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andriy [413]
3 years ago
8

Pete is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he

designs and creates an intricate maple jewelry box that takes him 20 hours to complete. By how much and in what direction does GDP change as a result of his efforts? Group of answer choices GDP rises by $1,875. GDP falls by $1,875. GDP is not affected by Pete's production of the jewelry box. GDP rises by $125.
Business
1 answer:
andreev551 [17]3 years ago
6 0

Answer:

GDP is not affected by Pete's production of the jewelry box.

Explanation:

Pete is a woodworker and works 20 hours to prepare a jewelry box to gift his wife. If Pete prepares this jewelry box to sell and earn revenue, this will be considered in GDP but in this case Pete prepares a jewelry box to give his wife as his wife's birthday gift.

All types of gifts received or given in kind are not included in Gross Domestic Production.

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Answer:

The correct answer is option a.

Explanation:

The full-employment level of output is $2,000.

The current level of output is $1,900.  

The current aggregate demand is $1,850.  

There is a need to increase the aggregate demand by $150 to reach full employment level.  

The government increases purchasing by $30.  

Increase\ in\ income\ =\ Change\ in\ government\ spending\ \times\ spending\ multiplier

\$ 150\ =\ \$ 30\ \times\ \frac{1}{1-MPC}

\$5 = \frac{1}{1-MPC}

1 - MPC = \frac{1}{5}

MPC = 1 - 0.2

MPC = 0.8

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4 years ago
Getaway Travel Company reported net income for 2016 in the amount of $50,000. During 2016, Getaway declared and paid $2,000 in c
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Answer:

Option (B) is correct.

Explanation:

Given that,

Net income = 50,000

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2016 basic earnings per share:

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= 48,000 ÷ 90,000

= $0.53 per share

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Explanation:

Challenge 1: Changes in how buyers buy.

Challenge 2: Competition.

Challenge 3: Need for top talent.

Challenge 4: Competing on price only.

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Answer:

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