Answer:
B) increased nominal GDP from last year, but real GDP was unaffected.
Explanation:
Nominal GDP includes the total production of final and legal goods and services at current prices.
So Harry's Pizzas will increase the nominal GDP ($120,000 ˃ $100,000) but since we do not know the inflation rate, we can not determine how the real GDP was affected.
Answer:
The insurance expense for year 1 is $2,200.
Explanation:
The insurance expense for the year 1 is $2,200, which is for 11 months in the first year. The balance of $2,600 will be carried forward to the next year as prepaid insurance. The first entry is a debit to the Prepaid Insurance account for the sum of $4,800 and a credit to the Cash account for the same amount, in order to record the cash payment. In year 1, Insurance Expense account will be debited with $2,200 while Prepaid Insurance will be credited with the same amount, in order to record the expense.
Answer: Their comfortability relies a lot on what the government would be willing to do to help them. Some of what the government can do, e.g insure them, pension
Explanation:
Their comfortability relies a lot on what the government would be willing to do to help them. Some of what the government can do as as follows;
I) The government can grant them soft loans
ii) The government can consider making it easier for them to easily open SME's
iii) The government can consider making provision for them as regards pensions
iv) The government can insure them
Because bureaucracies are legally shielded from market forces, including certain incentives, they may not be driven enough to help the market system achieve efficiency.
Moreover, just as everyone else, bureaucrats also try to maximize and protect their own interests and welfare as best as they can. Because of this, they may opt to serve their own interests. These interests may or may not be in line with those needed to achieve economic efficiency and thus, may lead to more public spending than desired.
Lastly, when formulating provisional decisions, bureaucrats usually fail to use cost-benefit analysis, resulting in decisions which may not be for the best in terms of economic efficiency.