The method of GDP calculation that looks at the profits earned by business owners and the money paid for factors of production is the <u>Income approach</u>.
<h3>How is the income method of GDP used?</h3>
With the income method, the total amount that was paid for to access the factors of production is looked at.
This shows how much spending happened in the economy. The profits of entrepreneurs is also looked at as it is income earned, and not money spent on production.
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Answer:
The correct answer is: increase relative to Industry B.
Explanation:
The marginal revenue product measures the conribution of each additional unit of input employed in the production process. It is calculated as the product of price of product and marginal product of input.
The profit maximizing level of wage is when the marginal revenue product of labor is equal to wages.
Suppose there are two goods, A and B respectively.
When the price of good A increases relative to good B, the marginal revenue product of labor employed in production of good B will increase as well.
This will cause the wage rate of those workers to increase in comparison to workers in industry B.
Answer:
Diluted earnings per share is $1.7 per share
Explanation:
The number of diluted shares from the options is calculated thus
Total number of shares from options 34,500
Actual number of shares that can be purchased
(options shares*option price/share market price)
(34,500*$11/$15) (25,300)
Diluted shares 9,200
Diluted earnings per share=net income/(outstanding common stock + diluted common stock)
net income is $331,840
outstanding common stock is 186,000
diluted common stock is 9200
diluted earnings per share=$331,840/(186,000+9200)
=$1.7 per share
Answer:
The answer is entrepreneur
Explanation:
Diane showed the trait of an entrepreneur. An entrepreneur is someone who tries to solve a particular problem or challenge by setting up a business. He takes up the risk and tries to fight it in order to be successful because of the passion he has for the business. Entrepreneur also sources for the capital for the business which can be in form of borrowed money or equity contribution.
Answer:
169,000
Explanation:
Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:
First step is to calculate the amount assumed to be exercised
Exercised amount= 30,000*$7 / $15avg
Exercised amount= 14,000
Second step is to calculate the Net
Net=30,000-14,000
Net= 16,000
Now let calculate The number of shares to be used in computing diluted earnings per share
Using this formula
Number of shares=Outstanding+Net
Let plug in the formula
Number of shares=153,000 +16,000
Number of shares= 169,000
*diluted eps=$28,000 /169,000
Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000
