Answer:
Explained below.
Explanation:
In option (a) no it does not contribute to the US GDP in any year. The transaction appears in expenditure as an increase in consumption and a decrease in net exports that offset. According to option (b) yes it contributes to US GDP in 2013. The transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in net exports offset by a decrease in investment. According to option (c), the transaction appears in expenditure as an increase in consumption in 2014 offset by a decrease in net exports. Option (d) represents the transaction appears as an increase in investment (increase in inventory). In 2014, the transaction appears as an increase in consumption offset by a decrease in investment. According to option (e) yes, it contributes $1000 to US GDP in 2014. The $6000 purchase price exceeds the price paid by the used car dealer. The difference represents value added by the dealership - this is a service that should be counted as part of GDP.
Answer:
A. Total expenditure on light bulb increases after the tax.
Explanation:
The government has imposed tax on the light bulb production and the new price after the tax is $14. The price before the tax was $12 and the marginal cost before tax was $9. There was a profit of $3 for the producers of the light bulb. The tax burden is shifted to the consumers of the bulb since the marginal price after tax is $12. Total expense for the production of bulb has increased due to tax.
Answer:
An increase in the minimum wage:
d. decreases the quantity of labor demanded but increases the quantity of labor supplied.
Explanation:
An increase in the minimum wage impact negativly in the demand of labor because each hour it's now more expensive than before, it means that company will looks to reduce their number of headcont due to an increase in each hour of labor existing, all of these just to keep the company cost at the same level.
The increase in the quantity of labor supplied it's favorable because a lot of people will be motivated to look for a job because the company will have to pay better salaries than before, on this escenario more people will go to the market labor looking for a job.
This increase in the labor supply is for those who were not willing to work under the previous salary conditions.
Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
