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LuckyWell [14K]
3 years ago
12

A painter pays $500 for paint he uses to repaint a house. He then presents a bill for $1200 that covers his time and expenses to

the homeowner. How much do these transactions add to the GDP
Business
1 answer:
Paul [167]3 years ago
6 0

<u>Solution and Explanation:</u>

In value added method of GDP, the value addition at each stage of the production are added and the total value addition of any activity is added in the GDP. The total value addition is equal to the final market value of the good.

Since painter uses paint of $500 and he uses his labor for the home owner and added $700 for the repaint the houses. He gives bills of $1,200.

It means total value addition for calculating GDP will be= 500 plus 700

=$1,200

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<span>I think that this is a great way to raise funds. This agreement between the students to buy pizzas at a discounted prices and then resell them at full price provides the students with the ability to raise money for their school or program. This is also an incentive for the Pizza chain because they will get exposure to a larger number of people.</span>
5 0
3 years ago
Would you expect that the interest rate on a corporate bond would be higher or lower than the rate on a municipal bond of compar
Wittaler [7]

Answer:

Higher

Explanation:

Bonds refer to debt instruments wherein the issuer raises long term finance, agreeing to pay the lenders i.e bondholders a fixed rate of coupon payments apart from principal repayment at the end of the term.

Bonds issued by corporates are termed as corporate bonds whereas bonds issued by municipal or state authorities are termed as municipal bonds.

Municipal bonds are a safer option for investors as the repayment is assured by the state government which is not the case with corporate bonds which are riskier comparatively since corporates might default upon repayment.

To compensate for higher risk involved, corporates have to issue their bonds at higher interest rates than municipal bonds else such bonds would be unattractive.  

5 0
3 years ago
rex co. holds a 30% of the shares of stock in jones, inc. jones reported net income of $60,000 during the period. rex will repor
Citrus2011 [14]

If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u>  to earnings from equity method investment in the amount of <u>$18,000</u>.

<h3>Equity method investment</h3>

Since rex. co hold 30 percent of the shares of stock in jones inc which in  turn means that jones will report 30% of the earning (net income) which is $18,000 calculated as (30%×$60,000).

The amount of the earnings  which is $18,000 will be credited to earning from  equity method investment.

Equity method investment=30%×$60,000

Equity method investment=$18,000 (credited)

Therefore If inc. jones reported net income of $60,000 during the period. rex will report its 30% of the earnings with a <u>credit</u>  to earnings from equity method investment in the amount of <u>$18,000</u>.

Learn more about Equity method investment here:brainly.com/question/18187746

#SPJ1

8 0
2 years ago
If a firm is worried about distance, country risk, employee morale, intellectual property protection, legal issues, and obtainin
kvasek [131]

Options:

Offshore

Outsource

Keep in-house

Keep domestic

Answer: keep domestic

Explanation: The recruitment options embarked upon by firms may affect the policies or type of processes the firm's employ in overseeing their recruitment process. For firms who seems skeptical about issues relating to distance, legal issues, country risk, morale and other issues listed above, such firms will best be better placed to oversee a hiring process which is restricted to the local environment which the firm is well informed about and devoid of international and legal barriers, oversea culture and mentality which may hamper or affect the required hiring structure of the firm.

6 0
4 years ago
Hugh buys a new calculator for $125 from the PaperMills stationery store. A week later, he sees an ad from another stationery st
tamaranim1 [39]

Answer:

Hugh's statement is an attempt to reduce his frustration about buying the product at a more expensive price.

Explanation:

Human beings always try to find a reason to justify their actions, even if that particular action was a bad one.

Hugh bought a calculator for $125 from one store and the next week, he saw the same calculator being advertised for a significantly lower amount. He felt cheated and he immediately blamed himself for being cheated when there was a better deal out there. As a way to make himself feel better about the ordeal, he tells himself that the product quality from the second store is always known to be of an inferior quality.

This is a defence mechanism to cover or try to hide our frustrations and anger at things not going our way so we invent something that will make us immediately feel better about ourselves and our decision.

8 0
3 years ago
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