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olasank [31]
2 years ago
11

Suppose the price of apples doubles to $3.00 between year 1 and year 2 but that nothing else in the economy changes Instructions

: Round your answers to one decimal placea. What would be the percentage change in nominal GDP? b. What would be the percentage change in real GDP?Suppose the prices of both apples and bread double between year 1 and year 2 and quantities remain unchanged. Instructions: Round your answers to one decimal place a) What would be the percentage change in nominal GDP?% b) What would be the percentage change in real GDP?
Business
1 answer:
Bond [772]2 years ago
6 0

Answer:

1. Suppose Quantity of Apple sold in year one & two =  100Kg.

Price in year 1 = $1.50 per kg

Price in year 2 = $3.00 per kg

Nominal GDP 1 = Price * Quantity = 1.50*100 = $150

Nominal GDP year 2 = 3*100 = $300

Change in Nominal GDP = $150

Percentage change in Nominal GDP = 100%

b. Real GDP of year 1 = Nominal GDP of year 1 = $150

Real GDP of year 2 = 1.50*100 = $150

Change in Real GDP = 0%

2. Quantity of Bread = 100 units price = $ 1 per unit, year 2 price = $ 2 per units

a. Nominal GDP year 1 = 1*100+1.5*100 = $250

Nominal GDP year 2 = 2*100+3*100 = $500

Percentage change in Nominal GDP = 500-250/500 * 100 = 100%

b. Real GDP year 1 = $250

Real GDP year 2 = 1*100 + 1.5*100 = $250

Percentage change in Real GDP = 0%

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During each of the next three years, Silver reported net income of $30,000 and paid dividends of $10,000. On January 1, 20X9, Pl
nikdorinn [45]

Answer:

$255,000

Explanation:

If a company acquires shares of another company the investment amount is shown in the balance sheet of the acquirer. When Plate acquired shares of Silver, it reported the investment of $225,000. The Silver reports a profit of $30,000 on January 2019. The amount reflected in the balance sheet of Plate will be $255,000. This is the sum of investment plus the profit reported by the Silver.

3 0
3 years ago
Why would a producer decide to produce in a competitive market in which she will earn zero profit in the long run? Choose one: A
zhenek [66]

Answer:

Option A : Because at zero profit, with her revenue, she can cover all her costs—explicit and implicit (opportunity cost).

Explanation:

Perfectly Competitive Market

This is simply a market the market participants are said to be price takers that is no consumption decisions by individual consumers and no production decisions by individual producers can be able to affect the market price of a good.

Perfectly Competitive Industry

This is simply an industry where producers are said to be price takers.

Explicit Costs

These are costs that are simply known as "out-of-pocket" costs or in accounting costs. They are an individual's fixed and variable costs of doing business.

Implicit Costs

These are costs that do not partains to monetary payment as they are the opportunity costs of doing business.

It is said that at zero profit, the revenue covers all the costs, including the implicit ones. The fact that her implicit costs are covered shows that no outside option or opportunity that is superior to the zero economic profit option is chosened.

4 0
3 years ago
Selected comparative financial statements of Korbin Company follow:
Oksanka [162]

Answer:

Korbin Company

Selected Comparative Financial Statements:

1. KORBIN COMPANY  Comparative Income Statements

For Years Ended December 31, 2017, 2016, and 2015

                                      2017         %           2016        %            2015        %

Sales                         $515,770    100%   $395,122  100%   $274,200   100%

Cost of goods sold    310,494      60%    250,507    63%      175,488     64%

Gross profit               205,276      40%      144,615    37%        98,712     36%

Selling expenses        73,239       14%       54,527    14%         36,194     13%

Admin.  expenses       46,419        9%        34,771      9%        22,759      8%

Total expenses         119,658       23%      89,298     23%       58,953     21%

Income before taxes  85,618       17%        55,317      14%       39,759     15%

Income taxes             15,925         3%        11,340        3%          8,071       3%

Net income             $69,693        14%   $43,977        11%      $31,688     12%

2. KORBIN COMPANY

Balance Sheet Data in Trend Percents

for December 31, 2017, 2016, and 2015

                                                  2017            2016             2015

Assets

Current assets                        100.00 %          78%             105%  

Long-term investments          100.00            500%          3,690%

Plant assets, net                     100.00             107%             64%

Total assets                            _124__%       _121_ %       100.00 %

Liabilities and Equity

Current liabilities                    _104_ %       _103__ %     100.00 %

Common Stock                       100.00           100%             75%

Other paid-in capital               100.00           100%            66%

Retained earnings                  100.00             92%            84%

Total liabilities and equity      _124_ %         _121_ %      100.00

Explanation:

a. Data:

KORBIN COMPANY

Comparative Balance Sheets

December 31, 2017, 2016, and 2015

                                                 2017             2016             2015

Assets

Current assets                    $53,867       $42,145        $56,338

Long-term investments            0                   500            3,690

Plant assets, net                 100,040       106,805           63,791

Total assets                      $153,907     $149,450        $123,819

Liabilities and Equity

Current liabilities               $22,470     $22,268         $21,668

Common stock                     71,000        71,000           53,000

Other paid-in capital              8,875          8,875             5,889

Retained earnings               51,562        47,307           43,262

Total liabilities & equity  $153,907    $149,450         $123,819

b) In an income statement vertical analysis, each line item is calculated as a percentage of the sales, which is itself 100%.  This enables the proportional analysis of all the items to be computed about their financial performance in relation to the sales for the period.  It can help management to dictate unusual items, errors, and other outliers.

c) The balance sheet trend analysis shows whether the entity's financial position is improving or not in relation to the base period.  Each item is compared horizontally across periods.  The calculation of trend uses the amount in the non-base year and divides it by the amount of the base year x 100.

4 0
3 years ago
When the macroeconomy is experiencing a higher than natural rate of unemployment, it must be because
Alona [7]

Answer:

wages cannot adjust downward quickly and easily.

Explanation:

In a situation where the macroeconomy is experiencing a higher than the natural rate of unemployment, it must be because "wages cannot adjust downward quickly and easily."

Given that wages are arguably the most significant aspect to entice employees or people to work and get paid. Hence, where the wages are not enough to cause for the employees, there tends to be a situation where wages cannot adjust downward quickly and easily. And therefore, people would not want to work where there is low pay, and eventually, unemployment increases.

7 0
3 years ago
Wendy is a college student in her sophomore year. she is single with no kids, has vegetation paid for by scholarship. what type
AlekseyPX

Answer:

none of the above

Explanation:

6 0
3 years ago
Read 2 more answers
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