed payments per year so it is an annuity.

The present value annuity factor for a discount rate of 10% and 6 years duration is 4.3553.

The present value of the investment is therefore;

= 65,000 * 4.3553

= $283,094.5‬0

The special payment in 2 years from today will be;

Special payment = future value of difference between investment amount and investment present value

= (300,000 - 283,094.5‬0) * ( 1 + 10%)^2

= $‭20,455.66

7 0
3 years ago
The short-run economic outcome resulting from the increase in production costs is known asstagflation . Now suppose that the gov
masha68 [24]

Answer: Increase

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3 0
3 years ago
Stephanie owns land (adjusted basis of $90,000; fair ma阳value of $125,000) 』- that she uses in her business. She exchanges it fo
melisa1 [442]

Answer: A. $25,000 B. $90,000 C. $25,000

Explanation:

A.

Land                                       $100,000

Stock                                         25,000

Amount realized                    125,000

Less: Adjusted basis              (90000)

Recognized gain                   $35,000

When you receive book in an exchange which is similar or like kind, then the recognized gain is the lesser of either the boot or recognized gain. Here the lesser is the boot received which is $25,000. Therefore, recognized gain is $25,000

B.

Because the recognized gain is taken as $25,000 rather than $35,000. The $10,000 amount is considered as postponed gain. Hence,

$100,000 (land worth) - $10,000 (postponed gain) = $90,000 - basis of new land.

C.

The worth of the stock is the basis in the stock received. Which is $25,000

7 0
3 years ago
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